Torex Gold Resources (TXG) AI Stock Analysis

• Market Cap: C$6.27B
• Dividend Yield: N/A
• Average Volume (3M): 545.58K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.69
• Revenue Growth: 5.33%
• EPS Growth: 143.67%
• Country: CA
• Employees: 883
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.63
• Shares Outstanding: 95,676,210
• 10 Day Avg. Volume: 761,350
• 30 Day Avg. Volume: 545,580
• 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$89.68
• Price Target Upside: 36.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 8.74
• Revenue Forecast (FY): C$2.68B

• Rating: 77 Outperform
• Price Target: C$86.00 ▲(31.22% 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

Sustained revenue growth

A 25% TTM revenue increase indicates persistent demand and effective production scaling at El Limón-Guajes and Media Luna. Durable top-line growth supports reinvestment in development, funds operations through cycles, and underpins longer-term production expansion plans over 2–6 months and beyond.

Strong operating margins

High gross and net margins reflect efficient processing, recovery rates and cost management. Sustained margin levels provide a structural buffer against commodity price swings and cost inflation, supporting profitability, internal funding for capex and resilience through the mining cycle.

Low leverage with high ROE

A low debt-to-equity ratio and strong ROE signal a conservative financial structure and efficient capital use. This balance sheet strength gives management flexibility to fund Media Luna ramp-up, repay obligations, pursue selective acquisitions, or maintain returns under slower cash periods.

Negative Factors

Sharp free cash flow decline

A nearly 95% reduction in free cash flow is a material deterioration in cash generation despite accounting profits. This undermines the company's ability to self-fund sustaining development, pay variable returns, or absorb shocks, increasing reliance on external financing or asset flexibility.

Large seasonal cash outflows ahead

Significant scheduled outflows for taxes, royalties and profit sharing create predictable near-term liquidity pressure. These recurring, structural cash demands can constrain discretionary spending, elevate short-term funding needs, and limit flexibility during the Media Luna ramp-up period.

Rising sustaining capital needs

Additional sustaining capex for underground development raises the company's steady-state capital intensity. Higher ongoing development spend reduces free cash flow margins, increases payback timelines for projects, and heightens sensitivity to any shortfalls in production ramp-up execution.

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 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 revenue growth and profitability, supported by efficient operations and low leverage. However, the significant decline in free cash flow poses a risk to liquidity, necessitating careful cash management.

Income Statement

Torex Gold Resources shows strong revenue growth with a 25.16% increase in TTM, indicating robust demand and operational efficiency. The company maintains healthy margins, with a TTM gross profit margin of 54.49% and a net profit margin of 26.32%. Consistent EBIT and EBITDA margins further highlight profitability. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.135 in TTM, indicating low leverage and financial stability. The return on equity of 17.77% in TTM showcases effective use of equity to generate profits. The equity ratio remains strong, supporting asset financing through equity. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which has significantly declined by 94.90% in TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio of 0.97 in TTM suggests efficient conversion of income to cash, but the negative free cash flow to net income ratio indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.12B	882.60M	868.50M	855.80M	789.20M
Gross Profit	625.79M	659.80M	484.60M	505.20M	524.80M	488.40M
EBITDA	600.46M	548.30M	421.40M	481.50M	500.10M	432.00M
Net Income	295.57M	134.60M	204.40M	188.80M	151.70M	109.00M
Balance Sheet
Total Assets	2.47B	2.14B	1.84B	1.59B	1.36B	1.25B
Cash, Cash Equivalents and Short-Term Investments	111.43M	110.20M	172.80M	376.00M	255.70M	206.20M
Total Debt	251.80M	141.20M	32.00M	3.90M	3.30M	44.80M
Total Liabilities	611.83M	508.90M	340.70M	303.20M	258.50M	306.30M
Stockholders Equity	1.86B	1.63B	1.50B	1.29B	1.10B	946.10M
Cash Flow
Free Cash Flow	-56.12M	-112.20M	-178.70M	130.50M	99.50M	199.70M
Operating Cash Flow	359.77M	449.50M	300.80M	408.10M	330.00M	342.10M
Investing Cash Flow	-427.40M	-562.70M	-498.30M	-280.50M	-203.70M	-177.60M
Financing Cash Flow	61.40M	53.60M	-7.90M	-7.70M	-44.90M	-150.00M

Torex Gold Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.54
• 50DMA: Negative
• 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 Negative. The current price of 65.54 is below the 20-day moving average (MA) of 73.48, below the 50-day MA of 67.89, and above the 200-day MA of 53.70, indicating a neutral trend. The MACD of 2.51 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	C$10.08B	18.20	21.15%	0.42%	51.00%	532.40%
TXG	77 Outperform	C$6.27B	13.66	17.29%	―	5.33%	143.67%
NGD	73 Outperform	$10.83B	31.36	22.29%	―	48.70%	1718.41%
SSRM	69 Neutral	C$6.30B	21.94	6.84%	―	33.74%	―
BTO	67 Neutral	C$8.86B	28.59	6.90%	1.71%	34.31%	―
OLA	62 Neutral	C$6.98B	95.76	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 Targets Higher 2026 Output and Ramps Up Exploration at Morelos Complex

Torex Gold has issued its 2026 operational guidance for the Morelos Complex, forecasting production of 420,000 to 470,000 gold-equivalent ounces and sales of 410,000 to 460,000 gold-equivalent ounces, a notable increase from 2025 levels driven by a full year of processing plant output, steady-state mining at Media Luna by mid-year and stable production from the ELG underground mine. All-in sustaining costs are projected at $1,750 to $1,850 per gold-equivalent ounce, with management highlighting that higher assumed metal prices, partly offset by economies of scale, should expand margins and fuel strong free cash flow, while total capital expenditures of $285 million to $305 million include a record exploration and drilling budget of $77 million aimed at extending the life and scale of Morelos and advancing projects at Los Reyes and early-stage properties in Nevada and Chihuahua.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$82.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

Torex Gold Caps 2025 With Strong Output as Media Luna Ramp-Up Outpaces Plan

Torex Gold reported a strong finish to 2025, with fourth-quarter payable production of 115,066 gold-equivalent ounces and full-year payable production of 376,586 gold-equivalent ounces based on market prices, underscoring the successful ramp-up of its Media Luna mine and the robust performance of the Morelos Complex processing plant. Media Luna’s ramp-up is ahead of schedule, exiting the year with mining rates above target and on track to reach steady-state 7,500 tonnes per day by mid-2026, positioning the complex for higher sustained output and significant free cash flow generation in 2026 and beyond; management highlighted that the solid operational momentum, combined with strong metal prices and disciplined capital allocation through share buybacks, dividends and growth investments such as Los Reyes and expanded exploration, strengthens Torex’s financial profile and its competitive standing among mid-tier precious metals producers.

The most recent analyst rating on (TSE:TXG) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Torex Gold Resources stock, see the TSE:TXG Stock Forecast page.

Torex Gold 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.

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 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.