Torex Gold, a mining company that focuses its operations in Mexico, has revised its annual cost estimate for fiscal 2022 despite significant inflation.
Cash costs totaled $730 per ounce sold and were at the high end of the estimated range of $695-735/oz, while all-around sustainability costs totaled $1,008/oz, near the midpoint of the estimated range of $735/oz. 980 ounces to $1,030/oz, the company said in a statement.
Torex released its financial and operating results for the three months and year ended Dec. 31, confirming a record annual gold production of 474,035 ounces, up from 468,203 ounces in 2021.
“Gold production over the year exceeded the upper end of the estimated range of 430,000-470,000 ounces, marking the fourth year in a row that the original production estimate has been achieved,” the statement said.
“During the year, the company also achieved a record annual throughput of 12,600 t/d at the plant and a record annual underground mining rate in El Limón Guajes of 1,523 t/d.”
The annual revenue was 869 million US dollars compared to 856 million US dollars in the previous year, and the net income increased from 152 million US dollars to 189 million US dollars in the same period.
The Canadian company owns the Morelos mine in the Guerrero gold belt, where the ELG complex, Media Luna project, processing plant and related infrastructure are located. Morelos is the company’s only operating mine.
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This month, Torex said it expects to achieve capital expenditures of between $390 million and $440 million on its Media Luna project in 2023, the year in which it expects its busiest investment.
The total expenditure incurred on Media Luna in 2022 has reached US$125 million since construction began on April 1, while the remaining investment figure for the project is estimated at US$750 million.
“Investment during this period focused mainly on the continued progress of the Guajes Tunnel and the South Gates. The development of the Guajes Tunnel will reach 3,250 meters and the Lower South Gate up to 1,423 meters by the end of the year,” the statement added.
“It will be a key year for Media Luna’s development. With a solid plan in hand, a strong balance sheet and a great cash flow outlook for ELG […] “We are well positioned to advance our strategic priorities,” Torex CEO Jody Kuzenko said on a conference call Thursday.
“Steady progress has been made on the Media Luna project, which has a 15% completion rate by the end of the year, including engineering, procurement, surface construction and underground development,” Kuzenko added in the statement.
“First production is expected to take place on schedule in the fourth quarter of 2024, while delivery times and costs for schedule-critical procurement packages remain within estimates in the 2022 technical report,” she added.
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