Torex Gold Resources Inc. press release
Torex Gold Reports Q4 and Full-Year 2025 Results
TSX - Toronto Stock Exchange · Gold · Silver · Copper · Canada
Record quarterly free cash flow generation has enabled full repayment of debt while continuing to return capital to shareholders
(All amounts expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario--(Newsfile Corp. - February 18, 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 and year ended December 31, 2025. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the results.
Jody Kuzenko, President & CEO of Torex, stated:
"2025 was a transformational and standout year for Torex. We delivered on several key aspects of our strategy - the culmination of years of hard work coming together - including completing the Media Luna Project, declaring commercial production, and ramping up to targeted mining and processing rates ahead of schedule; returning to strong free cash flow mid-year; and executing on our inaugural return of capital program. We also expanded our portfolio beyond Morelos through the acquisitions of Prime Mining and Reyna Silver, which provide a pipeline of assets to support our next phase of growth in Northern Mexico and Nevada. Most importantly, we achieved all of this safely, exiting the year with a lost-time injury frequency of 0.07 per million hours worked, marking one of our safest years ever.
"Q4 payable production of 114,844 gold equivalent ounces1("oz AuEq") resulted in second half payable production of 233,878 oz AuEq1, setting the pace we expect to continue through 2026 with Media Luna on track to achieve steady-state production of 7,500 tonnes per day ("tpd") by mid-year, if not earlier. The processing plant also continued to deliver, with throughput and gold and copper recoveries consistently achieving design levels. At ELG Underground, mining rates of 2,753 tpd for the year were right on plan and are expected to remain at or above this level through 2026. First production at Media Luna North (formerly EPO) remains on track for late 2026, which firmly establishes a minimum of at least 420,000 to 470,000 oz AuEq1produced annually through 2030 and likely well beyond as we continue to unlock the full potential of Morelos through drilling and exploration.
"The strong operational performance through the second half of the year, supported by a backdrop of record metal prices, drove exceptional financial results, including record annual revenue of $1.3 billion and record annual adjusted EBITDA2of $730 million. Although full-year all-in sustaining costs2of $1,783/oz AuEq sold were above our guided range largely due to the impact of the higher gold price, we achieved an impressive record annual all-in sustaining costs margin2of 51%. Free cash flow2of $166 million in the fourth quarter was also a new record, enabling us to pay our inaugural dividend of $0.15 per share in December, repurchase more than 825,000 shares during the year and, at the end of January, fully repay the debt taken on to fund Media Luna.
"With a balance sheet that is in impeccable shape and our operations at Morelos firing on all cylinders, we're set to deliver another excellent year in 2026. With the Media Luna ramp up tracking ahead of schedule, work well underway on the preliminary economic assessment at Los Reyes, development of Media Luna North tracking to plan, and the upcoming transition of Andrew to President & CEO in June, Torex is well set up to embark on the next chapter of growth and value generation."
FULL YEAR 2025 HIGHLIGHTS
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Safety performance:The Company exited the year with a lost-time injury frequency ("LTIF") of 0.07 per million hours worked for both employees and contractors on a rolling 12-month basis.
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Annual payable production: Delivered annual payable production of 376,364 gold equivalent ounces ("oz AuEq1"), including 315,678 ounces of gold ("oz Au"), 1,286 thousand ounces of silver ("koz Ag"), and 34.8 million pounds of copper ("mlb Cu"). At guidance metal prices, annual payable production was 389,857 oz AuEq1, marginally lower than the annual payable production guidance of 400,000 to 450,000 oz AuEq1.
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Record annual revenue: Annual gold equivalent ounces sold of 361,518 oz AuEq1at a record annual average realized gold price2of $3,612 per oz AuEq1, contributing to revenue of $1,305.6 million.
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Robust all-in sustaining margins: Annual all-in sustaining costs of $1,783 per oz AuEq sold1 or $1,630 per oz AuEq sold1at guided metal prices, relative to guidance of $1,400 to $1,600 per oz AuEq sold1. All-in sustaining costs margin2of $1,830 per oz AuEq sold1, implying a record annual all-in sustaining costs margin2of 51%. Cost of sales was $668.7 million or $1,850 per oz AuEq sold1. Costs during the year reflect the impact of the higher gold market prices on royalties, Mexican profit sharing and land access agreements, known as temporary occupation agreements ("TOAs"), with local communities.
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Strong profitability and record annual adjusted EBITDA2: Reported net income of $403.4 million, or earnings of $4.58 per share on a basic basis and $4.53 per share on a diluted basis. Adjusted net earnings2of $350.1 million, or $3.98 per share on a basic basis and $3.93 per share on a diluted basis. Generated a record annual EBITDA2of $697.9 million and a record annual adjusted EBITDA2of $730.3 million.
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Strong cash flow generation:Net cash generated from operating activities totalled $489.0 million and $530.2 million before changes in non-cash operating working capital. Net cash generated from operating activities (including changes in non-cash operating working capital) of $489.0 million includes income taxes paid of $204.8 million. Positive free cash flow2of $107.3 million is net of cash outlays for capital expenditures, lease payments and interest, including borrowing costs capitalized.
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Strong financial liquidity: The Company has a 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 year closed with $426.3 million in available liquidity2, including $119.5 million in cash and $306.8 million available on the $350.0 million credit facility, net of borrowings of $30.0 million and letters of credit outstanding of $13.2 million. In January 2026, the Company fully repaid the remaining $30.0 million of borrowings on the credit facility.
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Media Luna Project completion:In late March, the tie-in period was completed at the processing plant and the Company achieved first production of copper concentrate, with commercial production at Media Luna declared on May 1, 2025. During the year $145.9 million of non-sustaining capital expenditures were incurred related to Media Luna, including $55.1 million following the declaration of commercial production primarily related to the construction of the paste plant and underground paste distribution system, tailings feed supply system, and underground material handling systems.
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Media Luna North Underground Project: During the year, $25.6 million of non-sustaining capital expenditures were incurred relating to Media Luna North, including $8.5 million of feasibility study costs and an additional $8.8 million of direct project costs. Development of the main access ramp at Media Luna North continued to track well. The Media Luna North internal feasibility study was completed including all associated infrastructure engineering, as well as geotechnical, hydrogeological, geochemistry, metallurgical evaluations, final mine design, sequence, and integrated mine scheduling with Media Luna. First production at Media Luna North is targeted for late 2026 with the declaration of commercial production shortly thereafter.
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Exploration and Drilling Activities:In December, the Company announced results from the drilling program at Media Luna West3. Drilling results support the Company's strategy to target near-mine opportunities in the Media Luna Cluster in order to further enhance and extend the production profile of the Morelos Complex. Based on these results and ongoing modelling work, the Company expects to declare an inaugural Inferred Resource with the Company's annual mineral reserves and resources update in March 2026. The Company plans to invest a record $77 million in exploration and drilling in 2026 including $43 million at Morelos. Drilling at Los Reyes remains suspended given the security environment within the State of Sinaloa and will resume once the Company is fully satisfied its employees and contractors can safely access and operate at site.
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Executing on the strategy to create a diversified, Americas-focused precious metals producer: The acquisitions of Reyna Silver and Prime Mining enhance medium and long-term growth potential:
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Reyna Silver: In August, the Company completed the acquisition of Reyna Silver4for total cash consideration of $27.4 million. The acquisition provides Torex with 100% ownership in two exciting exploration properties in Chihuahua, Mexico (Batopilas and Guigui), as well as exposure to two highly prospective properties in Nevada (Gryphon and Medicine Springs) via option agreements. In January 2026, the Company paid $0.3 million to the Medicine Springs optionors, and exercised its option to acquire a 100% interest in the Medicine Springs project.
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Prime Mining: In October, the Company completed the share acquisition of Prime Mining5for total consideration of $436.2 million. As a result of the transaction, Torex acquired a 100% interest in the Los Reyes project located in Sinaloa, Mexico.
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CEO Transition: On February 4, 2026, the Company announced that Jody Kuzenko, President and Chief Executive Officer, 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, will assume the role of President and CEO at that time.
Q4 2025 HIGHLIGHTS
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Safety performance: The Company recorded no lost-time injuries during the quarter.
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Payable production:Delivered payable production of 114,844 oz AuEq1, including 93,335 oz Au, 454 koz Ag, and 12.6 mlb Cu.
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Gold equivalent sold:Sold 105,946 oz AuEq1at a record quarterly average realized gold price2of $4,393 per oz AuEq1, contributing to quarterly revenue of $465.3 million.
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All-in sustaining costs2: All-in sustaining costs of $1,905 per oz AuEq sold1. All-in sustaining costs margin2were $2,488 per oz AuEq sold1, implying a record all-in sustaining costs margin2of 57%. Cost of sales was $214.7 million or $2,027 per oz AuEq sold1 in the quarter.
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Net income and adjusted net earnings2:Reported net income of $166.8 million or earnings of $1.78 per share on a basic basis and $1.76 per share on a diluted basis. Adjusted net earnings of $167.0 million or $1.78 per share on a basic basis and $1.76 per share on a diluted basis.
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EBITDA2and adjusted EBITDA2: Generated EBITDA of $260.4 million and adjusted EBITDA of $281.5 million.
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Cash flow generation: Net cash generated from operating activities totalled $244.3 million and $248.6 million before changes in non-cash operating working capital includes income taxes paid of $38.0 million and record quarterly free cash flow2of $165.6 million.
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Media Luna North Underground Project:During the fourth quarter of 2025, $10.2 million was invested in the project, including $1.4 million of feasibility study costs and an additional $5.7 million of direct project costs inclusive of the development of the main access ramp which continued to track well with 1,135 m completed.
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Q1 2026 dividend:the Company has declared a quarterly dividend of C$0.15 per Torex Share payable on March 19, 2026 to shareholders of record on March 5, 2026.
RETURN OF CAPITAL TO SHAREHOLDERS
During H2 2025, the Company executed an initial return of capital program consisting of a quarterly dividend of C$0.15 per common share ("Torex Share") and share repurchases through the Company's normal course issuer bid ("NCIB").
The Company paid an inaugural dividend to shareholders totaling $10.2 million (C$14.4 million) on December 4, 2025. For the first quarter of 2026, the Company has declared a quarterly dividend of C$0.15 per Torex Share payable on March 19, 2026 to shareholders of record on March 5, 2026.
With respect to share repurchases, the Company repurchased 825,769 Torex Shares during the year for $33.9 million (C$47.1 million) at an average price per share of $40.96 (C$57.00) under the NCIB. Since the start of 2026, Torex has repurchased an additional 411,405 Torex Shares at an average share price of C$66.69 per share.
Additionally, the Company has entered into an automatic share purchase plan ("ASPP") with its designated broker to facilitate the purchase of Torex Shares under its previously announced NCIB at times when the Company would ordinarily not be permitted to purchase its shares due to regulatory restrictions and ordinary course of business self-imposed blackout periods.
Pursuant to the ASPP, prior to entering into a blackout period, the Company may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms of the ASPP. Such purchases will be determined by the designated broker in its sole discretion based on parameters established by the Company prior to the blackout period in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP.
Outside of the pre-determined blackout periods, Torex Shares may be purchased under the NCIB based on the discretion of the Company's management, in compliance with the rules of the TSX and applicable securities laws. All repurchases made under the ASPP will be included in computing the number of Torex Shares purchased under the NCIB.
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the fourth quarter and year-end 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. 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 Q3 2025, market prices averaged $3,457/oz gold, $39.40/oz silver, and $4.44/lb copper, and AuEq (oz) = Au (oz) + 1,000 (39.40 / 3,457) x Ag (koz) + 1,000,000 x (4.44 / 3,457) x Cu (mlb). For Q4 2025, market prices averaged $4,135/oz gold, $54.73/oz silver, and $5.03/lb copper, and AuEq (oz) = Au (oz) + 1,000 (54.73 / 4,135) x Ag (koz) + 1,000,000 x (5.03 / 4,135) x Cu (mlb). For the year ended December 31, 2025, market prices averaged $3,432/oz gold, $40.03/oz silver, and $4.51/lb copper, and AuEq (oz) = Au (oz) + 1,000 (40.03 / 3,432) x Ag (koz) + 1,000,000 x (4.51 / 3,432) x Cu (mlb). Guidance for 2025 assumed metal prices of $2,500/oz gold, $28/oz silver, and $4.30/lb copper, and AuEq (oz) = Au (oz) + 1,000 (28 / 2,500) x Ag (koz) + 1,000,000 x (4.30 / 2,500) x Cu (mlb). 2. 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 year ended December 31, 2025, dated February 18, 2026. The MD&A and the Company's audited consolidated financial statements and related notes for the year ended December 31, 2025, are available on Torex's website (www.torexgold.com) and under the Company's SEDAR+ profile (www.sedarplus.ca). 3. For more information on Media Luna West drilling results, see the Company's news release titled "Torex Gold Reports Promising Drill Results from Media Luna West" issued on December 1, 2025, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com. 4. For more information on the acquisition of Reyna Silver, see the Company's news releases titled "Torex Gold Announces Acquisition of Reyna Silver" issued on June 23, 2025, and "Torex Gold Announces Completion of Reyna Silver Acquisition" issued on August 20, 2025, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com. 5. For more information on the acquisition of Prime Mining, see the Company's news releases titled "Torex Gold to Acquire Prime Mining" issued on July 28, 2025, "Torex Gold Announces Completion of Prime Mining Acquisition" issued on October 22, 2025, 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 | | | | Year Ended | | | | | | | | | | | | | | | Dec 31, | | | Sep 30, | | | Dec 31, | | | | Dec 31, | | | Dec 31, | | | In millions of U.S. dollars, unless otherwise noted | | | 2025 | | | 2025 | | | 2024 | | | | 2025 | | | 2024 | | | Safety | | | | | | | | | | | | | | | | | | | Lost-time injury frequency1 | /million hours | | 0.07 | | | 0.42 | | | 0.61 | | | | 0.07 | | | 0.61 | | | Total recordable injury frequency1 | /million hours | | 0.73 | | | 0.99 | | | 1.48 | | | | 0.73 | | | 1.48 | | | Operating Results - Gold Equivalent basis | | | | | | | | | | | | | | | | | | | Gold equivalent produced | oz AuEq | | 117,325 | | | 121,780 | | | 105,305 | | | | 383,178 | | | 461,420 | | | Gold equivalent payable produced2 | oz AuEq | | 114,844 | | | 119,034 | | | 105,132 | | | | 376,364 | | | 460,579 | | | Gold equivalent sold2 | oz AuEq | | 105,946 | | | 118,082 | | | 110,419 | | | | 361,518 | | | 465,829 | | | Total cash costs2,3 | $/oz AuEq | | 1,499 | | | 1,297 | | | 932 | | | | 1,376 | | | 972 | | | All-in sustaining costs2,3 | $/oz AuEq | | 1,905 | | | 1,658 | | | 1,112 | | | | 1,783 | | | 1,183 | | | Average realized gold price2,3 | $/oz AuEq | | 4,393 | | | 3,536 | | | 2,487 | | | | 3,612 | | | 2,254 | | | Financial Results | | | | | | | | | | | | | | | | | | | Revenue | $ | | 465.3 | | | 416.4 | | | 295.0 | | | | 1,305.6 | | | 1,115.5 | | | Cost of sales | $ | | 214.7 | | | 207.3 | | | 153.5 | | | | 668.7 | | | 647.3 | | | Earnings from mine operations | $ | | 250.6 | | | 209.1 | | | 141.5 | | | | 636.9 | | | 468.2 | | | Net income | $ | | 166.8 | | | 114.4 | | | 60.4 | | | | 403.4 | | | 134.6 | | | Per share - Basic | $/share | | 1.78 | | | 1.33 | | | 0.70 | | | | 4.58 | | | 1.57 | | | Per share - Diluted | $/share | | 1.76 | | | 1.31 | | | 0.69 | | | | 4.53 | | | 1.55 | | | Adjusted net earnings3 | $ | | 167.0 | | | 103.4 | | | 70.6 | | | | 350.1 | | | 224.4 | | | Per share - Basic3 | $/share | | 1.78 | | | 1.20 | | | 0.82 | | | | 3.98 | | | 2.61 | | | Per share - Diluted3 | $/share | | 1.76 | | | 1.18 | | | 0.81 | | | | 3.93 | | | 2.58 | | | EBITDA3 | $ | | 260.4 | | | 235.3 | | | 162.8 | | | | 697.9 | | | 539.4 | | | Adjusted EBITDA3 | $ | | 281.5 | | | 239.3 | | | 154.3 | | | | 730.3 | | | 541.1 | | | Cost of sales - gold equivalent basis | $/oz AuEq | | 2,027 | | | 1,756 | | | 1,390 | | | | 1,850 | | | 1,390 | | | Net cash generated from operating activities | $ | | 244.3 | | | 186.8 | | | 122.8 | | | | 489.0 | | | 449.5 | | | Net cash generated from operating activities before changes in non-cash operating working capital | $ | | 248.6 | | | 204.0 | | | 136.3 | | | | 530.2 | | | 458.9 | | | Free cash flow3 | $ | | 165.6 | | | 112.5 | | | (7.7 | ) | | | 107.3 | | | (123.9 | ) | | Cash and cash equivalents | $ | | 119.5 | | | 107.1 | | | 110.2 | | | | 119.5 | | | 110.2 | | | Debt, net of deferred finance charges | $ | | 27.6 | | | 152.4 | | | 62.9 | | | | 27.6 | | | 62.9 | | | Lease-related obligations | $ | | 105.6 | | | 100.0 | | | 78.3 | | | | 105.6 | | | 78.3 | | | Net debt3 | $ | | (16.1 | ) | | (147.9 | ) | | (33.1 | ) | | | (16.1 | ) | | (33.1 | ) | | Available liquidity3 | $ | | 426.3 | | | 289.0 | | | 331.5 | | | | 426.3 | | | 331.5 | |