Jody Kuzenko, President & CEO of Torex, stated:
“Development of Media Luna is well underway with the project tracking to schedule and to budget. At year-end, project completion stood at 15%, with first production still anticipated in late 2024. Capital expenditures are tracking well to the original budget, with 26% of the upfront costs committed at year-end including 14% incurred. Project activity is expected to ramp-up significantly in the months ahead, with 2023 expected to be the peak year of spending.
“During the quarter, procurement activities continued to advance with purchase orders executed for the Guajes conveyor radial stacker, cleaner flotation circuits, hydro cyclones and tailings positive displacement pumps, rock breakers, and electrical transformers and switchgear. Letters of intent were signed for the production mobile equipment fleet in December and support mobile equipment fleet post year-end, with purchase orders (including for battery electric vehicles) nearing completion. The Guajes Tunnel remains on track for breakthrough in 1Q24, with the tunnel successfully crossing under the Balsas River in December. Approval was also received to increase the power draw at our Morelos Property to 65 megawatts from 45 megawatts, building on approvals received earlier in 2022.
“We are off to a solid start as we continue to de-risk and advance Media Luna. With budget and schedule on track, US$590 million of available liquidity at the end of 3Q23 and strong forecast cash flow over the next two years, we are in a strong position to fund the development of the project, continue to invest in value enhancing exploration and drilling, and maintain US$100 million of liquidity on the balance sheet.”