Torex Gold Resources (73GN) Q2 2026 Earnings Report

The call presented a largely positive operational and financial picture: production remains on plan, throughput and mining rates are outperforming, cash flow and liquidity are strong, projects (Media Luna North, Los Reyes) and exploration are progressing, and capital returns are substantial. However, material cost headwinds (elevated AISC driven by higher reagent consumption and prices, a stronger Mexican peso, and below-target gold recoveries), higher sustaining capex, and provisional pricing noise are notable challenges. Management has outlined clear mitigation strategies and expects improving recoveries and production in H2 to materially improve costs and cash flow.

Management left full‑year production guidance unchanged at 420,000–470,000 ounces (Q2 produced just over 96,000 oz and YTD ~197,000 oz; July >43,000 oz and Q3 guide ~115,000 oz), but revised AISC to $2,000–$2,100/oz (Q2 AISC $2,459/oz; YTD AISC $2,165/oz) on updated metal assumptions of $4,500/oz gold (previously $4,000), $72.50/oz silver and $6/lb copper; sustaining capital is now $135–$145M and exploration budget was increased to $85M (from $77M) with 20,000 m planned at Los Reyes and >13,000 m added near Media Luna, while mining and processing rates remain strong (Media Luna ~7,700 tpd, ELG ~3,100 tpd, plant throughput ~10,800 tpd), targeted gold recovery 90% (July ~88%), cyanide consumption ~6.5 kg/t (vs prior budgeted 2.5–3 kg/t), Q2 free cash flow $94M (after $39M Mexican profit‑sharing), margin 46%, cash $169M (from $130M) with >$500M liquidity, no debt and credit facility extended to June 2030 (with $200M accordion), capital returns $55M in Q2 (YTD $176M toward a $350M target), expected income tax installments ~ $55M/quarter in H2, Media Luna North still on track for first production by end‑2026, and Los Reyes PFS expected late‑2027.