Entering text into the input field will update the search result below

Torex Gold: Digging Into The FY2020 Reserve Update

Apr. 05, 2021 10:41 AM ETTorex Gold Resources Inc. (TORXF), TXG:CA7 Comments
Taylor Dart profile picture
Taylor Dart


  • Torex Gold released its updated Reserves & Resource statement last week, reporting a sharp decline in El Limon Guajes reserves relative to FY2019 levels.
  • This decrease in reserves occurred despite an increase in the company's average realized gold price to $1,400/oz, which is one of the higher metals prices assumptions in the industry.
  • However, at a valuation of barely 6x FY2020 free cash flow, I believe most of this decline in reserves is priced in.
  • At current levels, I see Torex as a Hold, but I would view any pullbacks below US$12.40 as low-risk buying opportunities.

Feingold gießen
Photo by CinemaHopeDesign/iStock via Getty Images

The Q4 Earnings Season for the Gold Miners Index (GDX) is finally coming to an end, which means that many miners are busy reporting their year-end Reserves & Resource statements. The most recent name to update

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough You can access more in-depth research, my current portfolios, my top-12 miner rankings, and new positions I am entering/exiting, plus proprietary sentiment indicators for gold miners in my newsletter below. Returns Link: https://imgur.com/a/6fcWjD6Subscription LinksMonthly: https://buy.stripe.com/7sI14d4b92vFdUc15cAnnual: https://buy.stripe.com/4gw28h0YXeen7vObJP - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long GLD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (7)

permanent profile picture
Torex Gold Reports Strong Operational Start to the Year
Delivers Highest First Quarter of Production to Date
(All amounts expressed in U.S. Dollars unless otherwise stated)

TORONTO, Ontario, April 8, 2021 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) reports Q1 2021 gold production of 129,500 ounces, which is the Company’s highest first quarter of production on record. During the quarter, Torex sold 129,010 ounces of gold at an average realized price of $1,775 per ounce.

With the strong start to the year, Torex is well-positioned to achieve full year production guidance of 430,000 to 470,000 ounces of gold in 2021.
permanent profile picture
Torex Gold Granted Key Environmental Permit Amendment For Media Luna Project
TORONTO, Ontario, April 6, 2021 –Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announces that the Company has received approval from Mexico’s Secretariat of Environment and Natural Resources (“SEMARNAT”) on the amendment of a key environmental permit for its Media Luna project. The approval (“MIA Modification Phase II”) allows for construction activities beyond the boundary of the Company’s existing permit, which is necessary for the continuation of the early works program to access the Media Luna deposit.

Jody Kuzenko, President & CEO of Torex, stated:

“We are very pleased to have the approval of the MIA modification in hand, which is a permitting milestone for the execution of our Media Luna early works program. While we had been permitted for early works activities on the north side of the Balsas River, this amendment extends permit boundaries and allows for the construction of key infrastructure on the south side of the river.
bver88 profile picture
@Taylor Dart

thank you for sharing an impressive report on this miner, TD.

trades on Canada market = easy peasy TXG.

agree with your assessment on jurisdiction and reserves concerns otherwise a nice operation

like it and have a smallish position round 17 CDN /14usd and would add on weakness
Taylor Dart profile picture
Hi Bver,

Happy it was of value & thanks for reading!
"I would view any pullbacks below $12.40 US as a low risk buying opportunity."
My problem is I bought in 2017 @ $22+,,,OUCH!! Thank God it was a small bite.
Taylor Dart profile picture

Sorry to hear about the high-cost basis, if I were personally long from those levels, I would be using rallies above US$20.00 to exit at a small loss when they arrive.
@Taylor Dart Thanks for the thought, as I said the small bite is what keeps me from choking.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!


SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on TORXF

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.