Nucor earnings beat by $0.08, revenue fell short of estimates
Torex Gold Resources Inc. (TXG) reported its first-quarter 2025 financial results, revealing a mixed performance. The company posted an earnings per share (EPS) of $0.21, falling short of the forecasted $0.3153, but its revenue of $170 million surpassed expectations of $155.4 million. Despite the revenue beat, the stock declined by 1.54% in the aftermath, reflecting investor concerns over the earnings miss. According to InvestingPro data, three analysts have recently revised their earnings estimates downward for the upcoming period, suggesting continued near-term pressure on profitability.
Key Takeaways
- Torex Gold’s EPS missed expectations by $0.1053, while revenue exceeded forecasts by $14.6 million.
- The stock price decreased by 1.54% following the earnings release.
- Achieved commercial production at the Media Luna project, a significant operational milestone.
- The company ended the quarter with $107 million in cash and $198 million in available liquidity.
- Guidance indicates production increases and a positive cash flow target by mid-2025.
Company Performance
Torex Gold’s performance in Q1 2025 was marked by significant achievements and challenges. The company successfully commenced commercial production at the Media Luna site, which is expected to boost future revenues. However, the quarter was also characterized by higher-than-expected costs, impacting its EPS. The transition of its workforce to underground operations and the hiring of new employees for Media Luna are expected to support future growth.
Financial Highlights
- Revenue: $170 million, exceeding forecasts and reflecting strong sales performance.
- Earnings per share: $0.21, missing expectations due to operational inefficiencies.
- All-in sustaining costs (AISC): $14.05 per ounce, better than expected, contributing to a 50% AISC margin.
Earnings vs. Forecast
Torex Gold’s actual EPS of $0.21 fell short of the forecasted $0.3153, marking a miss of approximately 33.4%. This discrepancy highlights potential cost management issues or operational challenges that need addressing. In contrast, the revenue beat by 9.4% underscores the company’s strong sales capabilities.
Market Reaction
The stock’s 1.54% decline post-earnings reflects market apprehension towards the EPS miss, despite the positive revenue surprise. Trading close to its 52-week high, the stock’s performance suggests that investors may have been expecting stronger earnings results given the positive operational developments.
Outlook & Guidance
Looking ahead, Torex Gold anticipates increased production in the second and third quarters of 2025. The company expects AISC to peak in Q2 before declining in the latter half of the year. Torex Gold aims to be free cash flow positive by mid-2025, with plans to introduce a return of capital policy.
Executive Commentary
CEO Jody Kuzanco emphasized the strategic shift for Torex Gold, stating, "This marks the end of our capital-intensive period and the start of our transition to being a gold and copper producer." Kuzanco also highlighted the company’s financial strategy: "With cash, all things are possible."
Risks and Challenges
- Continued operational inefficiencies could further impact profitability.
- The drawdown of $113 million on the credit facility may raise concerns about financial stability.
- Market fluctuations in gold prices could affect future revenues and cost structures.
Q&A
During the earnings call, analysts inquired about the company’s debt repayment strategy and potential cost inefficiencies in Q2. Torex Gold confirmed that one-time costs would impact the second quarter, but concentrate sales are expected to remain steady without tariff concerns.
Full transcript - Torex Gold Resources Inc (TXG) Q1 2025:
Conference Operator: Thank you for standing by. This is the conference operator. Welcome to Torex Gold’s First Quarter twenty twenty five Results Conference Call and Webcast. As a reminder, all participants are in a listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.
I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.
Dan Rollins, Senior Vice President, Corporate Development and Investor Relations, Torex Gold: Thank you, operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q1 twenty twenty five conference call. Before we begin, I wish to inform listeners that a presentation accompanying today’s conference call can be found under the Investors section of our website at www.torexgold.com. I’d also like to note that certain statements to be made today by the management team may contain forward looking information. As such, please refer to the detailed cautionary notes on Page two of today’s presentation as well as those included in the Q1 twenty twenty five MD and A.
On the call today, have Jody Kuzanco, President and CEO and Dave Stefanuto, Executive Vice President, Technical Services and Capital Projects, who are both in Mexico City having just hosted the Board on a site visit to Morelos, while Andrew Snowden, our CFO is here with us in Toronto. Following the presentation, Jody, Andrew and Dave will be available for the question and answer period. This conference call is being webcast and will be available for replay on our website. Last night’s press release and the accompanying financial statements and the MD and A are posted on our website and have also been filed on SEDAR plus All amounts in today’s call are U. S.
Dollars unless otherwise stated. I’ll now turn the call over to Jody.
Jody Kuzanco, President and CEO, Torex Gold: Thank you, Dan, and good morning to all on the line from Mexico City here. The start of 2025 has been a period of significant milestones attained for Torex, some of which are listed here on Slide four. First, as you will have seen last week, we published our final quarterly update on the Medialuna project. Construction is essentially concluded. I’ll let Dave speak in more detail on the items remaining, but the two largest are completion and commissioning of the PACE plant and the tie in of our upgraded power infrastructure to the National Grid.
Both of these are tracking well and expect to be completed over the next few weeks. Second, and importantly, the tie in period is behind us. From mid February to mid March, we successfully completed this exercise of the process plant. All in, there were 83 separate tie ins and 136 separate systems to commission. This required our entire team and more than 1,000 contractors to complete.
This was done not only on schedule and within budget, but more importantly, without a single safety incident. Third, post the tie in period, we produced our first concentrate and initial shipments left the sites in early April. In parallel with construction, we maintained a major focus on people with our work force transition plan, which is now also substantially complete. All in, we transitioned or recruited nearly 500 employees to operate in Mediluna underground or support our new surface operations, while maintaining our usual high level of commitment to recruitment from our local communities. Then to wrap all of this up, we achieved commercial production at Medialuna on schedule on April 26.
Our ramp up is going according to plan with the mine and mill both operating above the required threshold to make the separation. And finally in quarter one, we also released our year end mineral reserve and resource update in March, delivering 7% reserve growth year over year. Turning to Slide five, I wanted to briefly provide an update on the progress we’ve made across each of our six strategic pillars. On our first pillar, I just touched on the highlights from Medialuna, so I’ll make some comments here on EPO. The feasibility study is progressing well and we remain on track to commence underground development in quarter two, even ahead of the feasibility study being finalized.
On optimized Morelos production and cost, we’re now focused on completing and commissioning the paste plant, so we can achieve those steady state mining rates of 7,500 to 100 tons per day in Medialuna by mid-twenty twenty six. In parallel, we have a number of initiatives in play on what I call Medelluna two point zero, how to operate the mine safer, faster and cheaper. As Medelluna gains economies of scale and the teams get more and more comfortable with our new operations, I expect we’ll see meaningful improvements in our cost structure over the coming quarters. On growth reserves and resources, we released our year end reserve and resource update in the quarter. I’ll touch more on the specific highlights on that before the end of the call.
On disciplined growth and capital allocation, we continued to draw on our credit facility as planned during quarter one, given it was our highest tax and royalty payment quarter of the year, coupled with our lowest production quarter. Andrew will speak more on this shortly. In addition with our Medi Aluna progress progressing to plan, we expect to be in a position to outline our inaugural return of capital policy to shareholders later this year. On retaining the track talent, I want to take this time to acknowledge our human resources, safety and operational team for successfully coordinating and training all of the employees that changed roles or onboarded during our workforce transition program. This was no small feat.
And finally, on responsible mining, I’d like to take a bit of extended time here to talk about safety. Given the events of December, I want to share some of the proactive measures we’ve taken since the conclusion of our internal investigation into the fatal carbon monoxide exposure that happened last year. We’ve embarked on what we’re calling a next level safety program to ensure that we reestablish ourselves as industry leaders in safety and that our operations can return to our prior fatality free status. The program includes three specific work streams. First, refreshing the systemic work relating to fatal risk standards and critical control with a view to increasing awareness for all of our workers and contractors on triggers that could result in a fatal event and the controls that must be in place prior to starting work and while work is being undertaken.
Second, we’ve commissioned a fresh eyes assessment where world experts will be at site of Meraldo’s reviewing conditions, systems and our culture in order to revise our management team and our Board of Directors about further opportunities for improvements on the continued journey to become one of the safest operations in the industry. And finally, we plan to undertake a series of in-depth dialogue sessions with all employees across our sites and the corporate office where risk appetite is openly discussed and personal commitments are publicly made about risk taking behavior. Our work will never stop when it comes to ensuring that our employees and contractors return home safely after each shift and we believe that taking these measures will be a great first step in getting us back on track to what was an industry leading safety record. Moving over to Slide six, I’ll touch on some operational and financial highlights from the quarter. On production, as expected, it was lower this quarter given the four week tie in at the processing plant and the ramp up post restart.
All in sustaining costs were much better than we originally anticipated as initial sales for Medialuna commenced in early April versus the original plan of late March. It just took us an extra couple of weeks to build up the required inventory of concentrate to get sales going. Because of that, higher cost ore from the commissioning phase from the Medialuna mine will now be recognized in quarter two in conjunction with those sales. And finally, on balance sheet, we continue to draw on our debt facility during the quarter as planned, notwithstanding the low production many of them spend and the significant annual tax outflows, we ended the quarter with nearly $200,000,000 in available liquidity and $107,000,000 of that sitting in cash. Slide seven illustrates how our operations performed with production on the top left and ore processed on the top right.
Both of these graphs reflect the mill tie in period. The bottom left shows our grade profile for the quarter, which was lower than typical, nothing to do with Medialuna. It’s because the open pits were winding down. This grade doesn’t yet reflect the benefit of the meaningful volumes that we see coming of higher grade Medialuna ore. Mining rates at ELG underground shown here on the bottom right were light as we continue to recover from the events of December and our contractor has some equipment availability issues.
I’m pleased to see rates have picked up in late March, early April and we’re expecting to remain at our targeted 2,800 tons per day for the remainder of the year. Touching on guidance on Slide eight, with the tie ins now behind us, production is expected to pick up during quarter two as Medialuna steadily ramps up and recoveries achieved steady state levels during the fourth. We’re expecting production levels to increase modestly again during quarter three and remain relatively stable from there on after. All in sustaining costs were at $14.05 per ounce for quarter one and it’s expected to peak above the upper end of the guided range in quarter two for the reasons I’ve already described. Then we expect it to decline in the second half of the year as MEDIALUNA ramps up, economies of scale are achieved and production increases.
We continue to expect to exit this year closer to the lower end of the guided range for ASIC. On capital, quarter one marks the final quarter of meaningful investment in Medialuna as commercial production has now been declared. The remaining guidance for non sustaining CapEx reflects spend on the EPO feasibility study, which is currently underway, initial CapEx to be spent on EPO development, which will commence here in Port 2 and the modest level of non sustaining CapEx for Medialuna, while we complete commissioning of the PACE plant and the PACE distribution system. And on the note of CapEx, I’ll pass it over to Andrew to speak to our financial in more detail.
Andrew Snowden, CFO, Torex Gold: Great. Thank you, Jody, and good morning, everyone. I’ll start my overview on Slide 10 and for those following along in the presentation and this summarizes our financial performance through the quarter. This of course was an atypical quarter for us as our financial results were impacted by both the four week Media Luna plant tie in period and the fact that sales from the early Media Luna and higher cost production did not commence until early April And so these sales did not impact our Q1 financial results as it had initially been planned. As a result, our first quarter all in sustaining costs were better than expected of $14.5 an ounce with an all in sustaining cost margin of 50% and that’s shown on the top left of the chart here.
As Jody mentioned, our all in sustaining costs are now expected to peak in the second quarter with the sales of the earlier higher cost Media Luna production before decreasing through the second half of the year. To flag, as I’m sure is well understood, one area we are seeing cost pressure to date is from the higher gold price compared to the assumed $2,500 an ounce in our guidance. Although a higher gold price does expand margins, it also increases our royalty and profit sharing accruals as well as reduces the denominator in the gold equivalent calculation, thus increasing costs. Just to give you a sensitivity here, for each $100 an ounce increase in the gold price with other commodity prices remaining flat, it increases our all in sustaining costs by about $25 an ounce from each of these factors combined. Just continuing on the financial highlights on this slide briefly, you can see the lower adjusted EBITDA, which is shown in the top right chart.
This really just reflects the four week downtime at the mill. In the bottom left chart, you can see that spending on Media Luna decreased substantially during the quarter And Medialuna CapEx is expected to almost entirely come off now in Q2 aside from some residual CapEx for the PACE plant which Jodi noted. And finally, just looking at the bottom right chart here, you can see our free cash flow during the quarter, which reflects Media Luna CapEx spend, but most significantly the payment of the annual taxes and royalties with Q1 always being our seasonally highest quarter of tax and royalty outflows. Turning now to slide 11, you can see a summary of our unit costs here and I’ll just make a few comments on some of the movements. Starting first with mining costs.
At the open pit, costs here were significantly higher than 2024 and this really just reflects the lower productivity as mining in our last open pit, which is El Limon Sur winds down later this quarter. Underground costs at ELG Underground however remained consistent with last year’s levels. On processing, the lower unit costs really reflect the downtime in the mill as well as the influence of the weaker Mexican peso during the quarter relative to levels experienced throughout most of 2024. Client support costs were also lower during the quarter as a higher proportion of these costs were capitalized during the Miltayen period as well as again the impact of the weaker peso. And then on the Mexican profit sharing payment that is tracking lower year to date compared to last year just given the lower Q1 production, which is about half of our quarterly run rate, noting this payment is tied to our taxable profit in Mexico.
Finally on this slide, just to note, in these cost trends, we are not seeing any noteworthy pressure from tariffs at this point, but we are continuing to monitor potential impacts in our supply chain and develop mitigations in the event that we do start to see pressure there. Turning next to slide 12, you can see here that we closed the quarter with $107,000,000 in cash and drew down on our credit facility in order to maintain the target of holding that minimum $100,000,000 cash. The $102,000,000 of taxes paid in the quarter as well as the $124,000,000 of capital expenditure and our lowest production quarter of the year resulted in the planned drawdown of about $113,000,000 on our debt facility during the quarter. With production ramping up at Media Luna, we expect we’ll repay the drawn amount quickly through the second half of twenty twenty five, particularly as we’re supported by the backdrop of these record gold prices. As mentioned as well, capital expenditure is expected to materially decline going forward as spending on Media Luna winds down and working capital related project vendor payments and capitalized inventory builds end with the declaration of commercial production effective May 1.
Looking forward, there are a couple of elements I wanted to touch on here briefly. First is the annual profit sharing payment that we make in May of every year. This year the payment is estimated to be about $30,000,000 and will be recognized in operating cash flow in the second quarter. Additionally, with the filing of our annual taxes and the strong gold price environment we saw through the course of 2024, our installment rates which are reset every time we file our tax return, that installment rate will increase for the balance of this year and I anticipate the monthly payments will average about $10,000,000 a month through the balance of 2025. With the seasonal cash outflows behind us post Q2 and a material decline in capital spending at Media Luna, we remain very well positioned to return to positive free cash flow mid this year.
Next turning to our liquidity, which you can see here on slide 13. Our available liquidity as of the March was $198,000,000 with $107,000,000 in cash and $91,000,000 available to us on the credit facility. As a reminder, we continue to have about 150,000,000 accordion feature on our credit facility, which does provide us some additional flexibility to deliver on our strategic objectives as required. Our net debt position at the end of the quarter was $175,000,000 of which $87,000,000 related to lease obligations. And so excluding those lease obligations, our net debt was approximately $90,000,000 completely in line with our plans and the guidance we provided on previous calls.
Finally, I’ll just touch briefly on our hedge book, which you can see summarized on Slide 14. Just to note here, we did not add any hedges to our book since our year end update. We continue to have a mixture, at least on the peso side, a mixture of zero cost collars and forward contracts in place to protect our peso denominated operating costs. This provides protection for about 60 of our peso exposure through the course of the year. As a reminder, all of our gold forward contracts expired in 2024.
We don’t have plans to put any further forwards in place. We do have as summarized on this slide though some gold puts in place currently and this offers a downside protection while offering full upside exposure to a rising gold price. With that, I’ll hand the call over to Dave.
Dave Stefanuto, Executive Vice President, Technical Services and Capital Projects, Torex Gold: Thank you, Andrew, and good morning everyone. I’ll start with an update on the project’s progress here on slide 16. Last week, we released our final quarterly Media Luna update announcing that we had achieved commercial production. This means that construction is substantially complete, mine and mill throughput have averaged over 4060% of design rates for thirty days respectively, product is saleable and metallurgical recoveries have averaged at least 60 of the design recovery levels. Performance of the new flotation circuits and upgraded processing plant is improving each day and we’re well on track to deliver our nine week ramp up objective.
As Jody mentioned, overall project progress sat at 98% complete with commissioning of the Pace plant and the Pace distribution system as well as the connection of our upgraded power infrastructure to the national grid, both expected to be completed in the coming weeks. In the underground, we continue to remain ahead of plan on definition drilling with 51 of 60 stopes planned to be mined in 2025 drilled off, 40 from 2026 and fourteen from 2027. Development rates also continue to track ahead of plan with over 1,300 meters completed in March compared to budget of 1,200 meters. Teams are focused on ramping up to our new design mining rate of 7,500 tonnes per day by mid-twenty twenty six, ’6 months ahead of schedule. With base plant commissioning expected to be completed this quarter, we remain on target to deliver on this commitment.
And finally, our workforce transition is substantially complete, another significant undertaking. We transitioned approximately 200 employees from our open pit operation, trained them to operate underground and have them deployed into our Media Luna underground operation. We also hired approximately 160 new employees to work at Media Luna and transferred or recruited approximately 110 new employees to support our surface operations. Turning to Slide 17, we show some recent highlights from Media Luna. Concentrate shipments commenced the April in the top left picture.
You can see the concentrate loaded into a truck in our loading bay. The bottom left picture shows progress at the paste plant where the filter presses were assembled during the quarter and water testing commenced on the paste plant thickener. The middle picture shows ore being transported out of the Media Linea mine using the wireless conveyor and then hauled to the processing plant. At the right hand picture, shows our copper and iron sulfide flotation circuits in operation. I want to take this moment to personally congratulate all of our employees, contractors, suppliers, OEMs and all other stakeholders who have had a hand in assisting us with delivering this project within target budget and schedule.
It took thousands of people working together to accomplish what we have at Media Luna and I’m proud of the work that was undertaken on this project. With that, I’ll turn it back over to Jody.
Jody Kuzanco, President and CEO, Torex Gold: And acknowledgment as well certainly. Those people couldn’t have done the work they’ve done without your leadership. So and we couldn’t have achieved the success we achieved without you. So thank you for that. Before I ask the operator to open up the call for questions, wanted to touch on the news that we put out this quarter relating to our strategic objective of grow reserves and resources.
Starting here with our reserve update on Slide 19. I’m pleased to say that we grew overall reserves by 7% year over year, primarily reflecting the work done to bring EPO into the mine plan, but also replacing depletion at ELG underground. This happened despite a slower than expected start to our drilling season as a result of bringing in a new drilling contractor and associated time with demob and remodelization. I firmly believe we’ll continue to replace reserves at ELG Underground year after year, pushing out its mine life well beyond the current reserve estimates of 2029. Slide 20 depicts our resource growth over 2023.
It wasn’t quite as much as the reserve growth given that we prioritized infill drilling with the contractor change out, but still a 3% increase in M and I resources fired ore mine. The main contributor here was definition drilling at Medialuna. We’re looking to ramp up our exploration program this year with 125,000 meters of drilling planned and a full year budget of $45,000,000 The 2025 program represents almost a 50% increase in spend and close to double the meters drilled in 2024. So our exploration team is going to be very busy. While a large portion of the budget will be targeted towards expanding resources within EOG and the Mendezuma Cluster, a portion of the budget for the first time in many, many years will be focused on regional drilling as we look to make the next big discovery on our 29,000 hectare property.
Some of the new targets being drilled in 2025 include Escala, El Narrangeo and Todos Santos. Slide 21 here summarizes the results we released in February from the 2024 drilling program at Medialuna West and my favorite excitedly some initial drill results testing we conducted at Medialuna East. The drill testing we conducted there happened after we successfully negotiated a land access agreement with the local Ahito in late twenty twenty four. The results from Mediluna West continue to be promising with multiple high grade intercepts returned, including over 13 grams per tonne gold equivalent over 28 meters and another over 22 grams per tonne gold equivalent over 13 meters. Drilling will continue there this year with 10,000 meters planned and a goal of declaring an initial resource there with our year end update in March of twenty twenty six.
At Medialuna East, which sits on very close proximity to Medialuna main ore body, strong results will return from just over 3,300 meters of drill testing we conducted. Of important note is the highest copper signature we’re seeing there with multiple intercepts returning grades in excess of 2%, including one coal which returned to copper grade of 4.5% and a gold grade of nearly 19 grams per ton over 18 meters. I’m very excited to see what the 10,000 meter drill program we have planned out for this year will return. Now all in by way of wrapping closing here, it’s been quite the major milestone quarter for Torex across the board. I would even use the word pivotal to describe it.
What we achieved here at Medialuna all came together within a span of weeks, but really has been three years of hard work and heavy investment in making. I want to take this opportunity as I close the call to thank all of our stakeholders for their trust and support as we delivered on this massive undertaking. This marks the end of our capital intensive period and the start of our transition to being a gold and copper producer with all life sets on our pivot back to strong free cash flow in the coming quarter. As I’ve often said to my team with cash all things are possible and we’re very much looking forward to the next phases of opportunity to continue to deliver superior value to our shareholders. And with that, operator, I’ll open the call for questions.
Conference Operator: We will now begin the question and answer session. Our first question will come from Cosmos Chiu with CIBC. You may now go ahead.
Cosmos Chiu, Analyst, CIBC: Thanks. Thanks, Jody, Andrew, Javen and Dan and congratulations on achieving commercial production at Media Luna. Maybe my first question is on your balance sheet here. As you mentioned, Q1 is usually heavier in terms of cash outflows. So you’ve had to draw $130,000,000 on your debt facility.
Could you remind us of your sort of optimal capital structure? Jodi, will you try to pay back this debt as soon as possible to zero? And then bigger picture, as you become free cash flow positive later on in 2025, how about a dividend? You also have an NCIB in place, haven’t used it yet. Could you maybe talk about that as well?
Andrew Snowden, CFO, Torex Gold: Sure. Talking with Andrew here, so maybe I’ll take your question initially and Cody can obviously jump in. There. Good morning. And so in terms of the kind of cash flow and credit facilities, you’re right, we drew most of that sort of $130,000,000 through the course of Q1.
I expect we’ll draw a little bit or we have drawn a little bit more through in April just to support the kind of finalization of the ramp up of the mine. And then I expect now we’ve capped out on the draw on our credit facility and at this point, we’re well set to be able to pay down that credit facility through the back half of this year. I expect that we will end Q2 roughly where we are today in terms of the draw and then look to repay that through the course of second half of the year. But don’t forget our free cash flow potential and our free cash flow expectations will turn pretty significant starting in the month of June. And so that will allow us I think to be able to pay down our debt as well as advance a number of other strategic priorities.
We’ve talked about the exploration priorities already in the call. We’ve talked about constructing EPO. The other priority in addition to those and paying down our debt will be to finalize our return of capital program. We’ve been very public about that for the past several quarters around our intent to commence that once we transition back to free cash flow and we expect that that will be a combination of both a dividend and a share buyback program. And as you know, we’ve set ourselves up to be able to do that with the NCIB that we issued and announced back in November of last year.
Cosmos Chiu, Analyst, CIBC: Great. I’m sure that will make investors happy. Maybe my next question is on cost. Maybe a question for you once again, Andrew. All in sustaining cost was lower than expected in Q1, in part due to higher costs related to the commissioning phase of Media Luna not being recorded until Q2.
Could you remind us what are some of those kind of hopefully one time sort of commissioning costs and that are included in this higher cost and confirm that it is indeed onetime or short lived and so really just confined to maybe Q2? I think you had answered that question in your prepared remarks a little, but I just want to confirm.
Andrew Snowden, CFO, Torex Gold: Yes, that’s right. Mean really the cost pressure that initially we’re expecting to flow through our results in Q1 that will now flow through in Q2 is really just around I would say the inefficiencies that you get from the ramp up of an operation. We’re not mining rates will start to build up through the course of Q1 and into Q2. Our plant throughput rates have built up quite nicely since we started operating the new plant post the tie in period. And so just operating those assets below that nameplate thresholds really just creates that cost inefficiency that will flow through the course of Q2 as we sell as we kind of process, produce and sell that first media lunar production.
And so as you mentioned and as we commented on the call, Q2 will be and I can confirm will be a kind of a one off anomaly. And the way I would think about that is when I look at consensus, consensus previously for Q1, I would really just shift whatever people’s expectations were for Q1 previously. I would look to shift that now into Q2. And then for the back half of the year in Q3 and Q4, I feel good about us being able to produce and have our cost profile within our guided range to be able to deliver on that guidance through the course of this year.
Cosmos Chiu, Analyst, CIBC: Great. And then maybe one last question talking about building up, as you mentioned, you have to build up the concentrate before getting a shift from Media Luna and that’s why it rolled into April. Could you maybe on the concentrate, two questions. Number one, how do the shipments work? Are they fairly lumpy?
Anything that we should be aware of, especially around quarter end and how that could impact sales and shipment and earnings and such and such? And then number two, in a world of tariffs, could you remind us where your concentrate goes? And any concerns in terms of anything that we should be aware of in a world of tariffs?
Andrew Snowden, CFO, Torex Gold: Sure. So, we’re just tackling the first question first around any kind of lumpiness in our concentrate sales. In short, I don’t expect there will be lumpiness. Mean for this year, most of our concentrate is sold to traders at the Port Of Manzanillo. And so really every day we have trucks that leave sites that head to the Port Of Manzanillo.
When the product gets there, we would close the sale. Those trucks, they might maybe one day, maybe we have six trucks, next day maybe seven. So I think the lumpiness would be very, very minor and so I’d expect a very steady sales stream on the concentrate side. From a tariff perspective, all of our in short, there will be no impact from our concentrate sales as a result of tariffs, at least as the world exists today. Our products are sold, as I mentioned, to traders in the Port Of Manzanillo.
They would typically sell that product into Asia. And then we have smelter relationship as well where we sell into Europe. So that’s where we expect our end product will go to. But none of our product is earmarked to go into The U. S.
And so I’m not expecting any challenges there.
Cosmos Chiu, Analyst, CIBC: Great. Thanks once again Jody and team for answering all my questions and look forward to the rest of 2025.
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