Issuu

Media Luna to Adhere to the Clean Industry Program

Torex Gold ratified its subsidiary Minera Media Luna’s adherence to the Clean Industry Program, launched by the Federal Attorney’s Office for Environmental Protection (PROFEPA). The company furthermore committed to further improve its social and environmental programs.

During a ceremony to commemovrate the World Environment Day, Faysal Rodríguez, Vice President, Torex Gold Mexico, mentioned that the company aimed to follow the International Cyanide Management Code and also announced its compliance with PROFEPA’s program.

Faysal expressed its interest in participating in water supply programs for Chilpancingo, a city suffering from increasing droughts. Torex also invested in the creation of wetland systems for communities in Guerrero.

“[We talked] with the [local] Minister of the environment, Ángel Almazán, about the actions we can carry out to guarantee the water supply in the long term for Chilpancingo. We wish to cooperate to solve Iguala’s water scarcity problem.

To address this issue, we must create an Integral Management System, because water delivery is critical for regions of Guerrero,” Faysal added.

Faysal recognized that goodwill can lead to sustainable action, but he recognized that the work done by all levels of government, organizations and the private sector is still insufficient to reduce the water stress that the local communities experience.

Therefore, future generations will have to find new ways to truly solve the problem. Nevertheless, Torex Gold will continue to collaborate with communities and carry out environmentally-minded projects through its subsidiary. “We commit to operating differently, because we will stay in Guerrero for many years and want to work transparently,” Faysal said.

In May 2022, Torex Gold announced an investment of over US$800 million to be implemented from May 2022 to 4Q24 to develop the Media Luna Project, extending its useful life until 2033. The company has increased its efforts to make its processes greener by acquiring hybrid vehicles for both the Media Luna and Morelos projects, as well as building a solar plant for Morelos’ operations.

The National Program for Environmental Audit (PNAA), better known as the Clean Industry Program, was created by PROFEPA in 1992. It consists of a series of activities to encourage environmental audits. Companies can comply voluntarily, but the benefits of this compliance facilitate meeting the current environmental legislation and support companies to improve their production processes, competitivity and environmental performance.

Torex Gold Leads ESG Mining Efforts, Sets Ambitious 2022 Goals

Torex Gold has released its 2021 Responsible Gold Mining Report, the most comprehensive ESG disclosure it has provided to date. The latest report highlights Torex’s excellent performance in its environmental, social and governance areas last year. In addition, it outlines its new goals for 2022, which are expected to continue to position Torex as a leader in responsible gold mining.

Importantly, the Report is the first disclosure of its new organizational purpose statement, which is “To transform finite mineral resources into lasting prosperity by positively impacting all the lives we touch.”

Responsible mining is the foundation of Torex’s business philosophy; it is central to every decision the Company makes. Since arriving in Mexico, the company, whose operations are located in a remote, underserved area, has prioritized promoting a strong culture and creating favorable conditions to improve the lives of its workers and host communities.

“From our earliest days, we built our operation in Guerrero with a view to running a business that was certainly about generating profit but also about minimizing our environmental footprint, building trust and partnership with local communities, creating prosperity for those who share stakes in Torex and fostering lasting economic development through community infrastructure and improvement initiatives,” said Jody Kuzenko, President and CEO of Torex.

Last year, Torex established high standards and clear metrics to improve its ESG management and performance in areas such as health and safety, environment, community, human rights and transparency. The company had 15 goals set for 2021 and successfully achieved 13, including the launch of a new website with a dedicated ESG Reporting Portal and a self-assessment against the World Gold Council Responsible Gold Mining Principles, which was independently assured.

The remaining two goals— the implementation of human rights management systems aligned with RGMP requirements and digital systems for ESG data management— are in progress and the company expects to make significant headway this year.

In its 2021 Report, the Company stated that its main environmental achievements were obtaining environmental permits for the early construction work at the Media Luna project, zero reportable environmental spills, the signing of the International Code for Cyanide Management (ICMC), the adoption of the Global Industry Standard on Tailings Management and 100 percent compliance with environmental regulations.

With respect to social matters, the company achieved industry-leading safety performance with a lost-time injury frequency (LTIF) of 0.14 per million hours worked. For

Read the complete article

SEMARNAT Approves Key Environmental Permit for Media Luna

Torex Gold has announced that the Ministry of the Environment and Natural Resources (SEMARNAT) has approved its environmental permit (MIA Integral) for the Media Luna project in Guerrero. The company has also received approval to increase the power draw at its Mexican assets and expects to increase it further to sustain full production at Media Luna.

The approval of the MIA Integral will allow the company to start operations at Media Luna once the mine is built, and builds on the MIA Modification in 2021, which allowed development activities to be carried out in the south section of the Balsas River. The company explained that in addition to seeking to develop and operate Media Luna, it is also analyzing the future deposition of tailings and the expansion of exploration activities.

“The receipt of the MIA Integral represents another key milestone in the de-risking of the Media Luna Project and further demonstrates the ongoing support of local communities and the endorsement of state and federal governments of both the social and environmental facets of this project. With the MIA Integral in hand, the company now has all the environmental approvals required to develop and operate Media Luna,” Jody Kuzenko, President and CEO of Torex Gold, said in a press release.

Moreover, Torex announced it has received approval to increase the power draw to 45MW to boost activities at both its El Limón Guajes (ELG) and Media Luna projects. The company highlighted it is in discussion with authorities to increase the power draw to 65MW, which is required for fullscale production at Media Luna.

Kuzenko previously told MBN that although the permitting process in Mexico has been more challenging due in large part to the COVID-19 pandemic, the company was confident that its permit would transition smoothly. “Some of the stories surrounding delays in permitting are true.

A reduction in SEMARNAT’s staff and a global health pandemic are not conducive to fast permitting. Nevertheless, a company’s reputation, as well as the scale, environmental impact and social approach of a project and the quality of the application are crucial. Torex is in a great position regarding all these elements. Our approach with SEMARNAT and CONAGUA has been positive and we look forward to working constructively with them as the project develops.”

Read the complete article

Torex Gold Reports Strong Q3 Financial Results

Torex Gold has announced its financial and operating results for 3Q22, reporting a robust quarter with very healthy margins. Company officials noted that in light of the results, Torex is on track to achieve its 2022 operating and production targets.

Torex’s 3Q22 results mention the production of 122,208oz of gold, the sale of 119,834oz of gold at an average realized gold price of US$1,715/oz, net income of US$43.9 million on a basic and diluted basis and an adjusted net earnings totaling US$34.6 million on a basic and diluted basis. In addition, the company reported cash flow from operations of US$102.4 million, free cash flow of US$33.5 million and net cash of US$336.1 million.

“Our well-established track record of delivering safe and reliable production at El Limón Guajes (“ELG”) continues. With a sharp focus on cost management, we also generated healthy margins this quarter, resulting in adjusted EBITDA of US$107.8 million and free cash flow of US$33.5 million, including US$68.6 million of capital expenditures. Given the year-to-date production and cost performance, we are well positioned to deliver on operational guidance for the fourth straight year,” said Jody Kuzenko, President & CEO of Torex.

During this quarter, an important milestone was reached in Torex’s Media Luna strategy, resulting in the approval of its key environmental permit (MIA Integral). Torex emphasized that the approval has de-risked the project, and now the Company has all the major environmental authorizations to develop and operate Media Luna.

Additionally, the company has secured the approval to increase the power draw to 45MW to boost activities at both its ELG and Media Luna projects. Moreover, Torex is in discussion with Mexican authorities to increase the power draw to 65MW, which is required for full-scale production at Media Luna.

For 3Q22, Media Luna project expenditures amounted to US$32.5 million, with a remaining project spending of US$812.4 million. The investment was mainly allocated for the development of the Guajes Tunnel and the South Portals. The company reported that by the end of October, the Guajes Tunnel development reached 2,835m, while the South Portal Lower reached 1,175m. In addition, Torex reported the project is 9 percent physically complete, with engineering, surface construction and underground development progressing at a steady pace. Torex noted that these advances demonstrate that the project is on track.

“Our strategy at Morelos continues to be executed per plan – with US$339 million of cash on hand at quarter end, US$250 million of available credit, and strong and consistent forecast cash flow from ELG, we are well positioned to fund the development of Media Luna, continue to invest in value

enhancing exploration and drilling, and maintain minimum balance sheet liquidity of US$100 million,” said Kuzenko.

“Procurement on the project continues to ramp up responsibly, with a focus on key, long-lead packages that are schedule critical – including the Guajes conveyor, flotation circuits, re-grind mills, mine ventilation fans and the battery electric vehicle fleet. On the high volume, non-schedule critical procurement packages, we are seeing a rescheduling of cost flow estimates assumed in the 2022 Technical Report. Although timing of non-schedule critical procurement and cost flow estimates differ from those originally assumed, the overall lead times and upfront costs of purchase orders executed to date are substantially in line with the Technical Report. As a result of the lower procurement spend to date, there will be an underrun in capital expenditures on the project for 2022, and guided annual spend is now in the range of US$120 to US$150 million,” said Kuzenko.

Regarding social matters, the company exited the quarter with industry-leading safety performance with a lost-time injury frequency (LTIF) of 0.10 per million hours worked. In addition, earlier this year for the fourth consecutive time, Torex received the ESR 2022 distinction from the Mexican Center for Philanthropy and the Alliance for Corporate Social Responsibility in Mexico, and the Company was also the recipient of the 2021 Safety Award from Mining Magazine.

Torex: Inaugural Climate Change Report/2030 GHG Reduction Targets

Torex Gold has ambitious goals as it works to help mitigate the impact from climate change, including achieving net-zero greenhouse gas (GHG) emissions by 2050 and setting achievable 2030 GHG reduction targets, aided by the construction of a new solar plant to be built at its Morelos property.

The Company’s green targets were outlined in its recently published and inaugural Climate Change Report. In the report, Torex said that while initiatives have emerged to address climate change, the Company has a real interest in mitigating business risks while providing better opportunities that not only benefit operations, but also the entire region. As a result, Torex believes that by publishing reports such as this one, it can better understand climate-related risks and opportunities in the short, medium and long term.

“Recognizing the need for urgent action to reduce greenhouse gas emissions and the growing integration of climate change into the decision-making process of our shareholders globally, we made a commitment in 2021 to provide more information. As such, we are pleased to disclose our 2030 GHG emissions reduction targets as part of this report. This foundational work

Read the complete article More about this topic

allows us to have the confidence to set the following GHG emissions reduction targets, with clear and credible pathways to achievement, in support of our overall commitment to achieve net-zero GHG emissions by 2050,” said Jody Kuzenko, President and CEO, Torex.

Torex has emphasized that the new series of approved and funded measures through 2030 will allow the Company to advance on important environmental goals, since its Media Luna project is set to move into commercial production in 2025. Its goals include 2030 GHG reduction targets, with a 10 percent reduction in absolute emissions (scope 1 and 2) and a 25 percent reduction in business-as-usual emissions.

“The Company’s 2030 GHG reduction targets are the result of extensive foundational work conducted over the past few years to review and analyze baseline emissions data, forecast future data, evaluate costing, and engage with site employees to identify economic and achievable energy efficiency and carbon reduction opportunities,” said Kuzenko.

In addition to reducing emissions, Torex aims to increase resilience to the physical effects that climate change could have on the entire Company, increase the use of renewable energies and promote the efficient use of resources. Consequently, Torex announced the construction of a new 8.7MW solar plant at its Morelos property. Moreover, the Company will imminently award a contract for a new fleet of battery electric vehicles to support its core production. The solar plant and the fleet are key pillars in achieving Torex’s GHG reduction targets. Kuzenko emphasized that the initiatives will not only enable Torex to achieve its environmental goals but will also lead to significant cost and efficiency savings, as electricity and diesel consumption will be reduced.

Torex also stressed that it has always planned its financial direction with climate-related risks and opportunities in mind. For example, the Company has invested in technologies such as RopeCon, which transports ore from the Company’s open pits to its processing facility, while at the same time generating most of the energy it consumes. In addition, the Company has begun implementing an on-demand ventilation system at its ELG underground mine, which will reduce emissions by about 900 tons of CO2 annually.

The Company’s immediate plans are to further develop its climate change strategy and initiatives, assess its climate change metrics, and take further opportunities that will reduce its GHG emissions. In the medium term, Torex expects to improve its climate change reporting, taking into account the recommendations given by the Task Force on Climate-related Financial Disclosures (TCFD) to better understand the risks and opportunities that could affect the Company. Torex has also committed to reporting on Scope 3 GHG emissions as part of the Company’s future work on climate change.

“We are proud of the progress we have made on our climate change strategy as we grow our Company in Mexico and beyond. As we grow, we look forward to keeping up the momentum in advancing our climate change commitments and providing annual progress updates on performance against our climate change targets,” said Kuzenko.

Torex Gold: Record‑Breaking Year Amid a Challenging Environment

Faysal Rodríguez Senior Vice President Mexico | Torex Gold

Despite the strong inflationary pressure of 2022 in addition to a slew of challenges for Mexico’s mining companies, leading Mexican gold producer Torex Gold closed an outstanding year as it surpassed production expectations owing to its operational discipline.

According to Faysal Rodríguez, Senior Vice President Mexico, Torex Gold, “2022 was an extraordinary year for Torex Gold and our Mexican subsidiary Media Luna.” The company not only met the market expectations of producing between 430,000 and 470,000oz of gold in 2022 but exceeded it by producing 474,000oz of gold, breaking a record for the fourth consecutive year, he added.

Torex Gold is a prominent gold producer in Mexico, its primary assets comprising the El Limón Guajes (ELG) Mine Complex, comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes Underground Mine and a processing plant. In addition to ELG, Torex has grown its mining operations in Mexico through its Media Luna Project, an advanced-stage development project located 7km from ELG.

The Canadian company’s successful year was distinguished by world-class security levels, says Rodríguez, who highlighted an incident rate of 0.28. “We have a moral commitment to take care of ourselves, to be generous with security. Beyond the top-notch metric, we exhibit the safety culture that we built.”

While the underground mine had a record 1,600t/d production, the plant also had outstanding results, breaking grinding records. Rodríguez added that the company is focused to continue the good work in 2023.

Despite the inflation that raised the costs of key inputs, Torex Gold’s results were possible because of the company’s strong workforce, its financial management and discipline, contract renegotiations, the creation of alliances and operational discipline, says Rodríguez.

Torex Gold operates the Morelos district in the northern part of Guerrero. Media Luna is an underground deposit that primarily contains gold, copper and silver mineralization, located on the south side of the Balsas River. The deposit, hosted in a magnetic anomaly, was discovered in March 2012. The company’s board of directors approved the Media Luna Project in March 2022 and construction is underway, with anticipated commercial production in 1Q25. The life of mine may be extended through at least 2033 with a firm foundation in the local community and strong relationship with local, state and federal governments, Rodríguez explained.

Torex is committed to the community nearby, including the fully-Mexican local team, and the people of Guerrero, where 70% of the labor force is from.

“We feel a double commitment in terms of the environmental legacy that we can leave and on which we will continue working. We will be here until 2033, so we are dedicated to the community, including the new generations of miners in the Morelos district,” Rodríguez said.