Financial Statements

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# Financial Statements

Source: https://d1vqu5ynjuwmto.cloudfront.net/assets/files/12474/torex_fs_2026_q1_-_filing.pdf
Published: 2026-05-05T00:00:00+00:00
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## Content

# Financial Statements
CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(Unaudited)
(Expressed in millions of U.S. dollars)
TABLE OF CONTENTS
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION...................................... 2
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME ........................................................................................................................................................................... 3
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY ... 4
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS .................................................... 5
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS .................................. 6
1. CORPORATION INFORMATION....................................................................................................................... 6
2. BASIS OF PREPARATION ................................................................................................................................. 6
3. MATERIAL ACCOUNTING POLICY INFORMATION ..................................................................................... 7
4. ACQUISITION OF REYNA SILVER CORP. ..................................................................................................... 7
5. ACQUISITION OF PRIME MINING CORP....................................................................................................... 8
6. INVENTORY.......................................................................................................................................................... 9
7. PREPAID EXPENSES AND OTHER CURRENT ASSETS ........................................................................... 9
8. PROPERTY, PLANT AND EQUIPMENT .......................................................................................................... 9
9. DEBT ...................................................................................................................................................................... 10
10. LEASE-RELATED OBLIGATIONS..................................................................................................................... 11
11. SHARE CAPITAL.................................................................................................................................................. 12
12. METAL SALES ..................................................................................................................................................... 13
13. SHARE-BASED PAYMENTS .............................................................................................................................. 13
14. DERIVATIVE CONTRACTS ................................................................................................................................ 16
15. EARNINGS PER SHARE .................................................................................................................................... 19
16. SUPPLEMENTAL CASH FLOW INFORMATION............................................................................................ 20
17. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT ....................................................... 20
18. SEGMENTED INFORMATION ........................................................................................................................... 20
19. COMMITMENTS................................................................................................................................................... 23
Condensed Consolidated Interim Statements of Financial Position
(unaudited)
March 31, December 31,
Millions of U.S. dollars Note 2026 2025
Assets
Current assets:
Cash and cash equivalents $ 130.0 $ 119.5
Derivative contracts 14 10.9 0.3
Value-added tax receivables 55.9 62.2
Trade receivables 12 51.5 72.8
Inventory 6 182.5 190.5
Prepaid expenses and other current assets 7 26.2 25.9
457.0 471.2
Non-current assets:
Derivative contracts 14 0.1 –
Value-added tax receivables 3.3 3.1
Other non-current assets 10 4.2 17.0
Deferred income tax assets 210.4 214.7
Property, plant and equipment 8 2,330.8 2,319.4
Total assets $ 3,005.8 $ 3,025.4
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable and accrued liabilities $ 190.1 $ 190.6
Income taxes payable 118.8 171.0
Lease-related obligations 10 24.0 36.5
Derivative contracts 14 0.1 8.5
333.0 406.6
Non-current liabilities:
Derivative contracts 14 0.7 –
Other non-current liabilities 13 2.9 19.6
Debt 9 – 27.6
Lease-related obligations 10 77.1 69.1
Decommissioning liabilities 72.3 73.2
Deferred income tax liabilities 0.9 2.7
Total liabilities $ 486.9 $ 598.8
Shareholders’ equity:
Share capital 11 $ 1,434.9 $ 1,455.4
Contributed surplus 25.5 28.0
Other reserves (56.6) (56.6)
Retained earnings 11 1,115.1 999.8
Total shareholders’ equity $ 2,518.9 $ 2,426.6
Total liabilities and shareholders’ equity $ 3,005.8 $ 3,025.4
Commitments (Note 19)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
Torex Gold Resources Inc. | TSX: TXG
Condensed Consolidated Interim Statements of Operations and Comprehensive Income
(unaudited)
Three Months Ended
Millions of U.S. dollars, March 31, March 31,
except per share amounts Note 2026 2025
Revenue
Metal sales 12, 18 $ 539.3 $ 170.0
Cost of sales
Production costs 151.3 56.2
Royalties 19.0 6.0
Depreciation and amortization 56.4 31.9
Earnings from mine operations $ 312.6 $ 75.9
General and administrative expenses 13 11.5 16.4
Exploration and evaluation expenses 8.6 5.4
$ 20.1 $ 21.8
Derivative gain, net 14 (7.2) (2.8)
Finance costs and other, net 2.7 2.6
Foreign exchange (gain) loss (1.9) 0.8
$ (6.4) $ 0.6
Income before income taxes $ 298.9 $ 53.5
Current income tax expense 88.7 6.0
Deferred income tax expense 2.7 8.5
Net income and comprehensive income $ 207.5 $ 39.0
Earnings per share
Basic 15 $ 2.18 $ 0.45
Diluted 15 $ 2.16 $ 0.45
Weighted average number of common shares outstanding
Basic 15 95,313,769 86,125,855
Diluted 15 95,970,052 87,326,899
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
Torex Gold Resources Inc. | TSX: TXG
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
(unaudited)
Millions of U.S. dollars, Number of Total
except number of common Common Share Contributed Other Retained Shareholders’
shares Shares Capital Surplus Reserves Earnings Equity
Balance, January 1, 2025 85,991,823 $ 1,033.3 $ 24.2 $ (56.6) $ 630.0 $ 1,630.9
Exercise of stock options 13,126 0.1 (0.1) – – –
Redemption of restricted share
2,333 0.1 – – – 0.1
units
Redemption of EPSUs and
198,162 4.0 – – – 4.0
ERSUs
Net income – – – – 39.0 39.0
Balance, March 31, 2025 86,205,444 $ 1,037.5 $ 24.1 $ (56.6) $ 669.0 $ 1,674.0
Millions of U.S. dollars, Number of Total
except number of common Common Share Contributed Other Retained Shareholders’
shares Shares Capital Surplus Reserves Earnings Equity
Balance, January 1, 2026 95,676,209 $ 1,455.4 $ 28.0 $ (56.6) $ 999.8 $ 2,426.6
Redemption of restricted share
1,931 0.1 – – – 0.1
units (Note 13)
Redemption of EPSUs and
75,032 4.0 – – – 4.0
ERSUs (Note 13)
Exercise of stock options
assumed pursuant to the Prime
138,036 6.4 (2.5) – – 3.9
Mining Corp. ("Prime Mining")
acquisition (Notes 11 and 13)
Share repurchases, net of tax
(2,141,801) (31.0) – – (81.8) (112.8)
(Note 11)
Dividends paid (Note 11) – – – – (10.4) (10.4)
Net income – – – – 207.5 207.5
Balance, March 31, 2026 93,749,407 $ 1,434.9 $ 25.5 $ (56.6) $ 1,115.1 $ 2,518.9
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
Torex Gold Resources Inc. | TSX: TXG
Condensed Consolidated Interim Statements of Cash Flows
(unaudited)
Three Months Ended
March 31, March 31,
Millions of U.S. dollars Note 2026 2025
Operating activities:
Net income $ 207.5 $ 39.0
Adjustments for:
Share-based compensation expense 13 2.3 2.3
Cash settlement of share-based compensation (30.3) (7.8)
Loss on remeasurement of share-based payments 13 1.2 7.6
Depreciation and amortization 56.5 32.0
Derivative contracts 14 (18.5) (7.1)
Unrealized foreign exchange gain (0.8) (0.7)
Finance costs and other, net 2.7 2.6
Interest received 3.0 1.5
Income tax expense 91.4 14.5
Tax credit applicable to production costs (0.1) –
Income taxes paid (140.7) (101.6)
Net cash generated from (used in) operating activities before changes in
$ 174.2 $ (17.7)
non-cash operating working capital
Changes in non-cash operating working capital 16 35.6 7.8
Net cash generated from (used in) operating activities $ 209.8 $ (9.9)
Investing activities:
Additions to property, plant and equipment (48.6) (123.5)
Borrowing costs capitalized to property, plant and equipment – (0.7)
Value-added tax receivables, net 5.6 7.6
Net cash used in investing activities $ (43.0) $ (116.6)
Financing activities:
Share repurchases 11 (110.8) –
Dividends paid 11 (10.4) –
Proceeds from the exercise of stock options and warrants assumed pursuant to
3.9 –
the Prime Mining acquisition
Repayment on Debt Facility 9 (30.0) (25.0)
Proceeds from Debt Facility 9 – 155.0
Lease payments (5.4) (3.4)
Other borrowing costs paid (4.1) (3.4)
Net cash (used in) generated from financing activities $ (156.8) $ 123.2
Effect of foreign exchange rate changes on cash and cash equivalents $ 0.5 $ (0.4)
Net increase (decrease) in cash and cash equivalents $ 10.5 $ (3.7)
Cash and cash equivalents, beginning of period $ 119.5 $ 110.2
Cash and cash equivalents, end of period $ 130.0 $ 106.5
Supplemental Cash Flow Information (Note 16)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
Torex Gold Resources Inc. | TSX: TXG
Notes to the Condensed Consolidated Interim Financial Statements
For the Three Months Ended March 31, 2026
(Amounts in millions of U.S. dollars, except share, per share and per ounce amounts, unless otherwise noted)
NOTE 1. CORPORATION INFORMATION
Torex Gold Resources Inc. (the “Company” or “Torex”) is a Canadian mining company engaged in the exploration,
development, and production of gold, copper, and silver from its flagship Morelos Complex in Guerrero, Mexico.
The Company also owns the Los Reyes gold-silver project in Sinaloa (Note 5), and a portfolio of early-stage
exploration properties (Note 4), including the Batopilas and Guigui projects in Chihuahua, Mexico, and the
Medicine Springs project in Nevada, USA, as well as an option to acquire the Gryphon project in Nevada, USA.
The Company is a corporation governed by the Business Corporations Act (Ontario). The Company’s shares are
listed on the Toronto Stock Exchange (“TSX”) under the symbol TXG. Its registered address is 130 King Street
West, Suite 740, Toronto, Ontario, Canada, M5X 2A2.
These unaudited condensed consolidated interim financial statements (herein referred to as “consolidated
financial statements”) of the Company for the three months ended March 31, 2026 include the accounts of the
Company and its subsidiaries.
NOTE 2. BASIS OF PREPARATION
Statement of Compliance
These consolidated financial statements have been prepared in accordance with International Accounting
Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board
(“IASB”). These consolidated financial statements do not include all of the disclosures required by IFRS
Accounting Standards as issued by the IASB for annual financial statements and should be read in conjunction
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