Torex Gold Releases Results of Los Reyes Preliminary Economic Assessment
Torex’s Los Reyes PEA delivers $1.49bn npv and 37% irr, serving as a high-margin growth anchor self-funded by morelos cash flow.
Torex Gold Resources Inc. (TXG) released the Preliminary Economic Assessment (PEA) for its 100%-owned Los Reyes gold-silver project in Sinaloa, Mexico. The base case, which uses $3,600/oz Au and $50/oz Ag, returns an after-tax NPV (5%) of $1.49 billion, an after-tax IRR of 37.3%, and a 1.9-year payback on a $515 million initial capex (including $103M contingency).
Mine life is 14.4 years averaging 134 koz AuEq annually (93 koz Au, ~3 moz Ag), with the first 11 years averaging 161 koz AuEq. Mine-site AISC is $1,617/oz AuEq, although by-product silver credits reduce the gold-only AISC to $738/oz. The project is designed as a conventional open-pit/underground operation feeding a 5,000 tpd mill. Construction is planned to start in 2029 with first production in 2031, entirely funded from Morelos Complex free cash flow. A Prefeasibility Study (PFS) is targeted for 2027 and a Feasibility Study for 2028.
Torex Gold Resources Inc. (TXG) released a preliminary economic assessment (PEA) that quantifies a substantial future asset, adding materially to the company’s net asset value. The study reports an after-tax net present value (NPV) of $1.49 billion, representing approximately 39% of the company’s current market capitalization.
The project remains in an early stage, with no reserves defined and a pre-feasibility study not yet started. Production is projected to begin five years away. The assessment highlights robust economics under long-term consensus gold prices of $3,600 per ounce, with even stronger sensitivity at higher price levels. The project is planned to be funded entirely through equity, avoiding dilution and debt, a strategy considered credible given Torex’s projected annual free cash flow of more than $650 million from the Morelos operation.
The PEA does not reflect any resource upgrade resulting from the ongoing 20,000-meter drill program, leaving additional upside potential. The PEA was released after market close on July 7, and next-day market data was not provided.
Torex Gold Resources Inc. (TXG), which is renaming to Torex Resources, is an Americas-focused gold producer. Its flagship Morelos Complex in Guerrero, Mexico, includes the Media Luna (Au-Ag-Cu) and ELG (Au) underground mines, a centralized 10,600 tpd plant, and the developing Media Luna North deposit, with first ore expected in late 2026. The Los Reyes project in Sinaloa adds a high-grade Au-Ag development asset. Early-stage exploration properties in Nevada (Gryphon, Medicine Springs) and Chihuahua (Batopilas, Guigui) provide a pipeline.