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Torex Gold Resources Inc. (TORXF)

Other OTC - Other OTC Delayed Price. Currency in USD
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11.51+0.10 (+0.92%)
At close: 3:28PM EDT
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  • J
    Jazenevc
    Analyst rating actions yesterday:
    Maintained as Outperform at Scotiabank. Price target C$26.
    Maintained as Neutral at CIBC. Price target C$22.
  • J
    Jazenevc
    Q3 production results reported this morning indicate good financial performance. Gold sales equaled almost 119 KOz at $1785/Oz, comparing with Q2 111 KOz at $1816/Oz. It means about $212M Q3 sales vs $206M Q2 sales. In other words, sales come a bit higher in Q3 while analysts currently project earnings decline to 51 cents from 69 cents in Q2. Also, Q3 cash flow will be much stronger than in Q2, because of tax payment schedule.
  • J
    Jazenevc
    As another poster mentioned, market cap is getting close to $800M. $846M as of now. According to the company latest presentation, by end of 2023, company cash position could reach, if Media Luna expenses disregarded, $500M with gold $1400 or $800M with gold $1800. In other words, if the company would announce tomorrow that the shop is closing once ELG mine exhausted, then present market cap is about right. Media Luna resource is valued as about zero at the moment.
    Imagine now if some exploration company could have just a gold-copper sizable, high-grade resource like Media Luna, essentially permitted and fully funded for construction while the latter is already underway, and while good part of infrastructure/equipment already in place and operates. Would be this imagined company valued at zero? Torex is an obvious example of market mis-pricing caused by outright negative sector sentiment.
  • D
    Dan
    I'm starting due diligence on TORXF. Some explain to me how this management team is qualified to run this company. They're mostly lawyers and bankers. Practically no Mining industry specific experience. I'll kick things off with bearish sentiment until someone is able to explain why they're the right management team or other information comes to light during research.
    Bearish
  • S
    Scott
    Gold up $35 and Torex red on heavy volume. People just aren't buying to the prospect of a seemless mine transition
  • J
    Jazenevc
    Local Guerrero press reports on successful cooperation between the company, state government and local communities.
    Start of quotes (google translated from Spanish)
    According to a bulletin, José Socorro Peralta Nava, Director of Welfare programs for the North region in Guerrero, stated: “I was more convinced of the great commitment of the mining company, the city council and what they did with the residents of La Fundición and Real of the Lemon ”….
    José Socorro Peralta highlighted the great transformation that the Real del Limón and La Fundición communities have, to a large extent, thanks to the coordination, with the resources that the company Minera Media Luna, a subsidiary of Torex Gold Resources Ing., Grants them, and that carried out by the municipal government.

    Representing Governor Héctor Astudillo Flores, the delegate in the North Region, Sergio Adrián Mota Pineda, attended, who stressed that Torex Gold respects life and the environment by indicating that the joint works and collaboration are an example of growth.
    End of quotes
  • R
    Raoof
    Do not worry oncr the gas sector reach its peak people will sell oil and buy gold on the other hand bitcoin is very close from being banned in china load up on Gold. IMG.To Iamgold is also another gold stock to recommend very well managed
  • D
    Doug
    Okay lets add some torque to the Torex roadster and get this back to $20.
  • J
    Jazenevc
    I do not think that polarized calls, overly bullish or bearish, do any good to this board. This stock is cheap, this s obvious, and it has problems, obvious too. In an ideal world, by shareholder standpoint, the company would be sold, and selling price could exceed present share price by very sizable amount. If present mineral assets could be a part of more diversified, larger mining portfolio, then these assets would be worth substantially more.
    However, this world is not ideal. This is a one-mine show with development risks and management looking less certain on some issues. This environment produces uncertainties and risks, coming on top of gold sector situation, which is far from optimistic.
    If management executes better than it presently assumed by market, then holding shares here will be justified and, perhaps, in big way. Positive scenario is quite feasible. The market is never easy, investors got to take chances.
  • S
    Steve A
    No position but watching it.

    So declining production even though they will still very profitable at current gold prices. No one likes declining production so that's why it's down. To be honest unless they buyback stock there's no real reason to buy this. There's plenty of cheap gold companies that have increasing production and some offer dividends or buybacks. Management needs to get that through their heads
  • J
    Jazenevc
    Initiated as Sector Perform at National Bank on Wednesday this week. Price target C$24. The analyst sees, as mentioned on Thefly site, "potential for re-rate" as the company advances the development of Media Luna and "clears associated de-risking milestones."
  • S
    Scott
    $800 million m/cap and $615m EBITDA
    will someone just please take them out
  • A
    ALF Tanner
    This stock has a lot of risk. Their main mine is reaching end of life, and they have bet the future of the company on the Media Luna mine which does not even have a completed feasibility study.
  • J
    Jazenevc
    I re-checked few numbers from the company website. Media Luna total construction expense was estimated about $500M in 2018. Perhaps, it could become higher when feasibility study released in 2022 q1, though some money were already spent. The final number cannot go up too much, hopefully. On the other hand, the company projects to have $400M cash position by end of 2021 and $800M by end of 2022, generated by ELG mine (the numbers exclude ongoing ML expenses).
    It seems they have enough cash to do something about low share price. Either buyback or dividend. It would be fair to shareholders and it looks overdue at this point. It is also clear enough that the company is a prime takeover target with all this cash on hands and prized mineral assets. Certainly, it is up to top management to decide, primarily, whether buyout offers entertained. Hope, some activist fund(s) could prompt them to be friendlier to common shareholders.
  • M
    M
    Man PE of 3 and all these profits and reserves left... bizarro world where people put money in dead zombies like gamestop/amc but dont want to invest in undervalued profitable companies with earnings growth :D
  • W
    WRN
    This company has a very bright future. Their first mine may only have 3 years left, but the second one will be in production by the time the first one is close to finished, and the property is only 25% explored. They have many more years of mining before you have to worry about running out of gold to extract, and by then who knows what else this cash cow will own. I think that the best is yet to come...
  • M
    M
    I guess the etf and mutual fund guys are back from vacations, saw the price crazy low and started buying?
  • J
    Jazenevc
    BNAmericas had an article today on gold projects in Latin America with mineral resource expanded/upgraded recently. Media Luna got second place in the list and the article provided some details of the project.
  • M
    M
    Does anyone have access to RBC, Scotiabank or other detailed analysis on Torex? It would be good to understand what these analysts are saying in detail, since the fund managers who drive the price will be looking at them.

    Nothing has changed since this was forcasted as $30+ stock. The gold price is still high, there is no debt and they are sitting on a very large asset... so they lowered the forecast based on the current stock price or what?
  • S
    Scott
    sure it's down with the whole PM sector but it also would seem that there is a general disbelief that they will be able to execute the mine transition smoothly. Seriously, what else could there be to explain such disgust with a company?
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