Torex Resources Inc. · TSX:TXR
Torex Resources — Torex Gold Resources — Q1 2019 Earnings Presentation
25 slides from Torex Resources's earnings presentation, Jul 10, 2019
Slide 1: EPS - A Detailed Look at Q1 2019
EPS - A DETAILED LOOK AT Q1 2019 Prepared as of July 10, 2019 1
Slide 2: Safe Harbour Statement
Safe Harbour Statement Total cash costs and all-in sustaining costs (“AISC”) are financial performance measures with no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial Performance Measures” in the management’s discussion and analysis for the
Slide 3: Safe Harbour Statement continued
Safe Harbour Statement continued The forward-looking information and forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company’s expected financial and operating performance and the Company’s plans and objectives and may not be app
Slide 4: Table of Contents
Table of Contents Purpose 5 Revenues 7 Production costs 9 Depreciation 10 Royalties 11 General and administrative 13 Exploration and evaluation 14 Derivative costs 16 Finance costs 17 Foreign exchange 18 Income Taxes 20 Foreign Exchange in Deferred Income Taxes 21 Putting it all together for unadjus
Slide 5: Purpose
Purpose The purpose of this presentation is to share historical information, observations and methodologies to derive the Q1 2019 financial results of the company and compare these to the actual Q1 2019 financial results. 5
Slide 6: Revenues
REVENUES 6
Slide 7: Revenues
Revenues (All figures in US dollars unless otherwise noted) Utilizing the Com pany’s April 3, 2019 press release results in a revenue m odel close to actual results Application - The Company’s April 3, 2019 press indicated that 76,500 ounces were sold at an average realized price of $1,301 At an
Slide 8: Cost of Sales
COST OF SALES 8
Slide 9: Production costs
Production costs (All figures in US dollars unless otherwise noted) Utilizing 29% higher than guidance for TCC results in a m odelled production cost am ount of $56.4 m illion TCC consist of production costs, plus revenue-based royalties, less by-product sales. Period TCC/oz Au sold TCC/oz Au sold A
Slide 10: Depreciation
Depreciation (All figures in US dollars unless otherwise noted) Utilizing historical actuals w hich equate to $321/ oz provides reasonable guidance for a Q1 depreciation estim ate Application: at 76,500 ounces sold at $321/oz, Q1 2019’s depreciation could have been forecasted to be $24.6 million.
Slide 11: Royalties
Royalties (All figures in US dollars unless otherwise noted) Utilizing the press released total sales am ount tim es 3% results in a royalties am ount in line w ith actuals The royalties included in cost of sales are concession and revenue-based royalties equal to 2.5% and 0.5% of revenue (3% tota
Slide 12: G&A, E&E
G&A, E&E 12
Slide 13: General and Administrative
General and Administrative (All figures in US dollars unless otherwise noted) General and adm inistrative costs fund the corporate office and include non-cash stock-based com pensation ex penses The cash burn-rate for operating the corporate office is currently trending at approximately $1.1 million
Slide 14: Exploration and Evaluation
Exploration and Evaluation (All figures in US dollars unless otherwise noted) Ex ploration & Evaluation are ex pected at $1 m illion/ quarter as of Q1 2019 since M uckahi project spend w ill be capitalized Exploration and evaluation expenditures expected to be approximately $1 million per quarter. A
Slide 15: Other Expenses
OTHER EXPENSES ‘RESOURCES ING.
Slide 16: Derivative costs
Derivative costs (All figures in US dollars unless otherwise noted) The difference betw een the contract LI BOR and forw ard LI BOR m ultiplied by the notional am ount is m ost of the derivative cost There are main component within the derivative cost line in the Company’s profit and loss statemen
Slide 17: Finance costs
Finance costs (All figures in US dollars unless otherwise noted) I nterest incurred on debt net of interest earned on cash represents the finance costs in the profit and loss statem ent Principal payments on the debt are made at quarter end – Assuming a LIBOR of 2.5% for a three-month period. Sour
Slide 18: Foreign exchange loss
Foreign exchange loss (All figures in US dollars unless otherwise noted) Foreign ex change loss is prim arily due to the im pact of FX on peso-denom inated VAT receivables, net of A/ P Monetary accounts Q4 2018 Balance Peso Impact Notes (millions) Change – C = A*B A B (millions) VAT $49.5 1.5% $0.8
Slide 19: Income Taxes
INCOME TAXES 19
Slide 20: Current income taxes
Current income taxes (All figures in US dollars unless otherwise noted) Due to utilization of tax loss carry-forw ards, current incom e tax is prim arily m ade up of the 7.5% m ining royalty Metal Sales Less: Production Less: Others =Basis Current tax (millions) A Costs (millions) B (millions) C *7.
Slide 21: Foreign exchange in deferred income taxes
Foreign exchange in deferred income taxes (All figures in US dollars unless otherwise noted) The m ost significant elem ent affecting deferred tax es is the translation of tax base from M ex ican P esos to USD Historically, a 1% movement(1) in the value of the Mexican Peso compared to USD resulted
Slide 22: Putting it all together for unadjusted EPS
PUTTING IT ALL TOGETHER FOR UNADJUSTED EPS 22
Slide 23: Putting it all together – unadjusted loss
Putting it all together – unadjusted loss (All figures in US dollars unless otherwise noted) The Q1 m odel w ould have yielded an unadjusted net loss result consistent w ith actual results (millions) Q1 Model Actual Revenues $101.8 $101.9 Production costs (56.4) (56.2) Depreciation (24.6) (25.8) Roy
Slide 24: Putting it all together for adjusted loss
PUTTING IT ALL TOGETHER FOR ADJUSTED LOSS 24
Slide 25: Putting it all together – adjusted loss
Putting it all together – adjusted loss (All figures in US dollars unless otherwise noted) The Q1 m odel w ould have yielded adjusted net loss of $0.08, w ithin $0.01 of the actual Q1 2019 result (millions) Q1 Model Actual Notes Net (Loss) income (1.3) (1.3) (1) Tax effect of currency translation on