Torex Gold Resources (TSE:TXG)
TSX:TXG
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Torex Gold Resources
(TSX:TXG)
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Rating:73Outperform
Price Target:
C$70.00
▲(6.95% Upside)
Action:UpgradedDate:03/26/26
Score is driven primarily by strong financial fundamentals (high margins and low leverage) and a constructive earnings-call outlook (higher 2026 production guidance, debt-free position, and strong free cash flow expectations). Offsetting factors are weak technical momentum (price below key moving averages, negative MACD) and the financial risk from volatile free cash flow plus execution/timing risks (security-related project delays and higher capex).
Positive Factors
High margins and revenue growth
Sustained high operating and net margins with multi-year revenue acceleration indicate a structurally profitable mining operation. Durable margin levels support internal funding for capex, exploration and dividends, and provide buffer against commodity price swings and cost inflation.
Negative Factors
Volatile free cash flow conversion
Inconsistent free cash flow and weak conversion versus earnings indicate FCF is sensitive to capex, working capital and timing. That reduces predictability of internally funded growth and shareholder returns and can force external financing in down cycles or heavy investment years.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and revenue growth
Sustained high operating and net margins with multi-year revenue acceleration indicate a structurally profitable mining operation. Durable margin levels support internal funding for capex, exploration and dividends, and provide buffer against commodity price swings and cost inflation.
Read all positive factors
Torex Gold Resources (TXG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.83B
Dividend YieldN/A
Average Volume (3M)641.05K
Price to Earnings (P/E)10.2
Beta (1Y)2.09
Revenue Growth18.87%
EPS Growth192.74%
CountryCA
Employees883
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)2.40
Shares Outstanding95,415,230
10 Day Avg. Volume528,513
30 Day Avg. Volume641,048
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.73
Price to Sales (P/S)3.16
P/FCF Ratio37.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$96.00Price Target Upside46.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)7.13
Revenue Forecast (FY)C$2.08B
Torex Gold Resources Business Overview & Revenue Model
Company Description
Torex Gold Resources Inc. operates as an intermediate gold producer in Mexico. It primarily holds a 100% interest in the Morelos Gold property that covers an area of 29,000 hectares located southwest of Mexico City. The company's principal assets ...
How the Company Makes Money
Torex Gold primarily makes money by producing and selling refined gold derived from ore mined at its operations. Revenue is generated when gold produced from its processing facilities is sold into the market at prevailing gold prices, typically un...
Torex Gold Resources Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance: Media Luna ramped up ahead of plan, recoveries and throughput met or exceeded design levels, record margins and substantial free cash flow enabled full debt repayment and shareholder returns. Major positives include robust 2026 production guidance, a sizable exploration and development program, and excellent safety metrics. Challenges noted include security-related risks at Los Reyes (which could delay the pre-feasibility study if access is restricted), higher taxes/royalties and paste plant catch-up costs adding near-term expense, and an increase in Media Luna North CapEx versus prior estimates. Overall, the positive operational momentum, debt-free balance sheet and large free cash flow outlook significantly outweigh the identified execution and timing risks.Positive Updates
Media Luna Ramp-Up Ahead of Plan
Commercial production achieved at Media Luna in May 2025; exited 2025 at ~7,000 tpd versus targeted 6,500 tpd (≈+7.7%); on track to reach design 7,500 tpd by mid-2026 — roughly 6 months ahead of feasibility study schedule. Final rock breaker, waste pass and waste conveyor commissioned.
Negative Updates
Security Incident and Los Reyes Timeline Risk
Recent violent incident in Sinaloa resulted in 10 fatalities and has created uncertainty for Los Reyes operations. While the PEA remains on track for mid-2026, inability to access site by mid-year could push the pre-feasibility study from mid-2027 toward end-2027, introducing schedule and execution risk for that project.
Read all updates
Q4-2025 Updates
Positive
Negative
Media Luna Ramp-Up Ahead of Plan
Commercial production achieved at Media Luna in May 2025; exited 2025 at ~7,000 tpd versus targeted 6,500 tpd (≈+7.7%); on track to reach design 7,500 tpd by mid-2026 — roughly 6 months ahead of feasibility study schedule. Final rock breaker, waste pass and waste conveyor commissioned.
Read all positive updates
Company Guidance
Torex’s 2026 guidance calls for gold‑equivalent production of 420,000–470,000 oz (versus 383,000 oz in 2025) with costs largely in line with 2025 AISC of $17.83/oz and a 2025 AISC margin of 51% (Q4 margin 57%); sustaining capex is slightly above the $107M spent in 2025 while non‑sustaining capex includes $100–105M for Media Luna North and $65–70M for Morelos projects (Media Luna North total project CapEx now $108–113M vs PFS $82M, ~40% development complete, ~30% procurement placed, first production targeted Q4 2026 and ramp through 2027). Using $4,000/oz Au, $45/oz Ag, $4.90/lb Cu and MXN19:1, management modeled $450M of free cash flow for 2026 (now forecasting >$700M at current prices); Q4 free cash flow was $166M and FY adjusted EBITDA was $730M. Operational guidance includes Media Luna exiting 2025 at ~7,000 tpd and reaching 7,500 tpd by mid‑2026, a mill consumption baseline of ~10,800 tpd with upside toward ~13,000 tpd if flotation is expanded, design recoveries of ~90% Au, 92% Cu and 85% Ag, and a record $77M exploration budget for 2026 (≈113,000 m at Morelos, $18M/20,000 m at Los Reyes, $12M in Nevada); the company is debt‑free (debt repaid in January), had year‑end liquidity of $426M (cash $120M), returned ~$44M to shareholders in H2 2025 (dividend $0.15/share) and is targeting a minimum cash balance of $200M.Torex Gold Resources Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.33B | 1.12B | 882.60M | 868.50M | 855.80M |
| Gross Profit | 609.49M | 659.80M | 484.60M | 505.20M | 524.80M |
| EBITDA | 713.17M | 548.30M | 421.40M | 481.50M | 500.10M |
| Net Income | 410.46M | 134.60M | 204.40M | 188.80M | 151.70M |
Balance Sheet | |||||
| Total Assets | 3.02B | 2.14B | 1.84B | 1.59B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 119.28M | 110.20M | 172.80M | 376.00M | 255.70M |
| Total Debt | 201.93M | 141.20M | 32.00M | 3.90M | 3.30M |
| Total Liabilities | 597.71M | 508.90M | 340.70M | 303.20M | 258.50M |
| Stockholders Equity | 2.42B | 1.63B | 1.50B | 1.29B | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 111.62M | -112.20M | -178.70M | 130.50M | 99.50M |
| Operating Cash Flow | 472.12M | 449.50M | 300.80M | 408.10M | 330.00M |
| Investing Cash Flow | -366.81M | -562.70M | -498.30M | -280.50M | -203.70M |
| Financing Cash Flow | -97.27M | 53.60M | -7.90M | -7.70M | -44.90M |
Torex Gold Resources Technical Analysis
Positive
65.45
Price Trends
66.36
Negative
67.22
Negative
59.38
Positive
Market Momentum
-0.17
Negative
50.24
Neutral
21.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TXG, the sentiment is Positive. The current price of 65.45 is above the 20-day moving average (MA) of 63.03, below the 50-day MA of 66.36, and above the 200-day MA of 59.38, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TXG.
Torex Gold Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$10.09B | 10.22 | 30.82% | 0.42% | 48.74% | 246.81% | |
74 Outperform | C$8.55B | 11.03 | 12.03% | ― | 66.47% | ― | |
73 Outperform | C$5.83B | 10.24 | 20.98% | ― | 18.87% | 192.74% | |
69 Neutral | C$6.89B | 40.65 | 22.94% | ― | 212.44% | 11.31% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | C$9.11B | 14.58 | 12.15% | 1.71% | 63.82% | ― |
* Basic Materials Sector Average
TSE:TXG
Torex Gold Resources
59.23
15.09
34.19%
TSE:SSRM
SSR Mining
41.95
27.45
189.31%
TSE:BTO
B2Gold
6.20
2.01
47.94%
TSE:OGC
OceanaGold
43.96
29.29
199.56%
TSE:OLA
Orla Mining
19.62
5.16
35.65%
Torex Gold Resources Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Torex Gold Hits Q1 Output Target as Media Luna Reaches Design Capacity
Positive
Apr 9, 2026
Torex Gold reported first-quarter 2026 production of 100,874 gold-equivalent ounces and sales of 109,222 ounces, confirming it remains on track to meet full-year guidance of 420,000 to 470,000 gold-equivalent ounces. The quarter marked the success...
Business Operations and StrategyExecutive/Board Changes
Torex Gold Adds Veteran Mining Executive Jacques Perron to Board
Positive
Apr 7, 2026
Torex Gold Resources has appointed veteran mining executive Jacques Perron to its Board of Directors effective May 1, 2026, expanding the Board to eight members, seven of whom are independent. Perron brings more than four decades of global mining ...
Business Operations and StrategyFinancial Disclosures
Torex Gold Expands Resource Base With Los Reyes and Media Luna West Inferred Discovery
Positive
Mar 24, 2026
Torex Gold Resources reported its year-end 2025 mineral reserves and resources, highlighting continued strength at the Morelos Complex and the addition of the Los Reyes project to its resource base. Proven and probable reserves at Morelos declined...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Torex Gold posts record cash flow, clears debt as Media Luna drives transformational year
Positive
Feb 18, 2026
Torex Gold Resources reported a transformational 2025, highlighted by the completion and early ramp-up of its Media Luna project to commercial production, strong operational performance at the Morelos property, and one of its safest years on recor...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Torex Gold Sets 2026 CEO Succession as CFO Andrew Snowden Named Kuzenko’s Successor
Positive
Feb 5, 2026
Torex Gold Resources has announced a planned leadership transition, with long-serving President and CEO Jody Kuzenko set to retire following the company’s annual and special shareholder meeting on June 17, 2026, and current Chief Financial O...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.