TRX Gold(US:TRX)2022-12-05 18:32Financial Data and Key Metrics Changes - 2022 was a record year for the company, achieving record revenues, gross profit, operating cash flow, and adjusted EBITDA, driven by record production and ounces sold [20][24]. - The company reported revenues of over $15 million with a realized price of $1,756 per ounce, reaching nearly $1,800 per ounce in Q4 [23]. - Cash costs were reported at $665 per ounce for the year and less than $600 per ounce in Q4, significantly below guidance, resulting in a gross profit margin of over 60% [24]. - The year-end cash balance was $8.5 million, with working capital of $5.5 million, indicating strong liquidity for funding organic growth [25]. Business Line Data and Key Metrics Changes - The mill expansion to 360 tonnes per day was completed, with production of almost 8,900 ounces for the year and record quarterly production of over 3,600 ounces in Q4 [21]. - The 1,000 tonne per day plant expansion came online after the year-end, with expectations to significantly increase production in 2023 [22][26]. Market Data and Key Metrics Changes - The company expects production in 2023 to range between 20,000 and 25,000 ounces, tripling the production levels achieved in 2022 [26]. - Cash costs for 2023 are anticipated to be between $750 and $850 per ounce, slightly higher than 2022 due to increased depreciation [27]. Company Strategy and Development Direction - The company is focused on growth in both production and resources, aiming to expand the asset at Buckreef through exploration and operational efficiency [33][97]. - Plans include increasing throughput by 75% to 100% through the addition of a new ball mill, with detailed engineering already underway [29]. - The exploration program will continue to focus on the Buckreef main zone, Buckreef West, and the Eastern Porphyry, with a strong emphasis on generating significant exploration targets [30][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the exploration potential at Buckreef, indicating that they are just beginning to understand the full scope of the asset [9][48]. - The company aims to maintain a focus on cost management while pursuing growth in production and resources, despite challenging market conditions [97]. - Management expects 2023 to be as strong as 2022, with a commitment to continuous improvement and shareholder engagement [98]. Other Important Information - The company completed a land compensation process, spending $2.6 million to secure land around the Buckreef mining license, enhancing operational capabilities [51]. - The company has a strong commitment to corporate social responsibility, focusing on local hiring and community development [52]. Q&A Session Summary Question: Additional ball mill investment and operating cost impacts - Management indicated that the capital cost for the additional ball mill would likely be under $5 million and that operating costs would be assessed in the context of a new five-year mine plan [58][60]. Question: Exploration focus and potential oxide resources - Management confirmed that there is significant potential for additional oxide resources at Buckreef and that exploration efforts will be directed towards extending mine life [62]. Question: Update on sulfide development study - Management expects to provide updates on the sulfide development study in the first half of the following year, with ongoing evaluations of processing capabilities [63]. Question: Drilling targets and exploration budget - Management outlined that exploration will focus on the Anfield and Eastern Porphyry areas, with a goal of quickly bringing mineral resources and reserves to the forefront [74]. Question: Supply chain concerns - Management reported no pressing supply chain issues, noting that most equipment is sourced locally, although there are some concerns related to diesel generation due to geopolitical factors [82].