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Torex Gold Resources
(OTC:TXG)
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Rating:81Outperform
Price Target:
C$65.00
▼(-0.69% Downside)
Action:Reiterated
Date:05/11/26
Score is driven primarily by strong current fundamentals (high TTM margins, improving returns, low leverage) and an attractive low P/E valuation. Earnings-call commentary is supportive (guidance reiterated, strong cash generation and shareholder returns), though near-term cost/production headwinds and some mixed momentum signals (negative MACD) temper the outlook.
Positive Factors
High operating and EBITDA margins
Sustained very high operating and EBITDA margins indicate structural cost and grade advantages or efficient processing. High margins support durable free cash generation, reinvestment in projects and resilience through commodity cycles, improving long-term returns and capital allocation flexibility.
Negative Factors
Elevated AISC and currency-driven cost pressure
Higher all-in sustaining costs driven by lower recoveries, higher reagent use and a stronger peso increase unit cost exposure. Persisting currency and processing-cost pressure can structurally compress margins and make free cash flow more sensitive to grade and FX movements.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating and EBITDA margins
Sustained very high operating and EBITDA margins indicate structural cost and grade advantages or efficient processing. High margins support durable free cash generation, reinvestment in projects and resilience through commodity cycles, improving long-term returns and capital allocation flexibility.
Read all positive factors
Torex Gold Resources (TXG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.27B
Dividend YieldN/A
Average Volume (3M)593.55K
Price to Earnings (P/E)6.4
Beta (1Y)2.14
Revenue Growth59.11%
EPS Growth306.31%
CountryCA
Employees883
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)5.96
Shares Outstanding93,346,410
10 Day Avg. Volume816,960
30 Day Avg. Volume593,553
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$95.00Price Target Upside45.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)7.49
Revenue Forecast (FY)C$2.21B
Torex Gold Resources Business Overview & Revenue Model
Company Description
Torex Gold Resources Inc., an intermediate-tier gold producer, conducts its mining operations predominantly in Mexico. The company's core asset is its 100% owned Morelos Gold property, a substantial 29,000-hectare concession located southwest of M...
How the Company Makes Money
Torex Gold makes money primarily by producing gold from its mines and selling that production into the market, with revenue largely driven by (1) the volume of gold ounces produced and sold and (2) realized gold prices (typically based on prevaili...
Torex Gold Resources Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted substantial financial and operational achievements — record margins, record adjusted EBITDA, strong free cash flow, debt repayment, an enhanced $350 million return-of-capital program, early ramp-up of Media Luna mining rates, and zero lost-time injuries. These positives were tempered by near-term operational headwinds: lower finished production and recoveries from mine sequencing, elevated AISC at $1,917/oz driven by lower production, higher reagent use and a stronger Mexican peso (adding ~$50/oz), processing plant outages earlier in the quarter, and unresolved timing to resume work at Los Reyes. Management expects costs and recoveries to improve in the back half of the year and remains on track for full-year guidance, while maintaining strong liquidity and project execution plans.Positive Updates
Record margins, revenue and adjusted EBITDA
Achieved a record AISC margin of 60% for the quarter. Reported record quarterly revenue and adjusted EBITDA of $159 million (quarterly record).
Negative Updates
Quarterly production lighter due to mine sequencing
Finished production was lighter quarter-over-quarter due to mining lower-grade and lower-recovery stopes at Media Luna per the 2026 mine plan; Q2 production expected to be similar to Q1 with recovery improvement targeted in H2.
Read all updates
Q1-2026 Updates
Positive
Negative
Record margins, revenue and adjusted EBITDA
Achieved a record AISC margin of 60% for the quarter. Reported record quarterly revenue and adjusted EBITDA of $159 million (quarterly record).
Read all positive updates
Company Guidance
Management reiterated they remain on track to meet full‑year production and cost guidance, noting Q2 production and costs should be similar to Q1 before a return to higher grades and recoveries in H2 that should push costs lower. Key metrics: Q1 AISC was $1,917/oz (above guided range) with a record AISC margin of 60%; finished production was lighter QoQ due to lower‑grade/lower‑recovery stopes; plant averaged >11,400 tpd in April; Media Luna is mining at design rates of 7,500 tpd (9 months ahead of the technical report) while ELG is running ahead of its 2,800 tpd target. Financial guidance and liquidity: Q1 generated $157M of free cash flow after $165M of taxes/royalties, adjusted EBITDA was $159M, cash was $130M (target minimum $200M), available liquidity $467M with a $350M undrawn revolver, and management now forecasts ~ $650M of free cash flow at current spot prices; they will return $350M to shareholders in 2026 (≈55% of forecast FCF, ≈40% pre‑nonsustaining capex), having already returned $121M in Q1, increased the dividend 7% to CAD0.16/share (~1% yield), and retained capital plans including $45M drilling at Morelos and $100M to complete Media Luna North (first ore targeted Dec 2026); guidance also notes Q2 profit‑sharing ≈ $38M and that a stronger peso (budgeted 19:1 vs Q1 avg 17.5:1) added roughly $50/oz to costs, with peso hedges in place for 2026–2027.Torex Gold Resources Financial Statement Overview
Summary
Income Statement
89
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.68B | 1.33B | 1.12B | 882.60M | 868.50M | 855.80M |
| Gross Profit | 880.40M | 609.49M | 659.80M | 484.60M | 505.20M | 524.80M |
| EBITDA | 966.56M | 716.22M | 548.30M | 421.40M | 481.50M | 500.10M |
| Net Income | 573.03M | 410.46M | 134.60M | 204.40M | 188.80M | 151.70M |
Balance Sheet | ||||||
| Total Assets | 3.01B | 3.02B | 2.14B | 1.84B | 1.59B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 130.00M | 119.28M | 110.20M | 172.80M | 376.00M | 255.70M |
| Total Debt | 101.10M | 201.93M | 141.20M | 32.00M | 3.90M | 3.30M |
| Total Liabilities | 486.90M | 597.71M | 508.90M | 340.70M | 303.20M | 258.50M |
| Stockholders Equity | 2.52B | 2.42B | 1.63B | 1.50B | 1.29B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 418.99M | 111.62M | -112.20M | -178.70M | 130.50M | 99.50M |
| Operating Cash Flow | 697.05M | 472.12M | 449.50M | 300.80M | 408.10M | 330.00M |
| Investing Cash Flow | -286.29M | -366.81M | -562.70M | -498.30M | -280.50M | -203.70M |
| Financing Cash Flow | -389.29M | -97.27M | 53.60M | -7.90M | -7.70M | -44.90M |
Torex Gold Resources Technical Analysis
Negative
65.45
Price Trends
59.74
Negative
63.02
Negative
63.30
Negative
Market Momentum
-1.06
Positive
46.31
Neutral
20.19
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 65.45 is above the 20-day moving average (MA) of 57.81, above the 50-day MA of 59.74, and above the 200-day MA of 63.30, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 20.19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$5.27B | 6.35 | 26.78% | ― | 59.11% | 306.31% | |
77 Outperform | C$8.34B | 24.61 | 6.72% | ― | 73.38% | 169.61% | |
75 Outperform | C$7.09B | 9.28 | 15.70% | 1.71% | 85.46% | ― | |
72 Outperform | C$7.95B | 9.12 | 34.87% | 0.42% | 61.07% | 163.91% | |
66 Neutral | C$5.21B | 13.04 | 40.70% | ― | 207.42% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:TXG
Torex Gold Resources
56.45
12.34
27.98%
TSE:SSRM
SSR Mining
40.10
22.22
124.27%
TSE:BTO
B2Gold
5.32
0.49
10.10%
TSE:OGC
OceanaGold
35.55
16.49
86.54%
TSE:OLA
Orla Mining
13.87
0.21
1.50%
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 ...
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.