Torex Gold Reports Q3 2026 Production Results
Torex Q3 output beat telegraphed guidance by approximately 15%, reopening the debate on its all-in sustaining costs.
Torex Gold Resources Inc. (TXG) released a preliminary operational update for the third quarter of 2026, providing production and sales figures without disclosing costs, revenue, margins, or cash flow. Those financial details will be included in the company’s Q3 earnings report scheduled for release after market close on November 4, 2026.
For the quarter, Torex reported AuEq production (before payable deductions) of 131,900 oz and AuEq sales (after deductions) of 127,346 oz. The product mix included: - Gold: 98,685 oz produced, 96,389 oz sold - Silver: 614.3 koz produced, 544.0 koz sold - Copper: 16.3 mlb produced, 15.4 mlb sold
Year-to-date AuEq production stands at 329,071 oz, with YTD AuEq sales at 328,918 oz. The company stated it is on track to achieve the midpoint of its FY2026 guidance range of 420,000–470,000 oz AuEq.
Operational activity included Media Luna Underground mining 8,244 tpd, exceeding the 7,500 tpd design rate, while ELG Underground mined 3,055 tpd. The Morelos Complex plant processed 10,798 tpd. Processed grades averaged 3.50 gpt Au, 22.46 gpt Ag, and 0.78% Cu, with recoveries of 88.2% Au, 85.0% Ag, and 94.8% Cu. Management described these as the strongest quarterly results year-to-date. Additionally, Media Luna North is on schedule for first ore before year-end, which will add a third mining front.
Regarding capital returns, Torex repurchased 1,755,843 shares in Q3 at an average price of C$66.84. Year-to-date, the company has repurchased 4,888,626 shares, representing 5.1% of shares outstanding at the start of the year. The company also paid a quarterly dividend of C$0.16 per share and reiterated its $350 million 2026 return target.
Torex Gold Resources Inc. (TXG) reported third-quarter gold production of 131,900 ounces, a 14.7% increase over management’s guided target of approximately 115,000 ounces. This performance marks a significant improvement from the company’s second-quarter results released on August 6, which had seen full-year average international supported cost (AISC) guidance raised by approximately 14% to $2,000–$2,100 per ounce. That prior guidance increase was driven by lower grades, lower recoveries, a stronger Mexican peso, and higher reagent costs. The third-quarter results reversed two of those operational drivers, with gold grade rising 37% quarter-over-quarter and recovery rates increasing by 2.8 percentage points.
The production figures validate management’s narrative that the second half of the year would be back-end loaded as the company mined through lower-grade Media Luna stopes. During the quarter, Media Luna processed 8,244 tonnes per day, approximately 10% above design capacity, while the plant operated at 10,798 tonnes per day. While lower unit costs are expected to follow these operational improvements, specific cost data will not be available until the November 4 release.
Despite the production beat, guidance was reaffirmed at the midpoint rather than raised, and the stock had already seen significant appreciation leading into the report. Shares rose from C$59.81 on the August 6 second-quarter print to C$69.79 on October 5, a gain of 16.7%, and are up approximately 34% from the June 10 low of C$51.97. Consequently, some of the positive impact of the production beat appears to have already been discounted by the market.
Torex Gold Resources Inc. (TXG) operates its flagship Morelos Complex in the Guerrero Gold Belt of Guerrero, Mexico, spanning approximately 29,000 hectares. The integrated underground operation includes ELG Underground, which has been producing since 2018, and Media Luna Underground, which is ramping to design capacity in 2026, alongside development at Media Luna North. These operations feed a centralized flotation-and-leach plant with a nameplate capacity of approximately 10,600 tpd, currently processing around 10,800 tpd. The company’s product mix consists of approximately 70% precious-metal-rich copper concentrate and 30% doré/precipitate, generating copper and silver by-product credits that lower net gold costs.
The company is advancing the Los Reyes gold-silver development project in Sinaloa and Durango, acquired via Prime Mining in October 2025. The project carries an after-tax NPV of $1,491 million and an IRR of 37.3%. Construction is targeted for around 2029–2030, with first production expected in 2031, funded internally from Morelos cash flow. The early-stage pipeline includes the Nevada projects (Gryphon option, Medicine Springs), Chihuahua projects (Batopilas, Guigui, from Reyna Silver), and La Gloria in Sonora.
In corporate developments, shareholders approved a name change to "Torex Resources Inc." for adoption later in 2026. Leadership transitioned on June 17, 2026, with Andrew Snowden assuming the role of CEO and Dan Rollins taking on the CFO position.