Mexico-focused Torex Gold Resources (TSX: TXG) is nearing looking forward to first production at its US$950-million underground Media Luna mine by December, president and CEO Jody Kuzenko said in an interview.
The new gold-silver-copper mine will shift the company from lower-grade, open-pit production to higher-grade underground mining, adding yearly output of 450,000 to 500,000 oz. gold and about 45 million lb. copper. At spot prices, Kuzenko says the project will generate US$400 million free cash flow a year, making room for the company to reward shareholders.
“Now that we’re going to be reaping the dividends of all the hard work, it’s time to share that with investors,” she said during the Gold Forum Americas held in Colorado Springs in September. “So we’re strongly considering a return of capital to shareholders as a buyback or dividend.”
Development at Media Luna, part of the company’s Morelos Complex in Guerrero state, and strong exploration results have boosted Torex’s production forecast through 2028. Its ELG Underground is now expected to reach 2,070 tonnes per day this year, surpassing previous projections. By 2028, gold-equivalent output could reach 450,000 to 500,000 ounces, up from the 337,000 oz. that was projected in the company’s 2022 technical report.
Watch the interview below with The Northern Miner’s western editor, Henry Lazenby.
Joint venture videos are paid-for content in arrangement with The Northern Miner Group.
* This story has been updated to reflect the 2028 gold-equivalent output, which is projected to reach 450,000 to 500,000 oz., not 350,000 to 400,000 oz., as previously stated.
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