- Torex Gold (TSX:TXG) has posted a C$47 million loss for the first quarter of 2020
- The company’s operations in Mexico are still suspended due to coronavirus restrictions from the Mexican Government
- The company has mined 108,537 ounces of gold for the quarter
- There is no current fixed restart date for operations, but provisionally the company is looking at May 18 as the possible date restrictions will end
- Torex Gold (TXG) is down 7 per cent at $18.95 per share and has a market cap of $1.6 billion
Torex Gold (TSX:TXG) has announced its results for the first quarter of 2020, posting a net loss of C$47 million.
The company had to shut down its Mexican operations when the government ordered the suspension of all non-essential activity. However, Torex still managed to produce 108,537 ounces of gold before the shutdown.
They still have not resumed full operations in Mexico, and the current Mexican Government order suspending non-essential activities ends on May 18 for communities with low infection rates. Torex has stated they are of the belief they should open at that time, with initial work designated to processing already mined ore from the company’s stockpiles.
The intermediate gold miner has not posted a revised guidance, as the company has stated it cannot yet determine exactly what its results, financial or otherwise, will be for the year.
CEO and President of Torex Gold, Fred Stanford, said the company had a “solid” quarter, controlling costs and pumping out 108,537 ounces of gold, but accounting factors such as depreciation of peso had put the company under the pump financially.
However, he is expected to hand over the reins as CEO at the next annual general meeting.
“This should be the last long quote from me in a press release…our succession plan is for Jody Kuzenko to take over as CEO at the annual shareholder meeting and for me to transition to the Executive Chair role,” Fred said.
Fred also commented on the company’s Mexico mine, which was shut for a maintenance period before coronavirus hit.
“Extensive infection control has been effective, and the care and maintenance team has remained free from COVID-19 infection,” he concluded.
Torex Gold (TXG) has a share price of $18.95, down 7 per cent at 12:19pm EDT.
