Torex Gold Resources (TXG) AI Stock Analysis

• Market Cap: $5.48B
• Dividend Yield: N/A
• Average Volume (3M): 598.58K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.50
• Revenue Growth: 5.33%
• EPS Growth: 143.67%
• Country: CA
• Employees: 883
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.67
• Shares Outstanding: 96,140,140
• 10 Day Avg. Volume: 723,723
• 30 Day Avg. Volume: 598,582
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $76.77
• Price Target Upside: 27.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 5.17
• Revenue Forecast (FY): $1.91B

• Rating: 71 Outperform
• Price Target: C$63.00 ▲(4.56% Upside)

Torex Gold Resources' overall stock score is driven by strong earnings call performance and solid financial health, despite challenges in cash flow and valuation concerns. The technical indicators suggest potential short-term weakness, but the company's strategic advancements and debt reduction efforts provide a positive long-term outlook.

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. 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 include the El Limón Guajes mining complex comprising the El Limón Guajes open pits, the El Limón Guajes underground mine, and the processing plant and related infrastructure, and the Media Luna deposit, which is an advanced stage development project. It also mines for silver, copper, and carbon deposits. The company was formerly known as Gleichen Resources Ltd. and changed its name to Torex Gold Resources Inc. in April 2010. Torex Gold Resources Inc. was incorporated in 1980 and is headquartered in Toronto, Canada.

How the Company Makes Money

Torex Gold Resources generates revenue primarily through the sale of gold and gold-related products. The company mines gold from its Morelos Gold Property and sells the extracted gold to gold bullion dealers and refiners. The revenue model is heavily dependent on the prevailing market price of gold, which can fluctuate based on various factors including global economic conditions and supply-demand dynamics. Additionally, the company may also generate income from by-products, such as silver and copper, which can provide supplementary revenue. Significant partnerships with local suppliers and service providers contribute to operational efficiency and cost management, further enhancing profitability.

Torex Gold Resources Financial Statement Overview

Summary

Torex Gold Resources demonstrates strong profitability and a stable balance sheet, with low leverage and efficient equity utilization. However, negative revenue growth and free cash flow highlight areas of concern, indicating potential challenges in maintaining financial health.

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	1.03B	1.12B	882.60M	868.50M	855.80M	789.20M
Gross Profit	619.20M	659.80M	484.60M	505.20M	524.80M	488.40M
EBITDA	526.90M	548.30M	421.40M	481.50M	500.10M	432.00M
Net Income	211.80M	134.60M	204.40M	188.80M	151.70M	109.00M
Balance Sheet
Total Assets	2.35B	2.14B	1.84B	1.59B	1.36B	1.25B
Cash, Cash Equivalents and Short-Term Investments	103.00M	110.20M	172.80M	376.00M	255.70M	206.20M
Total Debt	326.10M	141.20M	32.00M	3.90M	3.30M	44.80M
Total Liabilities	590.80M	508.90M	340.70M	303.20M	258.50M	306.30M
Stockholders Equity	1.76B	1.63B	1.50B	1.29B	1.10B	946.10M
Cash Flow
Free Cash Flow	-173.10M	-112.20M	-178.70M	130.50M	99.50M	199.70M
Operating Cash Flow	330.20M	449.50M	300.80M	408.10M	330.00M	342.10M
Investing Cash Flow	-483.90M	-562.70M	-498.30M	-280.50M	-203.70M	-177.60M
Financing Cash Flow	150.20M	53.60M	-7.90M	-7.70M	-44.90M	-150.00M

Torex Gold Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 60.25 is above the 20-day moving average (MA) of 60.12, above the 50-day MA of 56.64, and above the 200-day MA of 44.27, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.68 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
DPM	82 Outperform	C$6.46B	14.81	20.48%	0.75%	19.55%	36.19%
OGC	79 Outperform	$6.82B	13.24	21.15%	0.31%	51.00%	532.40%
TXG	71 Outperform	$5.48B	12.56	17.29%	―	5.33%	143.67%
EQX	65 Neutral	$11.39B	―	1.41%	―	90.17%	-91.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SSRM	60 Neutral	$5.58B	19.71	6.84%	―	33.74%	―
OLA	56 Neutral	C$4.38B	138.06	4.89%	―	123.03%	―

Torex Gold Resources Corporate Events

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$86.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$77.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$78.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

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.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$58.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

Torex Gold Completes Acquisition of Reyna Silver, Expands Exploration Portfolio

Torex Gold Resources Inc. has completed the acquisition of Reyna Silver, adding four promising exploration properties in Mexico and Nevada to its portfolio. This strategic move is expected to enhance Torex’s exploration capabilities and long-term value creation, with significant investments planned for exploration programs in 2025 and 2026 to unlock the potential of these assets.

The most recent analyst rating on (TSE:TXG) stock is a Hold with a C$46.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

Torex Gold’s Earnings Call: Milestones Amid Challenges

Torex Gold’s recent earnings call painted a mixed picture, balancing significant achievements with notable challenges. The company celebrated milestones in safety and production, alongside strategic acquisitions. However, these positives were countered by operational hurdles, increased costs, and a reliance on debt to sustain liquidity. Despite these challenges, Torex remains optimistic about future cash flow and production targets.

Torex Gold Reports Strong Q2 2025 Performance

Torex Gold Resources Inc. is a Canadian intermediate gold producer focused on the exploration, development, and operation of its Morelos Property in Mexico’s Guerrero Gold Belt, featuring the Media Luna Underground, ELG Underground, and ELG Open Pit mines.

Torex Gold Resources Achieves Strong Q2 2025 Performance and Expands Portfolio

Torex Gold Resources reported strong operational momentum in Q2 2025, with the declaration of commercial production at Media Luna and a return to positive free cash flow. The company anticipates improved production and reduced costs for the remainder of the year, aiming to meet its annual production and cost guidance. Torex is also expanding its portfolio with acquisitions in Mexico and Nevada, setting the stage for future growth.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$37.75 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.