TRX Gold(US:TRX)2023-04-20 00:26Financial Data and Key Metrics Changes - The company recognized revenues of over $10 million in Q2 2023, with an operating cash flow of almost $5 million, indicating strong financial performance [31][45] - Cash cost per ounce was recorded at $888, which was above Q1 but in line with expectations, with a full-year guidance of $750 to $850 per ounce [32][47] - Gross margin remained strong at around 50% for both the three and six-month periods [33][49] Business Line Data and Key Metrics Changes - The newly expanded 1000 tonne per day mill produced over 5,600 ounces of gold in Q2, a 164% increase compared to the same quarter in 2022 [28][45] - The company continues to reinvest operating cash flow back into the business for growth, including capital equipment purchases [31][46] Market Data and Key Metrics Changes - The realized price of gold was $1,845 per ounce, benefiting from recent price increases, with gold prices touching over $2,000 recently [45][72] - The company produced and sold over 11,000 ounces year-to-date, generating revenues of almost $20 million [48] Company Strategy and Development Direction - The company is focused on expanding the Buckreef project, with plans for a third mill expansion expected to increase throughput by 75% to 100% [29][83] - The strategy includes prioritizing local content to create jobs and reduce costs, integrating ESG initiatives into operations [64][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q3 and Q4, expecting them to be the strongest quarters of the year due to unlocked higher-grade ore blocks [34][62] - The company is cautiously optimistic about the potential for underground mining and is actively working on resource model updates [72][121] Other Important Information - The company has built strong relationships with local stakeholders in Tanzania, which has contributed to operational success [20][68] - The balance sheet remains strong with a cash balance of around $9.5 million and working capital of about $5.5 million [49] Q&A Session Summary Question: Can you remind us of the total cost of the mill and installation costs? - The company has not explicitly guided a full capital cost but expects to improve upon the cost of the first mill [93] Question: Are you targeting any higher grade areas for the larger mine plan for 2024? - The company has identified higher grade zones in the Eastern Porphyry and Anfield areas and plans to continue drilling [120] Question: What are the plans for future expansions? - The company envisions becoming a 3 to 4 million tonne per annum mine and is evaluating available mills worldwide for future expansions [106]