- Torex Gold released an updated resource estimate for its Media Luna deposit last week, and reported a significant conversion to indicated ounces.
- The company's indicated gold-equivalent resource at Media Luna now stands at 3.54 million ounces, up 58% from the most recent resource update in 2019.
- Based on this resource, we should not see much difference from the most recent Media Luna PEA: a 10+ year mine life with ~350,000 gold-equivalent ounces produced per annum.
- Given Torex's improving balance sheet and high-double-digit free cash flow yield, I see this pullback below US$12.20 as a low-risk buying opportunity.
For further details see:
Torex Gold: Digging Into The Media Luna Resource Estimate