Q1 2026 TRX Gold Corp Earnings Call

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TRX Gold

Earnings

Q1 2026 TRX Gold Corp Earnings Call

TRX

Monday, January 19th, 2026 at 3:00 PM

Transcript

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Stephen Mullowney:

I think we can do Amy I think we can began given their mixed up here.

Stephen Mullowney: I think we can begin given our mix-up here, on the line.

Okay and straighten it out and then have you all join when he joins he may be busy and can discover okay. Okay. Not a problem at all so Steven one I'm going to do here in a moment is I'm going to join us in when I do all three of you are going to hear that the calls.

Stephen Mullowney: And straighten it out. And then he will join when he joins. He may be busy in some government.

Operator: Okay. Okay. Not a problem at all. So Stephen, what I'm gonna do here in a moment is I'm gonna join us in. When I do, all three of you are gonna hear that the call's beginning to record.

Beginning to record when yet are the costs going up and then so we'll just wait a couple of moments and then I will let everybody know the lobbies open and then I'll give our introduction and turn it over to you do.

Stephen Mullowney: Yes.

Operator: The call's going, yep. So we'll just wait a couple moments, and then I will let everybody know the lobby's open. Then I'll give our introduction and turn it over to you.

Stephen Mullowney: Yes.

Operator: Do you have control of the slides, Stephen?

Do you have control of this large Steven.

Stephen Mullowney: Yeah. I got control of the slides. Yep. We're good.

Yeah again drove a slide yet.

Operator: Perfect.

Stephen Mullowney: There we go.

Perfect perfect. Okay, you won't want to go back to the first slide here well for when we go live for everyone yet.

Operator: Perfect. Okay. Yeah. We'll wanna go back to the first slide here for when we go live for everyone.

Stephen Mullowney: Yeah. Yeah. We're good.

Operator: Okay. All right. Great. All right. I'm going to close the lobby here. In about three seconds, you're gonna hear that the call is going to begin. And then we'll proceed from there. When the call ends, please wait until I give you the okay to begin speaking so that we know we're back in the secure lobby. Okay?

Alright, great Alright, I'm going to close the lobby here in about three seconds, you're going to hear that the call is going to begin and then we will proceed from there when the call ends please.

Right until I give you the okay to begin speaking so that we know we're back in this care lobby. Okay. Okay. Thank you Yep Hello, Good conference everyones. Thank you.

Stephen Mullowney: Okay. Thank you.

Operator: All right. Yep. Have a good conference, everyone. Thank you.

Michael Leonard: The conference is now being recorded.

The conference is now being recorded.

Operator: Welcome, everyone. We will pause for a moment as participants make their way in from the lobby. Thank you for waiting, and welcome to the TRX Gold Corp First Quarter 2026 Results Presentation. As a reminder today, all participants are in a listen-only mode, and the meeting is being recorded. After the presentation today, there will be an opportunity to ask questions. If you wish to ask a question, please click the Q&A icon on the left-hand side of the screen. You will see the options: raise your hand to join the queue and ask your questions verbally, or write a question to submit your questions in writing. When you are introduced, you may see a prompt on screen asking you to click Continue. You will be live in the call as soon as you do so.

Welcome everyone, we will pause for a moment as participants make their way in from the lobby.

Thank you for waiting and welcome to the <unk> Gold Corporation first quarter 2026 results presentation.

As a reminder, today all participants are in a listen only mode and the meeting is being recorded.

After the presentation today, there will be an opportunity to ask questions. If you wish to ask a question. Please quickly Q&A icon on the left hand side of the screen you will see the options raise your hand to join the queue and ask your questions verbally or right a question to submit your questions in writing.

When you are introduced you may see a prompt onscreen asking you to quit continue you.

You will be live in the call as soon as you do so.

Operator: Analysts who have dialed into the conference call may press Star 1 on your telephone keypad to join the question queue. At this time, I would like to turn the meeting over to Stephen Mullowney, CEO. Please go ahead, sir.

Analysts who have dialed into the conference call may press Star one on your telephone keypad to join the question queue. At this time, I would like to turn the meeting over to Stephen Mullowney, CEO. Please go ahead, sir.

Analysts who have dialed into the conference call May Press Star one on your telephone keypad to join the question queue.

At this time I would like to turn the meeting over to Steven Maloney CEO. Please go ahead Sir.

Stephen Mullowney: Yeah. Thank you. And thanks, everybody, for joining this morning. I believe it's Martin Luther King Day in the United States, and thus we have a holiday. I think we got a little bit mixed up in that. But that's, it's good to see the number of participants here today, as well as we had really good participation on Friday on our virtual NDR with Renmark as well. So it's an exciting time here at TRX. We're gonna go over Q1 2026 results, which were really good. The results continue to improve. The company's financial profile, working capital, continues to improve. And Richard and team on site, Richard's joining us from Buckreef today, have been progressing very well on the expansion plans. As I mentioned, and as the team has mentioned before, really our, our business plan is quite straightforward.

Yeah. Thank you and thanks for everybody for joining this morning.

I believe it's an American meter King day in the United States.

And Darcy ever holiday I think we got a little bit mixed up in that but that's a it's good to see number of participant share here today as well as we had really good participation on Friday on our virtual endear with them.

With remark as well so.

It's an exciting time here at tier X, we're going to go over our Q1 'twenty 'twenty six results.

Which were really good on the results continue to improve the company's financial profile working capital continues to improve and Richard and team on site Richard joining us from from Barclays. Today have been progressing very well on the expansion plans as I mentioned and as a team as mentioned before.

Really our business plan is quite straightforward, we have a robust asset in Tanzania 1.5 million ounces to five grams, a tonne the business plan is to expand the plant.

Stephen Mullowney: We have a robust asset in Tanzania, 1.5 million ounces, 2.5 grams a ton. The business plan is to expand the plant, in the next 18 to 24 months, increase production, which then helps fund the underground. We have a 18-year mine life between an open pit operation and an underground mine operation, all on the Buckreef main zone that's funded through the national administration. Thereafter, we have someone in the line that's probably under—there we go. Thank you, operator. We also have some very prospective areas of the property, particularly Stanford Bridge, Anfield. Richard will also get into what we're finding on the geophysics side. We're quite excited for the exploration side as well. Khalaf will give a brief summary of our government relations side. So I'm gonna try not to speak as much today. I have a very strong team.

We have a robust asset in Tanzania, 1.5 million ounces, 2.5 grams a ton. The business plan is to expand the plant, in the next 18 to 24 months, increase production, which then helps fund the underground. We have a 18-year mine life between an open pit operation and an underground mine operation, all on the Buckreef main zone that's funded through the national administration. Thereafter, we have someone in the line that's probably under—there we go. Thank you, operator. We also have some very prospective areas of the property, particularly Stanford Bridge, Anfield. Richard will also get into what we're finding on the geophysics side. We're quite excited for the exploration side as well. Khalaf will give a brief summary of our government relations side. So I'm gonna try not to speak as much today. I have a very strong team.

In the next 18 to 24 months increased production, which then helps find the underground and then we have a gay 18 year mine life between an open pit operation and an underground my operation all of them about grief main job is funded.

Thereafter, we felt we had to homeowners evolving rallying and dairy got thank you operator.

And then also we have some very prospective areas of the property critical Stamford Bridge Anfield Richard will also get into what we're finding in the geophysics side and we're quite excited for the exploration side as well and Clarke will give a brief summary of our government relation side, so I'm going to try not to speak as much today.

I have a very strong team at Mike Leonard our CFO here today, Mike never go Richard as I mentioned is joining us our site our C O L.

Stephen Mullowney: I have Mike Leonard, our CFO, here today. Mike, there we go. Richard, as I mentioned, is joining us from site, our COO. Raise your hand, Richard. I think everybody can tell who Richard is. He's got the orange shirt on. And then, Khalaf is joining us from Dar es Salaam this morning. Good morning, Khalaf. So without further ado. So TRX, at a glance, I gave a high-level overview. We operate the Buckreef Gold Corp in Tanzania. We are in production, producing between 25,000 and 30,000 ounces in fiscal 2026. That cash flow will enable our expansion of the plant, which will then be online with PEA, for an 18-year mine life. And the last 15 years are underground roughly. Richard will get into that today. We may be a little bit early on some of those items, but we won't overpromise, as well.

I have Mike Leonard, our CFO, here today. Mike, there we go. Richard, as I mentioned, is joining us from site, our COO. Raise your hand, Richard. I think everybody can tell who Richard is. He's got the orange shirt on. And then, Khalaf is joining us from Dar es Salaam this morning. Good morning, Khalaf. So without further ado. So TRX, at a glance, I gave a high-level overview. We operate the Buckreef Gold Corp in Tanzania. We are in production, producing between 25,000 and 30,000 ounces in fiscal 2026. That cash flow will enable our expansion of the plant, which will then be online with PEA, for an 18-year mine life. And the last 15 years are underground roughly. Richard will get into that today. We may be a little bit early on some of those items, but we won't overpromise, as well.

And originally and Richard I think everybody can tell Richard is he's got the orange shirt on.

And in a cloth is joining us from Mad Dash line. This morning, good morning claw.

So without further Ado.

So T Rx in Atlanta, I gave us a high level overview, we operate upgrade called project in Tanzania. We are in production producing between 25 to 30000 ounces in fiscal 2026 that cash flow will enable our expansion of the plant, which will then no.

The online with P. A.

For an 18 year mine life and the last 15 years, our underground roughly Richard will get into that today, and we may be a little bit early and some of those items, but we want over promise as well and we have $1 5 million ounces in the resource category MRI and I have a 2.5 grams.

Stephen Mullowney: And we have 1.5 million ounces in the resource category, M&I, about 2.5 grams a ton. So I really wanna focus on what we did in the first quarter and financial-wise. I'm gonna hand it over to Mike to go through slide number five with regards to what Q1 looked like. He'll be supplemented by Richard on some of the operational aspects. Go ahead, guys.

And we have 1.5 million ounces in the resource category, M&I, about 2.5 grams a ton. So I really wanna focus on what we did in the first quarter and financial-wise. I'm gonna hand it over to Mike to go through slide number five with regards to what Q1 looked like. He'll be supplemented by Richard on some of the operational aspects. Go ahead, guys.

So I really want to focus on what we did in the first quarter and financial wise and I'm going to hand, it over to Mike to go through slide number five with regards to what Q1 looked like and you'll be supplemented by Richard on so many operational aspects go ahead guys.

Michael Leonard: Terrific. Thank you, Stephen. And good morning, everybody. Thank you for joining us, particularly those in the US on a holiday. As you would have seen, we did release our Q1 2026 results late last week on Thursday. We press released the numbers. And they were record results across the board. Yet again, you know, starting right at the top, on production, it was a record quarterly production quarter for us. We produced just under 6,600 ounces. That was a significant increase over the prior comparative period, as well as even our Q4 result. We had indicated that over the first half of 2025, we undertook a stage one strip campaign. And the idea was to remove overburden to access higher-grade ore blocks towards the back end of last year.

Terrific. Thank you Steven and good morning, everybody. Thank you for joining us, particularly those in the U S on a holiday.

As you would have seen we did release our Q1 2026 results late last week on Thursday, We press release, Steve the numbers and now they were record results across the board yet again.

Starting raise the ASP on production it was a record quarterly production quarter for us.

We produced just under 6600 ounces.

It was a significant increase over the year the prayer.

The comparative period as well as even in our Q4 and our results we had indicated that.

Over the first half of the 2025, we undertook a stage when strict campaign and the idea was to remove overburden to access higher grade ore blocks that towards the back end of last year.

Michael Leonard: What you would have seen is that, we put through about 1.9 grams a ton through the mill at higher throughput levels compared to the prior year. So higher throughput, higher grade, and higher recovery. In fact, we recovered around 60, excuse me, 75% recovery for Q1, meant record production for the quarter. And in terms of guidance, we had indicated full-year production guidance of between 25,000 and 30,000 ounces. Q1 was expected to be amongst the lowest quarters of the year. We do continue to access higher-grade ore blocks and remain on track for that production guidance of, again, between $1,400 and $1,600 an ounce. And in Q1, we came in at around $1,500 an ounce, right in the middle of that.

What you would have seen is that, we put through about 1.9 grams a ton through the mill at higher throughput levels compared to the prior year. So higher throughput, higher grade, and higher recovery. In fact, we recovered around 60, excuse me, 75% recovery for Q1, meant record production for the quarter. And in terms of guidance, we had indicated full-year production guidance of between 25,000 and 30,000 ounces. Q1 was expected to be amongst the lowest quarters of the year. We do continue to access higher-grade ore blocks and remain on track for that production guidance of, again, between $1,400 and $1,600 an ounce. And in Q1, we came in at around $1,500 an ounce, right in the middle of that.

You would have seen is that are we.

But through the one nine grams a ton through the through the mill.

At at higher throughput levels compared to the prior year, so higher higher throughput higher grade and higher recovery. In fact, we recovered around 60 extra excuse me, 75% recovery for Q1.

And that record that production for the quarter and in terms of guidance, we'd indicated our full year production guidance of between 25 and 30000 ounces.

Q1 was a it was expected to be amongst the lowest.

Quarters of the year, we do continue to access higher grade ore blocks and remain on track offer for that production guidance of again between 25 and 30000 ounces at a cash cost of between 1400 1600.

$1, an ounce and in Q1, we came in at around $1500, an ounce right in the middle of that.

Michael Leonard: You couple that record production with the record gold price environment that we're seeing. In Q1, we realized $3,860 an ounce, which was a record at that time. And of course, a few weeks later, here we are at over $4,600 an ounce. So gold continues to be very, very strong. We continue to demonstrate leverage to that gold price. And you know, you couple a record gold price with record production, and inevitably, you've got record quarterly revenue in our case of over $25 million for Q1, as well as things like adjusted EBITDA of over $13 million. So we're demonstrating strong cash flow, strong margins. And what we've been able to do, we've talked about this for a couple of quarters now, is basically take that free cash that we're generating.

You couple that record production with the record gold price environment that we're seeing. In Q1, we realized $3,860 an ounce, which was a record at that time. And of course, a few weeks later, here we are at over $4,600 an ounce. So gold continues to be very, very strong. We continue to demonstrate leverage to that gold price. And you know, you couple a record gold price with record production, and inevitably, you've got record quarterly revenue in our case of over $25 million for Q1, as well as things like adjusted EBITDA of over $13 million. So we're demonstrating strong cash flow, strong margins. And what we've been able to do, we've talked about this for a couple of quarters now, is basically take that free cash that we're generating.

Couple that record production with the record gold price environment that we're seeing in Q1, OE, we realized a 3800 $60 an ounce, which was it was a record at that time is of course a few.

Two weeks later here, we are at over $4600 an ounce. So so gold continues to be very very strong we continued to demonstrate leverage due to that gold price.

And you couple of record gold price with record production and inevitably you have got a record quarterly revenue in our case of over $25 million for Q1, as well as things like adjusted EBITDA over $13 million. So we're demonstrating strong strong cash flow strong margins.

And what we've been able to do we've talked about this for a couple of quarters now is basically take that net free cash that we're generating and we've overturned.

Michael Leonard: And we've overturned what was a negative working capital ratio early last year as we were in the middle of that strip campaign and have effectively recapitalized our balance sheet. So even relative to our year-end in August 31, you know, where we had a working capital ratio of about 1.3 times, we're up to 1.7 times, or about $15 million positive working capital at Q1. And that continues to improve. And amongst other things, we've been able to show an increase in our cash position to over $9 million, which is an increase relative to Q4. But we also continue to invest in the business. So we have significantly grown our ROMPAD stockpile, which Richard can talk a little bit about in his remarks.

And we've overturned what was a negative working capital ratio early last year as we were in the middle of that strip campaign and have effectively recapitalized our balance sheet. So even relative to our year-end in August 31, you know, where we had a working capital ratio of about 1.3 times, we're up to 1.7 times, or about $15 million positive working capital at Q1. And that continues to improve. And amongst other things, we've been able to show an increase in our cash position to over $9 million, which is an increase relative to Q4. But we also continue to invest in the business. So we have significantly grown our ROMPAD stockpile, which Richard can talk a little bit about in his remarks.

What was a negative working capital ratio early last year as we were in the middle of that strip campaign and effectively recapitalized our balance sheet.

So even relative to our year ended August 31, where we had a working capital ratio of over 1.3 times, we're up to one seven times or about $15 million positive working capital led to at Q1 and that continues to improve and amongst other things we've been able to show an increase in our cash position to <unk> 9 million.

Which is an increase relative to Q4, but we also continue to invest in the business. So we have significantly grown our ROM pad stockpile, which Richard can talk a little bit about in his remarks.

Michael Leonard: But we've got over 22,000 ounces sat on that ROM pad stockpile, which is about 1.2 to 1.3 gram a ton, roughly, on average currently, and a split between oxide and sulfide rock, which allows us basically to, you know, optimize what goes through the mill and also serves as a very, very good insurance policy for us to make sure that that mill feed, you know, is consistent and strong. And material coming out of the pit is sort of prioritized relative to what's on the stockpile to make sure the highest-grade material is going through the mill.

But we've got over 22,000 ounces sat on that ROM pad stockpile, which is about 1.2 to 1.3 gram a ton, roughly, on average currently, and a split between oxide and sulfide rock, which allows us basically to, you know, optimize what goes through the mill and also serves as a very, very good insurance policy for us to make sure that that mill feed, you know, is consistent and strong. And material coming out of the pit is sort of prioritized relative to what's on the stockpile to make sure the highest-grade material is going through the mill.

But we've got over 22000 ounces chat on that ramp that stockpile.

Which is about one point to 1.3 Gram a tonne roughly on average currently and it is split between oxide and sulfide rock, which allows us basically to.

You know optimize what goes through the mill and also serves as a very very good insurance policy for us too to make sure that that bill feeder yards is consistent and strong.

And material coming out of the pit.

<unk> is sort of prioritized relative to what's on the on the stockpile to make sure the highest grade material is going through the mill I.

Michael Leonard: I guess the last maybe comment I'll make on the quarter, we do continue to invest in what Stephen talked about, the plant upgrade, followed by the expansion, which, once complete, will pay for effectively the underground development. During Q1, we used a lot of that free cash to put down payments on things like thickeners and elution plants and gold rooms and increased oxygenation, all of which is meant to help improve things like throughput and recovery, which will lead to higher production over time. So a very, very strong quarter, record across the board, and certainly expect that to continue into Q2 and beyond. Next slide, please. So this is effectively a summary of some of the key stats I think we've already talked about. We've talked about the revenue. We've talked about EBITDA.

I guess the last maybe comment I'll make on the quarter, we do continue to invest in what Stephen talked about, the plant upgrade, followed by the expansion, which, once complete, will pay for effectively the underground development. During Q1, we used a lot of that free cash to put down payments on things like thickeners and elution plants and gold rooms and increased oxygenation, all of which is meant to help improve things like throughput and recovery, which will lead to higher production over time. So a very, very strong quarter, record across the board, and certainly expect that to continue into Q2 and beyond. Next slide, please. So this is effectively a summary of some of the key stats I think we've already talked about. We've talked about the revenue. We've talked about EBITDA.

I guess, the last maybe comment I'll make on the quarter.

We do continue to invest in now, which Steven talked about the net but the plant upgrade a fellow by the expansion, which once complete will pay for effectively the underground development. During Q1, we used a lot of that free cash to put down payments on things like thickness and elution plant in gold rooms, and an increased oxygenation all of which is.

Meant to help improve things like throughput agenda, and an recovery, which will lead to higher production over time, so very strong quarter a record across the board and I certainly expect that to continue into Q2 and beyond.

So this is effectively a summary of.

Some of the key stats I think we've already talked about we've talked about the the revenue talking about EBITDA gross gross profit is an important one to touch on we have been able to demonstrate it's a high margin low cost operation with again leveraged due to gold price gross profits were over 50% right. Now so are generating lots and lots and lots of free cash is sitting in that.

Michael Leonard: Gross profit's an important one to touch on. We have been able to demonstrate it's a high-margin, low-cost operation, with, again, leverage to gold price. Gross profits are over 50% right now. So, we're generating lots and lots and lots of free cash and sitting in that what we would characterize as the lowest quartile of the cash cost curve at roughly $1,500 an ounce. And again, the model is to use that free cash flow to execute against the PEA to both upgrade our existing mill and expand it, and then use that cash flow to fund the underground development that Stephen touched on. We've also been able to invest in things like exploration.

Gross profit's an important one to touch on. We have been able to demonstrate it's a high-margin, low-cost operation, with, again, leverage to gold price. Gross profits are over 50% right now. So, we're generating lots and lots and lots of free cash and sitting in that what we would characterize as the lowest quartile of the cash cost curve at roughly $1,500 an ounce. And again, the model is to use that free cash flow to execute against the PEA to both upgrade our existing mill and expand it, and then use that cash flow to fund the underground development that Stephen touched on. We've also been able to invest in things like exploration.

At what level, what we would characterize as the lowest quartile of the cash cost curve at roughly $500, an ounce and again the model is to use that free cash flow to execute against the the PPA to both upgrade our existing mill and expand it and then use that cash flow to fund the underground development that Steven touched on.

We've also been able to invest in things like exploration. The first stage of our exploration program was.

Michael Leonard: The first stage of our exploration program was effectively this geophysics study, which I think we'll talk a little bit about later, but continue to advance in that regard and hope to be able to put some assay and drill results out later this year as that continues to develop, as well as finalizing metallurgical test work that again I think Richard will touch on when he gets to it, but effectively demonstrates that we can achieve high recoveries with some of the mill enhancements that we're making, which will help drive future production. I think the last bit I think I've touched on, but we do continue to expect our production to be between 25,000 and 30,000 ounces at between $1,400 and $1,600 an ounce. Capital we have guided at between $15,000 and $20 million.

The first stage of our exploration program was effectively this geophysics study, which I think we'll talk a little bit about later, but continue to advance in that regard and hope to be able to put some assay and drill results out later this year as that continues to develop, as well as finalizing metallurgical test work that again I think Richard will touch on when he gets to it, but effectively demonstrates that we can achieve high recoveries with some of the mill enhancements that we're making, which will help drive future production. I think the last bit I think I've touched on, but we do continue to expect our production to be between 25,000 and 30,000 ounces at between $1,400 and $1,600 an ounce. Capital we have guided at between $15,000 and $20 million.

Hercules Geophysics study, which I think we'll talk a little bit about later, but continue to advance in that regard and hope to be able to put some some assay and drill results out later this year and that continues to develop as.

As well as finalizing metallurgical test work that again, I think Richard will touch on when he when he gets to it but effectively demonstrates that we can achieve high high recoveries.

Some of the mill enhancements that we're making which will help drive that drive future production and.

And I think the last last bit I think I've touched on venture would you continue to expect our production to be between 25, and 30000 ounces at between 14 and $1600 an ounce and.

Capital had guided at between 15 and $20 million.

Michael Leonard: We continue at this stage to expect to spend at that level. But of course, at these gold price levels, if we generate additional free cash, we may move some of those capital expenditures around the plant expansion forward into the back end of this year. But we'll certainly update the market as and when we make that determination. And finally, we're spending on exploration. We expect to spend between $3 and 5 million. We have procured a couple of drill rigs, RC, and a diamond drill rig, which we'll talk about, which we expect will help our drill program over the course of this year. So that was it, I think, as far as results in terms of what I wanted to touch on, Stephen. Back to you, please.

We continue at this stage to expect to spend at that level. But of course, at these gold price levels, if we generate additional free cash, we may move some of those capital expenditures around the plant expansion forward into the back end of this year. But we'll certainly update the market as and when we make that determination. And finally, we're spending on exploration. We expect to spend between $3 and 5 million. We have procured a couple of drill rigs, RC, and a diamond drill rig, which we'll talk about, which we expect will help our drill program over the course of this year. So that was it, I think, as far as results in terms of what I wanted to touch on, Stephen. Back to you, please.

We continue at this stage to expect to spend.

At that level, but of course at these gold price levels. If we generate additional free cash we may move some of those capital expenditures are around the plant expansion forward into the back end of this year, but we'll certainly update the market.

As and when we make that determination and finally, we're spending on exploration, we expect to spend between three and $5 million. We have procured a couple of drill rigs and RC and diamond drill rig would ship, which we'll talk about which we expect will help us help our drill program over the course of this year.

That was it I think as far as results in terms of what I wanted to touch on Stephen back to you. Please yeah no. Thank you. Thank you, Mike and now were Rems switch into what I'll call operational growth here and I'm going to hand, it over to Richard to give a brief overview Richard off.

Stephen Mullowney: Yeah. No, thank you. Thank you, Mike. We're gonna switch into what I'll call operational growth here. I'm gonna hand it over to Richard to give a brief overview, Richard, of where we are in our expansion plans and what investors can expect in the next, you know, 12 to 24 months around our expansion and where we're gonna get through to on throughput. Obviously, we're online with what was in the PEA, and our goal is to exceed what was in that PEA given that we do plan to have a higher throughput than what was in the PEA. But where exactly are we on all our items?

Where we are and our expansion plans and what investors can expect day into next.

In a 12 to 24 months around our expansion.

And where we're going to get through to our throughput. Obviously, we're online with what was in the P. A M and our goal is to exceed what was that in that P. A given that we do plan to have.

A higher throughput than what was in the peak of where exactly are we on all our items I know a lot of exciting things rack at reactors ADR plants.

Stephen Mullowney: I know a lot of exciting things around Aachen reactors, ADR plants, looking at the confirming and finalizing metallurgy, and then getting into the SAG, the ball mill as well as flotation cells and thickeners, all kinds of things going on. So a lot on your plate. You're on mute, Richard. There you go.

I know a lot of exciting things around Aachen reactors, ADR plants, looking at the confirming and finalizing metallurgy, and then getting into the SAG, the ball mill as well as flotation cells and thickeners, all kinds of things going on. So a lot on your plate. You're on mute, Richard. There you go.

Looking at them, confirming and finalizing metallurgy, and then getting into the Sag D ball mill as well as flotation cells Thickener has all kinds of things going off a lot on your plate.

Richard Boffey: All right. Hopefully that helps. You can hear me clearly?

However, you can hear me clearly you can hear you just fine and the reception is good.

Stephen Mullowney: I can hear you just fine. The reception's good at Buckreef today. Mustn't be any thunderstorms.

Mustn't be any thunderstorms much.

Richard Boffey: Not much. No, no. We're in the middle of one right now, which is why I asked.

There are no we're in the middle of one right now which is why I asked.

Stephen Mullowney: That's okay.

Richard Boffey: Anyway, in terms of the work we're doing at the moment, we are still heavily focused on upgrades to our 2,000-tons-per-day plant. So right now we're in the midst of doing a major upgrade and improvement to our crushing circuit. We've got more work lined up straight after that to move on to our mills and the power draw for the mills, as well as the CIL circuits. We're installing a super oxidation system that will hopefully give us another couple of percent recovery. We've also made some major improvements this last quarter in the recovery areas, which Mike alluded to, and that's going well and is progressing again through this quarter. In terms of work towards the expansion, we've more or less finalized all of our metallurgical test work.

In terms of the work we're doing at the moment, we are still heavily focused on upgrades to our 2000 ton per day plant.

So right now we're in the midst of doing that.

Upgrade an improvement to our crushing circuit.

We've got more work.

Lined up straight after that to move on to our mills in the powder or from our mills as well as the CIL circuits were installing a super explanation system that will.

Hopefully give us another complex ventral recovery.

We've also made some major improvements this law.

Last quarter in the recovery areas.

Mike alluded to that that's going well and is progressing again through this quarter.

In terms of work towards the expansion.

We've more or less finalized all of our middle <unk> test work.

Richard Boffey: We've done a full modeling and spec of the, the SAG circuit. For those people who may have read the, the PEA, we had planned to combine our existing 600-kilowatt ball mill with a SAG mill. Our modeling shows we're probably better to, to just invest in a larger SAG mill and make it a simpler circuit. We're going out on price inquiry at the moment and full tender very shortly. Indications are that the, that the lead time on that equipment's probably of the order of seven to nine months. The float plant, and fine grind aspects of the expansion and the change in the process flow sheet have gone well.

We've spent we've done a full modeling and speak of the.

We've done a full modeling and spec of the, the SAG circuit. For those people who may have read the, the PEA, we had planned to combine our existing 600-kilowatt ball mill with a SAG mill. Our modeling shows we're probably better to, to just invest in a larger SAG mill and make it a simpler circuit. We're going out on price inquiry at the moment and full tender very shortly. Indications are that the, that the lead time on that equipment's probably of the order of seven to nine months. The float plant, and fine grind aspects of the expansion and the change in the process flow sheet have gone well.

And for those people, who may have read the P. I E. We had plan to combine our existing <unk>.

Ball mill with a Sag mill and our modeling shows with probably better to just invest in our largest sag mill and make it simpler circuits.

Were going add on cross inquiry at the moment full team there very shortly.

And indications are that the lead time on that equipment, probably of the order of seven to nine months.

And fine grind aspects of the expansion and the change in the process flow sheet.

Richard Boffey: The MIT test work was really focused on that, generally getting some excellent results in flotation in the lab and pilot plant, with recoveries and mass pull, but both better than expected. Our fine grind looks like we're gonna optimize at about 20 microns instead of 15 microns, which again is a big improvement in energy expenditure and capital expenditure. So those aspects are going well. On the water at the moment, we've got oxygen plants coming to site. We've got ADR plant orders just finalized and under construction. So they'll be in towards the end of this financial; they'll be in by the end of the financial year. I won't say we'll see much benefit from some of those aspects until financial year 2027. So generally things are working pretty well.

The MIT test work was really focused on that, generally getting some excellent results in flotation in the lab and pilot plant, with recoveries and mass pull, but both better than expected. Our fine grind looks like we're gonna optimize at about 20 microns instead of 15 microns, which again is a big improvement in energy expenditure and capital expenditure. So those aspects are going well. On the water at the moment, we've got oxygen plants coming to site. We've got ADR plant orders just finalized and under construction. So they'll be in towards the end of this financial; they'll be in by the end of the financial year. I won't say we'll see much benefit from some of those aspects until financial year 2027. So generally things are working pretty well.

<unk> Mint tests, where it was.

Really focused on that.

Generally getting some excellent results in flow in the lab and part of plan.

With recoveries and mask poll.

Both greater than expected.

Looks like we're going to optimize it about 20 more drones instead of 15 microns.

The big improvement in energy extreme mature in capital expenditure, so those aspects are going well.

On the water at the moment, we've got oxygen plants coming to sites. We've got ideas planned orders just formalized and under construction so they'll be in towards the end of this financial.

And by the end of the financial year onwards, I will see much benefit from.

Some of those aspects them to 'twenty financial year 'twenty 'twenty seven.

So generally things are working pretty well.

Richard Boffey: As I discussed, this change to a straight SAG circuit for our new expanded plant allows us to effectively fully utilize the existing plant we've got, which is why we're confident that we can probably improve on PEA metrics in terms of throughput and ultimate gold production. Coupled with that, we're doing a reoptimization of our pits with this higher gold environment, and we're pretty confident we're gonna see some added reserves in our known reserves, coming out with a reduced cut-off grade. All in all, things are looking pretty positive for us.

As I discussed, this change to a straight SAG circuit for our new expanded plant allows us to effectively fully utilize the existing plant we've got, which is why we're confident that we can probably improve on PEA metrics in terms of throughput and ultimate gold production. Coupled with that, we're doing a reoptimization of our pits with this higher gold environment, and we're pretty confident we're gonna see some added reserves in our known reserves, coming out with a reduced cut-off grade. All in all, things are looking pretty positive for us.

This this change to a strike Sag circuit for a new.

Now new expanded plan allows us to effectively fully utilize the existing plant. We've got which is why we're comfortable that we can we can probably improve on P. I.

Ah metrics in terms of throughput and ultimate gold production, coupled with that we're doing a re optimization of our pits, which is how our golden environments and we are pretty comfortable we're going to see some some added reserves in the amount of reserves coming out with a reduced cutoff grade.

So when all things are looking pretty positive first.

Stephen Mullowney: Yeah. Thank you, Richard, for that. A lot of information to intake there. And it gives investors a sense of the direction and some of the news that will come out as we finalize plans. As Richard indicated, we may not utilize the 1,000 tons per day ball mill now in the SAG-CIL circuit. So per the prior press release, we said we wouldn't utilize the three smaller ball mills. So that means the existing circuit will remain intact, as well as a new SAG-CIL circuit. So that's essentially higher throughput than we announced before, but we gotta finalize that. Also with regards to operating cost, recovery rates are up. And the reason why they're up is oxygenation. And we've been using hydrogen peroxide currently, and Aachen reactor will come in.

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Q1 2026 TRX Gold Corp Earnings Call

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Q1 2026 TRX Gold Corp Earnings Call

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