Q1 2026 RESULTS CONFERENCE CALL
May 7, 2026
All amounts expressed in U.S. dollars unless otherwise stated
TSX | TXG
OTCQX | TORXF
KEY HIGHLIGHTS & OPERATIONAL PERFORMANCE
PRESIDENT & CEO
KEY HIGHLIGHTS
Strong financial quarter with record margins and significant free cash flow
Production of 101 koz AuEq1 including:
74 koz Au, 543 koz Ag, and 15 mlb Cu
All-in sustaining costs2 of $1,917/oz AuEq1 sold for a record quarterly all-in sustaining costs margin2 of 60% Record quarterly revenue of $539M and record adjusted EBITDA2 of $359M
Free cash flow2 of $157M (net of $165M of tax/royalty payments), supporting full repayment of $30M of debt and $121M of capital returns Available liquidity of $467M including $130M of cash and no debt Lost-time injury frequency of zero per million hours worked for both employees and contractors
2026 GUIDANCE
On track to achieve full-year guidance with stronger production and costs forecast in H2
2026 Guidance | Q1 2026 Performance | ||
Production (prior to payable deductions) | |||
Gold ("Au") | oz | 320,000 to 365,000 | 73,647 |
Silver ("Ag") | koz | 2,200 to 2,500 | 543.0 |
Copper ("Cu") | mlb | 60 to 65 | 14.9 |
Gold equivalent ("AuEq") 1,3 | oz | 420,000 to 470,000 | 100,874 |
Sales (after payable deductions) | |||
Gold equivalent ("AuEq") 1,3 | oz | 410,000 to 460,000 | 109,222 |
Costs | |||
All-in sustaining costs ("AISC") 1,2,3 | $/oz AuEq | $1,750 to $1,850 | $1,917 |
Capital expenditures 2 | |||
Sustaining | m$ | $120 to $130 | $29.7 |
Non-sustaining | m$ | $165 to $175 | $26.0 |
Total capital expenditures | m$ | $285 to $305 | $55.7 |
Key Sensitivites | Payable Production (koz AuEq) | AISC ($/oz AuEq sold) | Net Cash Generated from Operating Activities |
Au price (+/- $200/oz) | -/+ 5 koz | +/- $25/oz | +/- $45M |
Ag price (+/- $5/oz) | +/- 3 koz | -/+ $10/oz | +/- $7M |
Cu price (+/- $0.25/lb) | +/- 4 koz | -/+ $15/oz | +/- $10M |
USD/MXN (+/- 1.00) | n/a | -/+ $35/oz | +/- $15M |
MORELOS OPERATIONAL PERFORMANCE - PROCESSING
Production impacted by mine-sequencing; grades/recoveries set to improve in H2
Throughput lower due to mill maintenance
Extended planned maintenance period and unplanned maintenance to replace bolts and grates at the SAG mill impacted throughput rates
Expect throughput to exceed design levels of 10,600 tpd through remainder of the year (April averaged 11,466 tpd)
Recoveries lower due to mine sequencing
Expect to continue to mine lower grade and lower recovery stopes at Media Luna through Q2
Expecting to return to higher grade and recovery areas of the mine in H2, with production expected to step up accordingly
Lower grades and recoveries mainly related to gold
MORELOS OPERATIONAL PERFORMANCE - MINING
Mining rates outperforming at both Media Luna and ELG Underground
Media Luna achieved 7,500 tpd design level
Mining rates exceeded target of 7,500 tpd nine months ahead of schedule in technical report and three months ahead of latest forecast
Expected to maintain or exceed design rate through remainder of 2026
ELG Underground well ahead of 2,800 tpd target
Expect mining rates to remain around this level through 2026 until steady feed from Media Luna North is delivered
Increased throughput primarily driven by increased level of long-hole stopes mined
PROJECTS UPDATE
Media Luna North and Los Reyes tracking to plan
Media Luna North
On track for first production in Q4 2026North adit breakthrough on track for mid-year
Infrastructure construction to commence mid-year following completion of key underground development
Contracts for remaining equipment supply being finalized
Los Reyes
Preliminary economic assessment on track for completion early JulyTargeting combined open pit and underground mine with mill throughput of 5,000 tpd
Prefeasibility study expected to commence in H2 and drilling expected to resume once security situation in the region stabilizes and allows for safe activities
DRILLING & EXPLORATION UPDATE
Excellent drilling results delivered with first quarter update
Media Luna Cluster
Strong potential to expand resources to the south and east of Media Luna mineSurface mapping suggests potential continuity between these areas
Infill drilling supports conversion of Inferred Resources to Indicated at year end with target of offsetting depletion
ELG Underground
Continued discovery of new mineralized structures at El Limón Sur trend supports potential for additional, undiscovered mineralized trends/corridorsStrong potential to expand resources at Sub-Sill and El Limón West trends
Targeting to replace reserves/resources in 2026
FINANCIAL PERFORMANCE
CFO
FINANCIAL PERFORMANCE
Higher metal prices support record margins and strong free cash flow
Record quarterly AISC margin2 of 60%
Significant free cash flow2 of $157M
AISC above guided range ($1,750 to $1,850/oz AuEq) given:
Impact of higher than guided metal prices on royalties and profit sharingImpact of stronger Mexican peso
Production below low end of quarterly run rate
Higher reagent consumption in response to lower recovery ore
Robust free cash flow despite $165M of taxes and royalties paid during the quarter
At $4,800/oz Au, forecasting $650M of free cash flow in 20264
CASH FLOW GENERATION
Cash balance increased quarter-over-quarter despite significant cash outflows
2
2
2
Continue to generate exceptional cash flow, supported by high metal prices and record margins Generated $157M of free cash flow net of $165M of annual tax/royalty paymentsFully repaid remaining $30M of outstanding debt
Returned $121M of cash to shareholders via $111M of share repurchases and $10M of dividends
Operating cash flow tends to be weakest in H1 given timing of tax, royalty and PTU payments
Final payments related to royalties, profit sharing, and taxes are subject to movements in the Mexican peso relative to the U.S. dollar
Cash flow from operations prior to changes in non-cash working capital impacted by:
Payment of 8.5% mining tax
Payment of corporate income tax
Cash flow from operations after changes in non-cash working capital impacted by:
Payment of 1.0% and 2.5% royalties
Payment of mandated profit sharing ("PTU")
Strong balance sheet with no debt and healthy liquidity position
Fully repaid outstanding debt balance Available liquidity2 of $467M at the end of Q1
No debt and $101M of lease-related obligations Targeting building to a minimum cash balance of
$200M in year
Liquidity expected to continue to improve with strong free cash flow generation within the current metal price environmentCAPITAL ALLOCATION
Executing across several priorities with robust cash flow generation
Mine Life & Margins
Enhance and extend production profile at Morelos through drilling
Drive efficiencies while prioritizing safe operations
Return of Capital
$350M targeted in 2026 Quarterly dividend increased to C$0.16/sh
Share repurchases ($111M in Q1)
CAPITAL ALLOCATION PRIORITIESGrowth
Advance and de-risk Los Reyes
Demonstrate potential of early-stage exploration portfolio
Value-accretive M&A
Balance Sheet
Minimum cash target of $200M Maintain strong liquidity
ENHANCED RETURN OF CAPITAL PROGRAM
Targeting $350M of total returns in 2026
5
Dividend Share Buybacks
Quarterly dividend increased by 7% to C$0.16/sh
825,769 shares purchased at C$57/sh (2025) 2,141,801 shares purchased at ~C$71/sh (Q1 2026)
QUESTIONS?
ENDNOTES
AuEq production and all-in sustaining costs for Q1 2026 is based on average market prices of $4,873/oz gold, $84.33/oz silver, and $5.83/lb copper. AuEq (oz) = Au (oz) + 1,000 * (84.33 / 4,873) x Ag (koz) + 1,000,000 x (5.83 / 4,873) x Cu (mlb).
These measures are non-GAAP financial measures. Please refer to the "Non-GAAP Financial Performance Measures" of the Company's latest MD&A, filed on Sedar+ (https://www.sedarplus.ca) or on the Company's website (https://www.torexgold.com), for further information and a detailed reconciliation to the comparable IFRS measures.
AuEq production and sales for the Company's 2026 guidance assume metal prices of $4,000/oz Au, $45/oz Ag, and $4.90/lb Cu. AuEq (oz) = Au (oz) + 1,000 * (45 / 4,000) x Ag (koz) + 1,000,000 x (4.90 / 4,000) x Cu (mlb). 2026 guidance assumes a Mexican peso to U.S. dollar of 19:1.
$650 million of free cash flow generated in 2026 is forecasted based on $4,800/oz Au, $80/oz Ag, $5.80/lb Cu, and a Mexican peso to U.S. dollar of 17.8:1.
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Forecast dividend includes $10M paid in Q1 2026 and assumes the payment of a quarterly dividend of C$0.16/sh through Q4 2026 based on shares issued and outstanding as of March 31, 2026.
https://www.torexgold.com
Dan Rollins, CFA
Senior Vice President, Corporate Development and Investor Relations Email: dan.rollins@torexgold.com | Direct: 1-647-260-1503
TSX | TXG
OTCQX | TORXF
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Torex Gold Resources Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 22:56 UTC.
