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Financial Data and Key Metrics Changes - In fiscal 2024, the company reported over $40 million in revenue and $15 million in EBITDA, with expectations for higher numbers in the current year as operations transition to higher-grade ore [6][7] - For Q3, the company produced just under 4,700 ounces, with revenues of $12.5 million, gross profit of approximately $4.5 million (35% margin), and adjusted EBITDA of $4 million, all showing improvement compared to previous periods [23][24] - The cash cost per ounce in the study was reported at $1,000, with an all-in sustaining cost (AISC) of around $1,200, although Q3 cash costs were higher due to the grade profile processed [8][24] Business Line Data and Key Metrics Changes - The company is currently processing at a capacity of 2,000 tonnes per day, with plans to expand to 3,000 tonnes per day as part of the PEA roadmap [8][12] - The production mix for the quarter was 25% oxide and 75% sulfide, with expectations to transition to 100% sulfide in the future [80] Market Data and Key Metrics Changes - The company realized gold prices of over $3,100 per ounce, with sales reaching over $3,300 in recent transactions, benefiting from high gold prices [23][24] - The company entered negotiations with the Bank of Tanzania to sell a minimum of 20% of local gold production, which will reduce the royalty rate from 7.3% to 4% for domestic sales [26][29] Company Strategy and Development Direction - The company aims to self-fund growth through cash flow generated from operations, with a focus on expanding the plant and developing underground mining [17][49] - The PEA outlines a straightforward business plan that includes expanding the plant, developing the underground mine, and continuing exploration [14][66] - The management team emphasizes the importance of optimizing working capital ratios to align with market comparables and improve financial metrics [32][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting the potential for increased production and profitability as higher-grade ore becomes accessible [16][21] - The company is focused on addressing working capital issues and improving liquidity to support ongoing operations and expansion plans [31][34] Other Important Information - The company has successfully expanded its processing capacity three times in three years, currently operating at 2,000 tonnes per day [37] - The management team is actively working on optimizing the plant to improve recovery rates and reduce costs [41][47] Q&A Session Summary Question: What is the expected trend for throughput in the coming quarters? - Management indicated that the installation of a pre-leach thickener is expected to transition the plant to 100% sulfide, improving head grades [80][82] Question: What is the timeline for recovery improvements? - Recovery improvements are expected to be seen in the next few quarters, with significant enhancements anticipated within 12 to 15 months [85][86] Question: How does the company plan to handle surface material and oxide versus sulfide mining? - Management noted that while there is potential to process oxide material, the focus will remain on higher-grade sulfide material once plant optimizations are complete [102][104] Question: What are the main bottlenecks for increasing production beyond the projected 62,000 ounces per year? - The main bottlenecks include mill capacity and the need for additional underground infrastructure, which will require careful engineering and planning [112][116]

Financial Data and Key Metrics Changes - In fiscal 2024, the company reported over $40 million in revenue and $15 million in EBITDA, with expectations for higher numbers in the current year as operations transition to higher-grade ore [5][6]. - Q3 financial results showed revenue of $12.5 million, gross profit of approximately $4.5 million (35% margin), and adjusted EBITDA of $4 million, all improved relative to the prior period [20][21]. - The company produced just under 4,700 ounces in Q3, significantly more than in Q2, benefiting from record gold prices, realizing over $3,100 per ounce [20][21]. Business Line Data and Key Metrics Changes - The company is currently processing at a capacity of 2,000 tonnes per day, with plans to expand to 3,000 tonnes per day as part of the PEA roadmap [6][12]. - The cash cost in the PEA study is projected at $1,000 per ounce, with an all-in sustaining cost (AISC) of around $1,200 per ounce, which is comparable to current operations [6][7]. Market Data and Key Metrics Changes - The company entered negotiations with the Bank of Tanzania to sell a minimum of 20% of local gold production, benefiting from a reduced royalty rate of 4% on domestic sales compared to 7.3% on exports [23][24]. - The agreement with the Bank of Tanzania allows the company to use local currency for operating costs, enhancing cash flow and working capital [24][25]. Company Strategy and Development Direction - The company aims to self-fund growth through cash flow generated from operations, with a straightforward business plan focused on expanding the plant and developing the underground mine [15][42]. - The PEA outlines a scalable business plan, with significant blue-sky potential for increasing plant capacity and discovering higher-grade ounces [10][16]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational ramp-up and the potential for significant value creation, emphasizing the importance of returning to drilling activities in fiscal 2026 [16][62]. - The company is focused on rightsizing its working capital ratio to improve financial metrics and align with market comparables [26][59]. Other Important Information - The company has successfully expanded its processing capacity three times in three years and is currently operating at full capacity [31]. - The management team is experienced and has a proven track record in executing business plans effectively [62]. Q&A Session Summary Question: What is the expected trend for the oxide and sulfide mix in throughput? - Management indicated that the current mix is 25% oxide and 75% sulfide, with plans to transition to 100% sulfide by the end of the calendar year [64][65]. Question: What are the expected recovery improvements and timelines? - Recovery improvements are anticipated with the installation of a pre-leach thickener by the end of the year, aiming for a low 80% recovery rate in the next couple of quarters and high 80s to low 90s over the next eighteen months [70][74]. Question: How does the company plan to handle surface material and oxidized material? - Management is assessing opportunities for oxidized material while prioritizing sulfide processing, indicating potential for additional production from oxidized sources if economically viable [82][85].

Core Viewpoint - TRX Gold Corporation reported strong financial results for Q3 2025, highlighting significant improvements in production, revenue, and working capital, alongside a clear growth strategy for the Buckreef Gold Project [1][2][3]. Financial Performance - In Q3 2025, TRX Gold recognized revenue of $12.5 million, gross profit of $4.4 million, and net income of $1.1 million, all reflecting increases compared to the prior year [3]. - The company sold 3,995 ounces of gold at an average realized price of $3,114 per ounce, benefiting from lower mining costs of $3.63 per tonne and processing costs of $14.60 per tonne [3]. - Year-to-date, the company poured 12,532 ounces of gold, generating revenue of $34.1 million, gross profit of $11.4 million, and net income of $1.3 million, all showing growth from the previous year [3]. Production and Operational Highlights - Average daily production increased from approximately 30 ounces per day in Q2 2025 to about 50 ounces per day in Q3 2025, with further increases to approximately 75 ounces per day post-May 31, 2025 [3]. - The company successfully completed a scheduled stripping campaign, allowing access to higher-grade ore, which is expected to enhance production and cash flow [2][3]. Working Capital and Liquidity - TRX Gold's adjusted working capital improved from a negative $3.3 million at May 31, 2025, to approximately $3.9 million, with the current ratio rising from 0.8 to 1.1 [2][3]. - The company has substantially repaid short-term borrowings and has full access to its liquidity lines, indicating a strengthened financial position [2][3]. Growth Strategy - A Preliminary Economic Assessment (PEA) for Buckreef Gold indicates an average annual production of approximately 62,000 ounces of gold over a 17.6-year mine life, with a pre-tax NPV5% of $1.2 billion at a gold price of $3,000 per ounce [3]. - The company plans to fund growth capital for expansion through internal cash flows generated from existing operations [3]. Domestic Sales Agreement - TRX Gold signed a Gold Sale Service Agreement with the Bank of Tanzania, committing to sell a minimum of 20% of its local gold production domestically, benefiting from a reduced royalty rate of 4% [4]. - During Q3 2025, the company set aside 646 ounces for domestic sale, which positively impacted revenue and working capital [4].

Core Viewpoint - RX Gold Corporation has filed a Technical Report on the Buckreef Gold Project, which supports the previously disclosed Preliminary Economic Assessment (PEA) and shows no material differences from earlier results [1][2]. Group 1: Technical Report and PEA Highlights - The Technical Report was prepared by P&E Mining Consultants Inc. and includes input from D.E.N.M. Engineering Ltd., effective as of April 15, 2025 [3]. - The PEA evaluates an expansion of the existing process plant to 3,000 tonnes per day and a transition from open pit to underground mining over the next 2-3 years [5]. - The base case NPV5% is estimated at US$701 million pre-tax and US$442 million after tax, with an upside scenario reaching US$1,181 million pre-tax at US$3,000/oz gold price [5]. - Over a 17.6-year period, the total process plant throughput is expected to be 18.1 million tonnes, averaging 2.14 g/t Au, with an average recovered gold production of approximately 62,000 oz Au per annum [5]. - The first five years of underground operations are projected to yield over 80,000 oz Au per annum [5]. - Life of Mine cash costs average US$1,024/oz Au, and all-in sustaining costs average US$1,206/oz Au [5]. - Growth capital of US$89 million will be deployed over the next four years, primarily for underground expansion and process improvements [5]. - The PEA is based on Measured and Indicated Mineral Resources of 10.8 million tonnes grading 2.57 g/t gold and Inferred Mineral Resources of 9.1 million tonnes grading 2.47 g/t gold [5]. Group 2: Company Overview - TRX Gold Corporation is focused on advancing the Buckreef Gold Project in Tanzania, which includes an established open pit operation and a 2,000 tonnes per day process plant [7]. - The PEA outlines an average gold production of 62,000 oz per annum over 17.6 years, with a pre-tax NPV5% of US$701 million at an average life of mine gold price of US$2,296/oz [7]. - The company aims to create shareholder value by increasing gold production and funding expansion through positive cash flow, while adhering to high environmental, social, and corporate governance standards [7].

Project Overview - Buckreef Gold Project is expanding in Tanzania, featuring a low-risk, high-margin open-pit gold mining operation[11] - The project has a multi-million ounce gold resource within a 16 km2 license area[11] - A 2025 PEA outlines an underground expansion with average annual production of approximately 62,000 oz Au over 17.6 years[11] - The PEA projects an NPV 5% of US$1,181 million pre-tax and US$766 million after-tax at a gold price of US$3,000/oz[11] Financial Performance and Growth - F2024 annual production reached 19,389 oz Au, with revenue of $41.2 million and adjusted EBITDA of $15.3 million[10] - Q2 2025 revenue was $9.1 million, a 14% year-over-year increase, and operating cash flow was $2.0 million, a 100% year-over-year increase[28] - The company completed a mill expansion to 2,000 tpd, supporting increased future annual production[21] Resource Estimate and Exploration - The 2025 Mineral Resource estimate includes 893,000 oz of gold in Measured & Indicated Resources and 726,000 oz in Inferred Resources[19] - Ongoing drilling of high-priority gold zones aims to increase the mineral resource[16] - The discovery of the new Stamford Bridge Shear Zone shows geology similar to Buckreef Main[55] - Best drill results ever include BMDD315 intersecting 37 m @ 6.86 g/t Au (253.82 gtm) from 130 m and BMDD310 intersecting 35.5 m @ 5.48 g/t Au (194.54 gtm) from 64 m[59] PEA Key Metrics - The PEA projects average annual gold production of 61,700 ounces[44] - LOM average cash costs are estimated at $1,017 US$/oz, and AISC at $1,199 US$/oz[44] - Growth capital over the first 4 years is projected at $88.7 million[44]

Core Viewpoint - A gold analyst predicts a significant bull run for mining stocks, with gold prices potentially reaching $4,000 per ounce, driven by current market conditions and mispricing of gold equities [1] Industry Overview - Gold mining stocks are experiencing gains alongside rising gold prices, with both large-cap and junior exploration companies benefiting from encouraging drill results [2] Company Developments - Lake Victoria Gold is advancing its Tembo Project in Tanzania, having cleared regulatory hurdles and secured mining licenses for the next 10 years, which allows for development planning and potential early-stage production [3][5][6] - The Tembo Project has seen $28 million invested in historical exploration, with over 50,000 meters of drilling identifying high-grade zones [4] - The Imwelo Project is positioned for near-term production, having received approval as a mining operation, which could generate early cash flow for the company [7] - Lake Victoria Gold has signed a non-binding gold prepay term sheet for up to 7,000 ounces, potentially providing $23 million in financing based on current gold prices [8] - The company has strengthened its board by adding Richard Reynolds, enhancing ties with regional stakeholders [9] - A previous deal with Barrick could yield up to $45 million in contingent payments tied to discoveries, providing additional upside without further investment [10] - Overall, Lake Victoria Gold is positioned as a notable junior gold developer in East Africa, with a focus on both immediate and long-term growth opportunities [11]

Core Viewpoint - TRX Gold Corporation announced positive results from a Preliminary Economic Assessment (PEA) for the expansion of its Buckreef Gold Project in Tanzania, indicating significant potential for increased gold production and favorable economics under various gold price scenarios [2][3][68]. Project Overview - The PEA evaluates an expansion of the existing process plant to 3,000 tonnes per day and a transition from open pit to underground mining over the next 2-3 years [2][3]. - The project is expected to produce an average of 62,000 ounces of gold per year over a mine life of 17.6 years, with potential peak production exceeding 80,000 ounces annually during the first five years of underground operations [5][19]. Economic Metrics - The base case pre-tax NPV5% is estimated at US$701 million at an average gold price of US$2,296 per ounce, increasing to US$1.2 billion at a gold price of US$3,000 per ounce [5][6][68]. - Life of Mine (LOM) cash costs are projected to average US$1,024 per ounce, with all-in sustaining costs (AISC) averaging US$1,206 per ounce [5][26][68]. Capital Expenditures - Growth capital expenditures are estimated at US$89 million over the next four years, primarily for underground expansion and process improvements [5][22][68]. - Total LOM growth capital is projected at US$175 million, with sustaining capital costs estimated at US$184 million [22][25]. Mineral Resource Estimates - The project hosts a Measured and Indicated Mineral Resource of 10.8 million tonnes at 2.57 grams per tonne, containing 893,000 ounces of gold, and an Inferred Mineral Resource of 9.1 million tonnes at 2.47 grams per tonne, containing 726,000 ounces of gold [5][68][31]. Production and Processing - The PEA indicates a total process plant throughput of 18.1 million tonnes, with an average recovery rate of 87% [5][9][48]. - The existing infrastructure supports the planned expansion, allowing for a smooth transition to increased production levels [5][54]. Future Plans - The company plans to further evaluate opportunities for additional process plant capacity and increased mining rates to enhance project economics [3][6]. - TRX Gold is committed to maintaining high environmental, social, and corporate governance standards as it advances the Buckreef Gold Project [69].

Core Viewpoint - TRX Gold Corporation reported strong financial results for Q2 2025, driven by record gold prices and improved operational efficiencies, setting the stage for future growth and exploration opportunities [3][5][11]. Financial Performance - In Q2 2025, TRX Gold generated revenue of $9.1 million, up from $8.0 million in Q2 2024, and operating cash flow increased to $2.0 million from $1.0 million [3][5]. - Year-to-date revenue for F2025 reached $21.6 million, compared to $17.4 million in H1 2024, with Adjusted EBITDA of $5.4 million, slightly higher than $5.2 million in the prior year [3][5]. - The average realized gold price in Q2 2025 was $2,739 per ounce, significantly higher than $2,026 per ounce in Q2 2024 [3][21]. Cost Management - Mining costs per tonne decreased to $3.90 in Q2 2025 from $4.10 in Q2 2024, while processing costs dropped to $15.90 from $24.97 per tonne, attributed to economies of scale from the expanded processing plant [3][5]. - The company expects further reductions in operating costs as it continues to optimize its operations [5]. Production Outlook - Gold production in Q2 2025 was 3,004 ounces, down from 4,067 ounces in Q2 2024, due to accessing lower grade ore blocks as part of a waste stripping campaign [3][5]. - The company anticipates increased production in H2 2025 as it begins to access higher grade ore blocks, with daily production rising to approximately 50+ ounces in March and April 2025 [3][5]. Expansion and Exploration - TRX Gold is developing a larger-scale Buckreef Gold operation, focusing on mill expansions, efficiency improvements, and exploration drilling, particularly at the promising Stamford Bridge Zone [3][5][11]. - The company reported its best drill results ever at Stamford Bridge, with significant gold mineralization identified, which is now a priority for exploration [3][4]. Liquidity and Financing - TRX Gold entered into a $5 million revolving credit facility and a $4 million vehicle and asset financing facility with Stanbic Bank, along with a Gold Prepayment Facility with Auramet [7]. - The company renewed its At The Market Offering Agreement, allowing it to raise up to $25 million through common share sales, enhancing its liquidity and financial flexibility [7]. Leadership and Governance - The company appointed John McVey to its Board of Directors, bringing extensive experience in underground mine development and engineering, which will support the next phase of Buckreef Gold's expansion [7].

Company Performance - TRX Gold reported a quarterly loss of $0.01 per share, matching the Zacks Consensus Estimate, compared to break-even earnings per share a year ago, resulting in an earnings surprise of -200% [1] - The company posted revenues of $9.11 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 47.05%, and showing an increase from year-ago revenues of $7.98 million [2] - Over the last four quarters, TRX Gold has not surpassed consensus EPS or revenue estimates [2] Stock Movement and Outlook - TRX Gold shares have declined approximately 2.3% since the beginning of the year, while the S&P 500 has decreased by 8.8% [3] - The future performance of TRX Gold's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $17.8 million, and for the current fiscal year, it is $0.04 on revenues of $67.5 million [7] Industry Context - The Mining - Gold industry, to which TRX Gold belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of TRX Gold's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]