Torex Gold Resources (TXRN) Q3 2026 Earnings Report

The call was strongly positive, led by a 37% quarter-over-quarter production increase, a 27% reduction in all-in sustaining costs, robust EBITDA and free cash flow growth, strong liquidity and progress toward multiple organic growth opportunities. The main cautions were persistent consumable and currency cost pressures, higher expected sustaining capital in 2027, temporary Q4 cash-flow timing effects and the execution and resource dependencies associated with future plant expansion.

Torex remains on track for annual production guidance of 420,000 to 470,000 ounces and full-year all-in sustaining costs of $2,000 to $2,100 per ounce, with full-year capital expenditures of $300 million to $320 million; 2027 production is expected to average in the 110,000 to 115,000 ounce range per quarter, based on about 4 grams a tonne gold equivalent and current plant throughput levels, with Media Luna expected to maintain 8,000 tonnes per day. Media Luna North remains on track for first ore late this year, with approximately 1,000 tonnes per day on average in 2027, the current plan to end the year at close to 1,400 tonnes per day, and further ramp-up towards the 2,300 tonne per day design capacity in subsequent years. Debottlenecking is expected to increase plant capacity to approximately 12,000 tonnes per day, begin in Q1 of 2027, be complete by the end of 2027, and provide the full year benefit through the course of 2028, while the larger expansion would increase capacity to 14,500 tonnes per day at about $100 million, with a Q1 of 2028 decision; the projects represent approximately 50,000 of additional ounces annually and a further approximate 100,000 ounces a year. Cyanide consumption is expected to remain at current levels through next year, all-in sustaining costs in '27 are expected to be relatively consistent with the level guided in 2026, Los Reyes’ pre-feasibility study is targeted for delivery in late 2027, and first production is targeted in 2031.