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Torex Gold Resources
(TSX:TXG)
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Rating:82Outperform
Price Target:
C$81.00
▲(12.14% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial performance (high TTM profitability, low leverage, and solid current free cash flow) and an attractive low earnings multiple. The main constraints are earnings-call cost headwinds (higher AISC from reagents/FX and recoveries) and a technical setup that looks extended (very high stochastic and still below the 200-day average).
Positive Factors
Strong revenue and earnings growth
Strong TTM revenue growth and a sharp earnings improvement indicate expanding operating performance and improved profitability. If production execution remains on plan, this stronger earnings base can support reinvestment, exploration, and shareholder returns over the next several quarters.
Negative Factors
Elevated and rising production costs
Higher AISC reduces the cash margin generated per ounce and makes earnings more sensitive to changes in operating conditions. The guidance increase indicates that cost pressure is not limited to one quarter, potentially constraining free cash flow and capital allocation over the coming periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and earnings growth
Strong TTM revenue growth and a sharp earnings improvement indicate expanding operating performance and improved profitability. If production execution remains on plan, this stronger earnings base can support reinvestment, exploration, and shareholder returns over the next several quarters.
Read all positive factors
Torex Gold Resources (TXG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.37B
Dividend Yield0.89%
Average Volume (3M)570.39K
Price to Earnings (P/E)7.8
Beta (1Y)2.21
Revenue Growth75.86%
EPS Growth161.88%
CountryCA
Employees883
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)6.18
Shares Outstanding92,594,590
10 Day Avg. Volume405,771
30 Day Avg. Volume570,390
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.73
Price to Sales (P/S)3.16
P/FCF Ratio37.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$91.75Price Target Upside27.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)6.31
Revenue Forecast (FY)C$2.05B
Torex Gold Resources Business Overview & Revenue Model
Company Description
Torex Gold Resources Inc., an intermediate-tier gold producer, conducts its mining operations predominantly in Mexico. The company's core asset is its 100% owned Morelos Gold property, a substantial 29,000-hectare concession located southwest of M...
How the Company Makes Money
Torex Gold Resources makes money primarily by producing and selling gold. Its revenue model is driven by (1) gold sales: the company mines ore, processes it to recover gold (typically into doré or equivalent saleable product), and sells the result...
Torex Gold Resources Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Production on Track and H2 Upside
Q2 production of just over 96,000 oz (gold equivalent) and year-to-date ~197,000 oz; management expects Q2 was the lowest quarter and forecasted full-year production guidance unchanged at 420,000–470,000 oz with a step-up in H2 (July produced >43,000 oz and Q3 modeled ~115,000 oz).
Negative Updates
Elevated All-in Sustaining Costs (AISC)
Q2 AISC was $2,459/oz and year-to-date AISC $2,165/oz (Q2 ~14% higher than YTD). Full-year AISC guidance was raised to $2,000–$2,100/oz from $1,750–$1,850/oz (midpoint increase of ~14%).
Read all updates
Q2-2026 Updates
Positive
Negative
Production on Track and H2 Upside
Q2 production of just over 96,000 oz (gold equivalent) and year-to-date ~197,000 oz; management expects Q2 was the lowest quarter and forecasted full-year production guidance unchanged at 420,000–470,000 oz with a step-up in H2 (July produced >43,000 oz and Q3 modeled ~115,000 oz).
Read all positive updates
Company Guidance
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.Torex Gold Resources Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.33B | 1.12B | 882.60M | 868.50M | 855.80M |
| Gross Profit | 911.14M | 609.49M | 659.80M | 484.60M | 505.20M | 524.80M |
| EBITDA | 1.05B | 716.22M | 548.30M | 421.40M | 481.50M | 500.10M |
| Net Income | 600.70M | 410.46M | 134.60M | 204.40M | 188.80M | 151.70M |
Balance Sheet | ||||||
| Total Assets | 3.08B | 3.02B | 2.14B | 1.84B | 1.59B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 169.40M | 119.28M | 110.20M | 172.80M | 376.00M | 255.70M |
| Total Debt | 99.40M | 201.93M | 141.20M | 32.00M | 3.90M | 3.30M |
| Total Liabilities | 502.60M | 597.71M | 508.90M | 340.70M | 303.20M | 258.50M |
| Stockholders Equity | 2.58B | 2.42B | 1.63B | 1.50B | 1.29B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 550.55M | 111.62M | -112.20M | -178.70M | 130.50M | 99.50M |
| Operating Cash Flow | 786.85M | 472.12M | 449.50M | 300.80M | 408.10M | 330.00M |
| Investing Cash Flow | -250.39M | -366.81M | -562.70M | -498.30M | -280.50M | -203.70M |
| Financing Cash Flow | -472.53M | -97.27M | 53.60M | -7.90M | -7.70M | -44.90M |
Torex Gold Resources Technical Analysis
Positive
72.23
Price Trends
60.58
Positive
60.33
Positive
63.56
Positive
Market Momentum
2.58
Positive
56.95
Neutral
61.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TXG, the sentiment is Positive. The current price of 72.23 is above the 20-day moving average (MA) of 67.26, above the 50-day MA of 60.58, and above the 200-day MA of 63.56, indicating a bullish trend. The MACD of 2.58 indicates Positive momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TXG.
Torex Gold Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | C$9.28B | 8.68 | 37.64% | 0.99% | 55.87% | 135.78% | |
82 Outperform | C$6.37B | 7.81 | 25.62% | 0.89% | 75.86% | 161.88% | |
77 Outperform | C$10.40B | 28.48 | 10.25% | 0.08% | 46.87% | 42.18% | |
69 Neutral | C$9.94B | 9.48 | 21.87% | 1.45% | 72.47% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:TXG
Torex Gold Resources
69.95
17.06
32.27%
TSE:SSRM
SSR Mining
51.97
21.55
70.84%
TSE:BTO
B2Gold
7.65
1.69
28.36%
TSE:OGC
OceanaGold
42.93
14.93
53.31%
Torex Gold Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
Torex Gold Delivers Strong Q2 Cash Flow and Raises Cost Guidance as Grades Set to Improve
Positive
Aug 6, 2026
Torex Gold reported Q2 2026 production of 96,297 gold equivalent ounces, in line with expectations despite lower grades and recoveries at Media Luna. Strong safety performance continued with no lost-time injuries for the fifth consecutive quarter,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.