Torex Gold (TSX: TXG) reported its Q2 2025 results. In one of the rare cases in this price environment, the firm’s quarterly revenue slipped 6% YoY to $253.9 million from $270.3 million in Q2 2024, despite a 50% jump in the realized gold price to $3,299 per gold equivalent ounce. This comes as gold equivalent ounces sold cratered 34% to 76,922 from last year’s 115,890 ounces.
Cost of sales contracted a softer 8% to $152.6 million, but the cost reduction lagged the volume drop, trimming the mine-operating margin only 3% to $101.3 million.
Despite this, net income ballooned to $83.2 million (or $0.95 earnings per diluted share) from a mere $1.9 million (or $0.02 per share) a year ago, thanks to lower non-cash tax charges and derivative gains. Strip those items out and adjusted earnings actually fell 16% to $43.8 million (or $0.50 per share) from last year’s $52.4 million (or $0.60 per share).
EBITDA declined 7% YoY to $114.1 million, while adjusted EBITDA eased 3% to $117.7 million—largely mirroring the drop in production.
Operating cash flow fell 30% to $67.8 million. After $100.8 million of capex tied to the Media Luna build-out, free cash flow was a negative $37.5 million—an improvement on last year’s $59.3 million deficit. Management claimed that June marked a return to positive monthly FCF as Media Luna ramps up.
Cash ended the quarter at $103.0 million (a 5% drop YoY) while gross debt exploded to $227.2 million from $53.9 million, pushing net debt to $225.9 million versus roughly flat a year ago. Available liquidity shrank 40% to $209.1 million, even after upsizing the revolving credit facility to $350 million.
Gold equivalent production slid 29% YoY to 82,856 ounces as Media Luna’s ramp-up and a 10-day unplanned mill shutdown offset higher grades. Total cash costs per gold equivalent ounce surged 55% to $1,606, and AISC jumped 67% to $2,103—both well above industry averages.
Management now targets the low end of its 400,000-450,000 gold equivalent ounce production range and the high end of its $1,400-$1,600 per ounce AISC outlook for 2025.
Torex Gold last traded at $42.08 on the TSX.
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