Torex Gold reports net earnings drop in Q3, says on track to meet 2021 guidance

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(Kitco News) - Today, Torex Gold Resources(TSX: TXG) reported that the company produced 111,229 ounces of gold in Q32021, a 16% decrease compared to 131,790 ounces produced a year ago.

The company said it sold118,989 ounces of gold in Q3 2021, which is 11% less than a prior year (Q32020: 133,036 ounces).

Torex also reported netearnings of $36.5 million, a decline of 39% over Q3 2020; and adjusted net earningsof $42.9 million, a 16% decrease over Q3 2020.

"As a result of the reliableperformance achieved so far this year, we are tracking very well against our2021 operational guidance. With a similar level of production to Q3 anticipatedin Q4, we expect full year gold production to come in at the upper end of theguidance range of 430,000 to 470,000 ounces," the company said in a statement.

Torex noted that all-insustaining costs are expected to increase in Q4 as a greater amount of waste iscapitalized as part of the El Lim??n pushback.

However, the company saidthat with lower than anticipated waste mined in Q3, all-in sustaining costs forthe full year are expected to be toward the mid-point of the guided range of$920 to $970 per ounce sold.

President and CEO JodyKuzenko commented, "We are executing on the plan focused on extending andoptimizing production and cash flow from ELG, advancing and de-risking MediaLuna toward first production in early 2024, as well as strengthening thebalance sheet."

"With more than $220 millionin cash on hand and solid cash generation from ELG forecast through at leastmid-2024, we are in a strong financial position to advance Media Luna andcontinue to invest in near-mine and regional exploration," she added.

Torex is an intermediate goldproducer focused on Mexico. The company's principal assets are the El Lim??nGuajes mining complex (ELG), processing plant and related infrastructure, andthe Media Luna deposit, which is an advanced stage development project.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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