Another consistent quarter of safe and reliable production; on track to deliver on full-year operational guidance

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - August 7, 2024) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) reports the Company's financial and operational results for the three and six months ended June 30, 2024. Torex will host a conference call tomorrow morning at 9:00 AM (ET) to discuss the results.

Jody Kuzenko, President & CEO of Torex, stated:

"With another strong quarter behind us, we are on track to deliver on our commitments from ELG while concurrently concluding the Media Luna Project. First half gold production of 229,316 ounces ("oz") places us firmly on pace to deliver on production guidance for the sixth year in a row. Our cost discipline, coupled with a record realized gold price1 of $2,193 per oz, resulted in a robust all-in sustaining costs margin1 of 44% during the quarter. While costs have trended above guidance through the first half of the year, we expect them to improve in the second half as the strip ratio in the open pit declines. Given higher royalties and Mexican profit sharing due to the stronger gold price, we expect full-year costs to be at the upper end of the guided ranges.

"As outlined in our recent quarterly update, the Media Luna Project remains on track to deliver first copper concentrate production by year-end and to achieve commercial production in Q1 2025. Project capital expenditures have been adjusted for the impact of the stronger Mexican peso and we have more than sufficient liquidity to fully fund the remaining project period expenditures. As at quarter end, we had total available liquidity1 of $346 million (including $109 million in cash), which is more than sufficient to cover the $224 million remaining on the project, maintain our strategic objective of $100 million of cash on the balance sheet, and continue to advance our strategic priorities. We expect the funding position to strengthen even further over the rest of the year, driven by the robust free cash flow1 generated from ELG which, prior to spending on Media Luna, was $252 million over the last 12 months.

"During the quarter, we also outlined our five-year strategic exploration plan for the Morelos Complex, which we expect will be a key driver of value creation for the Company over the coming years. Initial results from the 2024 drilling program continue to demonstrate the potential to extend and enhance the long-term production profile of Morelos, which will be further demonstrated when we release the results of an internal economic study on the EPO deposit in September.

"With another strong quarter from ELG, Media Luna progressing on schedule, and more than sufficient funding in hand to complete the build, Torex is well-positioned to once again deliver on our proven operational track record, generating healthy margins and strong returns for our shareholders."

These measures are non-GAAP financial measures. Refer to "Non-GAAP Financial Performance Measures" for further information and a detailed reconciliation to the comparable measures in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board.
SECOND QUARTER 2024 HIGHLIGHTS

Strong safety performance continues: As at June 30, 2024, the lost-time injury frequency ("LTIF") for the Morelos Complex was 0.22 per million hours worked for both employees and contractors on a rolling 12-month basis. The Company recorded two lost-time injuries at the Media Luna Project during the quarter with an employee suffering a hand injury and a contractor suffering an eye injury.

Gold production: Delivered gold production of 113,822 oz for the quarter (YTD - 229,316 oz) with an average gold recovery of 90.5% (YTD - 90.6%), the second consecutive quarter with recoveries above 90%. Throughput rates remained above 13,000 tonnes per day ("tpd") for the sixth consecutive quarter, averaging 13,214 tpd (YTD - 13,166 tpd). With the strong production through the first half of the year, the Company is on track to achieve annual production guidance of 400,000 to 450,000 oz, which assumes a planned one-month shutdown of the processing plant in the fourth quarter as part of the Media Luna Project. On a gold equivalent ounce basis ("oz AuEq"), the Company produced 116,350 oz AuEq1 for the quarter (YTD - 233,591 oz AuEq1) and is on track to achieve guidance of 410,000 to 460,000 oz AuEq1.

Gold sold: Sold 113,513 oz of gold (YTD - 225,155 oz) at an average realized gold price2 of $2,193 per oz (YTD - $2,109 per oz), contributing to revenue of $270.3 million (YTD - $506.8 million). On a gold equivalent ounce basis, the Company sold 115,890 oz AuEq1 for the quarter (YTD - 229,996 oz AuEq1). The average realized gold price in the second quarter of 2024 includes a realized loss of $16.0 million or $141 per oz (YTD - $21.4 million or $95 per oz) on gold forward contracts.

Total cash costs2 and all-in sustaining costs2: Total cash costs were $1,014 per oz sold (YTD - $966 per oz sold) and all-in sustaining costs were $1,239 per oz sold (YTD - $1,220 per oz sold). All-in sustaining costs margin2 were $954 per oz sold (YTD - $889 per oz sold), implying an all-in sustaining costs margin2 of 44% (YTD - 42%). Cost of sales was $166.3 million (YTD - $323.7 million) or $1,465 per oz sold in the quarter (YTD - $1,438 per oz sold). Higher costs quarter-over-quarter reflect higher royalties and Mexican profit sharing given the $268 per oz increase in average spot gold price. Costs are expected to decrease through the second half of 2024 as stripping requirements continue to decline with the wind down of the open pits. The Company expects to be at the upper end of full year total cash costs guidance of $860 to $910 per oz sold and all-in sustaining costs guidance of $1,100 to $1,160 per oz sold primarily due to higher gold prices (guidance assumed a gold price of $1,900 per oz) resulting in increased Mexican profit sharing and royalties, as well as the strength of the average value of the Mexican peso through the first half of the year. On a gold equivalent ounce basis, total cash costs were $1,040 per oz AuEq sold1 (YTD - $992 per oz AuEq sold1) and all-in sustaining costs were $1,260 per oz AuEq sold1 (YTD - $1,241 per oz AuEq sold1) relative to guidance of $900 to $950 per oz AuEq sold1 and $1,130 to $1,190 per oz AuEq sold1, respectively.

Net income and adjusted net earnings2: Reported net income of $1.9 million or earnings of $0.02 per share on a basic and diluted basis (YTD - $45.0 million, or $0.52 per share on a basic and diluted basis), significantly impacted by deferred income tax expense of $51.4 million, largely due to the 10% depreciation of the Mexican peso, which closed the quarter at 18.4:1 against the U.S. dollar versus the quarterly average of 17.2:1. Adjusted net earnings of $52.4 million or $0.61 per share on a basic basis and $0.60 per share on a diluted basis (YTD - $88.3 million, or $1.03 per share on a basic basis and $1.02 per share on a diluted basis). Net income includes a net derivative loss of $10.1 million (YTD - $26.3 million loss) related to gold forward contracts and foreign exchange collars entered into to mitigate downside price risk during the construction of the Media Luna Project. In the second quarter of 2024, the Company entered into an additional series of zero-cost collars to hedge against changes in foreign exchange rates of the Mexican peso between July 2024 and December 2024 for a total notional value of $23.7 million. Subsequent to June 30, 2024, the Company entered into an additional series of zero-cost collars to hedge against the impact of changes in foreign exchange rates of the Mexican peso on production costs between January 2025 and December 2025 for a total notional value of $48.0 million.

EBITDA2 and adjusted EBITDA2: Generated EBITDA of $123.3 million (YTD - $221.3 million) and adjusted EBITDA of $121.2 million (YTD - $234.4 million).

Cash flow generation: Net cash generated from operating activities totalled $97.4 million (YTD - $177.2 million) and $112.5 million (YTD - $185.0 million) before changes in non-cash operating working capital, including income taxes paid of $10.2 million (YTD - $54.1 million) and $23.9 million paid in the second quarter of 2024 in relation to the site-based employee profit sharing program for 2023 in Mexico. Negative free cash flow2 of $62.3 million (YTD - $111.4 million) is net of cash outlays for capital expenditures, lease payments and interest, including borrowing costs capitalized. Negative free cash flow was a direct result of $108.2 million (YTD - $234.6 million) invested in the Media Luna Project.

Strong financial liquidity: The quarter closed with $345.8 million in available liquidity2, including $108.7 million in cash and $237.1 million available on the credit facilities of $300.0 million, net of borrowings of $55.0 million and letters of credit outstanding of $7.9 million. In July, the Company amended the credit facilities with a syndicate of international banks, replacing the Term Loan Facility (previously $100.0 million available through to the end of 2024), with an increase in the Revolving Credit Facility to $300.0 million (an increase from $200.0 million), with a maturity date in December 2027 (extended from the 2026 maturity) and a $150.0 million accordion feature which is available at the discretion of the lenders. The amended credit facility continues to include sustainability-linked KPIs, which have now been established for 2025 and 2026.

Media Luna Project: As of June 30, 2024, physical progress on the Project was approximately 78%, with detailed engineering, procurement activities, underground development, and surface construction advancing. Based on the current schedule, the tie-in of upgrades to the processing plant are still on track to occur over a four-week period during the fourth quarter of 2024, which will allow for commissioning and first concentrate production in late 2024 and commercial production expected in the first quarter of 2025. As a result of near completion of engineering and procurement activities, and incorporating the strength of the Mexican peso, budgeted project capital expenditures have been updated to $950.0 million. This represents a $75.5 million increase (+8.6%) over the original budget of $874.5 million. The key driver is the stronger Mexican peso which represents $48.0 million (+5.5%) of the increase, with the remaining $27.5 million (+3.1%) related to out of scope items and additional carryover costs as commercial production is now expected to be declared towards the middle of the first quarter of 2025. For the full year, Media Luna Project spend is now expected to be between $430.0 and $450.0 million versus original guidance of $350.0 to $400.0 million. During the quarter, Media Luna Project expenditures totalled $108.2 million (YTD - $234.6 million), with a remaining project spend of $224.4 million.

Release of the 2023 Responsible Gold Mining Report: In May, the Company released its 2023 Responsible Gold Mining Report (RGMR), the Company's ninth annual disclosure of its ESG performance. The Report can be found on the Company's website at www.torexgold.com.

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