Torex Gold Reports Q3 2025 Results

On November 5, 2025, Torex Gold announced the initiation of its first-ever return of capital program. This program includes a quarterly dividend of CAD $0.15 per common share and an opportunistic share repurchase plan under its existing Normal Course Issuer Bid (NCIB). The company stated it had already repurchased 239,204 shares during the third quarter of 2025 at an average price of CAD $41.79. CEO Jody Kuzenko attributed the timing of this program to the company's pivot back to positive free cash flow in June, the successful ramp-up of the Media Luna project, and modest debt levels. The company also established a minimum target cash balance of USD $200 million.

The announcement of a dividend and share buyback program is a material positive event that marks a significant inflection point for Torex Gold. This is the direct fulfillment of a strategy communicated to the market as early as January 2025, when the company was still in the final stages of its heavy capital investment cycle for the Media Luna project.

The journey to this point has been challenging. The company faced a major de-risking milestone in May 2025 with the declaration of commercial production at Media Luna. However, Q2 2025 results were disappointing, impacted by 10 days of unplanned downtime which put annual guidance at risk and led to a significant increase in non-sustaining capex guidance. Management's commentary at the time stressed that the company had turned free cash flow positive in June and that Q3 would be a positive quarter.

The strong Q3 2025 preliminary production results announced in October, showing Media Luna's ramp-up was tracking ahead of plan, provided the necessary operational validation. This latest news now provides the financial validation. It confirms that the Media Luna project has successfully transitioned from a cash-consuming construction project into a significant cash-generating asset capable of funding dividends, share buybacks, debt repayment, and future growth.

This action fundamentally shifts the investment thesis for Torex from a high-risk builder to a more stable, cash-returning producer. It broadens the company's appeal to a new class of income-focused investors and signals strong confidence from management in the long-term cash-generating capability of the Morelos Complex. The move is well-supported by the operational turnaround in Q3 and transforms a strategic promise into a tangible return for shareholders.

Torex Gold Resources Inc. is an intermediate gold producer whose sole asset is the 100% owned Morelos Property in Mexico's Guerrero Gold Belt. The property hosts the Morelos Complex, which includes the now-depleting El Limón Guajes (ELG) open pit and underground mines, and the company's new cornerstone asset, the Media Luna project. Media Luna, which achieved commercial production on May 1, 2025, is an underground mine that produces gold, copper, and silver. The company is currently ramping up Media Luna to a designed mining rate of 7,500 tonnes per day. Torex is also advancing the EPO deposit on the same property and has recently acquired the Los Reyes development project and the Reyna Silver exploration portfolio to build a pipeline for future growth.