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1. Company Snapshot

1.a. Company Description

Torex Gold Resources Inc.operates as an intermediate gold producer in Mexico.It primarily holds a 100% interest in the Morelos Gold property that covers an area of 29,000 hectares located southwest of Mexico City.


The company's principal assets include the El Limón Guajes mining complex comprising the El Limón Guajes open pits, the El Limón Guajes underground mine, and the processing plant and related infrastructure, and the Media Luna deposit, which is an advanced stage development project.It also mines for silver, copper, and carbon deposits.The company was formerly known as Gleichen Resources Ltd.


and changed its name to Torex Gold Resources Inc.in April 2010.Torex Gold Resources Inc.


was incorporated in 1980 and is headquartered in Toronto, Canada.

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1.b. Last Insights on TXG

Torex Gold Resources Inc.'s operational guidance and updated five-year production outlook indicate robust cash flow generation from gold, silver, and copper. The Media Luna mine ramp-up is ahead of schedule, and the processing plant is exceeding expectations. Recent drill results from Media Luna West support the declaration of an inaugural Inferred Resource. CIBC Capital Markets maintains an Outperformer rating and C$90 price target, citing the company's strong prospects.

1.c. Company Highlights

2. Torex Gold's Strong Q4 2025 Results: A Solid Foundation for Future Growth

Torex Gold reported a robust Q4 2025, with record margins of 57% and record free cash flow of $166 million. The company's EPS came in at $2.45, beating analyst estimates of $2.16. Revenue growth is expected to be slightly negative in 2026, with analysts estimating a decline of 2.4%. However, the company's strong financial performance in 2025, coupled with its solid guidance for 2026, provides a stable foundation for future growth. The company's all-in sustaining costs of $17.83 per ounce gold in 2025 were in line with expectations, and guidance for 2026 is expected to be similar.

Publication Date: Feb -24

📋 Highlights
  • Record Q4 Margin: Achieved 57% margin in Q4 2025, up from 51% annual margin, driven by $166 million in free cash flow.
  • Debt-Free Balance Sheet: Fully repaid $30 million debt in January 2026, ending 2025 with $426 million in liquidity.
  • 2026 Production Guidance: Targeting 420,000–470,000 gold equivalent ounces, with steady-state mining at Media Luna.
  • Exploration Investment: 2026 exploration budget of $77 million, including $43 million for 113,000 meters of drilling in Morelos.
  • Mill Capacity Expansion: Plans to increase processing from 10,800 to 13,000 tonnes/day via flotation circuit upgrades at Media Luna.

Financial Performance

The company's Q4 financial performance was driven by strong production from the Media Luna project, which has now completed its ramp-up ahead of schedule. The company's cash balance at the end of 2025 enabled it to execute on several capital allocation priorities, including the acquisition of Reyna Silver, repaying all but $30 million of its debt balance, and returning $44 million of cash to shareholders. The company subsequently fully repaid its debt in January, leaving it debt-free with total liquidity of $426 million.

Growth Prospects

Torex Gold's growth prospects are driven by its exploration program, which has a record budget of $77 million for 2026. The company plans to conduct significant drilling at Morelos, where it will conduct just over 113,000 meters of drilling, and at Gryphon in Nevada, where it has the option to earn into 100% of the property. The company's next development project, Los Reyes, is progressing nicely, with a preliminary economic assessment expected to be completed by mid-year.

Valuation

Using various valuation metrics, Torex Gold's current P/E Ratio of 11.46 and EV/EBITDA of 6.82 suggest that the company's shares are reasonably valued. The company's ROE of 20.98% and ROIC of 17.82% indicate strong profitability. With a dividend yield of 0.22%, the company's shares offer a relatively attractive income stream. Overall, Torex Gold's strong financial performance, solid guidance, and attractive valuation metrics make its shares an attractive investment opportunity.

3. NewsRoom

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CIBC Confirms Outperformer Rating and Target of $90 on Torex Gold Resources

Jan -15

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Torex Gold Provides 2026 Operational Guidance and Updated Five-year Production Outlook

Jan -14

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Torex Gold Delivers a Strong Close to an Exceptional 2025

Jan -08

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Torex Gold Reports Promising Drill Results from Media Luna West

Dec -01

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TSX Stocks That May Be Trading Below Estimated Value In December 2025

Dec -01

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United Lithium Appoints Andrew Bowering as Interim CEO and Closes $2.25 Million Financing; Shares up 11.5%

Nov -20

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Torex Gold Announces Renewal of Normal Course Issuer Bid

Nov -19

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Investors Shouldn't Be Too Comfortable With Torex Gold Resources' (TSE:TXG) Earnings

Nov -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.01%)

6. Segments

Gold

Expected Growth: 7%

Torex Gold Resources Inc.'s 7% growth driven by increasing gold prices, strong demand from central banks and jewelry industry, coupled with the company's efficient operations and cost management at its Morelos Complex in Mexico, as well as its exploration and development of new projects.

Copper

Expected Growth: 9%

Torex Gold Resources Inc.'s copper segment growth is driven by increasing demand from electric vehicle manufacturers, renewable energy infrastructure, and construction industries. Additionally, supply constraints due to mine closures and declining ore grades contribute to the 9% growth rate. Furthermore, the company's focus on exploration and expansion of existing mines, as well as strategic acquisitions, support its growth momentum.

Silver

Expected Growth: 6%

Torex Gold Resources Inc.'s silver segment growth is driven by increasing gold prices, rising demand from industrial applications, and growing adoption in renewable energy technologies. Additionally, the company's focus on exploration and development of new mines, coupled with its efficient operations and cost management, contribute to its 6% growth rate.

7. Detailed Products

Gold

Torex Gold Resources Inc. is a Canadian-based gold producer that operates the El Limón Guajes Mine Complex in Mexico, which produces gold and silver.

Silver

As a by-product of gold mining, Torex Gold Resources Inc. also produces silver, which is used in various industrial, medical, and consumer applications.

Mining Services

Torex Gold Resources Inc. offers mining services, including exploration, development, and operation of mines, to help other companies in the mining industry.

Exploration Services

The company provides exploration services, including geological surveys, sampling, and drilling, to help identify and develop new mineral deposits.

8. Torex Gold Resources Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Torex Gold Resources Inc. is medium due to the availability of alternative metals and mining companies.

Bargaining Power Of Customers

The bargaining power of customers for Torex Gold Resources Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Torex Gold Resources Inc. is medium due to the company's dependence on a few key suppliers for equipment and services.

Threat Of New Entrants

The threat of new entrants for Torex Gold Resources Inc. is high due to the relatively low barriers to entry in the gold mining industry.

Intensity Of Rivalry

The intensity of rivalry for Torex Gold Resources Inc. is high due to the competitive nature of the gold mining industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.10%
Debt Cost 3.95%
Equity Weight 97.90%
Equity Cost 10.57%
WACC 10.43%
Leverage 2.14%

11. Quality Control: Torex Gold Resources Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Centerra Gold

A-Score: 5.8/10

Value: 3.7

Growth: 5.3

Quality: 5.5

Yield: 5.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Torex Gold Resources

A-Score: 5.7/10

Value: 5.8

Growth: 6.7

Quality: 7.5

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Calibre Mining

A-Score: 5.1/10

Value: 8.1

Growth: 5.8

Quality: 5.4

Yield: 0.0

Momentum: 8.0

Volatility: 3.3

1-Year Total Return ->

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IAMGOLD

A-Score: 4.9/10

Value: 4.0

Growth: 5.8

Quality: 6.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Idaho Strategic Resources

A-Score: 4.9/10

Value: 0.0

Growth: 9.7

Quality: 8.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Sandstorm Gold

A-Score: 4.8/10

Value: 1.4

Growth: 2.9

Quality: 7.3

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.06$

Current Price

76.06$

Potential

-0.00%

Expected Cash-Flows