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Could Torex Gold (TSX:TXG) Media Luna West Drilling Results Reshape Its Long-Term Mine Plan?

Simply Wall St · 2d ago
  • Torex Gold Resources Inc. recently reported 2025 drilling results from Media Luna West, defining a 400 x 300 metre mineralized footprint adjacent to the main Media Luna deposit and completing its advanced exploration program with results that may support an inaugural Inferred Resource in March 2026.
  • The company plans to move Media Luna West into a resource categorization program in 2026, aiming to upgrade any Inferred Resources to the Indicated category, which could further reinforce the production outlook for the broader Morelos Complex.
  • We’ll now examine how the newly defined mineralized footprint at Media Luna West could influence Torex Gold’s investment narrative and outlook.

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Torex Gold Resources Investment Narrative Recap

To own Torex, you need to believe the Media Luna complex can deliver stable, long‑life production without a blowout in costs as new zones are brought online. The Media Luna West drill results are encouraging for mine life and flexibility, but they do not change the near term focus on ramping up Media Luna and managing all‑in sustaining costs during this transition, which remains the key catalyst and the most immediate operational risk.

The most relevant recent announcement alongside this drilling update is Media Luna achieving commercial production in May 2025, with a target of 7,500 tpd through 2026. Together, commercial production and the emerging Media Luna West footprint tie directly into the core catalyst of extending and smoothing the Morelos Complex production profile, while execution on new infrastructure like the paste backfill plant still needs to prove it can support those ambitions.

However, investors should also be aware of the risk that ongoing cost pressures and ramp up challenges at Media Luna could...

Read the full narrative on Torex Gold Resources (it's free!)

Torex Gold Resources' narrative projects $1.7 billion revenue and $473.2 million earnings by 2028. This requires 18.9% yearly revenue growth and a $261.4 million earnings increase from $211.8 million today.

Uncover how Torex Gold Resources' forecasts yield a CA$82.96 fair value, a 30% upside to its current price.

Exploring Other Perspectives

TSX:TXG 1-Year Stock Price Chart
TSX:TXG 1-Year Stock Price Chart

Seven fair value estimates from the Simply Wall St Community span a wide range, from CA$64.21 to CA$221.22 per share, underscoring how differently people view Torex’s potential. Against this spread of opinions, the key question is how effectively the company can turn promising Media Luna cluster drilling into reliable production that supports the broader growth and earnings outlook.

Explore 7 other fair value estimates on Torex Gold Resources - why the stock might be worth just CA$64.21!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.