Torex Gold ‘s (TSX: TXG; OTCQX: TORXF) new Media Luna underground mine is up and running at the Morelos complex in Guerrero, Mexico, with the ramp on track and a sharper focus on efficiency and free cash flow, CEO Jody Kuzenko said.
Media Luna achieved commercial production in May and is on track to hit 7,500 tonnes per day by mid-next year – setting up a production profile of roughly 450,000 to 500,000 gold-equivalent oz. a year as the nearby EPO deposit comes online.
“We produced the gold to generate the cash to fund the future,” Kuzenko said last month during the Mining Forum Americas in Colorado Springs, Colo., noting Media Luna’s build was financed largely from El Limón–Guajes cash flow rather than equity or streaming.
Next in sequence is EPO, which is designed to plug into the oversized infrastructure built for Media Luna. Torex is also conducting exploration across the Media Luna cluster and ELG, while advancing a broader pipeline that now includes Los Reyes (via the July Prime Mining acquisition) and four Reyna Silver (acquired in June) properties: Gryphon and Medicine Springs in Nevada, and Batopilas and Guigui in Mexico.
Capital allocation will span drilling, balance-sheet de-levering and a return-of-capital program, with buybacks already underway and a small, sustainable dividend contemplated. Management continues to evaluate accretive acquisition opportunities in the Americas, Kuzenko said, to round out a multi-asset gold-copper base with a growing silver component.
Watch the full interview below:
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