- Torex Gold released its Q3 financial results last week, reporting quarterly production of ~111,200 ounces at all-in sustaining costs of $900/oz.
- While these costs are tracking ahead of FY2021 guidance, Q4 is expected to be a higher-cost quarter due to lower grades, increased cyanide consumption and increased mining of waste.
- Looking ahead to FY2022, Torex noted that it is seeing cost inflation, and we're likely to see a significant increase in upfront capes estimates at ML vs. the prior study.
- However, with Torex trading at a double-digit free cash flow yield and below 0.60x P/NAV with ample liquidity to fund the transition to ML, the risks look priced in, suggesting dips below US$10.50 will provide low-risk buying opportunities.
For further details see:
Torex Gold: Tracking Well Against FY2021 Guidance