Torex Gold Resources Inc. press release

Torex Gold Reports Q1 2026 Results

2026-05-06

TSX - Toronto Stock Exchange · Gold · Silver · Copper · Canada · Corporate Finance

Strong financial performance drove record margins and significant free cash flow generation; Media Luna North and Los Reyes projects tracking to plan

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - May 6, 2026) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) (OTCQX: TORXF) reports the Company's financial and operational results for the three months ended March 31, 2026. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the results.

Jody Kuzenko, President & CEO of Torex, stated:

"2026 is off to a solid start with production tracking to plan, the ramp-up of Media Luna complete, and an enhanced return of capital program in place, reflecting the robust free cash flow generation of the business. Importantly, our safety performance continued to be excellent, with no lost-time injuries in Q1 and a lost-time injury frequency of zero per million hours worked as at the end of the quarter.

"During the first quarter, we delivered multiple quarterly financial records including revenue of $539 million, adjusted EBITDA1of $359 million, and an impressive all-in sustaining costs margin1of 60%, ending the quarter with available liquidity1of over $465 million. The Company generated $157 million in free cash flow1 after $165 million in tax and royalty payments, which was used to pay down the $30 million of outstanding debt, deliver $10 million in cash dividends to our shareholders, and repurchase $111 million of shares under our normal course issuer bid ("NCIB"). With gold, silver, and copper prices remaining robust, and annual tax and royalty payments made in March, Torex is well-positioned to continue to deliver significant free cash flow while also delivering on our capital allocation priorities through the remainder of the year and beyond.

"Gold equivalent production is tracking to plan for the year, with second quarter production expected to be at a similar level as the first quarter and then increase as we move into higher grade and higher recovery stopes in the second half of the year. All-in sustaining costs are expected to follow a similar path, with costs improving in line with the stronger anticipated production subject to the potential impact on royalties and profit-sharing payments of higher than forecast metal prices, as well as the continued strength of the Mexican peso.

"On the project front, development of Media Luna North is tracking to plan and on schedule to deliver first ore by year-end. A preliminary economic assessment for Los Reyes is on track to be released mid-year, which will demonstrate our confidence in the long-term value of the project. We continue to focus on putting in place the conditions to allow a safe return to drilling at Los Reyes following security risks in the region, while drilling at our regional prospects in Chihuahua and Nevada is expected to kick off this summer. Drilling at Morelos is gaining momentum, with plans to direct more of the planned expenditure this year to the eastern and southern extensions of Media Luna, specifically within the San Miguel Corridor.

"Overall, the Company is in an excellent position financially and operationally. With significant free cash flow generation and our operations tracking to plan, we're well-placed to continue to generate impressive returns at Morelos for the foreseeable future and unlock value across our expanded portfolio of assets in Nevada and Mexico."

Q1 2026 HIGHLIGHTS

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Safety performance:The Company recorded no lost-time injuries during the quarter and exited the quarter with a lost-time injury frequency ("LTIF") of 0.00 per million hours worked for both employees and contractors on a rolling 12-month basis.

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Gold production:Production of 100,874 gold equivalent ounces2 (oz AuEq), including 73,647 oz Au for the quarter. The Media Luna underground mine achieved a quarterly average design throughput of 7,500 tonnes per day ("tpd") nine months ahead of the schedule set out in the technical report and three months ahead of the most recent forecast. In addition, performance at ELG Underground remained consistently strong as mining rates averaged more than 3,000 tpd. Production was influenced by mine sequencing and maintenance activities at the processing plant. Consistent with annual guidance, quarterly production is expected to remain at similar levels during Q2 before increasing in the second half of the year. The Company is on track to achieve annual production guidance of 420,000 to 470,000 oz AuEq2.

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Record quarterly revenue: Gold equivalent ounces sold of 109,222 oz AuEq2at a record quarterly average realized gold price1of $4,784 per oz AuEq2, contributing to revenue of $539.3 million. Revenue for the quarter includes a net loss of $24.0 million for price adjustments on provisionally priced concentrate sales (a realized gain of $8.1 million on final sales settlements during the first quarter and an unrealized loss of $32.1 million on provisional sales pending final settlement) due to lower metals prices at the end of the quarter. In the first quarter of 2026, the Company recognized a net derivative gain of $6.9 million (an unrealized gain of $21.3 million and a realized loss of $14.4 million) on quotational period hedges entered into to mitigate price risk on provisionally priced sales.

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Robust all-in sustaining margins1:Quarterly all-in sustaining costs of $1,917 per oz AuEq sold2, relative to guidance of $1,750 to $1,850 per oz AuEq sold2. All-in sustaining costs margin1of $2,867 per oz AuEq sold, implying a record quarterly all-in sustaining costs margin1of 60%. Cost of sales was $226.7 million or $2,076 per oz AuEq sold. Costs during the quarter reflect the impact of the higher market price for gold, silver and copper on royalties, Mexican profit sharing and land access agreements, known as temporary occupation agreements ("TOAs"), with local communities.

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Record profitability and adjusted EBITDA1:Reported record quarterly net income of $207.5 million or earnings of $2.18 per share on a basic basis and $2.16 on a diluted basis. Adjusted net earnings of $199.7 million or $2.10 per share on a basic basis and $2.08 per share on a diluted basis. Generated record quarterly EBITDA of $358.1 million and record adjusted EBITDA of $358.6 million.

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Strong cash flow generation:Net cash generated from operating activities totalled $209.8 million and $174.2 million before changes in non-cash operating working capital, including income taxes and royalties paid of $164.5 million, reflecting the annual true-up of corporate income taxes, the annual payment of mining taxes, the annual payment of the 1% royalty, the quarterly payment of the 2.5% royalty, and instalments for income taxes for 2026. Free cash flow1of $157.3 million is net of cash outlays for capital expenditures, lease payments, and interest.

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Strong financial liquidity:In January 2026, the Company fully repaid the remaining $30.0 million drawn on the credit facility. The Company has a fully undrawn credit facility of $350.0 million with a maturity date in June 2029 and a $200.0 million accordion feature that is available at the discretion of the lenders. The quarter closed with a $466.9 million in available liquidity1, including $130.0 million in cash and $336.9 million available on the $350.0 million credit facilities, net of letters of credit outstanding of $13.1 million.

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Return of Capital to Shareholders3: In May, the Company announced an enhanced return of capital program targeting the return of $350.0 million to shareholders during 2026, through a combination of share repurchases and dividends. During the first quarter, the Company leveraged strong cash flow generation to return $121.2 million under its return of capital program.

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Dividends: During the first quarter of 2026, the Company paid dividends of $10.4 million. In May 2026, the Company declared its next quarterly dividend of C$0.16 per common share ("Torex Share"), an increase of 7% over the prior quarterly dividend, which is payable on June 4, 2026 to shareholders of record on May 21, 2026.

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Share Repurchases: During the first quarter of 2026, the Company repurchased 2,141,801 Torex Shares for $110.8 million (C$151.4 million) at an average price per share of $51.73 (C$70.69) under the Company's NCIB.

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Media Luna North Project:During the quarter, $14.7 million of non-sustaining capital expenditures were incurred relating to Media Luna North. Development of the main access ramp and haulage drift at Media Luna North continued to track well. First production at Media Luna North remains on track for late 2026 with the declaration of commercial production shortly thereafter.

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Exploration and Drilling Activities4:In April, the Company announced results from the ongoing drilling and exploration program within the ELG Underground and Media Luna Cluster. Results to date support the Company's objective of expanding resources while enhancing and extending the current production profile of the Morelos Complex.

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ELG Underground: The discovery of new mineralized structures at the El Limón Sur trend and mineralization encountered beyond the boundary of defined resources at both the Sub-Sill and El Limón West trends, continue to demonstrate the upside resource potential of ELG Underground.

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Media Luna Cluster: Results support the potential to expand resources to the south and east of the Media Luna mine. In addition, surface mapping suggests potential continuity between these zones which will be the focus of follow-up drilling.

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Year-end Mineral Reserves & Resources5: In March, the Company released its 2025 mineral reserves and resources update.

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Morelos:Mineral reserves for Morelos increased 4% prior to depletion (5% decrease net of depletion), with gains from drilling success at ELG Underground and Media Luna partially offsetting depletion and the reductions in reserves associated with updates to the geological model at Media Luna North. At Media Luna West, an inaugural Inferred Resource of 506 koz AuEq was delineated with an average grade of 5.11 grams per tonne ("gpt") AuEq.

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Los Reyes Project: The acquisition of Los Reyes added 2,047 koz AuEq of Indicated Resources and 765 koz AuEq of Inferred Resources to the Company's overall resource inventory.

Record investment in exploration and resource drilling of $77.0 million is planned for 2026, focusing on enhancing and extending the production profile at the Morelos Complex, advancing and de-risking Los Reyes, and surfacing value across its early-stage exploration properties.

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CEO Transition: On February 4, 2026, the Company announced that Jody Kuzenko, President and Chief Executive Officer ("CEO"), will retire from the Company immediately following the Annual and Special Shareholder Meeting on June 17, 2026. As part of the Company's long-term succession planning, Andrew Snowden, Chief Financial Officer ("CFO"), will assume the role of President and CEO at that time. The Company is in the final phase of its CFO search and will announce a replacement in due course.

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Appointment of New Director: In April, the Company announced the appointment of Mr. Jacques Perron to the Board of Directors. Mr. Perron is a seasoned director with over 40 years of experience in the mining sector and has extensive technical and operations experience.

CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the first quarter operating and financial results. For expedited access to the conference call, registrationis open to obtain an access code in advance, which will allow participants to join the call directly at the scheduled time. Alternatively, dial-in details are as follows:

Toronto local or International: 1-647-846-8914 Toll-Free (North America): 1-833-752-3842

A live webcast and replay of the conference call will be available on the Company's website at https://torexgold.com/investors/upcoming-events/. The webcast will be archived on the Company's website.

FOOTNOTES

1. These measures are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS, see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to "Non-GAAP Financial Performance Measures" of the Company's MD&A for the three months ended March 31, 2026, dated May 5, 2026. The MD&A and the Company's unaudited condensed consolidated financial statements and related notes for the three months ended March 31, 2026, are available on Torex's website (www.torexgold.com) and under the Company's SEDAR+ profile (www.sedarplus.ca). 2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. For the three months ended March 31, 2026, market prices averaged $4,873/oz gold, $84.33/oz silver, and $5.83/lb copper, and AuEq (oz) = Au (oz) + 1,000 (84.33 / 4,873) x Ag (koz) + 1,000,000 x (5.83 / 4,873) x Cu (mlb). Guidance for 2026 assumed metal prices of $4,000/oz gold, $45.00/oz silver, and $4.90/lb copper, and AuEq (oz) = Au (oz) + 1,000 (45.00 / 4,000) x Ag (koz) + 1,000,000 x (4.90 / 4,000) x Cu (mlb). 3. For more information on the Company's return of capital program, see the Company's news release titled "Torex Gold Reports Enhanced Return of Capital Program" issued on May 6, 2026, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com. 4. For more information on the Morelos exploration and drilling results, see the Company's news release titled "Torex Gold Provides Q1 2026 Morelos Drilling & Exploration Update" issued on April 30, 2026, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com. 5. Mineral reserve and mineral resource estimates for the Morelos Complex can be found in tables 12 and 13, below. AuEq values account for underlying metal prices and metallurgical recoveries used in reserve and resource estimates. For additional information on the mineral reserve and mineral resource estimates for the Morelos Complex, please see the Company's annual information form for the year ended December 31, 2025, or the Company's news release titled "Torex Gold Reports Year-end 2025 Reserves & Resources" issued on March 24, 2026, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com.

Table 1: Operating and Financial Highlights

| | | | Three Months Ended | | | | | | | | | | | | Mar 31, | | | Dec 31, | | | Mar 31, | | | In millions of U.S. dollars, unless otherwise noted | | 2026 | | | 2025 | | | 2025 | | | | Safety | | | | | | | | | | | | Lost-time injury frequency1 | /million hours | | 0.00 | | | 0.07 | | | 0.59 | | | Total recordable injury frequency1 | /million hours | | 0.61 | | | 0.73 | | | 1.52 | | | Operating Results - Gold Equivalent basis | | | | | | | | | | | | Gold equivalent produced | oz AuEq | | 100,874 | | | 117,325 | | | 59,777 | | | Gold equivalent payable produced2 | oz AuEq | | 98,482 | | | 114,844 | | | 59,630 | | | Gold equivalent sold2 | oz AuEq | | 109,222 | | | 105,946 | | | 60,568 | | | Total cash costs2,3 | $/oz AuEq | | 1,534 | | | 1,499 | | | 1,020 | | | All-in sustaining costs2,3 | $/oz AuEq | | 1,917 | | | 1,905 | | | 1,405 | | | Average realized gold price2,3 | $/oz AuEq | | 4,784 | | | 4,393 | | | 2,793 | | | Financial Results | | | | | | | | | | | | Revenue | $ | | 539.3 | | | 465.3 | | | 170.0 | | | Cost of sales | $ | | 226.7 | | | 214.7 | | | 94.1 | | | Earnings from mine operations | $ | | 312.6 | | | 250.6 | | | 75.9 | | | Net income | $ | | 207.5 | | | 166.8 | | | 39.0 | | | Per share - Basic | $/share | | 2.18 | | | 1.78 | | | 0.45 | | | Per share - Diluted | $/share | | 2.16 | | | 1.76 | | | 0.45 | | | Adjusted net earnings3 | $ | | 199.7 | | | 161.0 | | | 35.9 | | | Per share - Basic3 | $/share | | 2.10 | | | 1.72 | | | 0.42 | | | Per share - Diluted3 | $/share | | 2.08 | | | 1.70 | | | 0.41 | | | EBITDA3 | $ | | 358.1 | | | 260.4 | | | 88.1 | | | Adjusted EBITDA3 | $ | | 358.6 | | | 273.0 | | | 91.8 | | | Cost of sales - gold equivalent basis | $/oz AuEq | | 2,076 | | | 2,027 | | | 1,554 | | | Net cash generated from (used in) operating activities | $ | | 209.8 | | | 244.3 | | | (9.9 | ) | | Net cash generated from (used in) operating activities before changes in non-cash operating working capital | $ | | 174.2 | | | 248.6 | | | (17.7 | ) | | Free cash flow3 | $ | | 157.3 | | | 165.6 | | | (133.3 | ) | | Cash and cash equivalents | $ | | 130.0 | | | 119.5 | | | 106.5 | | | Debt, net of deferred finance charges | $ | | - | | | 27.6 | | | 193.1 | | | Lease-related obligations | $ | | 101.1 | | | 105.6 | | | 86.5 | | | Net cash (debt)3 | $ | | 28.9 | | | (16.1 | ) | | (175.0 | ) | | Available liquidity3 | $ | | 466.9 | | | 426.3 | | | 197.6 | |

1. On a 12-month rolling basis, per million hours worked. 2. Gold equivalent ounces produced and sold include production of silver and copper converted to a gold equivalent based on a ratio of the average market prices for each commodity sold in the period. Refer to the "Gold Equivalent Reporting" section of the Company's MD&A for the three months ended March 31, 2026, dated May 5, 2026 for the relevant average market prices by commodity, available on Torex's website (www.torexgold.com) and under the Company's SEDAR+ profile (www.sedarplus.ca). 3. Total cash costs, all-in sustaining costs, average realized gold price, adjusted net earnings, adjusted net earnings per share, EBITDA, adjusted EBITDA, free cash flow, net debt and available liquidity are non-GAAP financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. For a detailed reconciliation of each Non-GAAP Measure to its most directly comparable measure in accordance with the IFRS as issued by the International Accounting Standards Board see Tables 2 to 11 of this press release. For additional information on these Non-GAAP Measures, please refer to the Company's MD&A for the three months ended March 31, 2026, dated May 5, 2026. The MD&A and the Company's unaudited condensed consolidated interim financial statements and related notes for the three months ended March 31, 2026, are available on Torex's website (www.torexgold.com) and under the Company's SEDAR+ profile (www.sedarplus.ca).

Table 2: Reconciliation of Total Cash Costs and All-in Sustaining Costs to Production Costs and Royalties

| | | | Three Months Ended | | | | | | | | | | | | Mar 31, | | | Dec 31, | | | Mar 31, | | | In millions of U.S. dollars, unless otherwise noted | | | 2026 | | | 2025 | | | 2025 | | | Gold sold | oz | | 81,233 | | | 87,262 | | | 59,756 | | | Total cash costs per oz sold | | | | | | | | | | | | Production costs | $ | | 151.3 | | | 145.3 | | | 56.2 | | | Royalties | $ | | 19.0 | | | 15.6 | | | 6.0 | | | Silver sales1 | $ | | (47.2 | ) | | (31.8 | ) | | (1.1 | ) | | Copper sales1 | $ | | (88.8 | ) | | (62.6 | ) | | (1.2 | ) | | Treatment, refining and other cost deductions | $ | | (2.4 | ) | | 1.4 | | | - | | | Realized gain on foreign currency contracts | $ | | (0.4 | ) | | (3.5 | ) | | (0.4 | ) | | Total cash costs | $ | | 31.5 | | | 64.4 | | | 59.5 | | | Total cash costs per oz sold | $/oz | | 388 | | | 738 | | | 996 | | | All-in sustaining costs per oz sold | | | | | | | | | | | | Total cash costs | $ | | 31.5 | | | 64.4 | | | 59.5 | | | General and administrative costs2 | $ | | 10.2 | | | 9.7 | | | 8.7 | | | Reclamation and remediation costs | $ | | 2.0 | | | 1.2 | | | 1.0 | | | Sustaining capital expenditure3 | $ | | 29.7 | | | 32.1 | | | 13.6 | | | Total all-in sustaining costs | $ | | 73.4 | | | 107.4 | | | 82.8 | | | Total all-in sustaining costs per oz sold | $/oz | | 904 | | | 1,231 | | | 1,386 | | | | | | | | | | | | | | | Gold equivalent sold4 | oz AuEq | | 109,222 | | | 105,946 | | | 60,568 | | | Total cash costs per oz AuEq sold | | | | | | | | | | | | Production costs | $ | | 151.3 | | | 145.3 | | | 56.2 | | | Royalties | $ | | 19.0 | | | 15.6 | | | 6.0 | | | Treatment, refining and other cost deductions | $ | | (2.4 | ) | | 1.4 | | | - | | | Realized gain on foreign currency contracts | $ | | (0.4 | ) | | (3.5 | ) | | (0.4 | ) | | Total cash costs | $ | | 167.5 | | | 158.8 | | | 61.8 | | | Total cash costs per oz AuEq sold4 | $/oz AuEq | | 1,534 | | | 1,499 | | | 1,020 | | | All-in sustaining costs per oz AuEq sold | | | | | | | | | | | | Total cash costs | $ | | 167.5 | | | 158.8 | | | 61.8 | | | General and administrative costs2 | $ | | 10.2 | | | 9.7 | | | 8.7 | | | Reclamation and remediation costs | $ | | 2.0 | | | 1.2 | | | 1.0 | | | Sustaining capital expenditure3 | $ | | 29.7 | | | 32.1 | | | 13.6 | | | Total all-in sustaining costs | $ | | 209.4 | | | 201.8 | | | 85.1 | | | Total all-in sustaining costs per oz AuEq sold4 | $/oz AuEq | | 1,917 | | | 1,905 | | | 1,405 | |