Source: Sarin Kunthong / ShutterstockShares of Torex Gold Resources Inc. (TSX: TXG) rose 66 cents Thursday after the company announced that it had set a new quarterly production record.
Torex produced 138,100 ounces of gold in the third quarter of 2013, shooting past the company’s former record—set just last quarter—by 21%. It also says that it managed to sell 132,500 of those ounces at an average of $1,475 per ounce in Q3.
CEO Fred Stanford said in the release that these moves increased the company’s cash balance by $52 million across the quarter, and reduced its total debt by more than $36 million. Meanwhile, COO Jody Kuzenzko touted operational process improvements which increased mine availability from 84% to 89% between the second and third quarters.
Torex operates the ELG complex southwest of Mexico City. Between the El Limón Guajes and El Limón Sur open-pit mines and the El Limón Guajes underground mine, the resource is considered one of the richest gold deposits in Mexico. The open-pit mines contain a measured 0.91 million ounces of gold and 1.45 million ounces of silver, along with an indicated 2.74 million ounces of gold and 4.20 million ounces of silver. According to the company’s website, the entire complex is expected to produce 2.7 million ounces of gold over the life of the mine, at an AISC US$734 per ounce. The company is also working on in-fill drilling to elevate its developing Media Luna deposit.
