A 16% Month for Gold Miners Puts Grade, Costs and By-Products Back in Charge

Torex Gold Resources Inc. (TXG) reported preliminary third-quarter production of 131,900 ounces of gold equivalent, with its Media Luna underground mine averaging 8,244 tonnes per day, exceeding the 7,500 tonne-per-day design rate. The company stated it remains on track to achieve the midpoint of its full-year production guidance of 420,000 to 470,000 ounces of gold equivalent.

These figures were originally disclosed in a production release issued by Torex on Oct. 6, 2026. The commentary, published on Oct. 26, 2026, by Market Updates (Market Equities Limited, Ireland), serves as a recap of recent operational updates from several producers. The publication is a paid advertorial sponsored by RUA Gold Inc., which received compensation for advertising and digital media services.

The broader market context provided in the release notes that gold finished September at US$4,176/oz, an 8.5% decline according to the World Gold Council. The U.S. 10-year Treasury yield rose 53 basis points to 5.3%, and the Federal Reserve raised its target range to 3.75%-4.0% in September. A gold-miners ETF fell 5.80% on Oct. 22 and was 16.50% below its level a month earlier.

The majority of the content focuses on RUA Gold’s Auld Creek Au-Sb project in New Zealand's Reefton Goldfield. A preliminary economic assessment base case at US$3,300/oz Au and US$27,000/t Sb yields an after-tax NPV5% of US$42M, an IRR of 17%, and a 3.3-year payback on US$133M capex. An upside case at US$4,700/oz Au projects an NPV5% of US$113M and an IRR of 36%.

Drill results cited for the project include: * ACDDH119 at 0.6 m @ 136.2 g/t AuEq (82.9 g/t Au, 24.8% Sb), reported Sept. 8, 2026 * ACDDH127 at 6.6 m @ 24.9 g/t AuEq (10.5 g/t Au, 6.7% Sb), reported Oct. 5, 2026

A true width of 3.6 m was provided for ACDDH127 only. A fraternal structure has been drill-confirmed over 1,400 m northward. RUA Gold targets a Fast-Track Approvals application in Oct. 2026, an updated mineral resource estimate in Q4 2026, and a pre-feasibility study in December 2026.

The release also recaps third-quarter 2026 production from other producers: Lundin Gold reported 153,736 oz; K92 Mining reported 49,776 oz AuEq; and Aris Mining reported 69.3 koz.

Torex Gold Resources Inc. (TXG) did not issue an earnings release, meaning there were no financial results to analyze. For context, the company reported Q2 2026 revenue of $406.9M, net income of $113.8M ($1.22/share), free cash flow of $94.2M, and cash holdings of $169.4M with zero debt and $506.3M in liquidity. Full-year 2025 revenue stood at $1,305.6M with net income of $403.4M. None of these figures appeared in today’s release.

The only content relevant to Torex was a twenty-day-old production statistic already published by the company on Oct 6, 2026, and already reflected in the stock price. The stock traded at C$73.26 on Oct 6 and C$67.14 on Oct 23. The subsequent price movement is attributable to the gold price and the sector selloff, not to any new information in the document. As an intermediate producer rather than a grassroots explorer, Torex’s equity is rarely moved by drill results at this stage; a recycled third-party production recap falls well below the threshold for market impact.

The confirmed anchors on the property remain untouched by this document: - Sept 24: MLE26-025 at 31.2 m @ 11.28 g/t AuEq - Q3 processing at 10,798 tpd, 3.50 g/t Au, 88.2% recovery

The document provides a negative macro backdrop that was already visible in market charts: gold fell 8.5% in September, the miners ETF dropped 16.5% over a month, and the 10-year yield stood at 5.3%. This serves as context rather than company-specific news. The release carries no new Torex information, meaning the price already assumes this data.

Torex Gold Resources Inc. (TSX: TXG; OTCQX: TORXF), which is set to be renamed Torex Resources Inc. subject to regulatory approval, operates as an intermediate precious-metals producer with an expanding copper and silver by-product stream. The company’s flagship asset is the Morelos Complex in the Guerrero Gold Belt of Guerrero, Mexico, located approximately 180 km from Mexico City. The integrated underground operation comprises the ELG Underground mine, processing roughly 3,000 tonnes per day (tpd), and the Media Luna Underground mine, with a design capacity of 7,500 tpd. Additionally, the Media Luna North mine, providing approximately 2,300 tpd of feed, is coming on stream. These operations feed a centralized plant with a capacity of 10,600 tpd, equipped with flotation and leach circuits.

As of December 31, 2025, the Morelos Complex holds proven and probable reserves of 39,653 kilotonnes (kt) at a grade of 2.48 grams per tonne (g/t) gold (Au), 18.41 g/t silver (Ag), and 0.38% copper (Cu), equating to 3.80 g/t gold-equivalent (AuEq). These reserves contain 4,839 thousand ounces (koz) of AuEq. While reserves declined 5% year-over-year due to depletion, they increased 4% prior to depletion following drilling at ELG and Media Luna. Total measured and indicated (M&I) resources at Morelos rose 124% year-over-year to 102.2 million tonnes (Mt) at 2.83 g/t AuEq, a growth driven by the Los Reyes addition and infill drilling.

In development, the company acquired the Los Reyes project in Sinaloa and Durango, Mexico, from Prime Mining in October 2025. A preliminary economic assessment (PEA) released on July 7, 2026, outlined an after-tax net present value at a 5% discount rate (NPV5%) of US$1,491 million, an internal rate of return (IRR) of 37.3%, and a payback period of 1.9 years. The project requires an initial capital expenditure (capex) of US$515 million and features a 14.4-year mine life, producing an average of 134 koz AuEq per year, or 161 koz AuEq per year over the first 11 years. Production is funded internally from Morelos cash flow, with construction scheduled to begin in 2029 and first production expected in 2031. A pre-feasibility study (PFS) is targeted for late 2027, with a feasibility study in 2028.

The company also holds early-stage assets including Gryphon and Medicine Springs in Nevada’s Carlin trend, where approximately 7,500 meters of drilling are planned at Gryphon in 2026; Batopilas and Guigui in Chihuahua; and La Gloria in Sonora.

For 2026, Torex has issued guidance for 320,000 to 365,000 ounces of Au, 2,200 to 2,500 koz of Ag, and 60 to 65 million pounds (mlb) of Cu, or 420,000 to 470,000 oz of AuEq. All-in sustaining costs (AISC) have been revised upward to $2,000–$2,100 per oz of AuEq sold. Capex is projected at $285–305 million, and the exploration budget has been raised to a record $85 million, covering approximately 161,900 meters of drilling.

The company’s capital structure includes zero debt outstanding, $169.4 million in cash, and $506.3 million in total liquidity. A $350 million revolving facility has been extended to June 2030 with a $200 million accordion option, and the company maintains a $200 million minimum cash target. Mexican peso (MXN) hedges are in place for 2026–2028, with no metal hedges. Regarding capital returns, the company has targeted $350 million for 2026, having returned $271 million year-to-date through Q3, representing 77% of the target. The company pays a quarterly dividend of C$0.16 per share.

Leadership includes Andrew Snowden as President and CEO, effective June 17, 2026, and Dan Rollins as CFO. Rick Howes chairs the board.