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TICKERS: TXG

Gold Producer Achieves Record EBITDA, Free Cash Flow in 2019
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Another all-time high for Torex Gold Resources is its Q4/19 gold production.

In a news release, Torex Gold Resources Inc. (TXG:TSX) announced that it performed strongly financially, operationally and safety-wise in full-year 2019 and Q4/19 and reviewed each component.

Financially , for 2019, the gold producer reported adjusted net income of $67.8 million, or $0.80 per share, on a basic and $0.79 diluted basis. Adjusted EBITDA was a record at $332.9 million. Free cash flow, which included interest paid and changes in non-cash working capital, was another record, at $181.2 million. After reducing net debt by about $200 million, Torex ended the year with $161.8 million in cash.

For Q4/19, Torex's adjusted net income was $34 million, or $0.40 per share, on a basic and diluted basis, and its adjusted EBITDA was $105.1 million. Cash flow from operations amounted to $97.9 million.

"With the price of gold remaining buoyant, and production guided to be in a similar range as last year, 2020 holds the potential to be another excellent year for Torex," President and CEO Fred Stanford said in the release.

Operationally, Torex produced 454,811 ounces of gold in 2019, a 28% increase over the previous high, in 2018, of 353,947 ounces. In 2019 the company sold 449,337 ounces of gold at an average realized gold price of $1,408 per ounce. This quantity fell in the high end of full-year guidance, which was 400,000460,000 ounces.

Q4/19 marked Torex's second highest on record in terms of production, which was 121,151 ounces of gold. Gold sales totaled 126,910 ounces at an average realized price of $1,481 per ounce.

As for progress at its Media Luna project, Torex updated the resource estimate, converting about 25% of the Inferred resource after completing a 175-hole infill drill program there. The updated resource consists of 2.24 million ounces of gold equivalent at 5.55 grams per ton (5.55 g/t) in the Indicated category and 4.23 million ounces of gold equivalent at 4.23 g/t in the Inferred category.

Regarding Torex's Muckahi mining system, the company stated that it achieved the annual goals that it had set for it, proving out its viability. For one, it showed that drilling can be done on the level and at a 30-degree down angle using a monorail-mounted jumbo. The company also reached the desired level of fragmentation in the first long-hole open stope, which it "mucked out" with a low-cost electric slusher.

In terms of safety, as of Dec. 31, 2019, Torex's lost time injury rate over the previous 12 months was 0.63. Recently, in February 2020, the company got to 5 million hours worked without a lost time injury.

"The coming year promises to be one of solid cash flow, advancement of our Media Luna growth project and pushing forward with our proprietary Muckahi Mining System to fuel future growth," Stanford added.

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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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