Q2 2024 Torex Gold Resources Inc Earnings Call Transcript
Key Points
- Torex Gold Resources Inc (TORXF) achieved a record quarter for realized gold prices, leading to strong margins and cash generation.
- The company is on track to deliver production guidance for the sixth consecutive year, with gold production of 229,000 ounces in the first half of 2024.
- Media Luna project is 78% complete, with engineering and procurement largely finished, and the company is fully funded for the remaining project expenditures.
- The company maintains a strong balance sheet with over $100 million in cash and minimal drawdown on its revolving credit facility.
- Torex Gold Resources Inc (TORXF) has released a multi-year exploration strategy with multiple prospective targets identified, indicating potential for long-term growth.
- Costs have trended above guidance due to higher stripping requirements and the strength of the Mexican peso, impacting overall cost performance.
- The Media Luna project's capital expenditure has increased to $950 million, up from the initial budget of $875 million, due to currency fluctuations and additional infrastructure requirements.
- Free cash flow was negative at $62 million in the quarter, primarily due to significant spending on the Media Luna project.
- The transition from open pit to underground mining presents challenges, including the need for technical training and hiring experienced personnel.
- Cyanide consumption has increased due to higher iron and copper content in the ore, leading to additional cost pressures.
Thank you for standing by. This is the conference operator. Welcome to the Torex Gold's second-quarter 2024 conference call and webcast. The conference is being recorded (Operator Instructions) I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q2 2024 conference call. Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the Investors section of our website at www.torexgold.com.
I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page 2 of today's presentation, as well as those included in the Q2 2024 MD
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