Torex Gold Resources (TXG) AI Stock Analysis

• Market Cap: C$6.23B
• Dividend Yield: N/A
• Average Volume (3M): 512.06K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.48
• Revenue Growth: 5.33%
• EPS Growth: 143.67%
• Country: CA
• Employees: 883
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.62
• Shares Outstanding: 96,140,140
• 10 Day Avg. Volume: 472,993
• 30 Day Avg. Volume: 512,063
• PEG Ratio: -0.41
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.68
• P/FCF Ratio: -16.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$82.94
• Price Target Upside: 28.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 5.67
• Revenue Forecast (FY): C$1.84B

• Rating: 77 Outperform
• Price Target: C$74.00 ▲(14.29% Upside)

Torex Gold Resources is well-positioned with strong financial performance and positive technical indicators. The earnings call provided a positive outlook with strategic advancements and debt reduction. However, liquidity concerns due to declining free cash flow and increased costs slightly temper the overall score.

Positive Factors

Debt Reduction

Reducing debt enhances financial flexibility and reduces interest expenses, strengthening the company's balance sheet and long-term financial health.

Operational Efficiency

Exceeding processing capacity indicates strong operational efficiency, which can lead to higher production and lower per-unit costs, improving profitability.

Free Cash Flow Generation

Strong free cash flow generation allows for reinvestment in growth opportunities, debt reduction, and shareholder returns, supporting long-term business sustainability.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests potential challenges in maintaining sales momentum, which could impact future profitability and market position.

Increased Costs

Rising costs can compress margins and reduce profitability, especially if the company cannot pass these costs onto customers or offset them with higher efficiency.

Sustaining Capital Increase

Increased capital expenditure for sustaining operations can strain cash flow and limit funds available for growth initiatives or shareholder returns.

Torex Gold Resources Business Overview & Revenue Model

Company Description

Torex Gold Resources Inc. is a Canadian gold mining company engaged in the exploration, development, and production of gold and related minerals. The company primarily operates in Mexico, where it focuses on the Morelos Gold Property, including the El Limón-Guajes Mine, which is the cornerstone of its operations. Torex aims to grow its production profile and expand its resource base through a combination of operational excellence and strategic exploration initiatives.

How the Company Makes Money

Torex Gold Resources generates revenue primarily through the sale of gold and gold-related products extracted from its mining operations. The company's key revenue streams include the sale of gold doré bars produced at its El Limón-Guajes Mine, with prices typically linked to the prevailing market rates for gold. Additionally, Torex may benefit from by-product sales, which could include silver and other minerals produced during the gold extraction process. The company also engages in strategic partnerships and joint ventures to enhance its exploration capabilities and expand its resource base, which can further contribute to its earnings. Factors such as operational efficiency, gold market dynamics, and successful exploration results play significant roles in driving Torex's financial performance.

Torex Gold Resources Financial Statement Overview

Summary

Torex Gold Resources demonstrates strong profitability with a consistent EBIT margin and a solid balance sheet with low leverage. However, negative revenue growth and challenges in converting net income into free cash flow are areas of concern.

Income Statement

Torex Gold Resources shows strong profitability with a consistent EBIT margin of over 31% and a net profit margin of 20.5% in TTM. However, the revenue growth rate has turned negative at -1.56%, indicating a potential slowdown in sales. Despite this, the company maintains a healthy gross profit margin of 44.8%.

Balance Sheet

The company has a solid balance sheet with a low debt-to-equity ratio of 0.19, reflecting low leverage. Return on equity is strong at 12.8%, indicating efficient use of equity capital. The equity ratio stands at 74.8%, showcasing a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is robust, with a coverage ratio of 1.41, but free cash flow is negative, indicating potential challenges in generating cash after capital expenditures. The free cash flow to net income ratio is negative, suggesting that the company is not converting its net income into free cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.12B	882.60M	868.50M	855.80M	789.20M
Gross Profit	704.25M	659.80M	484.60M	505.20M	524.80M	488.40M
EBITDA	692.18M	548.30M	421.40M	481.50M	500.10M	432.00M
Net Income	340.17M	134.60M	204.40M	188.80M	151.70M	109.00M
Balance Sheet
Total Assets	3.45B	2.14B	1.84B	1.59B	1.36B	1.25B
Cash, Cash Equivalents and Short-Term Investments	155.42M	110.20M	172.80M	376.00M	255.70M	206.20M
Total Debt	351.19M	141.20M	32.00M	3.90M	3.30M	44.80M
Total Liabilities	853.35M	508.90M	340.70M	303.20M	258.50M	306.30M
Stockholders Equity	2.59B	1.63B	1.50B	1.29B	1.10B	946.10M
Cash Flow
Free Cash Flow	-8.83M	-112.20M	-178.70M	130.50M	99.50M	199.70M
Operating Cash Flow	430.46M	449.50M	300.80M	408.10M	330.00M	342.10M
Investing Cash Flow	-461.27M	-562.70M	-498.30M	-280.50M	-203.70M	-177.60M
Financing Cash Flow	26.04M	53.60M	-7.90M	-7.70M	-44.90M	-150.00M

Torex Gold Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 64.75 is above the 20-day moving average (MA) of 63.23, above the 50-day MA of 61.88, and above the 200-day MA of 48.84, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGC	78 Outperform	$8.72B	15.75	21.15%	0.44%	51.00%	532.40%
TXG	77 Outperform	C$6.23B	13.50	17.29%	―	5.33%	143.67%
DPM	75 Outperform	C$9.09B	16.83	16.54%	0.55%	37.75%	59.97%
EQX	73 Outperform	$15.06B	277.75	1.41%	―	90.17%	-91.76%
SSRM	69 Neutral	$6.19B	21.85	6.84%	―	33.74%	―
OLA	69 Neutral	C$6.40B	90.40	9.79%	―	151.45%	1224.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Torex Gold Resources Corporate Events

Torex Gold Announces Promising Drilling Results at Media Luna West

Torex Gold Resources has announced promising results from its 2025 drilling program at Media Luna West, which support the declaration of an inaugural Inferred Resource in its annual update. The drilling has defined a mineralized footprint close to the main Media Luna deposit, with high-grade results indicating potential for a new mining front. The company plans to expand the resource footprint and upgrade resources, leveraging existing infrastructure to enhance its production profile and sustain output beyond 2030.

Torex Gold Reports Strong Q3 2025 Results, Returns to Positive Cash Flow

Torex Gold Resources reported strong financial results for Q3 2025, marking a pivotal point with a return to positive free cash flow and robust operational performance. The company generated $113 million in free cash flow and announced an inaugural quarterly dividend, reflecting its operational stability and growth potential. Torex is on track to meet its annual production guidance, with significant contributions from the Media Luna project, and is poised for a strong close to 2025 and an exceptional 2026.

Torex Gold Launches Initial Return of Capital Program with Dividends and Share Repurchases

Torex Gold Resources Inc. has announced its initial return of capital program, which includes a quarterly dividend and share repurchases, reflecting strong cash flow following the successful completion of the Media Luna project. This program is part of Torex’s capital allocation strategy to maximize shareholder returns and is expected to evolve through 2026 as the company’s financial position strengthens. The initiative aims to balance shareholder preferences while maintaining the ability to fund other strategic priorities, such as extending mine life, enhancing margins, and advancing new projects.

Torex Gold Completes Acquisition of Prime Mining, Expands Portfolio with Los Reyes Project

Torex Gold Resources has completed its acquisition of Prime Mining Corp., adding the Los Reyes development project in Sinaloa, Mexico, to its portfolio. This acquisition aligns with Torex’s strategy to become a diversified precious metals producer in the Americas, enhancing its asset base with significant gold and silver resources and supporting its long-term value delivery to shareholders.

Torex Gold Achieves Strong Q3 2025 Production, Eyes Continued Growth

Torex Gold Resources reported strong third-quarter production results for 2025, with 119,034 ounces of gold equivalent produced and 118,082 ounces sold. The successful ramp-up of the Media Luna project has exceeded expectations, contributing to the company’s operational momentum and positioning it well for continued growth into 2026. The company’s performance is bolstered by improving cost profiles and record metal prices, which are expected to generate significant free cash flow.

Torex Gold’s Drilling Success at ELG Underground Signals Extended Mine Life

Torex Gold Resources Inc. has announced promising results from its 2025 drilling program at the ELG Underground, particularly around the El Limón Sur and Sub-Sill trends. The discovery of new high-grade mineralized structures supports the company’s goal of extending the mine life beyond 2029 and maintaining annual gold production above 450,000 ounces beyond 2030. These results indicate potential for resource expansion and underscore the deposit’s untapped geological potential, which is crucial for the company’s strategic objectives and stakeholder interests.

Torex Gold Recognized as Top Performer on TSX30 for 2025

Torex Gold Resources Inc. has been recognized as a top performer on the Toronto Stock Exchange’s TSX30 list for 2025, ranking 14th with a total return of 347% over three years. This achievement highlights Torex’s successful execution of its strategic goals, including the commercial production of the Media Luna Project and the expansion of its exploration portfolio. The recognition underscores the company’s commitment to becoming a diversified, Americas-focused precious metals producer, while maintaining strong community relationships and delivering value to shareholders.