Torex Gold Resources (TSX: TXG) is holding steady on its annual targets after a first quarter defined by technical milestones and a rapid mining transition. The company reported gold equivalent production of 100,874 ounces for the first three months of 2026, keeping it firmly within range of its full-year guidance of 420,000 to 470,000 ounces.
While production figures softened compared to the 117,325 ounces seen in the final stretch of 2025, the dip was a calculated one. Management attributed the quarterly performance to specific mine sequencing and an extended maintenance period at the processing plant. Most of the current output at the Media Luna site is being pulled from lower-grade stopes, though higher-grade ore is expected to reach the mill by mid-year.
With the ELG Underground and Media Luna both hitting their stride, the company expects a similar performance in the second quarter before a projected ramp-up in the latter half of the year.
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The real story for Torex is the speed at which it has integrated its newest assets. The Media Luna underground mine reached its design capacity of 7,500 tonnes per day during the quarter, beating its original schedule by nine months. This operational momentum has allowed the company to begin scouting for ways to push the plant’s throughput even higher.
Financially, the company is leaning into a favorable metal price environment to reward its backers. Torex spent the quarter aggressively returning value, repurchasing more than 2.1 million shares and maintaining its quarterly dividend of C$0.15 per share.
“With solid momentum built in Q1 out of the mines, we are well-placed to deliver on full-year production guidance which, coupled with the current metal price environment, bodes well for significant free cash flow generation in 2026 and beyond. The strong free cash flow will enable us to aggressively return capital to shareholders through both dividends and share repurchases, execute on our robust exploration program to extend mine life at Morelos, unlock value across our portfolio of assets, and maintain a strong and flexible balance sheet,” commented CEO Jody Kuzenko.
First quarter financial results are slated to be released May 6, after the close of markets.
Torex Gold last traded at $66.54 on the TSX.
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