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(Kitco News) -Torex Gold (TSX: TXG) reported on Wednesday that the company delivered gold production of 122,918 oz for the quarter (Q1 2022: 112,446 oz) driven by a record milling rate of 13,073 tpd and a record mining rate at ELG Underground of 1,738 tpd.
“This represents a strong start to the year and puts the company on track to meet annual production guidance of 440,000 to 470,000 ounces,” Torex said in a press release.
In Q1 2023, the company sold 118,455 oz of gold at an average realized gold price of $1,899 per oz, contributing to revenue of $228.8 million (Q1 2022: $207.7 million).
Total cash costs were $709 per oz sold (Q1 2022: $748 per oz) and all-in sustaining costs were $1,079 per oz sold (Q1 2022: $1,034 per oz). All-in sustaining costs margin was $820 per oz sold, implying an all-in sustaining costs margin of 42%.
“Given the strong cost performance during the quarter, the company is on track to achieve full year total cash costs guidance of $740 to $780 per oz and all-in sustaining costs guidance of $1,080 to $1,130 per ounce,” Torex added.
The company also reported net income of $68.2 million (Q1 2022: net income of $40 million) or earnings of $0.79 per share on both a basic and diluted basis; adjusted net earnings were $50.3 million (Q1 2022: adjusted net earnings of $37.2 million) or $0.59 per share on a basic and $0.58 per share on a diluted basis.
Torex said it generated EBITDA of $102.5 million (Q1 2022: $103.1 million) and adjusted EBITDA of $132.7 million (Q1 2022: $110.7 million), adding that the quarter closed with net cash of $318.4 million.
Importantly, the company noted that development of the Media Luna project is tracking to schedule and budget, with the project approximately 24% complete at quarter end.
“2023 is an important year for Torex and we are off to an excellent start. With $564 million of available liquidity at quarter-end, strong cash flow from ELG, and continued momentum on production and cost management, we are well-positioned to fund the remaining $683 million of capital on the Media Luna project while delivering on our commitments and generating solid value for shareholders,” said Jody Kuzenko, President and CEO of Torex.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The company’s principal asset is the Morelos complex, which includes the El Limón Guajes mine complex, the Media Luna project, a processing plant and related infrastructure.
