Torex Gold Reports Q3 2025 Results

2025-11-05

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

Excellent operational results drive return to strong quarterly free cash flow, demonstrating the forward value-generating potential of Morelos

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

Toronto, Ontario--(Newsfile Corp. - November 5, 2025) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) (OTCQX: TORXF) reports the Company's financial and operational results for the three and nine months ended September 30, 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:

"The third quarter marked a key turning point for Morelos as we returned to steady-state production levels following the completion of our Media Luna Project and pivoted back to positive free cash flow1. The $113 million generated in free cash flow, supported by excellent operational performance, resulted in an all-in sustaining costs margin1in excess of 50%. These results demonstrate the forward potential of Morelos, which will be further bolstered by the continued ramp-up of Media Luna, first production from EPO by late 2026, and continued drill-bit success across the whole property.

"The inflection point back to free cash flow, combined with the ramp up success and operational stability we have achieved, supported our decision to announce our initial return of capital policy - marked by an inaugural quarterly dividend C$0.15 per share as well as a plan to execute on share buybacks opportunistically, with C$10 million of shares already repurchased during the quarter.

"With strong operational momentum and payable quarterly production of 119,034 gold equivalent ounces ("oz AuEq") at market prices this quarter, we are on pace to achieve the low end of our guided production range of 400,000 to 450,000 oz AuEq at guidance metal prices. Work is ongoing to optimize costs and drive efficiencies to further improve our all-in sustaining cost1profile as the Media Luna mine continues to ramp up, putting us on plan to deliver on our full-year guided range of $1,400 to $1,600 per ounce sold at guided metal prices.

"As we finish off what can only be described as a pivotal year for Torex, we are well set up for a standout close to 2025 and an exceptional 2026 where we'll see the benefit of a full year of production from Media Luna. With Los Reyes now officially part of our expanded portfolio, we are ready to start the work of our next project outside of Morelos, moving yet another step closer to our goal of becoming a leading, diversified, Americas-focused, precious metals producer."

THIRD QUARTER 2025 HIGHLIGHTS

Safety performance:The Company recorded no lost-time injuries during the quarter. As at September 30, 2025, the lost-time injury frequency ("LTIF") for the Morelos Complex was 0.42 per million hours worked for both employees and contractors on a rolling 12-month basis.

Gold production:On a gold equivalent ounce ("oz AuEq") basis, payable production for the quarter was 119,034 oz AuEq2, including 95,058 oz Au, 485.2 thousand ounces of silver ("koz Ag"), and 14.0 million pounds of copper ("mlb Cu") (YTD - 261,520 oz AuEq2, 222,343 oz Au, 832.2 koz Ag, and 22.2 mlb Cu, respectively). At guidance metal prices, quarterly payable production was 124,503 oz AuEq2(YTD - 269,846 oz AuEq2). With strong production achieved in the third quarter and another strong quarter expected to close off the year, the Company continues to target the low end of annual payable production guidance of 400,000 to 450,000 oz AuEq2 at guidance metal prices.

Gold sold: The Company sold 118,082 oz AuEq2(YTD - 255,572 oz AuEq2) at a record quarterly average realized gold price1of $3,548 per oz (YTD - $3,272 per oz) or $3,536 per oz AuEq2(YTD - $3,289 per oz AuEq2), contributing to revenue of $416.4 million (YTD - $840.3 million).

All-in sustaining costs1:Quarterly all-in sustaining costs of $1,658 per oz AuEq sold2 (YTD - $1,732 per oz AuEq sold2). Quarterly all-in sustaining costs margin1of $1,878 per oz AuEq sold2(YTD - $1,557 per oz AuEq sold2), implying an all-in sustaining costs margin1of 53% (YTD - 47%). Cost of sales was $207.3 million or $1,756 per oz AuEq sold2in the quarter (YTD - $454.0 million or $1,776 per oz AuEq sold2). Costs on a gold equivalent basis were impacted by the higher gold market prices during the quarter. On a year-to-date basis, all-in sustaining costs were $1,602 per oz AuEq sold2at guided metal prices, relative to guidance of $1,400 to $1,600 per oz AuEq sold2. Based on year-to-date results and assuming guidance metal prices, the Company expects all-in sustaining costs to be at the upper end of the guided range for the year.

Net income and adjusted net earnings1:Reported net income of $114.4 million or earnings of $1.33 per share on a basic basis and $1.31 per share on a diluted basis (YTD - $236.6 million or $2.75 per share on a basic basis and $2.71 per share on a diluted basis). Adjusted net earnings of $103.4 million or $1.20 per share on a basic basis and $1.18 per share on a diluted basis (YTD - $183.1 million or $2.13 per share on a basic basis and $2.10 per share on a diluted basis).

EBITDA1and adjusted EBITDA1:Generated EBITDA of $235.3 million (YTD - $437.5 million) and adjusted EBITDA of $239.3 million (YTD - $448.8 million).

Cash flow generation:Net cash generated from operating activities totalled $186.8 million (YTD - $244.7 million) and $204.0 million (YTD - $281.6 million) before changes in non-cash operating working capital. Net cash generated from operating activities (including changes in non-cash operating working capital) of $186.8 million (YTD - $244.7 million) including income taxes paid of $40.0 million (YTD - $166.8 million). Positive free cash flow1of $112.5 million (YTD - negative $58.3 million) is net of cash outlays for capital expenditures, lease payments, and interest, including borrowing costs capitalized.

Financial liquidity: The quarter closed with $289.0 million in available liquidity1, including $107.1 million in cash and $181.9 million available on the $350.0 million credit facilities, net of borrowings of $155.0 million and letters of credit outstanding of $13.1 million.

Media Luna non-sustaining capital expenditures1: During the quarter, $26.2 million (YTD - $130.6 million) of non-sustaining capital expenditures were incurred following the declaration of commercial production on May 1, 2025 and primarily relate to construction of the paste plant and underground paste distribution system, tailings feed supply system, and underground material handling systems. Construction of the paste plant and paste distribution systems are now complete, and ramp-up well underway with paste delivered to the first stope in September.

EPO Underground Project:During the third quarter of 2025, $6.9 million (YTD - $15.4 million) of non-sustaining capital expenditures were incurred relating to EPO. Development of the main access ramp at EPO continued to track well and the EPO internal feasibility study continued to progress as the team finalized the mine design, mine sequence and integrated mine scheduling with Media Luna and the waste dump design.

Exploration and Drilling Activities:In October, the Company announced results from the ongoing drilling program at ELG Underground3. Drilling results continue to support the program's primary objective to increase resource inventory and replace mined reserves to support the Company's overall objective of maintaining production above 450,000 oz AuEq per year beyond 2030 (based on reserve metal pricing). The program remains focused on identifying high-grade mineralization extensions along the El Limón Sur, El Limón Deep, El Limón West, and Sub-Sill trends. Drilling results presented in the October release focused on the success along the El Limón Sur and Sub-Sill trends.

Executing on the strategy of creating a diversified, Americas-focused precious metals producer: The acquisitions of Reyna Silver Corp. ("Reyna Silver") and Prime Mining Corp. ("Prime Mining") enhance medium and long-term growth potential:

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 potential exposure to two highly prospective properties in Nevada (Gryphon and Medicine Springs) via option agreements.

Prime Mining: On July 28, the Company announced5that it had entered into a definitive agreement to acquire all of the issued and outstanding common shares of Prime Mining (the "Prime Mining Shares") (TSX: PRYM) (OTCQX: PRMNF) (Frankfurt: O4V3) pursuant to a plan of arrangement at an exchange ratio of 0.060 of a Torex common share (a "Torex Share") per each Prime Mining Share. Pursuant to a court-approved plan of arrangement under the _Business Corporations Act_(British Columbia), the Company completed the acquisition of all of the issued and outstanding Prime Mining Shares on October 22, 2025, in which Prime Mining shareholders received 0.060 of a Torex Share for each Prime Mining Share held (the "Exchange Ratio"). As a result of the transaction, Torex issued approximately 10.2 million Torex Shares and settled certain related tax obligations which implies an equity value for Prime Mining of $426.5 million (C$598.0 million), based on Torex' share price at the time of closing. Post the transaction, Prime Mining shareholders own approximately 10.6% of Torex. As a result of the transaction, Torex acquired a 100% interest in the Los Reyes Project, an advanced-stage development project located in Sinaloa, Mexico.

Return of Capital to Shareholders: The Company announced an initial return of capital program consisting of an inaugural quarterly dividend of C$0.15 per Torex Share and discretionary share repurchases through the Company's normal course issuer bid ("NCIB").

Inaugural Dividend: As a result of the Company returning to positive cash flow generation following the completion and successful ramp up of the Media Luna Project, the Company's Board of Directors approved an inaugural quarterly dividend of C$0.15 per Torex Share payable on December 4, 2025 to shareholders of record as at the close of business on November 20, 2025.

Share Repurchases: In the third quarter of 2025, the Company repurchased 239,204 Torex Shares for $7.2 million (C$10.0 million) at an average price per share of $30.20 (C$41.79) under its NCIB. Under the NCIB, the Company is authorized to purchase up to 7,116,777 of Torex Shares, representing approximately 10% of the public float as of November 13, 2024, during the period commencing on November 21, 2024 and ending on November 20, 2025. The Company intends to seek approval from the TSX to renew the NCIB for another year on substantially the same terms.

TSX30 Ranking for 20256:In September, the Company was recognized as a top performer by the Toronto Stock Exchange ("TSX") having been named to the TSX30, which is based on share price performance, adjusted for dividends, over the three-year period ending June 30, 2025. Out of the 30 companies recognized, Torex ranked 14th with a total return of 347%.

1. These measures are non-GAAP financial measures ("Non-GAAP Measures") which are not standardized financial measures under IFRS, the framework used to prepare the financial statements of the Company, and might not be comparable to similar financial measures used by other companies. 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 the Company's MD&A for the three and nine months ended September 30, 2025, dated November 4, 2025, which is incorporated by reference into this news release. The MD&A and the Company's unaudited condensed consolidated interim financial statements and related notes for the three and nine months ended September 30, 2025, 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 nine months ended September 30, 2025, market prices averaged $3,201/oz gold, $35.05/oz silver, and $4.33/lb copper. Guidance for 2025 assumed metal prices of $2,500/oz gold, $28/oz silver, and $4.30/lb copper. 3. For more information on ELG Underground drilling results, see the Company's news release titled "Torex Gold Reports Latest Results from Drilling Program at ELG Underground" issued on October 6, 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. 6. For more information on the TSX30 Ranking, see the Company's news release titled "Torex Gold Achieves TSX30 Ranking for 2025" issued on September 9, 2025, and filed on SEDAR+ at www.sedarplus.caand on the Company's website at www.torexgold.com.

CONFERENCE CALL AND WEBCAST DETAILS

The Company will host a conference call tomorrow at 9:00 AM (ET) where senior management will discuss the third 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.

Table 1: Operating and Financial Highlights

| | | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | | | Sep 30, | | | Jun 30, | | | Sep 30, | | | Sep 30, | | | Sep 30, | | | In millions of U.S. dollars, unless otherwise noted | | | 2025 | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | Safety | | | | | | | | | | | | | | | | | | | Lost-time injury frequency1 | /million hours | | | 0.42 | | | 0.46 | | | 0.28 | | | 0.42 | | | 0.28 | | | Total recordable injury frequency1 | /million hours | | | 0.99 | | | 1.00 | | | 1.46 | | | 0.99 | | | 1.46 | | | Operating Results - Gold Equivalent basis | | | | | | | | | | | | | | | | | | | Gold equivalent payable produced2 | oz AuEq | | | 119,034 | | | 82,856 | | | 122,307 | | | 261,520 | | | 355,448 | | | Gold equivalent sold2 | oz AuEq | | | 118,082 | | | 76,922 | | | 125,414 | | | 255,572 | | | 355,410 | | | Total cash costs2,3 | $/oz AuEq | | | 1,297 | | | 1,606 | | | 969 | | | 1,324 | | | 984 | | | All-in sustaining costs2,3 | $/oz AuEq | | | 1,658 | | | 2,103 | | | 1,139 | | | 1,732 | | | 1,205 | | | Average realized gold price2,3 | $/oz AuEq | | | 3,536 | | | 3,299 | | | 2,313 | | | 3,289 | | | 2,181 | | | Financial Results | | | | | | | | | | | | | | | | | | | Revenue | $ | | | 416.4 | | | 253.9 | | | 313.7 | | | 840.3 | | | 820.5 | | | Cost of sales | $ | | | 207.3 | | | 152.6 | | | 170.1 | | | 454.0 | | | 493.8 | | | Earnings from mine operations | $ | | | 209.1 | | | 101.3 | | | 143.6 | | | 386.3 | | | 326.7 | | | Net income | $ | | | 114.4 | | | 83.2 | | | 29.2 | | | 236.6 | | | 74.2 | | | Per share - Basic | $/share | | | 1.33 | | | 0.97 | | | 0.34 | | | 2.75 | | | 0.86 | | | Per share - Diluted | $/share | | | 1.31 | | | 0.95 | | | 0.34 | | | 2.71 | | | 0.86 | | | Adjusted net earnings3 | $ | | | 103.4 | | | 43.8 | | | 65.5 | | | 183.1 | | | 153.8 | | | Per share - Basic3 | $/share | | | 1.20 | | | 0.51 | | | 0.76 | | | 2.13 | | | 1.79 | | | Per share - Diluted3 | $/share | | | 1.18 | | | 0.50 | | | 0.75 | | | 2.10 | | | 1.77 | | | EBITDA3 | $ | | | 235.3 | | | 114.1 | | | 155.3 | | | 437.5 | | | 376.6 | | | Adjusted EBITDA3 | $ | | | 239.3 | | | 117.7 | | | 152.4 | | | 448.8 | | | 386.8 | | | Cost of sales - gold equivalent basis | $/oz AuEq | | | 1,756 | | | 1,984 | | | 1,356 | | | 1,776 | | | 1,389 | | | Net cash generated from operating activities | $ | | | 186.8 | | | 67.8 | | | 149.5 | | | 244.7 | | | 326.7 | | | Net cash generated from operating activities | | | | | | | | | | | | | | | | | | | before changes in non-cash operating working capital | $ | | | 204.0 | | | 95.3 | | | 137.6 | | | 281.6 | | | 322.6 | | | Free cash flow3 | $ | | | 112.5 | | | (37.5 | ) | | 2.5 | | | (58.3 | ) | | (116.2 | ) | | Cash and cash equivalents | $ | | | 107.1 | | | 103.0 | | | 114.5 | | | 107.1 | | | 114.5 | | | Debt, net of deferred finance charges | $ | | | 152.4 | | | 227.2 | | | 57.7 | | | 152.4 | | | 57.7 | | | Lease-related obligations | $ | | | 100.0 | | | 98.9 | | | 69.4 | | | 100.0 | | | 69.4 | | | Net debt3 | $ | | | (147.9 | ) | | (225.9 | ) | | (14.9 | ) | | (147.9 | ) | | (14.9 | ) | | Available liquidity3 | $ | | | 289.0 | | | 209.1 | | | 346.6 | | | 289.0 | | | 346.6 | |

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 and nine months ended September 30, 2025, dated November 4, 2025 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 and nine months ended September 30, 2025, dated November 4, 2025. The MD&A and the Company's the Company's unaudited condensed consolidated interim financial statements and related notes for the three and nine months ended September 30, 2025, 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 | | | Nine Months Ended | | | | | | | | | | | | | | | Sep 30, | | | Jun 30, | | | Sep 30, | | | Sep 30, | | | Sep 30, | | | In millions of U.S. dollars, unless otherwise noted | | | 2025 | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | Gold sold | oz | | 94,626 | | | 63,493 | | | 122,130 | | | 217,875 | | | 347,285 | | | Total cash costs per oz sold | | | | | | | | | | | | | | | | | | Production costs | $ | | 140.0 | | | 115.1 | | | 112.9 | | | 311.3 | | | 326.7 | | | Royalties | $ | | 13.6 | | | 8.6 | | | 8.6 | | | 28.2 | | | 23.0 | | | Less: Silver sales1 | $ | | (20.0 | ) | | (10.2 | ) | | (2.2 | ) | | (31.3 | ) | | (5.3 | ) | | Less: Copper sales1 | $ | | (61.8 | ) | | (33.4 | ) | | (6.2 | ) | | (96.4 | ) | | (13.7 | ) | | Add: Treatment, refining and other cost deductions | $ | | 2.4 | | | 1.2 | | | - | | | 3.6 | | | - | | | Less: Realized gain on foreign currency contracts | $ | | (2.8 | ) | | (1.4 | ) | | - | | | (4.6 | ) | | - | | | Total cash costs | $ | | 71.4 | | | 79.9 | | | 113.1 | | | 210.8 | | | 330.7 | | | Total cash costs per oz sold | $/oz | | 755 | | | 1,258 | | | 926 | | | 968 | | | 952 | | | All-in sustaining costs per oz sold | | | | | | | | | | | | | | | | | | Total cash costs | $ | | 71.4 | | | 79.9 | | | 113.1 | | | 210.8 | | | 330.7 | | | General and administrative costs2 | $ | | 9.2 | | | 7.8 | | | 8.8 | | | 25.7 | | | 24.1 | | | Reclamation and remediation costs | $ | | 1.3 | | | 1.1 | | | 1.0 | | | 3.4 | | | 3.5 | | | Sustaining capital expenditure | $ | | 32.1 | | | 29.4 | | | 11.6 | | | 75.1 | | | 51.0 | | | Total all-in sustaining costs | $ | | 114.0 | | | 118.2 | | | 134.5 | | | 315.0 | | | 409.3 | | | Total all-in sustaining costs per oz sold | $/oz | | 1,205 | | | 1,862 | | | 1,101 | | | 1,446 | | | 1,179 | | | | | | | | | | | | | | | | | | | | | Gold equivalent sold3 | oz AuEq | | 118,082 | | | 76,922 | | | 125,414 | | | 255,572 | | | 355,410 | | | Total cash costs per oz AuEq sold | | | | | | | | | | | | | | | | | | Production costs | $ | | 140.0 | | | 115.1 | | | 112.9 | | | 311.3 | | | 326.7 | | | Royalties | $ | | 13.6 | | | 8.6 | | | 8.6 | | | 28.2 | | | 23.0 | | | Add: Treatment, refining and other cost deductions | $ | | 2.4 | | | 1.2 | | | - | | | 3.6 | | | - | | | Less: Realized gain on foreign currency contracts | $ | | (2.8 | ) | | (1.4 | ) | | - | | | (4.6 | ) | | - | | | Total cash costs | $ | | 153.2 | | | 123.5 | | | 121.5 | | | 338.5 | | | 349.7 | | | Total cash costs per oz AuEq sold3 | $/oz AuEq | | 1,297 | | | 1,606 | | | 969 | | | 1,324 | | | 984 | | | All-in sustaining costs per oz AuEq sold | | | | | | | | | | | | | | | | | | Total cash costs | $ | | 153.2 | | | 123.5 | | | 121.5 | | | 338.5 | | | 349.7 | | | General and administrative costs2 | $ | | 9.2 | | | 7.8 | | | 8.8 | | | 25.7 | | | 24.1 | | | Reclamation and remediation costs | $ | | 1.3 | | | 1.1 | | | 1.0 | | | 3.4 | | | 3.5 | | | Sustaining capital expenditure | $ | | 32.1 | | | 29.4 | | | 11.6 | | | 75.1 | | | 51.0 | | | Total all-in sustaining costs | $ | | 195.8 | | | 161.8 | | | 142.9 | | | 442.7 | | | 428.3 | | | Total all-in sustaining costs per oz AuEq sold3 | $/oz AuEq | | 1,658 | | | 2,103 | | | 1,139 | | | 1,732 | | | 1,205 | |

Earlier from Torex Gold Resources Inc.

Torex Gold Announces Initial Return of Capital Program 2025-11-05
Soaring Prices and Relentless Buying Create Perfect Storm for Gold Miners 2025-10-29
Torex Gold Announces Completion of Prime Mining Acquisition 2025-10-22