Torex Gold Reports Q2 2026 Results

Torex Gold Resources Inc. reported second-quarter 2026 results showing gold equivalent production of 96,297 oz, bringing year-to-date output to 197,171 oz, figures that align with pre-released numbers from July. Sales of 92,351 oz at an average realized price of $4,525/oz AuEq generated $406.9M in revenue.

The company reported Q2 all-in sustaining costs (AISC) of $2,459/oz AuEq sold, a figure significantly above the prior guided range. In response, management revised full-year AISC guidance upward to $2,000–$2,100/oz AuEq from the previous range of $1,750–$1,850, representing a 14–15% increase at the midpoints.

Financially, Torex posted net income of $113.8M, EBITDA of $209.1M, and free cash flow of $94.2M. Capital returns continued with $55M returned in Q2, including $44M in buybacks. This brings year-to-date returns to $176.2M, or 50% of the $350M annual target.

Regarding project developments, the Los Reyes Preliminary Economic Assessment (PEA), released on July 7, highlights strong project economics. Additionally, the Media Luna North project remains on schedule for first production by year-end. The board declared a quarterly dividend of C$0.16 per share.

Torex Gold Resources Inc. (TXG) raised its full-year All-In Sustaining Costs (AISC) guidance, a move that stands as the primary development following the company’s second-quarter earnings report. The Q2 AISC came in at $2,459/oz, a significant increase from the $1,917/oz recorded in Q1 and well outside the company’s prior annual range.

The new full-year guidance of $2,000–$2,100 implies that H2 AISC must average only $1,800–$2,000/oz. Achieving this target would require a dramatic improvement, which appears optimistic given current cost pressures including reagents, the peso, and royalties. This revision directly contradicts management’s explicit promise made during the Q1 call and signals that inflationary and operational headwinds are not under control.

While the market had likely priced in some AISC deterioration after Q1, the 15% annual guide-up was worse than expected. The share price is down approximately 8% from the post-Q1 earnings level, and the guidance downgrade is expected to put further pressure on valuation.

Other factors remain positive, including strong free cash flow, aggressive buybacks, the Los Reyes Preliminary Economic Assessment (PEA), and a debt-free balance sheet. However, the AISC revision raises doubts about operational execution and the reliability of future guidance.

Torex Gold Resources Inc. (TXG), soon to be renamed Torex Resources, is a mid-tier precious metals producer operating the Morelos Complex in Guerrero, Mexico. The complex comprises the ELG and Media Luna underground mines, a central 10,600 tpd processing plant, and the Media Luna North project under development. The company produces gold-rich copper concentrate, which accounts for 70% of its AuEq, alongside doré.

In addition to its operating assets, Torex holds the Los Reyes gold-silver development project in Sinaloa, acquired via Prime Mining, as well as early-stage exploration assets in Nevada and Chihuahua. The company has a market capitalization of approximately C$5.6B, maintains a debt-free balance sheet, and has set a current shareholder-return target of $350M in 2026.