Torex Gold (TXG.TO) confirmed SEMARNAT, the Mexican Secretariat of Environmental and Natural Resources, has issued the MIA (environmental impact study) which allows the company to start mining activities at the Media Luna project. This is an important step after having completed the change of land use and MIA modification processes which were started years ago.
On top of that, Torex confirmed it has received approval to increase the power draw at the flagshop Morelos mine to 45 MW which will be helpful to cover the needs for the initial Media Luna activities. Discussions with the utility authorities to increase the allowed power draw by an additional 50% are ongoing and hopefully we will see the authorization being granted soon as Torex will need about 65MW of power draw to successfully operate Media Luna at full capacity while the Morelos project is still in production.
The company also disclosed its production and sales results for the third quarter. Torex produced just over 122,000 ounces of gold and sold just under 120,000 of those ounces. The financial results will be released after-hours on November 9 and it will be interesting to see the free cash flow generated during the quarter.
Disclosure: The author has no position in Torex Gold. Please read our disclaimer.
