Torex Gold Resources Inc T.TXG

TXG reports fantastic Q1

[challenger426]

TXG adjusted earnings for Q1 was 66 cents/share vs the 50 cent estimate.  That is a nice earnings beat.  All in Sustaining costs of $924 makes this a cash cow.

The Q1 earnings numbers for TXG are amazing and the company is debt free with tons of cash ($167M) available.

Existing Analyst price targets are between $24 & 33.50 dollars making this extrememly undervalued.  My own numbers verify this and are above the top of the range. 

FIRST QUARTER 2021 HIGHLIGHTS

• Safety excellence continues: No lost time injuries recorded during the quarter; exited the quarter with a LTIF of 0.15 per 1 million hours worked and a TRIF of 2.96 per 1 million hours worked, both on a rolling 12-month basis.
• Gold production: Produced 129,509 ounces of gold, the strongest first quarter on record at ELG.
• Gold sold: Sold 129,019 ounces of gold at an average realized price of $1,778 per ounce.
• Total cash costs ¹ and All-in sustaining costs ¹ : Total cash cost of $580 per ounce sold and all-in sustaining cost of $854 per ounce. Resultant all-in sustaining margin ¹ of $924 per ounce, implying a margin of 52% relative to the realized gold price.
• Net earnings and adjusted net earnings ¹ : Reported net earnings of $55.0 million or $0.64 per share on a basic basis and $0.62 per share on a diluted basis. Adjusted net earnings of $57.2 million, or $0.67 per share on a basic basis and $0.66 per share on a diluted basis.
• EBITDA ¹ and adjusted EBITDA ¹ : Generated EBITDA of $152.7 million and adjusted EBITDA of $144.9 million.
• Cash flow from operations: Cash flow from operations totalled $65.2 million ($79.2 million prior to changes in non-cash working capital). Cash flow from operations included $40.8 million of income taxes and $4.0 million of royalties accrued but not paid out in 2020. As previously guided, cash flow from operations is expected to be weighted to the second half of the year given the seasonality of annual cash payments. Cash flow from operations during Q2 is expected to be impacted by $30.0 million of payments related to the mandated employee profit sharing in Mexico for 2020.
• Free cash flow ¹ : Generated $9.3 million in free cash flow.
• Debt free: Exited the quarter debt free after repaying $40.0 million remaining on the 2019 debt facility. Debt facility amended providing $150.0 million of available credit, greater financial flexibility, and lower borrowing costs over the 2-year term of the agreement.
• Net Cash ¹ : Net cash of $167.3 million including $172.0 million in cash and $4.7 million of lease obligations.
• Updated mineral reserve/resource ² : Released year-end 2020 mineral reserve and resource estimate for ELG with step-out and infill drilling within the ELG Underground deposits adding 93,000 ounces of gold reserves partially offsetting a combined 487,000 ounces of open pit and underground gold reserves processed during the year. An updated resource estimate for Media Luna incorporating the results of the 2020 infill drilling program is expected to be released in Q2 2021.