Torex Gold sets new quarterly production record, stock up

Torex Gold Resources (TSX: TXG) on Thursday announced that it recorded Q3 2019 gold production of 138,100 ounces, surpassing the prior quarterly production record established in Q2 2019 by 21%.

During the third quarter, the Toronto-based gold producer sold 132,500 ounces of gold at an average realized price of $1,475 per ounce. After the first nine months of the year, Torex has sold 322,400 ounces of gold at an average realized price of $1,376 per ounce.

As a result, total cash balance increased by $52 million in the quarter, while total debt was reduced by over $36 million. The company says it is on track to achieve full year guidance of 430,000 ounces of gold sold.

Shares of Torex Gold rose more than 5% during Thursday’s session. The company has a market cap of C$1.48 billion.

“We achieved record gold production for the quarter, a record run on lost time injury free days, and above design flow rates through SART,” Jody Kuzenko, COO, stated in media brief.

“Step by step, we are continuously improving performance through the grinding circuit. Daily plant throughput increased month-over-month during Q3 2019, driven by improvements in both tonnes processed per hour and an increase in equipment availability. As a result, availability in the plant averaged 89% in Q3 2019 compared to 84% in Q2 2019,” he added.

Torex had previously reported record production and sales earlier this year despite challenging situation at its El Limón Guajes complex in southwest Mexico.

The complex is considered one of the richest gold deposits in Mexico, comprising he El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep, and the processing plant and related infrastructure, as well as the Media Luna deposit, an early stage development project.