Torex Gold Resources Inc.

View Company Profile

September 14, 2021 at 1:10 PM (MDT)|Broadmoor Hotel & Resort

Jody Kuzenko

President & CEO

Jody Kuzenko was appointed President & Chief Executive Officer of Torex Gold in June 2020, having previously held the position of Chief Operating Officer since joining the Company in October 2018. She is a senior mining executive with over 25 years of operational and business experience, mainly acquired at Vale (formerly Inco). After the first four years at Inco as Chief Legal Officer, Jody moved to the operational side of the business where she held roles of increasing responsibility in operations management. She has a proven record of execution and leadership in many areas of mining operations including refining, strategy, safety, health and environment, energy and utilities, and community, labour and government relations. Jody holds a Bachelor of Laws from the University of Western Ontario, an Honours Bachelor of Arts from McMaster University, and is a Certified Director from the ICD-Rotman Directors Education Program.

Jody serves as a Director of Torex Gold, The Mosaic Company, and the World Gold Council. She also sits on the Canadian Council of Women CEOs and is a founding Advisory Board member of the Centre for Research in Occupational Safety and Health (CROSH) at Laurentian University. Previous Board experience includes the Greater Sudbury Chamber of Commerce, Association of Major Power Consumers of Ontario and Industrial Gas Users Association, Canada. In 2020, she was named one of the ‘Top 100 Global Inspirational Women in Mining’ by Women in Mining UK as well as one of the ‘2020 Names to Know’ by CIM Magazine.

SAFE HARBOR STATEMENT

THE PRELIMINARY ECONOMIC ASSESSMENT (THE “MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT ENTITLED “MORELOS PROPERTY, NI 43-101 TECHNICAL REPORT, ELG MINE COMPLEX LIFE OF MINE PLAN AND MEDIA LUNA PRELIMINARY ECONOMIC ASSESSMENT, GUERRERO STATE, MEXICO” DATED EFFECTIVE MARCH 31, 2018, AND FILED ON SEPTEMBER 4, 2018 (THE “TECHNICAL REPORT”). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY STUDY, AS THE ECONOMICS AND TECHNICAL VIABILITY OF THE MEDIA LUNA PROJECT HAVE NOT BEEN DEMONSTRATED AT THIS TIME. IT IS ALSO IMPORTANT TO NOTE THAT MUCKAHI IS EXPERIMENTAL IN NATURE AND HAS NOT YET BEEN FULLY TESTED IN AN OPERATING MINE. THE PEA IS PRELIMINARY IN NATURE, INCLUDES INFERRED MINERAL RESOURCES THAT ARE CONSIDERED TOO SPECULATIVE GEOLOGICALLY TO HAVE THE ECONOMIC CONSIDERATIONS APPLIED TO THEM THAT WOULD ENABLE THEM TO BE CATEGORIZED AS MINERAL RESERVES, AND THERE IS NO CERTAINTY THAT THE PRELIMINARY ECONOMIC ASSESSMENT WILL BE REALIZED. MINERAL RESOURCES THAT ARE NOT MINERAL RESERVES DO NOT HAVE DEMONSTRATED ECONOMIC VIABILITY. ADDITIONAL INFORMATION ON THE MINERAL RESOURCES AND MINERAL RESERVES CONTAINED IN THIS PRESENTATION ARE INCLUDED IN THE APPENDIX (SLIDES 34 TO 37).

A feasibility study is based on a number of factors and there can be no assurance that the Media Luna project feasibility study will be successful in demonstrating within a reasonable confidence that the Media Luna project can be constructed and operated in an economically viable manner. While the Company intends to advance the Media Luna project to production in the first quarter of 2024 and continues the Early Works to maintain the schedule to first production, the Company has not taken a production decision in advance of completing the feasibility study.

Total cash costs per ounce of gold sold (“TCC”), all-in sustaining costs per ounce of gold sold (“AISC”), all-in sustaining costs margin, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and free cash flow are financial performance measures with no standard meaning under International Financial Reporting Standards (“IFRS”). Please refer to the “Non-IFRS Financial Performance Measures” section in the Company’s management’s discussion and analysis (the “MD&A”) for the year ended June 30, 2021, dated August 4, 2021, available on the Company’s SEDAR profile at www.sedar.com for further information with respect to TCC, AISC, all-in sustaining costs margin, EBITDA, and free cash flow and a detailed reconciliation of each of these non-IFRS financial performance measures to the most directly comparable measures under IFRS.
This presentation contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the future exploration, development and exploitation plans concerning the Morelos Gold Property (as defined in the MD&A); the adequacy of the Company’s financial resources to fund such plans; business plans and strategy and other events or conditions that may occur in the future; the results set out in the Technical Report including the PEA including with respect to mineral resource and mineral reserve estimates; the ability to exploit estimated mineral reserves; the Company’s expectation that the ELG Mine Complex (as defined in the MD&A) will continue to be profitable with positive economics from mining; expected recoveries, grades, annual production; the parameters and assumptions underlying the mineral resource and mineral reserve estimates and the financial analysis. In addition, forward-looking statements include but are not limited to: the future underpinned by solid fundamentals; expected long life potential via Media Luna project; the Company is well positioned to deliver strong cash flow in 2021; production and cost guidance as described in the presentation; all-in sustaining costs and non-sustaining capital expenditures expected likely to be at the higher end or upper end of the range, respectively; future being supported by robust cash flow form ELG; extending and optimizing ELG a key strategic priority as described in the presentation; expectation that the ELG pushback will support a smooth transition between ELG and Media Luna, including approximately 150,000 additional ounces of gold production and extending the life of the open pit mine to mid-2024; expected strip ratio; goal to replace depletion and maintain 2 years of mineral reserves in the ELG underground mine; scheduled first production from Media Luna in early 2024; potential to fully fund the development of Media Luna; projected cash flow from ELG based on the gold price assumptions set out in the presentation; the estimated cash balances for years 2021 to 2024; Media Luna is expected to extend cash flow beyond ELG; implied mine life in years based on mineral reserves and resources and assumed plant throughput; Media Luna on track for first production in early 2024 and expected to deliver strong cash flow well beyond ELG; Media Luna feasibility study expected in Q1 2022; 7 km long access tunnel starting north of Balsas River expected to get to bottom of Media Luna deposit by mid 2023, targeting approximately 10m/day at steady state using monorail-based haulage and conventional equipment; plans to complete the South Portal and expected benefits described in the presentation; significant exploration potential across the broader Morelos property; to date, magnetic anomalies have been a strong indicator of potential mineralization; regional targets are being prioritized for future drilling and commitments to invest $2.5 million on regional exploration; strategic pillars, as described in the presentation, and expectation that executing strategic plan will enhance shareholder returns; extending the cashflow profile beyond ELG by bringing Media Luna into production; robust cash flow from ELG supportive of funding Media Luna and value accretive exploration; potential to utilize debt to be considered based on optimal capital structure entering the construction phase; expectation that delivering on plans will result in re-rating; expected completion of key deliverables; plans to enhance ESG disclosure; tendency of cash flow to be weakest in the first half of the year given the timing of payments related to government royalties, profit sharing and taxes; expected recoveries, grades, annual production; and plans to advance key value accretive projects, as described in the presentation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “strategy”, “plans,” “expects,” or “does not expect,” “is expected,” “potential”, “risk”, “guidance”, “opportunities”, “target”, “envisioned”, “objective”, “focus”, “budget,” “scheduled,” “goal,” “estimates,” “forecasts,” “intends,” “anticipates,” or “does not anticipate,” “believes”, “tends” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” “will” or “will be taken,” “to be,” “be achieved,” or “on track to” occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with: ability to conclude a feasibility study demonstrating within a reasonable confidence that the Media Luna project can be constructed and operated in an economically viable manner; skarn deposits; with achieving planned gold production; fluctuation in gold and other metal prices; commodity price risk; currency exchange rate fluctuations; capital and operational cost estimates; the assumptions underlying the production estimates not being realized; cost of labor, supplies, fuel and equipment rising; the assumptions underlying the estimated year-end cash balances not being realized; the assumptions underlying the cash flow projections from ELG to potentially fully fund the development of Media Luna, without external sources of financing, not being realized; assumptions underlying the projected implied mine life based on mineral reserves and resources and plant throughput rate not being realized; actual results of current exploration, development and exploitation activities not being consistent with expectations; changes in project parameters; delays and costs inherent to consulting and accommodating rights of local communities; hiring and training the required personnel and maintaining personnel relations; the feasibility of bringing the Media Luna deposit into production; as well as those risk factors included in the MD&A, the Annual Information Form (“AIF”) the Technical Report and the Company’s other public disclosure which are available on www.sedar.com and www.torexgold.com. Certain material assumptions regarding such forward-looking information and forward-looking statements are discussed in this presentation, the MD&A, the AIF, the Technical Report and elsewhere in the Company’s public disclosure. Readers are cautioned that the foregoing, together with the risks and assumptions set out in the MD&A, the AIF, the Technical Report and elsewhere in the Company’s public disclosure, is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information and forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company’s expected financial and operating performance and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities law.

The scientific and technical data contained in this presentation have been reviewed and approved by Barry Murphy, Pr ENG, VP, Engineering of the Company. Mr. Murphy is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Properties. Additional technical information is contained in the Technical Report. The technical information contained in this presentation is based upon the information contained in the Technical Report, which is available on SEDAR as www.sedar.com and the Company’s website at www.torexgold.com and as updated in the Company’s continuous disclosure documents also available on www.sedar.com and www.torexgold.com.

Inclusion of estimates published by S&P Capital IQ in this presentation is not an endorsement by the Company of such estimates.

Torex Gold and the Bull/Moon logo are registered trademarks of the Company.

NOTICE

The Denver Gold Group does not make any express or implied condition, representation, warranty or other term as to the accuracy, validity, reliability, timeliness or completeness of any information or materials in general or in connection with any particular use or purpose presented at the Gold Forum. Denver Gold Group cannot accept responsibility for sourcing variances, mistakes, errors or omissions or for any action taken in reliance thereon. Use of this data is governed by Denver Gold Group's Terms of Use.

The Denver Gold Group does not represent or endorse the accuracy or reliability of any third party advice, opinion, statement, information or materials received during the Gold Forum.

INVESTMENT ADVICE - NO OFFER OR RECOMMENDATION

The Gold Forum and the information and materials presented at the Gold Forum do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated gold related products or any other regulated products, securities or investments, including, without limitation, any advice to the effect that any gold related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated gold related products or any other regulated products, securities or investments should not be made in reliance on any of the information or materials presented or obtained during the Gold Forum. Before making any investment decision, prospective investors should seek advice from their financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.