Torex Gold Resources (TSX:TXG): Valuation Check After Promising 2025 Media Luna West Drilling Results

Torex Gold Resources (TSX:TXG) just reported promising 2025 drilling results at Media Luna West, outlining a 400 x 300 metre mineralized footprint that could potentially support the long term production plan at Morelos.

See our latest analysis for Torex Gold Resources.

The news lands against a backdrop of powerful momentum, with the share price at $62.33 and a year to date share price return of 112.30 percent plus a 1 year total shareholder return of 126.12 percent. This suggests investors see growing long term production visibility rather than just a speculative exploration bump.

If Torex’s run has your attention, it is also worth seeing what else the market is rewarding right now by exploring fast growing stocks with high insider ownership.

With the shares already up sharply this year yet still trading at a sizable discount to analyst targets, investors now face a key question: Is Torex undervalued, or is the market already pricing in years of growth?

Most Popular Narrative Narrative: 35.7% Undervalued

With Torex closing at CA$62.33 versus a narrative fair value near CA$97, according to gmalan the market is still lagging the story.

Value: Simply Wall St calculates fair value at CAD 97, leaving the stock ~41% undervalued. With safe-haven flows likely if the shutdown drags on, I believe TXG deserves a higher re-rating. A fair value of CAD 95 to 97 is justified as rotation into gold accelerates.

Read the complete narrative.

Want to see why this narrative leans on surging earnings, double digit revenue momentum, and a premium future profit multiple usually reserved for sector leaders? Dive in.

Result: Fair Value of $96.98 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory uncertainty in Mexico and rising input costs could quickly erode margins, challenging both the shutdown hedge argument and the implied valuation upside.

Find out about the key risks to this Torex Gold Resources narrative.

Build Your Own Torex Gold Resources Narrative

If you are not fully convinced, or would rather dig into the numbers yourself, you can build a fresh narrative in just a few minutes: Do it your way.

A great starting point for your Torex Gold Resources research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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