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1. Company Snapshot

1.a. Company Description

Torex Gold Resources Inc.operates as an intermediate gold producer in Mexico.It primarily holds a 100% interest in the Morelos Gold property that covers an area of 29,000 hectares located southwest of Mexico City.


The company's principal assets include the El Limón Guajes mining complex comprising the El Limón Guajes open pits, the El Limón Guajes underground mine, and the processing plant and related infrastructure, and the Media Luna deposit, which is an advanced stage development project.It also mines for silver, copper, and carbon deposits.The company was formerly known as Gleichen Resources Ltd.


and changed its name to Torex Gold Resources Inc.in April 2010.Torex Gold Resources Inc.


was incorporated in 1980 and is headquartered in Toronto, Canada.

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1.b. Last Insights on TXG

Torex Gold Resources' recent momentum is driven by strong Q3 earnings growth, showcasing higher net income and earnings per share compared to the same period last year. The company's operational results demonstrate the forward value-generating potential of Morelos. Additionally, Torex Gold's return of capital program, including a $0.15 per share inaugural dividend and share repurchases, reflects significant cash flow generation. The company's Media Luna project progress and exploration results also support its long-term outlook. Furthermore, the TSX30 ranking for 2025 recognizes Torex Gold's exceptional performance.

1.c. Company Highlights

2. Torex Gold's Q3 2025 Earnings: A Pivotal Quarter

Torex Gold reported a quarterly EPS of $1.64, missing analyst estimates of $2.74. Despite this, the company's financial performance was robust, with gold equivalent production reaching 119,000 ounces and an all-in sustaining cost of $1,658 per ounce, resulting in strong margins of 53%. The company's revenue growth is expected to be 30.6% next year, indicating a positive outlook. With a current P/E Ratio of 17.33, it is essential to assess whether this multiple is justified given the company's growth prospects.

Publication Date: Nov -21

📋 Highlights
  • Free Cash Flow & Capital Return: Generated $113M free cash flow in Q3, enabling $75M debt repayment and initiating a $0.15/share dividend (1% of market cap) alongside $10M share buybacks.
  • Production & Cost Efficiency: Achieved 119,000 gold equivalent ounces at $1,658 all-in sustaining cost/ounce, with 53% margins driven by higher throughput (11,000+ tonnes/day) and optimized maintenance.
  • Operational Progress: Media Luna underground ramp-up ahead of plan, ELG underground exceeding expectations, and processing plant operating above nameplate capacity with 10.6k–11k tonnes/day throughput.
  • Strategic Acquisitions & Safety: Closed two acquisitions (adding five assets), maintained zero lost-time injuries, and maintained a 0.42 lost-time injury frequency per million hours worked.
  • Future Growth & Liquidity: Strong liquidity and debt reduction path, with $40M Q3 free cash flow allocated to growth (EPO, Los Reyes) and exploration budgets of $40–45M in 2026 for key projects like ELG and Media Luna.

Operational Highlights

The ramp-up at Media Luna underground is ahead of plan, while ELG underground continues to exceed expectations. The processing plant is delivering above nameplate capacity on both throughput and recoveries, with a throughput of over 11,000 tonnes per day in Q3. The drivers for this are the softer ore from Media Luna and optimized maintenance planning. As the company continues to optimize its operations, it is well-positioned to maintain its production growth trajectory.

Cash Flow and Capital Allocation

Torex generated $113 million of free cash flow in Q3, a significant inflection point, allowing for the repayment of $75 million of debt and the implementation of an inaugural return of capital policy. This includes a quarterly dividend of CAD 0.15 per share and a share buyback program, with $7 million worth of shares bought back during the quarter. The company's solid liquidity position and debt profile enable it to continue investing in growth opportunities while maintaining a strong balance sheet.

Growth Opportunities and Exploration

The acquisition of Los Reyes is complete, and the company is working on a PEA, which is expected to be released in mid-2026. The exploration budget for 2026 is expected to be around $40-45 million at Morelos, with a focus on ELG underground and the Media Luna cluster. Updates on exploration will be released throughout the next few months, providing further insights into the company's growth prospects.

Valuation and Dividend Yield

With a current Dividend Yield of 0.25%, Torex Gold's return of capital policy is in line with peer group levels. The company's P/B Ratio of 2.09 and EV/EBITDA of 7.38 indicate a reasonable valuation. As the company continues to grow and return capital to shareholders, it is essential to monitor its valuation metrics to determine whether the current price is justified.

3. NewsRoom

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Torex Gold Reports Promising Drill Results from Media Luna West

Dec -01

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TSX Stocks That May Be Trading Below Estimated Value In December 2025

Dec -01

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United Lithium Appoints Andrew Bowering as Interim CEO and Closes $2.25 Million Financing; Shares up 11.5%

Nov -20

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Torex Gold Announces Renewal of Normal Course Issuer Bid

Nov -19

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Investors Shouldn't Be Too Comfortable With Torex Gold Resources' (TSE:TXG) Earnings

Nov -12

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TSX Value Stocks Including Aya Gold & Silver That May Be Trading Below Estimated Worth

Nov -11

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A Look at Torex Gold (TSX:TXG) Valuation Following Strong Q3 Earnings Growth

Nov -09

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Torex Gold Reports Q3 2025 Results

Nov -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.01%)

6. Segments

Gold

Expected Growth: 7%

Torex Gold Resources Inc.'s 7% growth driven by increasing gold prices, strong demand from central banks and jewelry industry, coupled with the company's efficient operations and cost management at its Morelos Complex in Mexico, as well as its exploration and development of new projects.

Copper

Expected Growth: 9%

Torex Gold Resources Inc.'s copper segment growth is driven by increasing demand from electric vehicle manufacturers, renewable energy infrastructure, and construction industries. Additionally, supply constraints due to mine closures and declining ore grades contribute to the 9% growth rate. Furthermore, the company's focus on exploration and expansion of existing mines, as well as strategic acquisitions, support its growth momentum.

Silver

Expected Growth: 6%

Torex Gold Resources Inc.'s silver segment growth is driven by increasing gold prices, rising demand from industrial applications, and growing adoption in renewable energy technologies. Additionally, the company's focus on exploration and development of new mines, coupled with its efficient operations and cost management, contribute to its 6% growth rate.

7. Detailed Products

Gold

Torex Gold Resources Inc. is a Canadian-based gold producer that operates the El Limón Guajes Mine Complex in Mexico, which produces gold and silver.

Silver

As a by-product of gold mining, Torex Gold Resources Inc. also produces silver, which is used in various industrial, medical, and consumer applications.

Mining Services

Torex Gold Resources Inc. offers mining services, including exploration, development, and operation of mines, to help other companies in the mining industry.

Exploration Services

The company provides exploration services, including geological surveys, sampling, and drilling, to help identify and develop new mineral deposits.

8. Torex Gold Resources Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Torex Gold Resources Inc. is medium due to the availability of alternative metals and mining companies.

Bargaining Power Of Customers

The bargaining power of customers for Torex Gold Resources Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Torex Gold Resources Inc. is medium due to the company's dependence on a few key suppliers for equipment and services.

Threat Of New Entrants

The threat of new entrants for Torex Gold Resources Inc. is high due to the relatively low barriers to entry in the gold mining industry.

Intensity Of Rivalry

The intensity of rivalry for Torex Gold Resources Inc. is high due to the competitive nature of the gold mining industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.10%
Debt Cost 3.95%
Equity Weight 97.90%
Equity Cost 10.57%
WACC 10.43%
Leverage 2.14%

11. Quality Control: Torex Gold Resources Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Centerra Gold

A-Score: 5.7/10

Value: 4.3

Growth: 5.4

Quality: 5.5

Yield: 5.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Torex Gold Resources

A-Score: 5.7/10

Value: 6.0

Growth: 6.7

Quality: 7.5

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Calibre Mining

A-Score: 5.3/10

Value: 8.1

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
IAMGOLD

A-Score: 5.2/10

Value: 4.9

Growth: 6.0

Quality: 7.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Idaho Strategic Resources

A-Score: 4.9/10

Value: 0.0

Growth: 9.7

Quality: 8.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Sandstorm Gold

A-Score: 4.7/10

Value: 1.3

Growth: 3.0

Quality: 7.0

Yield: 0.0

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.5$

Current Price

60.5$

Potential

-0.00%

Expected Cash-Flows