Torex Resources Inc. · TSX:TXR
Torex Resources — Torex Gold Resources — Technical Presentation (April 2022)
97 slides from Torex Resources's technical presentation, Apr 1, 2022
Slide 1: Technical Session – Morelos Complex
TSX | TXG TECHNICAL SESSION – MORELOS COMPLEX April 1, 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT The Company has presented certain future non-GAAP financial measures (“Non-GAAP Measures”) in this presentation within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures. Total cash costs per ounce of gold or gold equivalent (AuEq) sold (“TCC”), t
Slide 3: Technical Session Agenda
TECHNICAL SESSION AGENDA Introduction Liquidity & Funding Strategic Context & Executive Summary Risks & Opportunities Morelos Complex Operational Outlook Summary & Final Comments Morelos Complex & Media Luna Project Question & Answer Period Mine and Process Plant Design ESG & Permitting Project Sche
Slide 4: Key References, Assumptions & Notes
KEY REFERENCES, ASSUMPTIONS & NOTES KEY REFERENCES Reference to Morelos Property refers to the entire 29,000- Reference to Production and/or Sales/Sold refers to hectare property and all concessions. payable output, which is net of payable deductions applied to Reference to Morelos Complex refers to
Slide 5: Strategic Context & Executive Summary
STRATEGIC CONTEXT & EXECUTIVE SUMMARY All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 6: Strategic Pillars
STRATEGIC PILLARS Executing on plan expected to significantly enhance shareholder returns OPTIMIZE & ADVANCE & GROW RESERVES & EXTEND ELG DE-RISK MEDIA LUNA RESOURCES PRUDENT CAPITAL BUILD ON ESG LEVERAGE ALLOCATION EXCELLENCE INNOVATION 6
Slide 7: Executive Summary
EXECUTIVE SUMMARY1,2 Media Luna materially enhances the long-term potential of the Morelos Property Life of mine more than triples to 11.75 years versus ELG standalone case of 3.5 years Annual AuEq sold3 of 374 koz at a mine-site AISC3,4 of $954/oz AuEq 450 koz AuEq at a mine-site AISC of $929/oz Au
Slide 8: Morelos Complex – Operational Outlook
MORELOS COMPLEX – OPERATIONAL OUTLOOK All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 9: 2022 Operational Guidance
2022 OPERATIONAL GUIDANCE1 Full year guidance updated to include capital expenditures for Media Luna Project 2022 Guidance 2022 Guidance Updated Original Gold Production koz 430 to 470 430 to 470 Total Cash Costs 2 $/oz $695 to $735 $695 to $735 All-in Sustaining Costs 2 $/oz $980 to $1,030 $980 to
Slide 10: Multi-Year Outlook
MULTI-YEAR OUTLOOK1 Forward production ranges now incorporate gold equivalent output from Media Luna Payable Production Guidance Multi-Year Outlook 2022 2023 2024 2025 Updated Outlook (Morelos Complex) Gold koz 430 to 470 420 to 460 - - 2 Gold equivalent koz - - 385 to 425 415 to 455 Prior Outlook (
Slide 11: Key Outcomes of Technical Report
KEY OUTCOMES OF TECHNICAL REPORT1,2 Media Luna Project significantly enhances the long-term outlook Morelos Complex ELG Standalone Life of mine = 11.75 years Life of mine = 3.5 years (April 2022 through December 2033) (April 2022 through September 2025) Average annual sold: Average annual sold: AuEq
Slide 12: Consistent Output Maintained Through 2027
CONSISTENT OUTPUT MAINTAINED THROUGH 20271 Exploration success and ongoing optimization key to filling the mill Annual AuEq sold2,3 of 450 koz through 2027 when process plant is at full capacity Annual Cu sales of 45 Mlbs post 2024 the when ML Project becomes the primary source of ore Potential deve
Slide 13: Media Luna Project – Mine & Process Plant Design
MEDIA LUNA PROJECT – MINE & PROCESS PLANT DESIGN All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 14: First Ore from Media Luna Anticipated in Q4 2023
FIRST ORE FROM MEDIA LUNA ANTICIPATED IN Q4 20231 Media Luna to be sole source of ore post 2027 based on Reserves only Production from ELG Underground extended ~2 years Mining in ELG Open Pits expected to step down in 2023 and cease production at the end of 2024 First development ore from Media Luna
Slide 15: Media Luna Mine Design
MEDIA LUNA MINE DESIGN Mineral Reserve1 of 23 Mt to be mined from 6 discrete mining blocks ML designed for longhole open stope mining Looking Southeast Separate mining blocks enable production capacity MLU 1 Dedicated infrastructure for each block MLU 2 South Portals MLL 3 MLL 1 MLL 2 Guajes Tunnel
Slide 16: Materials Handling System
MATERIALS HANDLING SYSTEM Separate ore passes and one waste pass feed the GT conveyor Dedicated ore/waste passes Gravity fed grizzlies with rock-breakers Dedicated bins above Guajes Tunnel conveyor 16
Slide 17: Mine Services & Logistics
MINE SERVICES & LOGISTICS1 Building a clean, energy efficient mine with the future in mind Mobile Equipment Fleet BEV Units Hybrid Fleet - Diesel and BEV mobile equipment 14 tonne LHD 11 Less ventilation required, reduced vent infrastructure costs Top-Hammer Longhole Drill Rig 5 ITH Drill with reame
Slide 18: Credible Ramp-Up Period Assumed for Media Luna
CREDIBLE RAMP-UP PERIOD ASSUMED FOR MEDIA LUNA1 Media Luna expected to take 3 years to reach design rate of 7,500 tpd Assuming a 3-year ramp-up from initial production ore (3.5 years from first development ore) Industry ramp-up periods tend to be underestimated, which can have negative implications
Slide 19: Media Luna Underground Mine
MEDIA LUNA UNDERGROUND MINE
Slide 20: Upgrades to Plant Required to Process Media Luna Ore
UPGRADES TO PLANT REQUIRED TO PROCESS MEDIA LUNA ORE1 Mill capacity to be downsized to 10,600 tpd from 13,000 tpd in Q4 2024 Capacity = 10,600 t/d Plant capacity to be fully utilized through 2027 Extension of ELG Underground and development of EPO deposit are potential contributors to fill the mill
Slide 21: Final Process Flowsheet for Morelos Complex
FINAL PROCESS FLOWSHEET FOR MORELOS COMPLEX1 1. Please refer to Safe Harbor Statement on slide 2. 21
Slide 22: Life of Mine Recoveries and Payable Factors
LIFE OF MINE RECOVERIES AND PAYABLE FACTORS1,2 Ore from Media Luna will result in significantly higher copper and silver production Morelos Complex Concentrate Doré/Other Total Au Ag Cu Au Ag Cu Au Ag Cu (koz) (koz) (Mlb) (koz) (koz) (Mlb) (koz) (koz) (Mlb) Existing Processing Plant (Q2 2022 to Q3 2
Slide 23: Tailings Storage Facilities
TAILINGS STORAGE FACILITIES1 Seeking to deposit future tailings in depleted Guajes pit Filtered Tailings Storage Facility (FTSF) Current tailings system Filtered tails conveyed to the FTSF Expected to operate through Q3 2024 (with capacity through 2026) FTSF Guajes Tailings Storage Facility (GTSF) F
Slide 24: Processing Plant & Infrastructure
PROCESSING PLANT & INFRASTRUCTURE
Slide 25: ESG & Permitting
ESG & PERMITTING All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 26: ESG Implications for Media Luna
ESG IMPLICATIONS FOR MEDIA LUNA1 Continued focus on positive community relations and environmental management Positive relationships with local communities south of the River CODECOP agreements in place with San Miguel / Balsas Sur Community relations office located in San Miguel All required surfac
Slide 27: Key Permits
KEY PERMITS1 Permitting on track and all required permitting in place for planned work in 2022 A key environmental permit modification (“MIA Modification”) was granted in March 2021 to allow for early works to access the Media Luna deposit from the north and south side of the River Awaiting confirma
Slide 28: Project Schedule & Execution
PROJECT SCHEDULE & EXECUTION All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 29: Media Luna Project Schedule
MEDIA LUNA PROJECT SCHEDULE1 1. Please refer to Safe Harbor Statement on slide 2. 29
Slide 30: Tunnel Development
TUNNEL DEVELOPMENT1,2 Advancing from both sides of Balsas River expected to mitigate schedule risk Guajes Tunnel expected to have advanced ~1,540 m by end of March New bolter with longer reach has been commissioned Budgeted a daily advance rate of 6.0 to 6.5 m South Portal Upper has now split with u
Slide 31: Project Organization Well Established
PROJECT ORGANIZATION WELL ESTABLISHED1 Key Roles and Interfaces Execution Method Key Management Team Integrated EPCM, led by Torex Project Director (TXG) Project Execution Plan (PEP) developed at FS, Deputy Project Director (M3) implemented and ready for Project Approval Health and Safety Manager (T
Slide 32: Project Organization
CORPORATE SUPPORT PROJECT ORGANIZATION1 - Contracting templates - - Financial Modelling Marketing Analysis - - Recruitment Labour costs An integrated team - Long Term Prices - Employment strategy - Legal review & - Project accounting Dave gov ernance - Remunerati on Faysal - Financial audits Framewo
Slide 33: Media Luna Project Execution
MEDIA LUNA PROJECT EXECUTION1 Seamless transition from Early Works to Formal Execution Phase Formalized plans and procedures are required for the integrated project team (EPCM + Owners) 24 key plans and procedures are identified within the Project Execution Plan; 13 procedures are established, 6 pla
Slide 34: Workforce Planning
WORKFORCE PLANNING1 Transitioning from current to future state A dedicated manager has been engaged to develop a clear workforce transition plan Key considerations include: Retraining open-pit workforce to transition to underground while still meeting remaining open pit mining demands Engaging some
Slide 35: Capital Expenditures
CAPITAL EXPENDITURES All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 36: Capital Expenditures
CAPITAL EXPENDITURES1,2 Upfront costs reflect true cost to develop a large-scale underground mine today Morelos Complex ELG Standalone Total non-sustaining capex3 = $850M Total non-sustaining capex3 = $2M Media Luna Project capex = $848M $85M of underground mine development during Non-sustaining spe
Slide 37: Basis for Capital Expenditures
BASIS FOR CAPITAL EXPENDITURES1 Upfront costs reflect reality of building and sustaining a 7,500 tpd underground mine Actuals and activity-based costing applied to determine opex and capex for mining, processing, site support, closure and ML project execution All other opex and capex developed from
Slide 38: Capex Discussion
CAPEX DISCUSSION1 Project capex has been developed primarily from a first principles basis Material Takeoffs Design Civil Flowsheets Concrete/Structural General Arrangements Piping Capex & P&IDs Mechanical Schedule Equipment List Electrical Electrical Single Lines Instrumentation Equipment Quotation
Slide 39: Non-Sustaining Capital Expenditures
NON-SUSTAINING CAPITAL EXPENDITURES1 Upfront cost to develop Media Luna Project estimated at $848M Metrics as of April 1, 2022 Total ($M) Excludes $124M of project costs incurred prior to Non-Sustaining2,3 - Media Luna Project April 1, 2022 Directs Guajes Portal & Tunnel $75.8 South Portals & Tunnel
Slide 40: Media Luna Project Capital Cost
MEDIA LUNA PROJECT CAPITAL COST1 Initial capital cost planned expenditure by quarter Total projected spend of $848M with peak quarterly spend through 2023 Commercial production expected to be declared on January 1, 2025 $85M of underground mine development during pre-commercial mining period (Q4 202
Slide 41: Sustaining Capital Expenditures
SUSTAINING CAPITAL EXPENDITURES1 Reflects costs of running and sustaining a large-scale underground operation Metrics as of April 1, 2022 Total Total Total ($M) ($/t ore) ($/oz AuEq) Total ore processed (kt) 39,778 Total payable gold equivalent sold (koz AuEq) 4,392 2,3 Sustaining ELG Open Pit - Cap
Slide 42: Operating Costs
OPERATING COSTS All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 43: Operating Costs
OPERATING COSTS1,2,3 Attractive operating cost profile expected to result in continued healthy margins Morelos Complex ELG Standalone TCC4,5 = $809/oz AuEq TCC4 = $831/oz AuEq Mine-site AISC4,5 = $954/oz AuEq Mine-site AISC4 = $1,023/oz AuEq By-product TCC4,5 = $545/oz Au By-product TCC4 = $820/oz A
Slide 44: Life of Mine Unit Costs
LIFE OF MINE UNIT COSTS1,2,3,4 Opportunities to improve overall cost structure being investigated Metrics as of April 1, 2022 Q2/22 to Q4/24 2025+ Life of Mine Potential to reduce ELG UG mining (Total) (Total) (Total) Operating Unit Costs (with PTU) 4 costs: ELG Open Pit $/t mined $2.81 $0.00 $2.81
Slide 45: Attractive Cost Profile Maintained
ATTRACTIVE COST PROFILE MAINTAINED1,2,3 Robust margins forecast over life of mine including a mine-site AISC margin4 of 41% Average TCC4,5 of $809/oz AuEq implying a TCC margin4 of 50% at base case metal prices Average mine-site AISC4,5 of $954/oz AuEq implying mine-site AISC margin4 of 41% Potentia
Slide 46: Well-Positioned on the Industry Cost Curve
WELL-POSITIONED ON THE INDUSTRY COST CURVE1,2 Average mine-site AISC3,4 screens well against peers5 on a co-product basis Mine-site AISC = $954/oz AuEq 1. Please refer to Safe Harbor Statement on slide 2. 2. As per Technical Report for the Morelos Complex dated March 31, 2022. 3. Please refer to Key
Slide 47: Economic Analysis
ECONOMIC ANALYSIS All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 48: Economic Summary
ECONOMIC SUMMARY1,2 Media Luna Project significantly enhances the value of the Morelos Complex Morelos Complex ELG Standalone5 Life of mine = 11.75 years Life of mine = 3.5 years Revenue = $7,106M Revenue = $2,234M ($605M annualized) ($638M annualized) Mine-site EBITDA3,4 = $3,503M Mine-site EBITDA3
Slide 49: Incremental Benefit of Media Luna Project on Economics
INCREMENTAL BENEFIT OF MEDIA LUNA PROJECT ON ECONOMICS1,2 Point in time metrics don’t reflect the long-term potential of the Morelos Property Media Luna Project – Relative to ELG Standalone3 Revenue = $4,872M Mine-site EBITDA4,5 = $2,436M Cumulative cash flow = $828M After-Tax NPV (5%) = $458M Impli
Slide 50: Significant Leverage to Stronger Metal Prices
SIGNIFICANT LEVERAGE TO STRONGER METAL PRICES1 Implied IRR of Media Luna Project increases to 24.9% at spot prices Metrics as of April 1, 2022 Morelos ELG ML Morelos ELG ML Complex Standalone Incremental Complex Standalone Incremental 2 5 Base Case Metal Prices Spot Case Metal Prices Economics Gross
Slide 51: Sensitivity Analysis
SENSITIVITY ANALYSIS1,2 After-tax NPV (5%) of Morelos Complex and Media Luna Project 1. Please refer to Safe Harbor Statement on slide 2. 2. As per Technical Report for the Morelos Complex dated March 31, 2022 (base case economics assume long-term metal prices of $1,600/oz gold ($1,700/oz in 2022),
Slide 52: Liquidity & Funding
LIQUIDITY & FUNDING All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 53: Funding & Liquidity Position
FUNDING & LIQUIDITY POSITION1 Debt financing expected to support strategic priorities during build of Media Luna Strong balance sheet with over $400M of liquidity and no debt at December 2021 Robust forecast cash flows from ELG Mining Complex through build period Progressing debt financing alternati
Slide 54: Liquidity Expected to Be Enhanced via Debt Financing
LIQUIDITY EXPECTED TO BE ENHANCED VIA DEBT FINANCING1 Targeting $250M to $300M to support balance sheet during Media Luna build Annual cash flow of approximately $200M through 2024 before ML expenditures2,3,4 Analysis assumes $20M of corporate G&A and $35M of exploration/drilling annually Levered sc
Slide 55: Hedging to Protect Downside Risk During Build-Out
HEDGING TO PROTECT DOWNSIDE RISK DURING BUILD-OUT1 Transacted forward price contracts on 25% of output between Q3 2022 and Q4 2023 Transacted several forward contracts in early March Approximately 25% of monthly gold production between October 2022 and December 2023 Q4 2022: 30 koz in total at an av
Slide 56: Risks & Opportunities
RISKS & OPPORTUNITIES All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 57: Key Risks
KEY RISKS1 A thorough risk assessment to define and monitor key controls Underground Development Project Management Delays to BEV fleet delivery Serious injury or fatality Mine ramp-up delayed Schedule coordination between contractors Development delays during project period Operational readiness an
Slide 58: Key Opportunities
KEY OPPORTUNITIES1 Significant potential to further improve project economics Exploration & Resources Mine Design & Reserves Historically under invested in exploration/drilling Reserve growth with general strategy to increase Sizeable and prospective land package which has mine production beyond 7,5
Slide 59: Leveraging Excess Capacity Post 2027
LEVERAGING EXCESS CAPACITY POST 20271 Exploration already targeting to the fill the mill while extending overall life of mine Capacity = 10,600 t/d Initiatives underway to address excess capacity post 2027 Exploration/drilling a key strategic pillar Historically under invested in exploration Multi-y
Slide 60: ELG Underground – A Significant Value Driver
ELG UNDERGROUND – A SIGNIFICANT VALUE DRIVER1 Continues to be a key driver of Reserve growth Mined underground production2 since 2019 has averaged 97 koz Au at a grade of ~7.4 g/t Au Record annual mining rate of ~1,260 tpd in 2021 Underground gold Reserves increased 20% in 2021 Current Reserves plus
Slide 61: Morelos Property Offers Significant Resource Potential
MORELOS PROPERTY OFFERS SIGNIFICANT RESOURCE POTENTIAL1 75% of the broader property remains largely unexplored Drilling/exploration budget of $39M in 2022 Tecate Esperanza $19M within ML Cluster (~64,000 m) Querenque $6M on infill and step-out drilling at ELG Underground (~28,000 m) $9M on near-mine
Slide 62: Media Luna Cluster Remains Under Explored
MEDIA LUNA CLUSTER REMAINS UNDER EXPLORED1 Significant resource potential exists within the broader Media Luna area Significant resource potential exists to expand Resources and Reserves around Media Luna EPO Current Mineral Resource covers about 1/3rd of North ML02 associated magnetic anomalies Inf
Slide 63: Summary & Final Comments
SUMMARY & FINAL COMMENTS All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 64: In Summary
IN SUMMARY1,2 The foundation for growth has been cast Media Luna to be a key value driver over the coming years Triples mine life to almost 12 years Maintains low-cost profile Significant potential to extend current production profile beyond 2027 Delivers robust revenue, EBITDA and cash flow3,4 Mean
Slide 65: Question & Answer Period
QUESTION & ANSWER PERIOD Webcast Participants Please submit your questions through the webcast portal If your question is not answered, we will do our best to follow-up with you in the coming days 65
Slide 66: Morelos Complex – Mineral Reserves & Resources
MORELOS COMPLEX – MINERAL RESERVES & RESOURCES
Slide 67: Mineral Reserves – Morelos Complex
MINERAL RESERVES1 – MORELOS COMPLEX Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (g/t) (g/t) (%) (koz) (koz) (Mlb) (g/t) (koz) El Limón Guajes Open Pit (ELG OP) Proven 4,900 3.95 4.6 0.14 623 719 15 4.00 630 Probable 5,471 2.35 4.5 0.12 414 784 15 2.39 421 Proven & Probable 10,371 3.11 4.5 0.13 1,037 1,5
Slide 68: Notes to Mineral Reserves – Morelos Complex
NOTES TO MINERAL RESERVES – MORELOS COMPLEX Notes to accompany Mineral Reserve Table Notes to accompany the ELG Underground Mineral Reserves 1. Mineral Reserves were developed in accordance with CIM (2014) guidelines. 15. Mineral Reserves are founded on Measured and Indicated Mineral Resources, with
Slide 69: Mineral Resources – Morelos Complex
MINERAL RESOURCES1 – MORELOS COMPLEX Tonnes Au Ag Cu Au Ag Cu AuEq AuEq (kt) (g/t) (g/t) (%) (koz) (koz) (Mlb) (koz) (g/t) El Limón Guajes Open Pit (ELG OP) Measured 5,727 3.89 5.0 0.13 716 919 17 3.93 724 Indicated 11,027 2.37 4.7 0.12 842 1,660 28 2.41 856 Measured & Indicated 16,754 2.89 4.8 0.12
Slide 70: Notes to Mineral Resources – Morelos Complex
NOTES TO MINERAL RESOURCES – MORELOS COMPLEX Notes to accompany the Summary Mineral Resource Table Notes to accompany ELG Underground Mineral Resources 1. CIM (2014) definitions were followed for Mineral Resources. 14. Mineral Resources are reported above a cut-off grade of 2.6 g/t Au. 2. Mineral Re
Slide 71: Morelos Complex – Life of Mine Economic Summary
MORELOS COMPLEX – LIFE OF MINE ECONOMIC SUMMARY All values US dollars unless otherwise stated Estimates are for the project period commencing April 1, 2022, unless otherwise noted
Slide 72: Morelos Complex Technical Report
MORELOS COMPLEX TECHNICAL REPORT1,2,3 1. Please refer to Safe Harbor Statement on slide 2. 2. As per Technical Report for the Morelos Complex dated March 31, 2022. 3. Please refer to Key References & Assumptions/Notes on slide 4. 72
Slide 73: Morelos Complex Technical Report
MORELOS COMPLEX TECHNICAL REPORT1,2,3,4 1. Please refer to Safe Harbor Statement on slide 2. 2. As per Technical Report for the Morelos Complex dated March 31, 2022. 3. Please refer to Key References & Assumptions/Notes on slide 4. 4. For more information on operational and financial results, includ
Slide 74: Morelos Complex Technical Report
MORELOS COMPLEX TECHNICAL REPORT1,2,3,4 1. Please refer to Safe Harbor Statement on slide 2. 2. As per Technical Report for the Morelos Complex dated March 31, 2022. 3. Please refer to Key References & Assumptions/Notes on slide 4. 4. For more information on operational and financial results, includ
Slide 75: Reconciliation of Gold Equivalent Costs and By-Product Costs
MORELOS COMPLEX TECHNICAL REPORT1 Reconciliation of gold equivalent costs and by-product costs Metrics as of April 1, 2022 LOM AuEq Au ($M) ($/oz) ($/oz) Metal Sold 2,3 Total payable gold equivalent sold (AuEq) 4,392 Total payable gold sold (Au) 3,294 Operating Costs Operating expenses $3,122 $711 $
Slide 76: Morelos Complex – Planned Infrastructure
MORELOS COMPLEX – PLANNED INFRASTRUCTURE
Slide 77: Site Layout – North and South Sides of Balsas River
SITE LAYOUT – NORTH AND SOUTH SIDES OF BALSAS RIVER 77
Slide 78: North Side – Site Layout
NORTH SIDE — SITE LAYOUT eg 401 - COPPER FLOTATION ®RIND ‘GUAJES EAST PIT WATER RESERVOIR GUAJES WEST PIT TAILINGS STORAGE FACILITY Nowa 7 Serre P| (625 -GUAJES PIT THICKENER, Z ‘940 - GUAJES TUNNEL PORTAL 760- MAIN BALSAS ‘SUBSTATION (E)
Slide 79: North Side – Process Plant
NORTH SIDE — PROCESS PLANT ~~" 401-COPPER FLOTATION ‘®RIND 100- PRIMARY < CRUSHING GUAJES (&) | S 400- LEACHING AREA (E) x a= mi ation 79
Slide 80: North Side – Milling Circuit
NORTH SIDE – MILLING CIRCUIT 80
Slide 81: North Side – Flotation Circuit & Regrind
NORTH SIDE – FLOTATION CIRCUIT & REGRIND 81
Slide 82: North Side – Leach Circuit
NORTH SIDE — LEACH CIRCUIT —_. 300- MILL BUILDING Fe-S FLOAT TAILS: pa LEACH FEED SAMPLER 82
Slide 83: North Side – Concentrate Dewatering Circuit
NORTH SIDE – CONCENTRATE DEWATERING CIRCUIT 83
Slide 84: North Side – Concentrate Blending Facility
NORTH SIDE – CONCENTRATE BLENDING FACILITY 84
Slide 85: North Side – Guajes Portal Infrastructure
NORTH SIDE – GUAJES PORTAL INFRASTRUCTURE 85
Slide 86: South Side – Site Layout
SOUTH SIDE — SITE LAYOUT ‘SOUTH PORTAL UPPER PAD. ‘SOUTH PORTAL LOWER PAD
Slide 87: South Side – Paste Plant & South Portal Upper
SOUTH SIDE – PASTE PLANT & SOUTH PORTAL UPPER 87
Slide 88: Appendix
APPENDIX All values US dollars unless otherwise stated
Slide 89: Strategic Pillars
STRATEGIC PILLARS Executing on plan expected to significantly enhance shareholder returns OPTIMIZE & ADVANCE & GROW RESERVES & EXTEND ELG DE-RISK MEDIA LUNA RESOURCES Build on culture as key strategic Commence formal construction of $39M exploration and drilling differentiator Media Luna Project bud
Slide 90: Cost Performance
COST PERFORMANCE1 Actively pursuing opportunities to offset cost inflation Open pit costs higher due to RopeCon repairs mid-year and higher contractor costs associated with COVID-19 Higher underground costs reflect increased levels of development than in 2020 Processing costs reflect higher levels o
Slide 91: Strong Cash Flow Generation in 2021
STRONG CASH FLOW GENERATION IN 2021 Balance sheet continued to strengthen with $256M in cash at year-end Generated $330M in operating cash flow ($365M prior to changes in non-cash operating working capital) Cash balance improved $82M during the year including repayment of $40M of remaining long-term
Slide 92: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY1 Financial health of business continues to strengthen Net cash of $252M at year-end2 Available liquidity of over $405M at year-end 2021 Exited Q4 2021 with over $255M of cash $150M revolving debt facility fully undrawn Debt free with just over $3M of lease obligations Facil
Slide 93: Cash Flow Seasonality
CASH FLOW SEASONALITY1,2 Cash flow tends to be weakest in H1 given timing of payments Seasonality expected to be more pronounced in 2022 than 2021 given gold production is anticipated to be higher in H2 than in H1 Final payments related to royalties, profit sharing (PTU), and taxes are subject to mo
Slide 94: Key Operational Metrics – El Limón Guajes (ELG)
KEY OPERATIONAL METRICS – EL LIMÓN GUAJES (ELG)1,2 1. Q2 2020 results were impacted by a mandated suspension of operations by the Government of Mexico to mitigate the spread of COVID-19 in the country. 2. For more information on operational and financial results, please refer to Torex Gold’s latest
Slide 95: Key Financial Metrics – Consolidated
KEY FINANCIAL METRICS – CONSOLIDATED1,2,3 1. Q2 2020 results were impacted by a mandated suspension of operations by the Government of Mexico to mitigate the spread of COVID-19 in the country. 2. For more information on operational and financial results, including information on non-GAAP measures (s
Slide 96: Corporate Information and Top Shareholders
CORPORATE INFORMATION AND TOP SHAREHOLDERS 96
Slide 97: www.torexgold.com
TSX | TXG www.torexgold.com Dan Rollins, CFA Vice President, Corporate Development and Investor Relations Email: [email protected] | Direct: 1-647-260-1503
Torex Gold Resources — Technical Presentation (April 2022) on 6ix