Hi there,
Torex has been been in a steady downtrend since the beginning of the month in which it lost 25% of its value. Although the entire industry has been weak, TXG underperformed in a big way.
Torex's share price may have gotten ahead of itself as it was trading above industry averages before the current downtrend. Today, it is close to trading inline with the average on a forward P/E and P/B basis.
Torex is a Mexico pureplay which has decent organic growth prospects at its current property - the flagship El Limón Guajes (ELG) mining complex. In the last quarter it revised production downwards to 405,000 (from 450,000) ounces and AISCs up to $995/oz (from $930) at the mid-range. The downward revisions in ounces was much greater than the industry average - a likely reason for the bigger than average drop.
Since it is a one-mine operation, when Mexico shutdown due to the pandemic effectively all of the company's production was shut down. This is the risk with companies that are reliant on one operation. Given this, TXG carries additional risk and is likely to be more volatile that the more senior producers who are more diversified.
Mat