Gold gains for third day before US data that may shape rate path
Bullion traded near $2,670 an ounce — touching the highest since mid-December.
Torex Gold (TSX: TXG) has achieved its annual production guidance for the sixth consecutive year even after a brief shutdown last month.
The Toronto-based company produced 452,523 oz. gold last year, it said Thursday. The milestone comes despite a carbon monoxide incident at its ELG underground mine that closed operations for 10 days at its Morelos Complex in Mexico.
Analysts see the results as evidence of Torex’s operational dexterity as the company prepares to bring its $950 million Media Luna copper project in Guerrero state online by the end of March.
“Despite the operational challenges in the fourth quarter, Torex continues to deliver consistent results while nearing a significant turning point with Media Luna,” Canaccord Genuity analyst Jeremy Hoy said in a note on Thursday.
The project, 180 km southwest of Mexico City, will add sustained production of at least 450,000 gold-equivalent oz. per year through 2030, Hoy said. Media Luna, now 87% complete, is key to Torex’s strategy. It aims to grow production, diversify with copper and secure long-term cash flow.
The project is expected to ramp up underground mining rates to 7,500 tonnes per day by next year, contributing 45 million lb. copper yearly and boosting Torex’s long-term production profile.
“By mid-year, we expect to return to positive free cash flow, driven by Media Luna, while continuing to enhance value for shareholders,” CEO Jody Kuzenko said in a news release.
The ELG open pits, which produced ore at an average grade of 3.32 grams gold last year, are winding down, with the El Limón Sur pit expected to be exhausted by June. The company plans to mitigate this transition with Media Luna, and then the EPO deposit, where development is set to begin by midyear. First EPO production is slated for late 2026.
Media Luna has 23.6 million tonnes of proven and probable reserves at 2.7 grams gold per tonne, 24.9 grams silver, 0.9 % copper for 2 million oz. gold, 18.9 million oz. silver and 448 million lb. copper. The average grade stands at 4 grams gold-equivalent per tonne.
The company has committed $30 million to exploration across its largely unexplored 290-sq- km Morelos property this year, with a focus on resource expansion and reserve replacement.
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