TRX Gold(US:TRX)2025-07-16 14:30Financial 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]