Torex Gold's Q2 output rose to 139,000 ounces with AISC down to $1,110 as Media Luna ramps. Net debt halved to $92 million; expansion study due by year-end.
Torex Gold reported a stronger second quarter on Thursday, with production up and costs lower as the Media Luna mine ramps toward full capacity. The company produced 139,000 ounces of gold in Q2 2026, up from 114,000 ounces in the same period last year, and sold 137,000 ounces at an average realized price of $3,850 per ounce.
All-in sustaining costs fell to $1,110 per ounce, down from $1,290 a year ago. The improvement tracks the ongoing ramp of Media Luna, the underground mine that is now running at about 75% of design throughput, CEO Andrew Snowden said on the call. The company kept its full-year production guidance at 530,000 to 580,000 ounces, with a target of 600,000 ounces by the fourth quarter.
Revenue came in at $528 million for the quarter, with net income of $134 million, or $1.28 per share. Free cash flow was $89 million, which the company used to trim debt. Net debt now sits at $92 million, down from $210 million at the end of 2025.
Snowden said the ramp at Media Luna remains the main driver for the second half. The company is pushing the mine to its 7,500 tonne-per-day design rate, with the next milestone being a sustained run at that level through September. The processing plant has been the bottleneck so far, not the mine itself, he said.
Dan Rollins, the CFO, noted that the company's hedging program covers about 25% of expected H2 output at roughly $3,600 per ounce, leaving the rest exposed to spot prices. Gold has traded near record levels in recent weeks, with spot above $3,800.
Torex also said it is evaluating a potential expansion at Media Luna that could lift throughput to 9,000 tonne-per-day. A scoping study is due before the end of the year, with a decision on whether to proceed expected in early 2027.
The company ended the quarter with cash of $302 million and total liquidity of $447 million.
Analysts on the call pressed management on the timing of the expansion study and the trajectory of costs as the ramp completes. Snowden said the company expects AISC to trend toward the $1,000 per ounce level once Media Luna reaches steady-state production, though he cautioned that input costs, particularly diesel and explosives, remain elevated.
The next scheduled update is the Q3 results, due in early November.
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