Torex sets record gold and mine production in Q3

Torex Gold (TSX: TXG; US-OTC: TORXF) set a new record for gold production in 2018’s third quarter.

The company produced 100,346 oz. gold in doré plus 1,135 additional oz. gold in carbon fines. In the first nine months of 2018, the company produced 246,309 oz. gold in doré, with 11,322 additional oz. gold in carbon fines.

The company mined at an average grade of 2.6 grams gold per tonne in the quarter, and processed at an average grade of 3.01 grams gold. It set a new record for mine production in the quarter, averaging 120,561 tonnes per day for a total 11 million tonnes.

The company reported US$126.4 million in revenue for Q3. Its adjusted net earnings totaled US$7.3 million and its cash flow from operation totaled US$77.8 million. The company paid US$967 per oz. gold in all-in sustaining costs.

The company recently finished building the SART plant at its El Limon-Guajes gold mine and claims the plant saved it US$48 per oz. gold produced in the quarter. It expects the plant will increase those savings to US$65 per oz. gold by the end of the year.

In early September, Torex tabled an updated technical report for its El Limon-Guajes mine complex in Mexico. The report includes an updated preliminary economic assessment for the mine’s Media Luna copper-gold-silver deposit with a US$582 million after-tax net present value (NPV) at a 5% discount rate and a 27% after-tax internal rate of return (IRR). The company says it’s developing a new underground mining technology called the Muckahi Mining System that would boost the deposit’s after-tax NPV to US$779 million at a 5% discount rate and its after-tax IRR to 46%.

Shares of Torex are currently trading at $11.54 with a 52-week range of $7.29 to $14.58. The company has a $979 million market capitalization.