How did Torex Gold’s growth strategy progress in 2024?

We have had excellent success in 2024, a year that saw our share price outperform and grow by more than 100%.  It is the year we built Media Luna and added 10 years to our mine life at Morelos. Construction will be substantially complete in February 2025, when we will transition into tie-ins, commissioning and ramp up, with first copper concentrate production expected by the end of the first quarter. It is also the year that we added EPO into the mine plan, which sees us arrive at our goal of producing 450,000 oz/y through to at least 2034. Morelos will be a cornerstone for the company’s growth as we continue to look for opportunities to diversify in other jurisdictions. 

How has Torex maintained a handle on costs at its operations? 

The world has become a more expensive place to live and to work, and it is not just unique to mining that the cost of consumables and services has increased. Unequivocally, Torex is committed to running a profitable business in any metals price cycle. Commodity prices have historically been cyclical, but what is different moving forward is that with the geopolitical environment we are in, the predictability of metal price cycles is, to my mind, somewhat diminished. Torex’s goal is to build a business that is profitable in any price cycle.

To reach this goal, we are creating a uniform mindset about spending from the top of the house to our team on the front lines, centered around the fact that although gold is trading at record highs, it does not mean that there is money to waste. We are focused on permeating a mindset of productivity, efficiency, and waste reduction throughout the organization - run your area of the business in the same cost-disciplined way you would run your household.

The company is also looking for ways to structurally create production and cost efficiencies, for example, integrating a BEV fleet at Media Luna versus a diesel fleet, because in addition to the environmental benefits, the total cost of ownership of a BEV fleet is less expensive as ventilation requirements are reduced. The mining business has always been about margin creation, margin maintenance, and margin improvement, and at the end of the day, we are price takers on metals, and the value that gets created in the business is centered around how productive and efficient we can be

What is Torex’s stance on the change in government in Mexico?

I am personally encouraged and inspired that Mexico has elected a female president. There is cautious optimism around the Sheinbaum administration and we have already seen a willingness from key decision makers to engage in dialogue around relevant policy issues. Notwithstanding the changes in the political environment, our operations are well established, and we have the relationships, the reputation, and the quality of permit applications to be able to move our business forward in Mexico as we have planned.

Early impressions are that President Sheinbaum is principled, capable, and willing to listen and enter into dialogue with people who share in aspects of her vision. When you have this alignment between a government administration and industry, it creates the platform for success, and we are busy building relationships and having discussions to align the best interests of the country, our business and the mining industry in Mexico more broadly.

What can the mining industry do better to improve its public perception?

Communication, through various channels, with those who have preconceived ideas about mining that do not reflect today's reality is critical. The World Gold Council is doing a tremendous job in getting the message out about the importance of the mining sector for socio-economic development, the clean energy transition, and the criticality of responsibly producing the metals the world needs in order to function. What the mining industry can do better is to work together to demonstrate through tangible action the profound and positive impact mining can have on society, the criticality of the metals produced by mining in our day to day lives and, as it relates to gold specifically,  how to make gold more accessible to the younger generation as a stable and viable investment option. 

We were proud in 2024 to help shift these perceptions when we were selected by the World Gold Council to be featured in a documentary about the power of the mining industry and how, when done correctly and thoughtfully, responsible mining can shape the trajectory of an entire community. The documentary can be found on YouTube and currently has almost 6 million views. Our story is not dissimilar to Sudbury, which started as a mining town in the 1900s and nickel mining set the foundations for that community. The community still has mining within its social fabric, but today there is a much more diversified economy with academic institutions, hospitals, and many other industries flourishing. 

What are Torex’s priorities for growth in 2025 and beyond?  

Torex’s future could not be brighter as the massive task of completing a US$950 million project will be behind us. 2025 will be a pivotal year as we conclude Media Luna and start building out EPO, and pivot back to generating positive free cash flow in mid-2025, which we can then apply to different uses. The cash flow potential of Morelos is unparalleled, and at today's spot prices, we will be generating US$400 million a year of free cash, part of which we will reinvest in exploration at Morelos as we have only just scratched the surface there. We will also return capital to shareholders, and we will look at opportunities for growth beyond Morelos. Torex has always said we want to look at the potential of M&A from a position of strength – and now that we have arrived at that position of strength, 2025 will be a year of expansion and growth, as we create ‘Torex 3.0’.