TRX News

TRX Gold Reports Second Quarter 2023 Results

April 14, 2023

Expanded Mill Delivers Quarterly Production Growth

TORONTO, April 14, 2023 (GLOBE NEWSWIRE) -- TRX Gold Corporation (TSX:TNX) (NYSE American:TRX) (the “Company” or “TRX Gold”) today reported its results for the second quarter of 2023 (“Q2 2023”) for the three months ended February 28, 2023. Financial results will be available on the Company’s website on April 14, 2023.

Key highlights for Q2 2023 include:

Newly expanded mill running smoothly: Q2 2023 represents the first full quarter of gold production from the newly expanded 1,000+ tonne per day (“tpd”) processing plant at Buckreef Gold, following commercial production declaration in November 2022. The Buckreef Gold team continues to prove that the project can be grown in a phased manner, thanks to an efficient local work force and strong reliable supply chain which has enabled the Company to minimize costs and deliver milestones on time and on budget.
Gold production growth on target: Buckreef Gold recorded its highest quarterly production to date of 5,636 ounces of gold and sold 5,505 ounces of gold, resulting in positive operating cash flow for the Company of $4.8 million. Year to date, Buckreef Gold poured and sold 11,030 and 11,258 ounces of gold, respectively, both half-year production records, resulting in positive operating cash flow of $11.4 million. At mid-year, the Company is on track to meet its annual gold production guidance for fiscal 2023 of 20,000 to 25,000 ounces of gold, at total average cash costs¹ of $750 - $850 per ounce.
A high-margin gold operation: In Q2 2023, the Company recognized revenue of $10.1 million, cost of sales of $5.2 million, gross profit of $4.9 million, gross profit margin of 49% and Adjusted EBITDA¹ of $4.3 million. Year to date, the Company recognized revenue of $19.8 million, cost of sales of $9.6 million, gross profit of $10.2 million, gross profit margin of 52% and Adjusted EBITDA¹of $8.7 million.
Reinvesting cash flow to drive value accretion: During Q2 2023, investments continued to be made in the infrastructure and development of the Buckreef Gold project, including construction of a significantly expanded tailings storage facility to accommodate a larger production profile, road realignment around the Special Mining License which will enable full life of mine access to the Main Zone, the purchase of four new gensets to replace existing rental units, as well as development drilling as part of a program which focused on infill and exploration drilling at Buckreef Main, Anfield and Eastern Porphyry.
A third mill expansion is on track: Subsequent to quarter-end, the Company used cash flow from operations to order an additional 1,000 tonne tpd ball mill for the Buckreef project as part of the short-term objective of increasing Buckreef Gold’s current average annual throughput by 75-100%. Construction of the expanded milling circuit is expected to start in fiscal 2023 and potentially benefit production in late calendar 2023.
Exploration drilling continues: In Q2 2023, Buckreef Gold drilled 13 holes representing 1,411 meters at Buckreef Gold, including exploration drilling at Eastern Porphyry and sterilization drilling at Buckreef Gold’s ROM pad. Assay results from the two programs have been received and are being analyzed with results expected in the next few weeks.
A keen eye on the bigger prize: Buckreef Gold has commenced the long-lead items for de-risking the larger mine development project. Advancements include work on geotechnical characterization to determine the ultimate pit slopes of the 2-kilometre-long open pit, the variability metallurgical study for the next 5-7 years of production, as well as the identification of potential locations for the larger processing plant, potential dry stack tailings facility, waste rock piles and other associated infrastructure.
Working safely: The Company achieved zero lost time injuries (LTI) as well as having no reportable environmental or community related incidents during the quarter.

TRX Gold’s CEO, Stephen Mullowney comments: “We are happy to deliver another solid quarter of financial results. Buckreef Gold’s newly expanded mill is operating well and generating cash flow which has allowed us to reinvest in the project to drive long-term value. Our growth plans are on track as we work on yet another expansion with the goal of increasing near term gold production, while our geological team of experts is hard at work advancing many projects aimed at developing Buckreef Gold into a much larger and significant gold producer. A little over 24 months ago we hit “reset” at the Buckreef Gold project and since then we have seen the project develop quickly with significant growth potential ahead.”

TRX Gold Orders Additional Ball Mill for Buckreef Gold

March 06, 2023

Expanded Milling Capacity to Further Increase Gold Production

TORONTO, March 06, 2023 (GLOBE NEWSWIRE) -- TRX Gold Corporation (TSX: TNX) (NYSE American: TRX) (the “Company” or “TRX Gold”) is pleased to announce that a 1,000 tonne per day (“tpd”) capacity ball mill has been ordered for the Company’s Buckreef Gold Project. As previously disclosed in the Company’s January 16^th press release, TRX Gold is committed to a short-term objective of increasing Buckreef Gold’s current average annual throughput of oxide ore by 75-100%, through the addition of this new mill.

Informational highlights:

The 1,000 tpd mill has been ordered from CSI Energy Group (Tanzania) in partnership with Solo Resources Pty in South Africa, an equipment and services sector expert with over 30 years of experience in the sale, design, installation and commissioning of metallurgical processing equipment for various applications.
The mill will have dimensions of 3,200 mm diameter by 4,500 mm equivalent grinding length and a 630 kW drive motor. The ball mill is the long-lead critical item and is scheduled to be shipped within 60 days, ex-works. Orders are in the final stages for several other major items of equipment including the crushing circuit upgrade equipment (apron feeder, vibrating grizzly and double deck screen), additional CIL inter-tank screens, and CIL agitators. Three more CIL leach tanks, with 400 m³ nominal capacity each, will be constructed on site to maintain the retention time above 24 hours.
The mill expansion will occur simultaneously with the upgrade of the existing power supply, from the current 2.5 MVA to 5.0 MVA, through the addition of a second 2.5 MVA transformer on the national grid. TRX Gold remains committed to sustainable practices and is pleased that it will be able to rely on additional capacity from the national power grid, which is mainly powered by clean hydroelectricity.

The near doubling of milling capacity is expected to enable Buckreef Gold to increase gold production beyond current annual guidance of 20,000-25,000 ounces of gold. TRX Gold expects the commissioning of this project to occur early fiscal 2024, therefore benefiting gold production in the near-term. The Company will provide its annual gold production guidance for F2024 at a later date.

This is one of many growth projects that TRX Gold has outlined for F2023, in line with its business strategy of reinvesting cash flow from operations into value-accretive activities to create shareholder value.

Stephen Mullowney, TRX Gold Chief Executive Officer states, “We are very pleased to be making today’s announcement as we continue to prove to the market that we deliver on our objectives. A nod goes to our engineering consultants and construction and operations teams who built the current 1,000+ tpd mill, using larger tanks and agitators, with the optionality and foresight of creating an opportunity for this short-term expansion. Once this project is delivered, it will be our third mill expansion at Buckreef Gold; phenomenal growth for a junior gold mining company within a 24-month period.”