Q3 2025 TRX Gold Corp Earnings Call
Now rejoining the main conference. Welcome to the TRX Gold Corporation third quarter 2025 results presentation. As a reminder, all participants are in a listen-only mode and the meeting is being recorded.
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Welcome to the TRX. Gold Corporation, third quarter, 2025 results. Presentation. As a reminder, all participants are in a listen-only mode and the meeting is being recorded.
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I would now like to turn the meeting over to Mr. Stephen Mullowney, Chief Executive Officer. Please go ahead, sir.
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Yeah, good morning, and thank you and welcome shareholders to our Q3 2025 Corporate Presentation, Investor Call. So we have quite a few people on the call today, so that's really good to see.
Speaker Change: I would now like to turn the meeting over to Mr. Stephen Maloney chief executive officer, please go ahead, sir.
Good morning. And
Speaker Change: Thank you, and welcome shareholders to our Q3.
Joining me on the call today is Michael.
our CFOs, and also in the Tanzania boardroom, we have Kalaf Rashid and Richard Boffey. Raise your hand guys. How's the weather, guys? That's a nice balmy circle one degree. As always, nice and sunny and warm. It's warm here in Toronto today as well. I think we've got a 32-degree day.
2025 um, corporate presentation, investor call. So we have quite a few people on the call today so that's really good to see um joining me on the call today is Michael
Speaker Change: Our CFO and also in the Tanzania boardroom, we have copper sheet. Um and Richard goofy, raise your hand guys.
Speaker Change: Um, how's the weather down there?
So without further ado, I will get into the presentation. And the presentation today will be led by myself with Michael Kloff and Richard all chiming in in the appropriate section. So let's get into it. Today, what I'll do is just give a high-level overview of TRX Gold as I always do. And then we're going to jump into where we're going in the short to medium term, as well as what our Q3 financial results look like, and a high-level summary of the PEA roadmap and how we see that being played out, as well as just finishing it off with the key investment highlights of the company.
So TRX Gold, obviously, we're in Tanzania, everybody on the line realizes that. In fiscal 2024, we did over $40M of revenue and $15M of EBTA. We expect those numbers to be higher this year as we continue on and as the strip campaign winds down and we get into the higher-grade portions of the ore body. And we'll get into the results of those operations in a second.
Speaker Change: It's a, it's a nice far east as always, nice and sunny and warm. It's warm here in Toronto today as well. I think, uh, we got a 32 degree day. So, without further Ado, um, I will get into the presentation and the presentation today will be, um, led by myself with Michael cough and Richard all chiming in in the appropriate, uh, section. So, let's get into it. Um, today, what I'll do is give just give a high-level overview or TRX gold as I always do and then we're going to jump into where we're going in the um short to medium term as well as um what our Q3 Financial results look like and a high level summary of The Pea road map. And and how we see that being played out and as well as just finishing it off with the key investment. Highlights of the of the company. So TRX gold.
One of the major catalysts that we put out in Q3 was our PEA. As we mentioned on our last call, that PEA has a $1.2B net present value at around $3,000 gold. It's around $750M after tax on the Buck Reef Gold Project. It has 62,000 ounces average production for 18 years at 3,000 tons per day of processing capacity. We are currently at 2,000 tons per day of processing capacity. Our goal will be to improve those metrics over time and hopefully have a larger project than what was envisioned there, both from existing Buck Reef Main Zone, as well as the other additional resources that can be found over time with the drill bit.
Speaker Change: Um, obviously we're in Tanzania, everybody on the line realizes that. Um, in fiscal 2024 we did over 40 million of Revenue and 15 million of ebta. We expect those numbers to be higher this year as, uh, as we continue on and as the script campaign, you know, winds down and we get into the higher grade, portions of the ore body, and we'll get into the results of those operations in in a second. And 1 of the major catalysts that we put out in Q3 was our pea. Um, and as we mentioned on our last call at pea has a 1.2 billion dollar. Net Present Value at around 3,000 gold. It's around 750 million after tax on the buck brief gold project. It has 62,000 Oz, average, production for 8 years, at 3,000 times per day of processing capacity. We are currently at 2,000, tons per meter exactly. Our goal will be to improve those, uh,
The cash costs in that study are quite low at $1,000 an ounce, and the AISC was around $1,200 an ounce, which is comparable for the same grade profile of what we currently experience. As you would have seen in Q3, the cash costs were a little bit higher as a result of the grade profile that was going through the mill. So as the grade profile normalizes, cash costs will come down. In the study, we reset the resources because we focused on economics. In our last resource statement, it was focused on sheer number of resources versus economic resources.
Speaker Change: Logistic properties main zones um as well as the other additional um resources that can be found over time with the drill bit.
The resources haven't gone away from the last statement. They're just not included in the economic... at this point in time. In the study, it was 900,000 ounces in the M&I category at around 2.6 grams a ton. And in the third category, there were 725,000 ounces at 5 grams a ton.
Speaker Change: The cash cost in that study are quite low at 1,000 dollars an ounce and the aisc was around dollars an ounce, which is comparable for the same grade profile, what we currently experience. Um, as you would have seen in Q3, the cash costs are a little bit higher as a result of the grade profile that was going through the mill. So as we profile normalizes, cash cost will come down in the study. We, we, um, reset the resources, because we focused on economics, um, in our last resort statement that was focused on sheer number of resources, versus economic resources. The resources, haven't gone away from the last statement, they're just not included in the economics.
So what we did was increase the cutoff grade and the grade profile going.
We'll pause right there.
Speaker Change: At this point in time in the study or 900,000 Oz. Uh, in the M&I category at around 2.6 grams a ton. And in the referred category, there were 725,000 Oz tests and some 5 grams per month. Um, so what we did was increase the, the cutoff grade, um, and the grade profile going through the mill,
On the next slide, we do have a straightforward value-enhancing business plan. My next slide will get into more of a shorter-term business plan. In Tanzania, we have the special mining license. We have a straightforward flow sheet in metallurgy, which we'll get into in a second. I'm sure there's going to be some questions on recovery rate, and he will answer those. And all they're going to approve that's connected to the local infrastructure, including road and power. We have significant blue sky potential, as we mentioned and continue to mention. We do need to get back to that drill bit and start drilling at our Anfield and Stamford Bridge zones.
We have good human capital availability in-country. We're constantly upgrading that now. We've done three successful expansions to 2,000 tons a day. We'll do another expansion in between 3,000 and 4,000 tons a day. The PEA contemplates 3,000 tons a day. We'll do that over time. We're in the planning stages of that now. That will be done over time. The business plan around the PEA is quite straightforward. Expand the plant, take the cash flow, develop the underground mine, and do drilling at the same time and operation. We've had a successful wrap-up of our operations. We are a high-margin, low-cost operating profile.
Speaker Change: Repository there, um, on the next slide, but we do have a straightforward value enhancing business plan. My next slide will get into more to Shorter term business plan. Um, in Tanzania, we have to special mining license. We have a straight forward flow sheet of metal allergy, which you will get in that second. I'm sure there's going to be some questions on recovery rate and, uh, and he will answer those and how they're going to improve. Um, was expected to the local infrastructure, including Road and Power. We have significant Blue Sky potential as we mentioned, uh, continue to mention. Um, we do need to get back to that drill bit and uh start drilling out our amp, the old and stand for bridge Zone. We have good human capital availability in country or constantly upgrade.
Speaker Change: Uh we've done 3 successful expansions to 2,000 tons a day. We'll do another expansion in between 3,000 and 4,000 tons today. The Pea, constantly 3,000 day to do that over time. We're in the planning stages of that. Now, um, that will be done over time. Um, this is plan around, the TDA is quite straightforward. Expand the plan, take the cash flow, develop the underground, mine and and be willing at the same time.
Speaker Change: Reservation.
Costs have come down, and Mike will get to that in a sec, particularly on a per-ton basis. Obviously, grade impact for LTE costs. We still see significant opportunities to continually reduce costs, both mining and processing. and the PEA sets a roadmap for that.
Speaker Change: We've had successful ramp up of our operations. We are a high margin, low cost. Uh operating profile costs have come down and might go get that into that in a sec, particularly in a percentage, obviously great impact for else. Um, cost we still see significant opportunities to continually reduce cost of Mining and processing.
You have a very experienced management team on.
Speaker Change: um and the Pea sets a roadmap for that, uh you have a very experienced management team on, uh,
at there Mike anything to add? Anything to add Richard and Klopp?
No, I think that was well said, Stephen. Nothing further from me.
Speaker Change: At site as well as in corporate that is done this all before and we're very excited for, you know, the significant value potential on value creation potential over time. So I'm going to pause there. Mike Mike, Mike, anything to add anything to add, Richard and Clark.
Okay, thank So with regards to, you know, why TRX is where we are today, as Q3 indicates, revenues are growing. Prior to that is the gold price, ounces will start to grow now as well as we get into higher grade profile. And we're self funding this growth and we continue to self fund the growth. The PEA lays out a straightforward business plan, or a roadmap that we can move along to create value in the Buck Reef main zone. I went through some of those statistics earlier, so that plan is very scalable. We've done that before, as I mentioned, and we'll continue to move along that roadmap.
Mike: No, I think that was well said, Stephen nothing further from me.
Speaker Change: Okay, thank you.
And I really like always the blue sky potential. So the way that the roadmap can improve is both increasing the plant capacity, as well as finding more higher grade ounces in around Stanford Bridge, Anfield, and elsewhere on our property. And so we're quite comfortable with that.
So with regards to, you know, why to your X-ray, we are today, um, as Q3, um, indicates revenues are growing, um, prior to, that is the gold price analysis will start to grow now, as well as we get into higher grade profile. Um, and we're self-funding this growth and we continue to self fund the growth. The Pea, lays out a straightforward business plan, um, or a roadmap that we can move along to create value to Buck for each main Zone. I went through some of those statistics earlier, so that plan is very scalable. We've done that before, as I mentioned, and we'll continue to move along that road map and I rated, like, always the
We do need to get back to the drill bit and that will be in our budget plans for fiscal 2020.
Speaker Change: Blue Sky potential. So the way that the road map can improve is both increasing the plant capacity as well as finding more higher grade ounces in around Stanford bridge, anfield and Elsewhere on our property and and so we're quite comfortable with that. We do need to get back to the drill bit and that will be in our budget plans for fiscal 2026.
But with that, I'm going to hand it over now to get into the nitty gritty details. I went through the PEA.
high-level, Michael who is starting to get into the financial profile and the rest of these slides here, Mike, and I'll hand it over to you for the next two or three slides, please.
Speaker Change: So with that, I'm going to hand it over now, to get into the nitty-gritty details. Um, I went through the Pea uh,
Yeah, no problem, Stephen.
Good morning, everybody. Thanks for joining us. And you've touched on the PEA, which is really our focus over the next 12, 18 months is focusing on that expansion to really unlock that billion-dollar valuation that we put out into the market on that study. But in the meantime, as we talked a little bit about over the last couple of quarters, we had embarked upon a stage one stripping campaign over the first half of the year to really remove a lot of the overburden and waste that would provide access to higher-grade ore blocks as we got deeper into the pit.
And Richard and his team have been managing that very, very closely. And the good news is we're substantially through the lion's share of that strip and have begun to access some of those higher-grade blocks. And consequently, what we're seeing is an increase in both the production and sales. And coupled with the leverage that we have to gold price, we're seeing increased financial metrics both quarter on quarter and year on year.
I'll talk about some of the details here in a minute, but why don't we flip to the next slide, Stephen, and we can just touch on some of the other things. Here's a snapshot on the next slide of a financial overview of the results. And again, as mentioned, it was a strong quarter for the company's financial results. We did see increases in both quarter-on-quarter relative to Q2 and year-on-year in really almost all financial categories, from revenue to gross profit to net income, operating cash flow, and adjusted EBIT debt. We produced just under 4,700 ounces in the quarter, which is substantially more than what we did in Q2.
Speaker Change: Billion dollar, uh, valuation that we put out into the market on that that study. Uh, but in the meantime, um, as we talked a little bit about over the last couple of quarters, we had embarked Upon A, a stage 1, uh, stripping campaign over the first, uh, half of the year, uh, to really remove a lot of the, the, the overburden and waste that would provide access to higher grade or blocks. As we got deeper into the, the pit and, and Richard and his team have been managing that very, very closely. And and the good news is we're we're substantially through the, um, the alliance share that, that trip and have begun to access some of those higher grade blocks. And consequently, what we're seeing is an increase in in both the production and sales and, you know, coupled with the The Leverage that we have to, to gold price, we're seeing increased Financial metrics, both quarter on quarter and year on year. Um, I I'll talk about some of the details here in a minute, but uh, why don't we flip to the the next slide to, you know, we could just touch on some of the specifics.
And we continue to benefit from these record gold prices that we're seeing yet again. We realized over $3,100 an ounce. I sold gold this morning at over $3,300, so continue to take advantage of these lofty gold price levels. And again, those numbers drove revenues of $12.5 million, gross profit of almost $4.5 million or 35% in the quarter, and adjusted EBIT of $4 million. Again, all improved relative to the prior period, demonstrating our leverage to gold prices. Stephen touched on it a little bit earlier, but gross profit continues to benefit from an improving cost per ton profile.
So here's here's a snapshot, uh, on the next slide of the financial overview of of the results. And, and again, as mentioned, it was a, a strong quarter, uh, for the company's Financial results, we we did, see increases in both, uh, quarter on quarter relative to Q2 and year on year, uh, in in really, uh, almost dolphin actual categories from from revenue to to gross profit, to to net income, operating cash flow and adjusted Eva death. Um, we produced just under 4700 ounces in the quarter, which is substantially more than what we did in in Q2 and we continue to benefit from this.
Speaker Change: these record gold prices that uh that we're seeing yet again we we realized over 3,100 dollars an ounce
Speaker Change: I sold gold this morning at over 3,300. Um, so so continue to sort of take advantage of these lofty, gold price levels. Uh and again those numbers drove revenues of of 12 and a half million dollars, gross profit of of almost 4 and a half million dollars or 35% in in the quarter and adjusted debit of of of 4 million. Again, all improved relative to to the prior periods, demonstrating our, our leverage to, to go price.
And this is really based on a lot of work we did in the early part of the year, setting the foundation for some of these benefits that we're seeing. Illustratively, processing costs per ton were below $15 and substantially improved, as you can see, compared to the prior year period. And a big part of the reason for that is the economies of scale that we're realizing from the expanded plant, when we grew from 1,000 ton a day last year to 2,000. We had to explain to folks that this was a scalable plant, and again, you're seeing the benefits in that cost per ton set of metrics.
And similarly, mining costs per ton has come well down, both relative to last quarter and last year, significantly improved. And it's in part due to the fact that we're now using our own fleet that we had procured in the early part of the year to help support our contract mining fleet. And illustratively, and again, Richard can maybe talk a little bit about this later in the presentation, but we used our fleet to move about 300,000 tons of material or waste during the quarter, and we did it at about $1.80 a ton, $1.80 to $1.90 a ton, which is well below International Contract Rates.
Um, even touched on it a little bit earlier, but gross profits. Uh, continues to benefit from an improving cost per ton profile. And this is really, uh, based on a lot of work we did in the early part of the year setting the the foundation for for some of these benefits that we're seeing, you know, illustratively processing costs per ton. Uh we're below 15 dollars and and substantially improved as you can see compared to the prior year period. And and a big part of the reason for that is the the economies of scale that were realizing from the expanded plant. When we uh We Grew From a thousand, ton a day last year to 2,000. Uh, we had, you know, explained to folks that this was a scalable plant and and again you're seeing the benefits in that cost per ton set of metrics.
Speaker Change: And and and similarly mining costs per ton has come, uh, come come well down. Uh, both relative to last quarter, and, and last year, significantly, improved, and it's in part, uh, due to the fact that we're, we're now, um, using our own Fleet, uh, that we had procured in the early part of the year to help support our contract mining Fleet.
Speaker Change: And illustratively. Uh, and again, Richard can maybe talk a little bit about this later in the presentation. But we used our Fleet to move about 300,000 tons of, uh, of material or in waste, uh, during the quarter. And we did it at about a $180.80, a tonne dollar 80 to a dollar 900 a ton, which
Speaker Change: is is well below, uh,
It's certainly a very, very cost effective way for us to mine both ore and waste, as well as provide support for, you know, for projects like our TSF expansion.
Speaker Change: International contract rates.
Richard, do you maybe want to just provide a couple of soundbites on on how our fleet's operating and why we're seeing benefits there? I think we may have a comms issue in Tanzania, but that's okay. Why don't why don't I just continue? And if we if we get a chance to hear from you later, Richard, we'll, we'll have you chime In the meantime, what I'd maybe like to add, which folks might have seen in our press release in MD&A is that during the quarter, we had entered into negotiations with the Bank of Tanzania to sell a minimum of 20% of our local gold production to the central bank.
And it's certainly a very, very cost-effective way for us to mine both or and waste as well as Provide support for uh you know for projects like our our tsf expansion.
Speaker Change: Richard do you maybe want to just uh provide a couple of sound bites on on how our fleets operating and and why we're seeing benefits there? Please
Speaker Change: I think we may have a comms issue in in Tanzania, but that's okay.
Why don't, why don't I just continue? And if we uh, if we we get a chance to hear from you later, Richard we'll, uh, we'll have you chime in then.
And that was in line with the newly enacted mining law in Tanzania that's applicable to companies in country. And as part of that agreement, the company would benefit from a reduced royalty rate of about 4% on revenue for domestic sales, compared to a 7.3 royalty rate for exported sales. And the way it works is the company's paid in Tanzanian shillings at market rates, which we can then use to go and fund the operating costs that we incur in local currency. And part of the reason I bring it up here in the context of the Q3 results is that while the discussions were ongoing over the course of Q3, we were required to set aside a portion of our production in inventory.
In the meantime, um, what I'd maybe like to to add, uh, which folks might have seen in our our press release and mdna, is that that during the quarter, we had entered into negotiations with the bank of of Tanzania uh to to sell a minimum of 20% of our, our local gold production to the central bank.
Speaker Change: Uh, and that was in line with the newly enacted, uh, mining law.
We set aside almost 650 ounces during Q3 for future sale to the Bank of Tanzania, and therefore what you would have seen in our results is a bit of a gap between ounces produced and sold. And the good news is that we ended up signing that agreement with the Bank of Tanzania in early June, and we were able to sell this inventory to the BOT, the Bank of Tanzania, which is really benefiting now what we're seeing in Q4 around things like revenue and cash flow and EBITDA and working capital for the last quarter of the year.
And really this is useful, as I mentioned, to us as a company for a number of reasons, one of which is that we incur a lot of local cost and local currency that we can use the shilling for, we benefit from the royalty rate, but this agreement helps drive things like local content and local beneficiation, which has been a key area of focus for the government to, amongst other things, help improve their foreign exchange reserves.
Speaker Change: Of the reason I bring it up here in the context of the Q3 results is that while the discussions were ongoing over the course of Q3. Uh, we were required to set aside a portion of our production, uh, in inventory, uh, we set aside almost 650 Oz during Q3, uh, for for future sale to the bank of Tanzania. Uh, and therefore, what, what you would have seen in our results is, is a bit of a gap between Oz produced and, and, and sold. Um, and uh, you know, the good news is that we we ended up signing that agreement with the bank of Tanzania in, in early June, um, and we were able to sell this inventory, to the bot, the bank of Tanzania, uh, which is really benefiting. Now, what we're seeing in Q4 around things, like revenue and and cash flow, and and um, Ava and and working capital for the the last quarter of the year. And, and really, this, this this is useful, as I mentioned to us as a company, uh, for for a number of reasons 1 of which is that we incur a lot of
So a good initiative all around.
Speaker Change: Uh, local cost and local currency that we can use the Shilling for we benefit from the royalty rate, but this disagreement helps Drive uh, things like local content, and local beneficiation, which has been a key area of focus for for the government, to amongst other things help, uh, improve their their foreign exchange reserves. So uh a good initiative all around.
Actually, I'm going to chat with you for a second. One of the things you will notice is we have financed this company through short term liquidity lines would stand back with an ORMIT facility as well as working with our suppliers around payable. So, so that is all short term liquidity lines. that are funding a long term asset. And so that what Ed has done in our financial statements is shown a profile we're comfortable with the way we finance. But at quarter end, you would still see negative working capital. And one of the things that, you know, is front and center in our press release, as well as in our operations going forward in the real short term, is right sizing that working capital ratio and making sure that it gets above one.
Speaker Change: Actually.
Speaker Change: 1 of the things you will notice is
We have.
Speaker Change: Short-term, liquidity lines, would stand back with an arm at facility as well as um, working with our suppliers around payable. So, so that is all short-term liquidity lines, that are funding a long-term asset. And, and so that what that has done in our financial statements is showing a profile. We're comfortable with the way we Finance this thing.
It's above one today, and it's continually to improve. So we're, we think it's one of the things that holds us back in the market from financial metrics perspective, vis-a-vis other comps, and I'll get into that in a second. But that's certainly a very, not ever predominantly through the strict campaign and into the higher grades, is right sizing working capital as a short term goal. Yeah, no, you said it. Well, Stephen, I mean, that that's really the last two points and you're seeing the benefit from it in in Q4 productions increased, you know, we're up to about 75 ounces a day, which is substantially up and Q3.
But it it at quarter end you would still see negative working capital and 1 of the things that you know is front and center in our press release, as well as um, in our operations going forward. In, in these real short term is Right sizing, that working capital ratio, and making sure that it gets above 1. It's above 1 today and it's continually to improve. So we're, we think it's 1 of the things that holds us back in the market from Financial metrics perspective. Uh, Visa via their comps and I'll get into that in a second. Um, but that's certainly a a very that upwork phenomenally through the strip campaign and into the higher grades is Right. Sizing working capital is a short term goal of ours.
And in six, you know, short weeks, we've been able to recapitalize that working capital deficit that we'd incurred through that strip campaign. And as you mentioned, I mean, reduced things like accounts payable by almost $6 million, repaid our, our short term borrowings, we've got full access to our liquidity lines. And, you know, the focus over the the rest of Q4 is to strengthen that liquidity and set us up for execution of the PEA you touched on earlier. Yeah, we have no long term liabilities besides a couple leases on long term equipment. I believe our trucks are paid for now as well, right?
Yeah, no. You you you said it. Well, Stephen I mean that that that's really the last 2 points and you're seeing the benefit from it in uh in Q4 Productions increased. You know, we're up to about 75 ounces a day, which is substantially up from both Q2 and, and, and Q3 and in 6 weeks we've been able to recapitalize that
Uh, working capital deficit that we'd incurred through that strip campaign. And, uh, as you mentioned, I mean, reduce things like accounts payable, by almost 68% our, our short-term borrowings, we've got full access to our liquidity line and, you know, the focus over the the rest of Q4 is is to to strengthen that liquidity and set us up for um execution of the the Pea you touched on earlier.
So that that that lease trucks come off, as well as so we're just left with the excavator long term leases. Yeah.
Speaker Change: Yeah, and we have no longer liabilities besides a couple of leases on long-term equipment. I believe our trucks are paid for now as well, right? So that that that leases on trucks come off as well as. Um, so we're just left with the excavator long-term leases.
Why don't we turn to the next slide, if we can, please, where we've talked about this, I think, over the last few quarters, but for folks new to the story, you know, Stephen touched on earlier, we have expanded three times in three years successfully, we are operating at 2000 tons a day at full capacity, we did just under 1500 tons a day of throughput in Q3 after some schedule . downtime. But, you know, with that larger plant, I touched on the economies of scale, you're seeing it come through the processing cost per ton. But that throughput there is really what's driving the increasing production.
Speaker Change: Yeah.
Speaker Change: Why don't we turn to the next slide? Uh, if we can, please where? Um, we've, we've talked about this, I think over over the last few quarters, but for folks, new to the story, um, you know, as Stephen touched on earlier, we, we we have expanded. Um, um, 3 times in 3 years successfully, we are operating at 2,000 tons a day at, at full capacity. We did just under 1500 tons a day of of throughput in in Q3 after some scheduled maintenance and downtime. But you know, with that larger plant I touched on the economies of scale you're seeing it come through the processing cost per ton.
It is a bit of a lower grade profile based on where we are in the pit and the strip we've seen to date, but really starting to see the benefits now in Q4 now that we're getting at those higher grade ore blocks and doing about 75,000 ounces a day that we expect to continue through the Yeah, so one of the things is Klopp is Richard now available? I know you're in the same room. Okay, yeah, we hear you just fine. So one of the things Mike touched on is three mil expansions into three years. And I know I'm going to get ahead of the question.
But that throughput, there is really what's driving. Uh, the um the increasing production. Um it is a bit of a lower grade profile based on where we are in the pit and the strip. We've seen to date but really starting to see the benefits now in in Q4 now that we're getting at those higher grade or blocks and and doing about 75,000 ounces a day that we expect to continue through the end of the year.
Richard: Yeah. So my 1 of the things is cloth is Richard now available. I know you're in the same room.
And one of the questions that is bound to come is how we're going to deal with the plant expansion going forward vis-a-vis the PEA and what I'll call what we're currently thinking 5.5.5 around the initial plant upgrades that you're going to be making in the next four to six months, as well as how we envision building out the plant.
Speaker Change: You hear me speaking? Okay, yeah, we hear you just fine. So 1 of the things Mike touched on is 3 mil. Expansions in the in the 3 years and I know I'm going to get ahead of questions. You know, 1 of the questions that is bound to come, is how we're going to deal with the, um,
Speaker Change: the plant expansion going forward visibility to pea and our what I'll call what we're currently thinking 5555 um,
Do you want to just give the shareholders just a quick high-level summary of that? Sure. Absolutely. So our plant has been upgraded multiple times, and it's now at a target of 2,000 tons per day. There are many opportunities to optimise the plant as it is at the moment, and when we see some of the results, we'll notice that there is room for improvement. So in the next three or four months, we're focusing on just optimising the current 2,000 ton per day plant. adding enhancements that are part of a longer term expansion by modifying the flow sheet in incremental ways.
Speaker Change: Plan. You want to just give the journal is just a quick high-level summary of that.
Sure, absolutely. So our
Our plant, um, has been upgraded multiple times, and it's now at a target of 2,000 tons per day. Uh, there are many opportunities to, uh,
Speaker Change: Optimize the plant as it is at the moment and when we see some of the results, we'll we'll notice that there is room for improvement. So, in the next 3 or 4 months, we're focusing on just optimizing the current 2000 ton per day plant. Um, and
So one of the flow sheet modifications is the addition of a pre-leach thickener that is planned for the expanded plant and getting that in early. That will enable us a lot better control of our leaching process. It will allow us to feed higher grade through the mill as well. And we believe we'll improve our overall recovery through that process. The next aspect that we're trying to do in this next five or six months is put a new absorption desorption recovery plant, or ADR plant, into the process. That will have the ability to... make considerable enhancements to our carbon management process, our current process is quite manual, we get a lot of breakage, a lot of fines and a lot of gold loss through that damage to carbon and this new plant will enable us to minimise, eradicate a lot of that and probably give us another 3 or 4% improvement in recovery in that way.
Speaker Change: Adding enhancements that are part of the longer term expansion. Uh by modifying, the flow sheet in uh, incremental ways. So uh, 1 of the uh flow sheet modifications is the addition of a uh a pre-lit thickener that is uh planned for the uh expanded plant and get getting that in early. That'll enable us for a lot better control of our leeching process. Uh it'll allow us to feed higher grade through the mill as well. Um,
And we believe will improve our, our overall recovery. Um uh through that process. Uh, the next aspect that we're trying to do in this next 5 or 6 months, is put a new absorption dorion recovery plant or ADR plant into the into the process. Uh that will have the ability to um
Other improvements are through optimising our mills. We've just embarked on a program of optimising the power draw. We've noticed we're not drawing enough power through our mills and we can improve that and improve throughput. It gives us the opportunity to put more charge into the mills and therefore get a finer grind and more throughput. So, um... Some small, easy additions to the plant and then some larger items that are part of still a 2,000 tonne per day operation that will improve recovery substantially from where they are now up to a much higher level.
Speaker Change: Make considerable enhancements to our carbon management process. Uh, our current process is quite manual. We get a lot of breakage, a lot of fines and a lot of gold loss through those through that damage to carbon and this new plant will enable us to minimize eradicate. A lot of that and probably give us another 3 or 4% uh Improvement in recovery uh in that way.
Speaker Change: Uh, other improvements, uh, through optimizing our Mills, We believe We, we've just embarked on a program of, um, optimizing the the power draw. We we've noticed we're not, we're not drawing enough power through our Mills, uh, and we can improve that through and improve. Throughput through gives us the opportunity to put, uh, more charge into the Mills and therefore, get a finer grind and a finer and, and more throughput. So, um,
Then the expansion work requires another flow sheet change, which involves a flotation circuit and fine grinding of the sulphide concentrate that we get from that flotation plant. And secondly, a far more simplified comminution or crushing and grinding circuit that is all related to 3,000 or more tonnes per day. So they're the various steps that we'll be taking over the next 6, 12 and 18 months to get that effect.
Speaker Change: Some small easy easy, uh additions to the plant and then some larger items uh that are part of still a 2,000 ton per day operation. That will improve recovery substantially from where they are now um, up to a a much higher level. Um,
Perfect, Richard, thank you for that. And I think that's a good overview. And it gives the investor some comfort that it's being well handled. We do need to focus on, you know, efficiency. So what some of the things that will happen as a result of what Richard just described is higher head grade, as you guys hear, means lower cash costs per tonne, lower process. Costs per ounce, sorry. And also, it enables us to, the power drought will probably enable us to push more tons through the plant, which means lower cost per ton, lower cost per ounce.
Speaker Change: Then the expansion work requires another flow, sheet change, which it will require involves a, a flotation circuit and fine grinding of the sulfide. Concentrate that we get from that flotation, um, plant. Um, and secondly, a, uh, a far more, simplified combination, or or crushing, and grinding circuit. Um, that is all rated to, uh, 3,000 or more tons per day. So they are the various steps that we'll be taking over the next 6, 12 and 18 months to to get that achieved.
Speaker Change: Perfect Richard, thank you for that and I think that uh, a good overview um, and and gives a investor some comfort that is being well handled. Um we do need to focus on you know efficiency. So what some of the things that will happen as a result of what Richard just described is higher head grade. As you guys here uh means lower cash costs per ton, lower processing costs per hour. Sorry and also it enables us to
Those are some of the sort of metrics that are going to improve as we improve the plant here in the next five to six months. Thank you, Richard. Mike, back to you.
Okay, why don't we touch on the next slide briefly, Steve? This slide just kind of reinforces the approach that we touched on earlier to how we're running and operating this business. We continue to use organically generated operating cash flow to fund growth. We did reinvest another $5 million of cash flow into the business this quarter. And to date, you can see on the far right box that we've put in over $50 million following an early capital raise in 2021, coupled with almost $40 million of operating cash flow that's been reinvested in this business. The goal would be to continue to use cash flow to help fund some of the enhancements and growth that Richard just touched on.
Speaker Change: The power drive will probably enable us to push more times through the plant, which means lower costs are done lower cost per ounce. Those are some of those sort of metrics that are going to improve as we improve these improve the plant here in the next uh, 5 to 6 months. Thank you, Richard mic back to you. Okay. Why don't we touch on the next slide, briefly? See
Speaker Change: In 2021, uh, coupled with almost million dollars of operating cash flow, that's been reinvested in this business. So, you know, the goal would be to continue to use. Um,
But what you can see is it is driving increases in things like revenue and EBITDA. And we continue to do it very, very cost effectively. We've got a very, very lean management team and continue to keep a keen focus on things like G&A to make sure our overhead costs are in check. But our approach is being very, very prudent with capital to drive higher profits.
Yeah, Mike, I'm just going to add on DNA there for a second because I do get quite a few questions on the non controlling in the financial statements based on the JV. As everyone's aware, we have a joint venture with Steminco, 5545. And one of the things is G&A costs, particularly corporate costs come down below bucks. And so that's one of the reasons why we're we are very sensitive to make sure we maintain G&A and very prudent on G&A costs in order to in the future, hopefully drive higher net profit per share and other financial metrics that the market will look at.
Speaker Change: Slow to help fund some of the enhancements and growth that Richard just touched on. Uh, but what you can see is, is it is, uh, you know, driving increases in things like revenue and ibida. Um, and we continue to do it, very, very cost effectively. We've got a very, very lean management team and uh, continue to keep a keen focus on things like GNA to uh to make sure um you know our overhead costs are are in check. Um but you know our approach is is is being very, very prudent with with capital uh to drive higher profitability.
Speaker Change: Yeah, Mike. I'm just going to add on DNA there for a second because
Speaker Change: I do get quite a few um questions on the non-controlling interest number.
The financial statements based on the JV as, as everyone is aware, we have a joint venture with domain call. Um,
Speaker Change: 1 of the things is G.
Speaker Change: Costs come down below, Buck brief. And so that's 1 of the reasons why we're. We are very um sensitive to make sure we maintain GNA in a very prudent not GNA cost in order to in the future. Hopefully Drive higher net profit per share and other Financial metrics that uh, the market will look at and that people will do screens on
Okay, next slide. And we don't have Richard. So obviously, we have comms issue in in Tanzania. So I presented this slide in in the last presentation, and a lot of people liked it. So because it was fairly easy to understand. A couple of things in this slide that... that are relevant. One is We like purples. We particularly like deep purples in this slide.
Speaker Change: Okay. Next slide.
And we don't have Richard. So, um, obviously we have a comms issue in the, in Tanzania. Uh, so I I presented this slide uh, in in the last presentation and a lot of people liked it, so because it was fairly easy to understand, a couple things, uh, in the slide that um,
Speaker Change: That are relevant. 1 is
And here he is back.
And so buckreef gets better grades as we get And so what this slide is showing here now is where the mining has occurred up till May 31st and where mining is going to occur the rest of the year. So Richard just provides us with a Give the investors a quick sense of where you're going to mine the rest of the year, how that's going to improve the grade profile going to the mill, and also one of the things that we did mention in our press release.
Speaker Change: we like purples, we particularly like deep purples um in this slide and here he is back and and so Buck Reef gets
Speaker Change: um, better grades as we get deeper.
Speaker Change: And so what this slide is showing here now is where the mining has occurred um up till May 31st and we're mining is going to occur to the rest of the year. So Richard just provides us with a um,
Transcripts by Transcription Outsourcing, LLC. and how that will change over time. Sure. Thanks, Stephen. Okay. Well if we just follow the colours, the warmer colours represent the higher grades and in the beginning of FY25 we focused on the right hand side of that page to much lower grades. Over the last two quarters, as we signalled in these meetings, we pushed the strategy to get back to the central and southern part of the main pit, and we've succeeded in doing that last quarter, and we've now accessed these high grades. So we've got not only higher grades, but plentiful ore that we are now accessing by We've got about two months' supply already now of high-grade and feed grade ore that's ready to go for processing, and that'll continue.
We'll give the investors a quick sense of where you're going to mine the rest of the year. How that's going to improve the grade profile going to the mill and also 1 of the things that we did mention in. Our press release is the significant increase in The Romp pad and both from a tons perspective, Oz perspective and grade perspective.
Speaker Change: And how that will change over time.
Speaker Change: Sure. Yeah, thanks. Okay. Um,
Well, if we just follow the colors, uh, the warmer colors represent the higher grades and in the beginning of uh, FY 25 we focused on the right hand side of that page to uh, much lower grades. Um,
Speaker Change: With.
We'll be in a very healthy position now until we finish stage one of the pit, which is another six or seven months away. So we've built ourselves into a good strong position with good feed for the plant and we've also now started the second stage of stripping. for all Excellent. Thank you, Rich.
Speaker Change: Over the last 2 quarters. As we signaled in these meetings, uh, we pushed the strategy to get back to the central and southern part of the uh, main pit. And we've succeeded in doing that last quarter, and we've now accessed these high grades. So we've got, um, not only higher grades but plentiful law, uh, to that we are now accessing by, you know, with with sewing. The the well we've received the, the benefits of that strip. Um, so, uh, the other benefit of that is, we've got, uh, a much lower strip ratio now going forward for a little while. And that enables us to, uh, really grow our stockpiles ahead of the. I read ahead of the processing plant to the point now, where I would suggest, we've got about 2 months Supply already, now of high-grade and and, and feed grade or that, that's ready to go for processing.
Speaker Change: And that will continue will be in a a a very healthy position. Now uh until we finish stage 1 of the pit, which is another 6 or 7 months away. So we've built ourselves into a good strong position with, with feed for, uh, good feed for the plant. And we're also now started the state. The second stage of stripping, um,
Speaker Change: For stage stage 2 of the pit, and, uh, we've built up a nice healthy stockpile to see a screw, uh, uh, a gap of, uh, all mind or, uh, that'll hit us in about, uh, 7 or 8 months.
So getting on to the next slide, just a brief overrated PEA. So as Richard just described, the grade profile is improving. There's healthy stockpiles. We're moving through the pit in a very good sequence, which is part of the PEA. And so in that PEA, that sequence continues for three to four years of open pit mining in various stages. I think there's three stages, Richard, for the open pit. Look, two stages in this pit now, we've reduced it from a three-stage pit to a two-stage pit and the third stage is really underground. Yeah, so so we're moving through that sequence.
Excellent. Thank you, Richard.
Speaker Change: In a very good sequence which is part of the Pea. And and so in that pea, that sequence continues for 3 to 4 years of open pit mining in various States. I think there's 3 3 stages, Richard for the open pit.
Speaker Change: Uh look 2 stages in this pit. Now we've reduced it from a 3-stage pit to a 2-stage pit and the third stage is really underground. So um yeah
And why that's important is because that sequence in the way that it's engineered, goes through the plant expansion. goes through the mining of the higher grade ore blocks in the open pit part, creates cash flow for the underground. and the underground workings in in about three to four years time. So I won't go through the metrics again of the of the PEA. They're on the on the slide here. They're quite obvious. Obviously it was quite healthy. The key to in talking to investors over the last couple months that I'm going to release this study is one of the things in mining is everybody asks, what's your upfront cap?
yeah, so so we're moving through that sequence and and what why that's important is because that sequence and the way that it's engineered
Speaker Change: um,
Speaker Change: goes through to plant expansion.
Um goes through the mining of the higher grade or blocks in the open. Pit part creates cash flow for the underground expansion um and the underground workings in in about 3 to 4 years time. So I won't go through the metrics again of the of the Pea, they're on the on the slide here, they're quite obvious. Obviously it was quite healthy the key to in talking to investors over the last couple months since we released this uh study is
How much do you need to fund in order to execute your business plan? Our comment has always been we got a little cute in the IRR. We probably should have stepped back a little bit because we get asked that question. So what's your IRR? We say, well, Given that the way the study was put together and it was predominantly self-funding, you don't have an initial capex up front, so you don't have an IRR. But everybody asks, so what are you going to spend over the next three to four years? And the reality is that spend is around $90 million.
Speaker Change: 1 of the things in mind and is everybody asks what's your upfront capex?
Speaker Change: How much do you need to fund in order to execute your business plan?
Speaker Change: and,
Speaker Change: Our comment has always been. We got a little cute in the irr. Um, we probably should have stepped back a little bit because we get asked that question. So what's your irr? And we say, well,
The first two years of the study is predominantly to plant expansions, and Richard just went through with you on how that would operate. And then the third and fourth year are predominantly the development of underground development to feed the plant for the remainder of the mine life. And this is all within the Buck Reef Main Zone, does not include Anfield, where I mentioned before our best drill hole results are, as well as Stanford Bridge, as well as Anfield. also has really good drill hole results. So this is a capex profile that split down the the plant expansion first and then to the underground workings thereafter.
Speaker Change: Given that the way to study was put together and it was so predominantly self-funding. You don't have an initial capex up front so you don't have an irr. It's an infinite, too certain degree. Um but everybody asks so what are you going to spend over the next 3 to 4 years and and the reality is that spend is around 90 million dollars. The first 2 years of the study is predominantly the Atlantic expansions and Richard just went through with you on how that would operate and then the third and fourth year of predominantly the development of underground development to feed the plant for the remainder of the um uh of the mine life. And this is all within the buck, 3 main Zone does not include a field where I mentioned before our best drill hole results are, as well as don't. Sorry, Stanford Bridge as well as ampfield, which also has um, really good drill hole results. So this is a capex profile that's split down between
And so everybody asks, so how theoretically when you're operating this business How much do you need to raise? Because everybody's asking us. Okay. When are you going to raise money to do this? And the answer that we have is right now, we're self-funding. As Mike mentioned, we've invested a lot of money into self-funding. Right now, it's contemplated to continue to be self-funding. And if you look at the projected operating cash flow as well as projected EBDA, and the multiples on the CapEx in the first four years, it says that we should be able to do this predominantly being self-funded going forward.
So I just wanted to make sure that people understand that and the way that the study... Mike, anything to add to that? We get a lot of questions around this. You're on mute. Yeah, not off yet. in Canada as well. Apologies. No, I think that was well said. And again, I think that clarifies a lot of the questions we've been getting from folks over the last few weeks since we published the PEA. Thanks.
Speaker Change: The um, the the plant expansion first and then to the underground workings thereafter. And so everybody asks, so how theoretically when you're operating this business, um, how much do you need to raise? Because everybody's asking us, okay. When are you going to raise money to do this? And, and, and the answer that we have is right now, we're self-funding, as Mike mentioned, we've invested a lot of money into self-funding. Um, right now it's contemplated to continue to be self-funding and if you look at the projected operating cash flow as well projected ebta and the multiples on the capex in the first 4 years, it says that we should be able to do this predominantly being self-funded going forward. So I just wanted to make sure that people understand that and the way that the study was laid out.
Speaker Change: Like anything to add to that because we get a lot of questions around this.
Speaker Change: You're on mute.
Speaker Change: No, not off yet.
Tom: Tom's issues in in Canada as well. Apologies. Uh now I think that was well said and uh and again I think that clarifies uh a lot of the questions we've been getting from folks over the last few weeks since we published The Pea, thanks for that.
So with regards to we put the comparable company analysis and one of the things that I mentioned earlier focusing on is if you don't get people moved up on this curve. They've executed both on ounces, expansions, and importantly, they have what I'll call normalized working capital. And so the short to medium term focus for us is to make sure that we're not discounted because of our work in California. And so we will be continually working on paying down some of our payables and capitalizing the business appropriately to make sure that our working capital ratios are in line with market comps that have And also, when I look at the and others who have moved up on this curve as well, making sure we have the capital discipline in executing our expansion plans, as well as continually growing that business is also extremely important to move up on this curve.
So with regards to we, we put in the comparable company analysis and and 1 of the things that I mentioned earlier of focusing on is if you don't get people moved up on this curve.
Speaker Change: They've executed both on Oz expansions and the importantly they have what I'll call normalized working capital ratios.
And and so the short the medium-term focus for us.
Speaker Change: Is to make sure that we're not just counted because of our working capital ratios.
Speaker Change: And so we'll we will We continually work on paying down some of our payables and capitalizing the business uh appropriately to make sure that our working capital ratios are in line with Market comps that have performed.
So the focus, although we're behind today, hopefully we can start to catch up when we recapitalize through the through, you know, increases in production.
Speaker Change: And and also, when I look at the the, you know, others who've moved up on this curve as well. Um, making sure we have the capital discipline and executing our expansion plans as well as continually growing that business is also extremely important to move up on this curve. So Focus all over behind today hopefully we can start to catch up when we recapitalize through the um,
Cost Management, as well as our With regards to the capital structure, we did not issue any capital raises in the last quarter or the last couple of years. The stock is still oscillating. As I mentioned, I think a large part of that is you got a billion dollar study in the market. America wants to see you get there to get there and wants to make sure that you have the proper capital to get there. And when we recapitalize the next couple quarters, I think we should see hopefully start to on the share price. We also, you know, have picked up our marketing campaigns now that the PEA is out through various parties and ourselves and we are having a lot more, particularly institutional meetings, I would say, Mike, over the last two to three months than we normally have.
Speaker Change: And cost management as well as our expansionary plans.
With regards to the capital structure.
We've started to see some institutions come into the stock on 12Fs. So that's been encouraging as well, although small thus far.
This does take a little bit of time to execute, but certainly a So I really, really rate key investment highlights before we get into the Q&A. We're seeing strong growth and sustained profitability and other ways to cut costs and keep those costs down. We do have to prove an operational track record. We have a robust business plan and the PEA in front of everyone. We are in a good mining jurisdiction. We get along quite well with the Tanzanians as I mentioned on earlier calls. We are in front of the government negotiating team and others. to the attempts to revise the joint venture agreement that should happen.
Speaker Change: We did not issue. Uh, any Capital raises in the last quarter or the last couple of years. The stock is still oscillating. As I mentioned, I think a large part of that is, uh, you got a billion dollars study in the Market. America wants to see you get there to get there, it wants to make sure that you have the proper Capital to get there. And when we recapitalize, the next couple quarters, I think, uh, we should see hopefully start to see some movement on the share price. We also, um, you know, have picked up our marketing campaigns now that the P Pas out, um, through various parties and, and ourselves. And we are having a lot more particularly institutional meetings, I would say, mike over the last 2 to 3 months, then then, we normally have, we've started to see some institutions come into the stock on 12 FS, so that's been encouraging as well. All those small thus far, this does take a little bit of time to uh, execute but certainly a team focus of ours.
Speaker Change: So I've really, really, really read the key investment highlights. Before we get into the Q&A, um, we're seeing strong growth and sustained profitability and other ways to cut cost. Um, and keep those costs down, we do have to prove an operational track record, we have a robust,
Yeah, it's politics. So and there's an election in October. So we'll see if we can do anything before then. But more than likely into the new year next year.
Business plan and the Pea in front of everyone. We are in a good mining jurisdiction. Um, we are get along quite well with the tanzanians as I mentioned. Um, on earlier calls we are in front of the government negotiating team and others with regards to to the attempts to revise, the joint venture agreement. Um, that should happen.
uh,
We have the technical experience both on the ground and in corporate to execute our So I'm going to pause there and turn it over to moderator for Q&A. Thank you, Stephen.
Speaker Change: it's politics. So and there's an election in October, so we'll see if we can do anything before that, but more unlikely into the new year next year, um, we have the the technical experience both on the ground and in corporate to execute our business plans. So I'm going to pause there and uh, turn it over to moderator for Q&A.
If you wish to ask a question, please click the Q&A icon on the left-hand side of your screen. You will see the options. Raise your hand. to join the queue and ask your question verbally or write a question to submit your question in writing. When you are introduced, you will see a prompt on screen asking you to click continue. You will be live in the call as soon as you do so.
Speaker Change: Thank you. Stephen, if you wish to ask a question, please click the Q&A icon on the left hand side of your screen, you will see the options. Raise your hand.
Speaker Change: To join the queue and ask your question verbally.
Speaker Change: Or write a question to submit your question in writing.
Speaker Change: When you are introduced, you will see a prompt on screen asking you to click continue.
Analysts who have dialed into the conference call, please press star then 1 on your telephone keypad to join the question queue. We'll pause for a moment as participants join the queue.
Speaker Change: You will be live in the call as soon as you do. So,
Analysts who have dialed into the conference call. Please press star then 1 on your telephone keypad to join the question queue.
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And our first question will come from Jake Sekelsky with Alliance Global Partners. Please go ahead. Hey, Steve and Michael on team. Thanks for taking my questions. Morning, Jake. So just starting with throughput during the quarter, we saw a 25% oxide, 75% sulfide mix. Any visibility on how you expect this to trend in the coming quarters? Yeah, so I'm going to answer that.
Speaker Change: And our first question will come from Jake Sakowski.
Speaker Change: With Alliance Global Partners, please go ahead.
Hey, Stephen. Michael on team, thanks for taking my questions.
Speaker Change: Morning. Jake.
Speaker Change: So just starting with throughput during the quarter, um, we saw a 25% oxide 75% stole 5 mix. Um and visibility on how you expect this to to Trend uh in the coming quarters.
Yeah. So I
And I'm going to ask Richard to finish my answer. When he said there will be a pre-leach thickener, that is to get to 100% sulfides in order to have a better head grade. So currently, what's happening is the oxides are lower grade, but they're needed in order to float carbon appropriately in order to get gold recovery. So this is one of the items that is high in So Richard, you're much more technical than I am.
Speaker Change: I can answer that and I'm going to ask Richard to
Richard: To finish my answer.
Speaker Change: When he said there will be a pre-lease thickener.
Speaker Change: Um, that is to get to 100%. Oh, sulfides that have a um, in order to have a better head grade. So currently, what's happening is the oxides are lower grade, but they're needed in order to float curve.
You want to just continue to answer that. I think you answered it okay, but in terms of timing, we're looking to get the thickener installed by the end of this calendar year. So we're looking that we'll probably not feed oxides much at all, or at such a high percentage going from calendar year 2026 onwards. And yeah, that will probably raise our head grade by about 0.3 of a gram, 0.4 of a gram.
Um, appropriately in order to get goal recovery. So this is 1 of the the items that is high in Richard's list. So Richard, you're much more technical than I am. You you want to just continue to answer that question?
Uh, I think you answered it, okay? But in terms of timing, uh, we're looking to get the thickener installed by the end of this calendar year. So we're looking that we'll probably, uh,
And so also, Jacob, really, when you look at the way this is being executed, we have predominantly an oxide plant right now, that is being upgraded to a sulfide and as part of the fixer and as part of the flotation and regrind and circuit changes that Okay, that's helpful. And then building on that a bit, just on recovery, you touched on the finer grind work that's ongoing. Any additional color on what that timeline looks like? I mean, are those benefits we might see in the next few quarters? Or is that a program that might take a bit longer?
Not feed oxides, um, uh, much at all, or as a at such a high percentage. Uh, going from calendar year, 2026 onwards and um, yeah. That will probably raise our head grade by about 0.3, migram. Uh, 0.4 of a gram.
And so also Jacob really when you look at the way this has been executed, we have predominantly an oxide plant.
that is being upgraded uh to assault by and as part of a fixer and as part of the flotation and reg grind and circuit changes that Richard has been explaining
Speaker Change: Helpful. Um and then building on that a bit just unrecovery um you touched on the finer grind work. Uh that that's on Dillon.
Um, any additional color on on what that timeline looks like? I mean, are those uh benefits we might see in the next few quarters or is that that uh
A program that might take a bit longer.
We're working on two aspects of grindability, so our current process requires us to get a P80 of about 75 microns and we've achieved that but not in a stable fashion. The more we work on that, we'll see slightly better recoveries. The flotation plant with the associated fine-grind egg or eiser mill will be roughly 12 to 15 months away. But the intent for me is to try and get this in and running by financial year 2027. Then we'll see a big jump in recoveries associated with that. Yeah, well, Richard, I think that the timelines with Jake models that stuff sort of out For recovery rates into the low 80s, those are kind of where we're going to do what we're doing into the current plant upgrades with the thickeners and the 80 air plant.
Speaker Change: Go ahead. Maybe I'll just jump here on this 1. Uh, we're working on 2 aspect of, of growing ability. So our, our current process, uh, requires us to get a pad of about 75 microns, and we have achieved that, but not just not not, not stable in a stable fashion. So the more we work on that, we'll we'll see slightly better. Recoveries the, um, the flotation plant with the associated, uh, fine grind, Hig or, or or eyes are mil. Uh, we will be roughly 12 to 15 months away but the intent for me is to try and get this in and and running by Financial year 2027. Um and uh then we'll see. Yeah a big a big jump in in recovery. Um uh
Associated with that.
That's the goal there. And then the high 80s, low 90s. in sulfides. That's with the flotation. as well as the upfront crush. Agreed. So, so we'll see recovery improvements, stepwise recovery improvements with the in about by the end of the calendar year, and hopefully some other minor improvements, just operational optimizations ahead of that as well. Okay, so targeting a step up to low 80s in the next couple quarters and then another step to high 80s, low 90s over the next 18 months. That's not fair. Yeah, and that's modeled out in the PEA as well, that way.
Speaker Change: Yeah, so Richard, I think that that the timelines with Jake models that stuff sort of out is for Recovery rates. Um, into the low 80s. Those are kind of where we're going to do what we're doing into the current plant upgrades with the thickeners and the 80 airplanes. That's the goal there.
Um, and ended at a high 80s, low 90s, um, in sulfides, that's with the flotation and regrind circuits.
Speaker Change: And as well as The Upfront. Um crushing circuit
Speaker Change: Okay, great, so so we'll see.
Speaker Change: Uh, recovery improvements. Uh, stepwise recovery improvements with the uh, in about
Speaker Change: By the end of the calendar year um and hopefully some other minor improvements just operational. Uh optimizations uh ahead of that as well.
Okay, so so targeting us up up to low 80s, uh, in the next couple quarters and then uh, another step to high 80 below 90s over the next.
Speaker Change: 18 months, that's not fair.
The, you know, what I'll add to that as well, Richard, I think, you know, as we get more and more experience with buckreef, there are different Geometric Zones that have different recovery rates in them. So the lower grade zones that we're in at the beginning of the year have lower recoveries, lower grade, and lower recoveries than the current zone that we're in.
Yeah, and then and yeah, and that's modeled out in the Pea as well. That way the um, you know what, I'll I'll add to that as well. Richard I think you know, as we get more and more experienced with f*** grief, there are different. Um,
If you want to just give a quick overview, snapshot of that, Richard, because that's important. yeah sure so yeah look we're doing a lot of metallurgical test work part of that is on the current ore that we have at the moment and part of that is the ore that's going to be with us for underground and we're looking at things from a geometallurgical perspective from a flotation perspective from a grindability perspective so all that works ongoing we've already found out some very interesting attributes of the ore body and we've kind of split the ore body into two geometallurgical domains and we know that we've got to take slightly different approaches to the processing of those But yeah, it's, you know, we have to mine it all, it's all economic, we just have to optimise our plant to, according...
Speaker Change: Geometric zones that have, you know, different recovery rates in them. So the lower grade zones that we were in at the beginning of the year, have lower, recoveries lower grade, and lower, recoveries than the current Zone that we're currently in um you want to just give a quick overview of snapshot of that Richard because that's important and
Richard: Yep, sure. So yeah. Look, we're doing a lot of um, middle test work part of that is on, uh, the current, uh, all that we have at the moment. And part of that is the uh, uh the, the all that's going to be, uh, with the surrounding ground. And uh, we're looking at things from a, a geometrical perspective, from a flotation perspective, from a grindability perspective. So all that works on going, we've already found out some very interesting attributes of the, your body. And we've kind of
Richard: Split the your body into 2 GM metallurgical domains. Uh, and we know that we've got to take slightly different approaches to the processing of those 2. Um, but yeah, it's um, uh, you know, we, we have to mine at all. It's all economic, we just have to optimize our plant to, uh, accordingly. So,
I was just going to say, I mean, Richard, maybe you could briefly comment, but we've got the results of a geometallurgic study that have sort of given us a roadmap to follow to deal with some of these more complex geometallurgic zones, coupled with a combination study that, you know, has, you know, given us a roadmap for the approved flow sheet, right? That's right and you know as I said there are small optimizations we can do additional to the flotation circuit just running some pure oxygen and some over the first tank of the CIL tank will probably give us another another small kick in these sorts of things so and it's it's more effective on one geometallurgical domain than the other so yeah there's a lot of a lot of fine tuning that we need to do it's a it's a small it's a young plant and and you know we're we're finding our way through it to get the best results.
Speaker Change: And I I think, yeah, yeah and I was just going to say, I mean, Richard, maybe you could briefly comment, but we we've got the results of a Geo metallurgic study that have sort of given us a roadmap to, to follow to deal with some of these, uh, more complex, uh, Geo metallurgic zones uh coupled with a common use study that uh, you know, has has um you know, given us a roadmap for the approved flow sheet, right?
Speaker Change: That's right. And, you know, as I said, there are small optimizations, we can do additional to the flotation circuit, uh, just running. Um, some pure oxygen and some some, uh, over over the first tank of the Cil tank will probably give us another another small kick in in these sorts of things, so and it's it, it's more effective on 1gm metallurgical domain than the other. So yeah, there's a lot of a lot of fine tuning that we need to do. It's a it's a small, it's a young plant and and you know where we're finding our way through it to get the best results.
Thanks for that. Okay, that's all for me.
I'll hop back in.
Speaker Change: Thanks for that. Okay, that's all for me. I'll hop back in queue.
The next question will come from Mike Niehauser with Roth Capital Partners. Please go ahead. Hi, good morning. Stephen, can you hear me okay? Yeah, I can hear you just fine, Mike. How are you doing this morning? Good, thanks. You know, I'm heartened by Richard's comments about optimizing the plant, really do it in several ways, and it seems like it's perfectly timed with the transition from oxide toward the sulfides. My question is, it sounds like you're pretty much wheels up with the pushback of this pit to proceed down the path of the PEA by continuing production, generating cash flow, and completing the steps of being able to do flotation circuits and get underground.
Jake: Hey, Jake.
Speaker Change: The next question will come from Mike NIH Hower with Roth Capital Partners. Please go ahead.
So really, it seems like you're just going to feather right into that. Am I seeing that correctly? Correct. A simple answer. That's good.
Speaker Change: Hi, good morning. Uh, Stephen can you hear me? Okay, yeah, I can hear you just fine. Mike, how are you doing doing this morning? Good thanks. Um, you know, I'm heartened by uh uh, Richard's comments about optimizing the plant, um, really do it in several ways and it seems like it's perfectly timed with the, you know, the transition from oxide to the, uh, toward the sulfides. Um, you know, my question is, it sounds like you're, you're pretty much wheels up with the push. Back of this pit to proceed down the path of the Pea by, you know, continuing production generating cash flow. And, you know, completing these the steps of, you know, um, being able to do uh, flotation circuits and get underground. So really, it seems like you're just going to feather right into that. Am I seeing that correctly?
Speaker Change: Correct. Yeah, simple answer. Okay.
I don't want a lot of showtime here. The other question is, there's a lot of surface material around the project that's oxidized. Is that going to take a backseat to the sulfides and underground, or is there a way to avail yourself of that with the existing plant that could take advantage of the market and such? Yeah, so you saw Richard smile on that when you asked that question. Look, we're constantly assessing oxides around that around the property. And part of that is increasing the exploration spend, which that we will need to put into the fiscal 2026 budget.
Speaker Change: Well, that's that, that's good. I, I don't I don't want a lot of Showtime here. The other question is um you know, there's a lot of um there's a lot of uh, surface material around the the project to be op. It's oxidized. Um, how how do you see, uh, is that going to be, uh, take a backseat to the sulfides and underground or is there a way to Avail yourself of that with the existing plant that could, you know, take advantage of um, you know, take advantage of uh, you know, the market and such
And anytime you have more oxides, there's a trade off between here and the way that we looked at this is If we have below one gram a ton oxides, and you have two and a half gram a ton sulfides, well, once these plant optimizations are done, you're going to put the two and a half gram a ton sulfides through, right? So there's a trade off between the two, but certainly, you can get some really good high grade oxides. These are helpful. And they'll go through any plan. They'll go through the... as long as not too much clay in it.
Speaker Change: So you saw Richard smile on that when you asked that question. Um, look, we're constantly assessing oxides around the around the property and the part of that is increasing the expiration spend, which I did mention that we will need to put into the fiscal 2026 budget and anytime you have more oxides there, there's a trade-off between here and the way that we looked at this is
Speaker Change: If we have below 1 gram of tan oxide and you have 2 and a half gram of tan sulfides. Well, once these plant optimizations are done, you're going to put the 2 and a half gram of tan sulfide through, right? So there's a trade-off between the 2 but certainly, if you can get some really good high, high high grade oxides you're going to put them through because they're helpful and they'll go through any plant, they'll go through the expanded plant as well.
Problem with oxide material and buck grease, sometimes there's some clay in it. Did I get that right, Richard? Well yes and no.
Speaker Change: As long as not too much clay in, it problem with oxide material and buck brief sometimes just in clay in it.
Did I get that right Richard?
I think Mike's asking us if we've got plans to maybe punch another 10 or 20,000 ounces out by just having a little plant for oxide and whilst we don't, the potential is definitely there and we've even got old tailings that can be economically reprocessed at $3,000. So we've got lots of opportunities. We're focusing very much on the PEA aspect, but there are other business improvement opportunities all over this project.
Speaker Change: Well, yes, and no, I think, Mike's asking us if we've got plans to maybe punch another 10 or 20 thousand ounces out by just having a little little plant for for oxide and, and, and whilst we don't, the potential is definitely there. And, um, we've even got old tailings that are that, that can be economically reprocessed at, at $0 an ounce. So, we've got lots of opportunities. We're focusing very much on on the Pea aspect but uh, there are other business Improvement opportunities all over this project.
Well, those were both actually very good answers, and I appreciate them both. One suggestion is that with us being in the fourth quarter and the time it takes to publish year-end results, I think the investors would be quite hungry to see ongoing operating results on a one-off basis, so I encourage you to do that. I think this is the time to, you know, break the pattern a little bit and, you know, take a victory lap if you can.
So, that's all I got. Thank you very much. You must have been talking to our board members. No, no, just saying the obvious, Stephen. Thanks a lot guys.
Well, those were both actually very good answers, um, and I appreciate them both. Uh, 1 suggestion is that, uh, with us being in the fourth quarter and the time it takes to publish your end results saying I, uh, I think the investors would be um, quite hungry to see ongoing operating results, um, on a 1-off basis. So I encourage you to do that. Um, I think this is the time to, you know, break the pattern a little bit and, you know, take a Victory lap if you can. So that's all I got. Thank you very much. You must have been talking to our board members, uh, Mike.
No, no. Just stay in the office. Stephen
Speaker Change: Thank you. Thank you. Thanks. Mike.
The next question will come from Heiko Ihle with AT Wainwright, please go ahead. Hey, good morning. Thanks for taking my questions. I assume you can hear me okay? I can hear you just fine. I also got your note as well, Heiko. Excellent.
Speaker Change: See you. Next question will come from Hao Ela with at Wayne Wright. Please go ahead.
Hey, in your PEA, so I guess you got fair warning of what I'm about to ask you. In your PEA, you're calling for annual production of 62,000 ounces of gold per year. Obviously, the current gold price environment is ridiculously strong, and we may actually see some more increases given all the inflation that's going on. Let's assume for a second, money was not really much of a concern.
What would be the main bottlenecks for gold to figure even more over the next couple of years? So I'll have Richard answer that question more technical in a second, but I'll give you a sense of the way that we look at this. So when we first engaged. putting together this study is the bottleneck right now is plant capacity in the study is the major bottleneck of 3000 tons per day, which can go larger. But then when you do that, you have to go and do all your underground workings and engineer all those. you have so many ramps and these sort of things that go into that, and it takes a lot of time to do that sort of work.
Hao Ela: Hey, good morning, thanks for taking my questions. I assume you can hear me, okay, I can hear you just fine. I, I also got your note as well. Hiko on your any questions. Excellent. Hey in Europe. So I guess you guys fair warning is what I'm about to ask you. Um, in your PA, your calling for annual production 62,000 oz of gold per year, obviously current gold price environments, ridiculously strong, uh and we may actually see some more increases given all the inflation that's going on. Let's assume for a second. You know, money was not really much of a concern. What would be the main bottlenecks? You know, this figure even more over the next couple of years.
And so when we look at the study, we said the same thing you said, 18-year mine life, too long, 62,000 ounces can be higher. Most studies that you see are in the range of 8 to 12 years of mine life. How do we get there? And then when we spoke to the engineers around that, it would have taken a couple more months in order to engineer that appropriately. And we said, these numbers are great anyway.
So let's get this into the market to show investors how good just the Buck Reef Main So Richard, you can get a little bit more technical in around how why how why it takes so long Oh, I don't need to go into that sort of detail. I mean, the bottleneck is, is like any good plant, it's the mill. Our crushing circuit would, would need a significant upgrade as well, just to... to increase throughput. The new flow sheet calls for a SAG mill and what I would plan to do is make sure that our SAG mill has extra capacity to realise a higher throughput than 3,000 tonne a day.
Hao Ela: Second but I'll give you a sense of the way that we looked at this. So when we first engaged in in to putting together, this study is the bottleneck right now, is plant capacity in the study, the major bottleneck of 3,000 tons per day, which can go larger. But then when you do that, you have to go and do all your underground, workings and engineer. All those certain things, you have so many ramps and these sort of things that go into that and it takes a lot of time to do that sort of work. And so, when we look at the study, we we do. We said the same to you said, 18 year. Mine life too long. Um, 62,000 Oz can be higher. Most studies that you see are in the range of 8 to 12 years of of mine. Like, how do we get there? And then when we spoke to the engineers around that, it would have taken a couple more months in order to engineer that appropriately and we said these numbers are great anyway. So let's get this into the market.
Hao Ela: To to show investors how good just the buck brief main Zone can be. So Richard you can get a little bit more technical in around how wide how wide it takes so long to do underground workings.
Richard: Oh, I don't need to go into that sort of detail. I mean the bottleneck is, is, is like any good plant, it's the mill. Um, our crushing circuit would would need a, a, a significant upgrade as well, just to, to, to increase throughput. Um,
So don't make that the bottleneck or at least maximise that to its maximum capacity and over perform. When we get to underground getting 3,000 tonne a day out of essentially two declines is not impossible. Getting out of three declines however is quite easily achievable and upscalable so we are looking at the potential for us to put an extra decline down and our studies are based on 50 tonne trucks, we could look at 60 tonne trucks. We've got other, we did a haulage and hoisting trade-off study and they all, you could throw a blanket over them.
So even a small shaft could be considered as a viable option and then you can really start talking about 4,000 tonne a day. So plenty of upscope potential there, but optimisation studies would be required and as Stephen said, we wanted to get out to the market. I guess a vanilla-flavored technical approach to it, and I think it's a good base case. Fair enough.
Richard: The, the new flow sheet calls for a sag Mill and what I would plan to do is is make sure that our sag Mill has extra capacity, uh, to to, you know, realize, uh, higher throughput than 3,000 ton a day. Um, so don't make that the bottleneck, or at least maximize that to, to its maximum capacity and I and overperform, um, when we get to underground getting 3,000 tonne a day out of out of essentially 2 declines, um, is not impossible uh, getting out of 3D clients. However, it's quite quite easily, achievable and, and and upscale. So, uh, you know, we are looking at the potential for us to put a an extra decline down. Um, and you know, our our studies are based on 50 ton trucks. We could look at 60 ton trucks. For example, we've got other, we did a a haulage and hoisting uh, trade-off study and they all you could throw a blanket over them. So uh, even a small shaft.
Speaker Change: Could be considered to to, as a viable option. And then you can really start talking about 4,000 time a day. So, plenty of up scope, um, potential there, but optimization studies would be required. And, as Stephen said, we wanted to get out to the market with a, a, I guess a vanilla flavored technical approach to it. And, and I think it's a, it's a good base case.
And then just a follow-up, and maybe I'm just not grasping something here, but I mean, you're dealing with the Bank of Tanzania. You're going from a 7.3% loyalty to a 4% loyalty. So that changes 3.3% of what you're getting. It's about a hundred bucks now. It's real meaningful. It also says that you're selling it to BOT at the market rates. So if you could scale this, and it sure sounds like you could because the 20% seems to be your words, a minimum. Why wouldn't you just go for the maximum or 100%? Is there credit risk?
Fair enough and and then just a follow-up and maybe I'm just not grasping something here. But I mean you're you're dealing with the bank of Tanzania you're going from a 7.3% royalty to a 4% royalty. So that changes 3 points to 3% if what you're getting, so more than 100 bucks, you know, it's real meaningful.
What's the downside from this agreement? I'm just, I guess I'm not seeing great question. So we just got into this agreement.
Speaker Change: It's so it also sees that you're selling it to bots at the market rates. So if you could scale this and it sure sounds like you could because the 20% seems to be your award. So, a minimum, why wouldn't you just go to the maximum or 100% is their credit risk? What's the downside from this agreement to you?
I'm gonna let Mike I guess there's another question in the queue or ask. Look, when we engage on this, we have certain factors. The way the agreement is set up is essentially we're selling Assay Dore to the Bank of Tanzania from the gold room and get paid instantaneously. Although we get paid in market exchange rates in shillings, and we have a you know, our cost basis is predominantly in shillings as well. So yeah, no, it is a really good transaction. We work quite extensively with the Tanzanian government to get it to this point. The Tanzanian Bank of Tanzania, not unlike a lot of central banks in the world wants to grow their gold reserve.
Speaker Change: I'm just, I guess I'm not a great, great question. So we just got into this agreement. Hi, I'm gonna let Mike get into the, the nuances of because there's another question in the queue around. This is
Speaker Change: Look, when we engage on this, we have certain factors. And, and the way the agreement is is set up is
Essentially, we're selling assay doray to the bank of Tanzania from the Gold Room and get paid instantaneously. Although we get paid in in market exchange rates in Shillings and we have a, um,
Speaker Change: You know, our cost basis is predominantly Shillings as well. So yeah, I know it is a really good, um, transaction. We worked quite extensively with Tanzania government to get it to this point, um, the Tanzanian Bank of Tanzania.
And this is a good way for them to do it. We sell 20% Barrick sells 20% GATA sells 20% I'm Shantha Sells 20.
Speaker Change: Not on, like a lot of central banks in the world wants to grow their gold reserves.
I would predict right now the biggest bottleneck is the refining capacity. So, Mike, you want to get into that a little bit? Yeah, no, you said it well, and you read it right, Heiko, for sure. I mean, it is a minimum. So we've got an opportunity to sell as much over and above that as we deem appropriate. We are paid in shillings, though, to Stephen's point. We do have things like overhead costs and others that are US dollar denominated. So there is a bit of US dollar exposure that we would continue to be paid in and require that.
Speaker Change: Um, and this is a good way for them to do it. We sell 20% Barak, sells, 20% gate of sales, 20%, um, chant to sells 20%, I would predict right. Now, the biggest bottleneck is the refining capacity in country.
Speaker Change: So I'm like you want to get into that a little bit. Uh yeah.
Speaker Change: Go to Stevens Point. Um we we do have um,
But there is an opportunity to ship more Gold to the local refiner and sell to the Bank of Tanzania to take advantage of that royalty. Because they're only now kind of getting up and running as far as what they can refine, there is a capacity constraint, Heiko, that Stephen mentioned. They are trying to figure out how to refine our Gold, Barrick's Gold, Anglo's Gold, Shantha's Gold, and do it efficiently and effectively. Right now, I've asked that we perhaps be a little bit patient with them in terms of what we ship them. And as they get more efficient in their process, we can certainly look at increasing what we send them and what we sell to them and take advantage of that reduced royalty rate.
Speaker Change: Things like overhead costs and others that are US dollar denominated. So there there is a bit of US dollar exposure that we we would continue to to be paid in and require that. But uh, there there is an opportunity to to ship more uh, gold to the local refiner and sell the bank intensity to take advantage of that that royalty. Um, because they're only now kind of getting up and running as far as what they can refine. Uh there is a capacity, constraint a hoe that's even mentioned. There are trying to um figure out how to refine our gold Barracks gold, anglo's gold, chat is gold. Um, and and do it efficiently and effectively. Um,
So, Mike, I'm just going to poke in before Heiko asks another question because it leads the foreign exchange rate between the Tanzanian shilling and the US dollar for Gold as it pertains to TRX's agreement with the BOT. So I want to explain to you how you manage that. Yeah, no, it's a good question. So as Heiko, you touched on, and a good question on the FX as well, both the gold price that they quote, as well as the foreign exchange rate that they quote on each transaction are daily international published rates. So the FX is published on a daily basis, it's at about $2,600 to $1,000 for every one US dollar, it's $2,600 shilling.
Speaker Change: And um you know right now I've asked that we perhaps be a little bit patient with them in terms of what we ship them. Um and as they get more efficient in their process, we can certainly look at increasing, uh, what we send them, and what we sell to them, and take advantage of that, uh, reduced royalty rate.
Speaker Change: Yeah, so Mike, I'm just going to poke in before I close in that another question because it leads into the text question. Um, please explain the foreign exchange rate between the Tanzanian Shilling and the US dollar for gold as it pertains to trxs agreement with the bot. So I want to explain to you how you how you manage that through in a team in Tanzania.
And again, what we validate, both the gold price and FX rates that the Mining Commission quotes with each shipment are against internationally published rates in London and abroad. So all market rates and again, published on a daily basis on the Mining Commission website that folks can track. And again, Stephen mentioned it, the goal in part, by some of this local beneficiation is to help prop up those foreign currency exchange reserves. The currency has depreciated candidly in the last number of years. So this is an opportunity for them to bolster the currency and it's improved from about, I want to say $2,750 to $1,000 to about $2,600 to $1,000 currently, which I think is in part due to the approach they're taking here with local gold sales.
Yeah, no, it's it's a good question. So as as uh Hico you touched on and and a good question on the FX as well, both the, the gold price uh, that they quote, as well as the foreign exchange rate that they they quote on each transaction are are uh daily International published rates. So the FX is uh is is published um, on a daily basis. It's it's at about 26 to 1 uh for every 1 US dollar its 2600 Shilling. Um and again, what we validate uh both the gold price and FX uh rates that the mining commission quotes with each shipment are are against internationally published rates in, uh, in London and abroad. So um, all Market rates and and, and again, published on a daily basis on the mining commission website that uh folks can track um and and and again, Stephen mentioned it. The the goal in Parts by some of this local beneficiation is to help prop up those foreign currency, uh, exchange reserves. Um, you know, the currency has depreciated candidly and in the last number of years,
Speaker Change: um, so you know, this is an opportunity for them to bolster the currency and its improved from about
Speaker Change: Say 2750 to 1 to about 2,600 to 1 currently, which I think is in part due to the, um, uh, the approach, they're taking here with, uh, with local gold sales.
All right, Heiko, any other questions? No, that was it on my end. Thank you so much and have a great day. Thanks, Eiko.
All right. Hi Colin. Any other questions?
So I'll get into another question that, operator, is anybody else in the queue? No, sir, you're free to take the floor. Okay, excellent.
Colin: No, that was it on my end. Thank you so much and have a great day. Thanks Echo.
Colin: So I'll get into another question that um, operators, anybody else in the queue?
So the last question is, is an interesting one, gentlemen, all fair and good. But how do you investors make a return? We are in the early stages of a gold bull market. And I'm seeing a number of small juniors that are not even in production, that have a good price appreciation yet TRX stock has not Thank you. I did. So I'll get into what I think is necessary and what a team And I did get into this in part in the presentation. You have a billion dollar study and a good roadmap. That's great. But you need to get there.
Speaker Change: Uh, no sir. You're free to take the floor. Okay, excellent. So the last question is uh, is an interesting 1 gentleman, all fair and good. But how do you investors make a return? We are in the early stages of a cold pool market. And I'm seeing a number of small Juniors that are not even in production that have a good price appreciation yet. TRX stock has not uh, appreciated to the same degree.
Colin: Um, okay. I
Colin: I did. So I'll get into what I think is necessary and and what a team thinks is necessary um and I did get into this in part in the presentation I think.
As you're hearing on this call, we are getting there. We are making steps to start to realize But I think the market is going to need to see us continue down that path, as well as become property capitalized. As I mentioned in the comps charts, more better capitalized companies have had better and I've seen that. And we see that in the analysis that we do. So what I would do is I would ask the gentleman to ask that question is look at those juniors that are have appreciated and look at their working capital ratios as well as their cash balance.
Colin: You have a billion dollar setting in a good road map? That's great but you need to get there. Um, as you're hearing on this call, um we are getting their uh we are making steps to start to realize that.
Colin: um,
Colin: But I think the Market's going to need to see us continue down that path as well as become property. Capitalized, as I mentioned in the cops charts more better. Capitalized companies have had better returns um and and I've seen that and we see that in the analysis that we do. So what I would do is I would ask the gentleman that asked, that question is, look at those Juniors that
and I believe what you will see is ones with higher cash balances have appreciated more than ones with lower cash. ones that don't have debt have appreciated more than ones that have. So I think there's still a working capital element to this market.
Colin: That are have appreciated and look at their working capital ratios as well as their cash balances.
Colin: And I believe what you will see is ones with higher cash, balances have appreciated more than ones with lower cash, balances.
Colin: Ones that don't have debt have appreciated more than once that have significant debt.
The second part to that question is. The Joint Venture. I think the market still has some uncertainty. We have a 55-45% joint venture agreement, which isn't as favorable as other jurisdictions or other people, even in country. And I think we need to work through that with the Tanzanians and help them understand that what's good for us is also good and move that forward. So I think those are the two major things that have impacted. you know, share price appreciation to date.
Colin: So, I think there's still a working capital element to this Market.
Colin: The, um, second part, um, to that question is.
The joint venture agreement.
Colin: I think the market still has some uncertainty, we have a 5545 percent joint venture agreement um which isn't as favorable as other jurisdictions or other people even in country
Also, I had a third one, when we did come in, and I've explained this, a lot of times to people is, it was very under capitalized, even when I came in, and we only had $2 million of cash. In order to do what we've done, we had to do early capital raises. There weren't a lot of sources of capital at that point in time. We do have a warrant book that's still there that starts to expire in the new year. I think as we move through that warrant book, and those warrant expiries, we should start to see some share price appreciation.
Have impacted the, you know, share price appreciation. Today also, I had a third 1, um, when we did come in and I've explained this a lot of times to people is it was very under capitalized, even when I came in, it only had 2 million dollars of cash in order to do what we've done. We had to do early Capital raises, there weren't a lot of sources of capital at that point.
So anybody who understands trading understands what I'm talking about. I'm more than happy to take more questions around. Hopefully that answers the question, and in the fulsomeness of the question, it's certainly something on our minds.
In time, um, we do have a warrant book that's still there. That starts to expire in the new year and I think as we move through that warrant book um and those warrant expiries, we should start to see some share price appreciation. So anybody who understands trading understands what I'm talking about?
Colin: The more than happy to take more questions around that.
Colin: So hopefully that answers the question and in the F of the of the of the question it's certainly something on our minds.
Operator. Yes, sir.
Operator.
We do not have any other audio questions, so you're free to take the floor for closing remarks or if you have additional text questions. So, thanks. Thanks, everyone, for joining the call today. Greatly appreciate it. Thank you for the questions. I hope you get a good sense that we are moving forward. This does take a little bit of time, but we do have the proper team to move this asset forward. We've proven that in the past. We are proving that in the future. The short- to medium-term focus is going to be on, as I mentioned several times, normalizing the working capital, continually the plant expansion, continue the mining and then in the underground, the PEA route, get back to the drill bit in the new year, put that into our budgets to expand resources, as well as continue negotiating and having good conversations around the joint venture agreement with the government.
Colin: Yes, sir. We do not have any other audio questions, so you're free to take the floor for closing remarks or if you have additional texts questions. So thank you. Thanks everyone. Um, for joining the call today, greatly, appreciate it. Thank you for the, um, the questions, I hope you get a good sense that we are moving forward. Um, this does take a little bit of time but we do have the proper team to move this asset forward. We've proven that
quite straightforward now, now no longer as complicated to used to be two years ago. So it's a straightforward roadmap to value creation.
Colin: In the past, we are proving that in the future to short to medium-term, focus is going to be on. Uh as I mentioned several times, we normalizing working capital continually to plant expansion continued to Mining. And in, in the underground, the Pea route, get back to the drill bit. Um, in the new year, um, put that into our budgets to expand resources, as well as continuing negotiating and having good conversations around the joint venture agreement with the government team.
Thank This brings a close to today's meeting. You may now disconnect. Thank you for your participation and have a pleasant day. The conference is no longer being recorded.
White straight forward. Now, now, no longer is complicated to use to be 2 2 years ago. So it's a straightforward roadmap to Value creation.
Colin: Thank you.
Colin: This brings a close to today's meeting.
You may now disconnect, thank you for your participation and have a pleasant day.
The conference is no longer being recorded.