Torex Gold Resources (TSX: TXG) shares saw a nearly 15% bounce in trading today after the Mexico-focused miner posted second quarter results that beat analysts’ expectations.
The company produced a total of 123,185 oz. gold at its El Limon Guajes mine (ELG), in Guerrero state, putting it on track to meet its full year production guidance of 430,000 to 470,000 ounces.
In spite of continued inflationary pressures, Torex reported cash costs of US$703 per oz. — within its guidance of US$695-US$735 per oz. — while all-in sustaining costs of US$911 per oz. were lower than its guidance of US$980-US$1,030 per oz.
“Despite challenging headwinds with the current inflationary environment and the persistence of Covid-19, we delivered a very solid first half of 2022, and we are well on track to deliver on production and cost guidance for the fourth year in a row," said Torex president and CEO Jody Kuzenko in a release.
The company reported headline earnings of U$57 million or US$0.66 per share (which beat a consensus estimate among analysts of US$0.50 per share), compared with US$47.4 million or US$0.55 per share in the same period of 2021. Torex recorded revenues of US$235 million (123,363 oz. of gold sold at an average price of US$1,864 per oz.), up from US$205.9 million last year.