TRX Gold Q1 2026 TRX Gold Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 TRX Gold Corp Earnings Call
Thank you for waiting and welcome to the TRX 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.
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Arago at areas Richard.
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Can we add.
As on a present relying Richard as well until we log in swaps and a built in I believe Stephen Curry. Michael told me also collapsing to our other speakers that correct, yeah class should be joining as well and that Richardson sites up the guys that are on the app.
At this time I would like to turn the meeting over to Stephen Maloney CEO. Please, go ahead, sir.
The presenter line until we join life.
Mr Biopsies as tight as you can say.
And then Richard if I could just have you say your name for me quickly send get a cloud just the sound of your voice make sure we can hear you.
Sure Richard Buffy.
Yeah, thank you and thanks for everybody for joining this morning. Um, I believe it's Marathon Luther King Day in the United States. Uh, and docs, you have a holiday, um, I think we got a little bit mixed up in that, uh, but that's, uh, it's good to see the number of participants here today, as well as we had really good participation on Friday, on our virtual, um, ndr with the with remark, as well. So,
Commentary clearly I haven't seen collapse come in yet would we like to wait until he joins to begin.
I think we can do Amy I think we can began given their mixed up here.
Okay and straighten it out and then he will join when he joins he may be busy and undiscovered. 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.
We're going to hear that the calls are beginning to record.
When you 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.
Perfect perfect. Okay, Yeah, we'll want to go back to the first slide here well for when we go live for everyone get forget.
Hey.
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'll proceed from there when the call ends please.
It's an exciting time here at TRX. We're going to go over our q1 2026 results, um, which were really good. Um, 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 uh, from Buck Creek today have been progressing very well on the expansion plans, as I mentioned, and as the team has mentioned, uh, before really our our business plan is quite straight forward. We have a robust asset in Tanzania 1.5 million Oz, 2.5 grams a ton. The business plan is to expand the plant, um, in the next 18 to 24 months, increase production, which then helps, uh, fund the underground. And then we have a, a 18 year. Mine life between an open pit operation and an underground mine operation. All on the buck grief main Zone, that's funded through Friday
Wait until I give you the okay to begin speaking so that we know we're back in this care lobby okay. Okay. Thank you.
Thereafter. We have someone on the line that probably under. There we go. Thank you operator.
You have have a good conference everyone. Thank you.
The conference is now being recorded.
Welcome everyone, we will pause for a moment as participants make their way in from the lobby.
And then also we have some very prospective areas of the property, particularly Stanford bridge and field. Richard will also get into what we're finding on the Geo physics side. And we're quite excited for the expiration side as well. And kalaf will give a brief summary of um our government relations side. So I'm going to try not to speak as much today. Um, I have a very strong team. I have Mike Leonard our CFO here today.
Hey Mike, there we go. Richard, as I mentioned, is joining us from sight, our Co all
Thank you for.
Or waiting and welcome to the <unk> Gold Corporation first quarter 2026 results presentation.
and raise your hand. Richard, I think everybody can tell who Richard is. He's got the orange shirt on.
As a reminder, today all participants are in a listen only mode and the meeting is being recorded.
And then cloth is joining us from Dar Salon this morning. Good morning, claw.
so, without further ado,
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.
So TRX, at a glance, um, I gave a high level overview. We operate the puck brief gold project in Tanzania, we are in production producing between 25, to 30,000 oz, in fiscal 2026. That cash flow will enable our expansion of the plant, which will then, uh,
When you are introduced you may see a prompt onscreen asking Youtube quit continue you will be live in the call as soon as you do so.
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.
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 and but that said, 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.
Be online with pea um for an 18-year, mine light and the last 15 years are are underground. Roughly, Richard will get into that today and we may be a little bit early on some of those items but we won't overpromise as well. And we have 1.5 million oz in the resource category MRI about 2.5 grams of tan. 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 5 with regards to what q1 looked like and you'll be supplemented by Richard on some of the operational aspects. Go ahead guys.
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 our results continued to improve the company's financial profile working capital continues to improve and Richard and team onsite Richard joining us from our properties today have been progressing very well on the expansion plans as I mentioned and as the team has mentioned that before.
Terrific. Thank you. Uh, Stephen and good morning everybody. Thank you for, for joining us. Particularly those in the US on, on a holiday. Um, as as you would have seen, we, we did release our, our q1, um, 2026 results, late last week on on Thursday, we we pressed release the, the numbers, and, uh, they were record results the board yet again, um, you know, starting right at the top on, on on production. It was a record quarterly production quarter for us. Uh, we produced just under 6600 Oz
Really our business plan is quite straightforward, we have a robust asset in Tanzania with $1 5 million ounces to five grams, a tonne the business plan is to expand the plant.
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 zone is funded.
Nation.
Thereafter, we had comorbid evolving rallying and dairy golf. 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 Carlos will give a brief summary of our government relation side, so I'm going to try not to speak as much today.
First half of the 2025, we undertook, a stage 1 strip campaign and and the idea was to remove overburdened access higher grade or blocks towards the back end of last year. Um, what you would have seen is that we uh, uh, went through about 1.9 grams of tan, uh, through the through the mill. Um, at uh, at higher throughput levels compared to the prior year, so higher higher throughput, higher grade, and, and higher recovery. In fact, we we recovered around 60, excuse me, 75% recovery for q1, uh, met record production for for the quarter. And in terms of guidance, we we'd indicated uh, full year production guidance of between 25 and 30,000 Oz. Uh, q1 was, uh, was expected to be amongst the lowest, uh, uh, quarters of the year. We, we do continue to access higher rate or blocks and remain on track, uh, for, for that production. Guidance of again, between 25 and 30,000 Oz at a cash cost between 1400 and 1600, uh, uh, dollars an ounce and then q1. We came in at at around 1500 dollars an ounce right in the middle of that.
Tom I have a very strong team at Mike Leonard our CFO here today, Mike Merry go Richard as I mentioned is joining us our site our C O L.
And Ray Jay and Richard I think everybody can tell Richard is he's got the orange shirt on.
The couple that record production with the record gold price environment that we're seeing in in q1, we we realized, uh, 3,860 an ounce, which was a was a record at that time. And of course,
And then Colossus joining us from Mad Dash line. This morning, good morning claw.
So without further Ado.
So T Rx in Atlanta, I gave them a high level overview, we operate our free gold project in Tanzania. We are in production producing between 25 to 30000 ounces in fiscal 'twenty 'twenty six 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 won't over promise as well and we have one 5 million ounces in the resource category AMRI and I have a 2.5 grams.
A few weeks later here we are at over 4,600 dollars an ounce so so gold continues to be very very strong. We continue to demonstrate leverage to to that gold price. Um and and you know, you a couple of record gold price with record production and inevitably you've got uh, record quarterly Revenue in our case of of over 25 million dollars for q1 as well as things like uh, adjusted e, but over 13 million dollars. Uh, so we're demonstrating strong strong, cash flow, strong margins. Uh, and what we've been able to do, we've talked about this for a couple of quarters. Now is basically take that that free cash that we're generating. And we've, we've we've overturned.
So I really want to focus on what we did in the first quarter or 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.
Uh what was a a negative working capital ratio early last year as we were in the middle of that strip campaign and have effectively recapitalized our our balance sheet. Um so even relative to to uh our year end in August 31st, we're up to 1.7 times uh, or about 15 million dollars, positive working capital that at q1 and that continues to improve and amongst other things. We've been able to show an increase in our our our our cash position.
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've seen we did release our Q1 2026 results late last week on Thursday, We press release feed the numbers and now they were record results across the board yet again.
To over my 9 million dollars, which is an increase relative to Q4, but we also continue to invest in the business. So we we, we have significantly grown our, our, our romp pads stockpile, which Richard can talk a little bit about in his remarks, uh, but we've got over 22,000 Oz, sat on that ramp at stockpile. Um, which um, is, is, is about 1.2 1.3, gram, a ton roughly on on average.
Starting right at the topper on production it was a record quarterly production quarter for us.
currently and, and is split between oxide and, and, and and sulfide Rock which allows us basically to
um, you know, optimize
We produced just under 6600 ounces.
the mill.
It is a significant increase over the year the prayer.
Insurance policy.
The comparative period as well as even in our Q4 and our results we had indicated that.
To, uh, to make sure that that bill feed uh, you know is is consistent and strong.
And and material coming out of the pit.
Over the first half of the 2025, we undertook a stage one strip campaign and and the idea was to remove overburden to access higher grade ore blocks that towards the back end of last year.
Sort of prioritize, relative to what's on the on the stock pile, to make sure the highest grade material is going through the mill.
What 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.
I meant record that production for the quarter and in terms of guidance, we'd indicated full year production guidance of between 25% to 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 for for that production guidance of again between 25 and 30000 ounces at a cash cost of between 1400 6800 odd.
I guess the last maybe comment, I'll make on on the quarter. Uh, we do continue to invest in uh, with Steve and talked about the uh, the the plants, uh, 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 and and illusion plants, and gold rooms and and increased oxygenation. All of which is meant to help, uh, improve things like throughput. And, uh, and and and Recovery which we'll need to hire production over time. So a very, very strong quarter, uh, a record across the board and certainly expect that to continue into, uh, Q2 and Beyond.
Next slide, please.
So, this is effectively a summary of
<unk> dollars, an ounce and in Q1, we came in at around $1500, an ounce right in the middle of that.
A couple of 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 of course.
A few 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 our <unk>.
Some of the key stats. I think we've already talked about we've talked about the, the revenue. We've talked about, Evita, gross, gross, profits, and important 1 to touch on. We, we have, um, been able to demonstrate, it's it's a high margin lowcost, operation, uh, with again leverage to to gold price, gross profits are over 50% right now. So, uh, we're generating. Lots and lots and lots of free cash and sitting in that, what, what, what we would characterize as the lowest quartile of the, of the cash cost curve at at, at roughly, 1,500 an ounce. And again, the model is, is to use that for free cash flow to execute against the the Pea, to both upgrade our existing Mill, and expand it. And then use that cash flow to fund the underground development that that Stephen touched on.
Adjusted EBITDA over $13 million, so we're demonstrating strong strong cash flow strong margins and.
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.
Uh We've also been able to invest in things like exploration. The first stage of our exploration program was uh effectively this geophysics study. Which I think we'll talk a little bit about later, but continue to advance uh, in in in that regard and hope to be able to put some uh, some assay and drill results out later this year and that continues to develop
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.
You get to it but effectively demonstrates that we can achieve high high. Recoveries
So even relative to our year ended August 31, where we had a working capital ratio of about 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.
with some of the mil enhancements that, that we're making, which will help drive drive future production,
And I think the last last bit, I think I've touched on, but we do continue to expect our production to be between 25 and 30,000 Oz between 14 and 1600 dollars an ounce.
continue at this stage to expect to spend, uh, uh,
Which is an increase relative to Q4, but we also continue to invest into the business. So we have significantly grown our ROM pads stockpile, which Richard can talk a little bit about in his remarks.
But we've got over 22000 ounces chat on that ramp that stockpile.
At that level. But of course these gold price levels. If we generate additional free cash, we may move some of those Capital expenditures. Uh, around the planet expansion forward into the back end of this year, but we'll certainly update the market, uh, as, as, and when we make that determination. And finally responding on exploration, we expect
Which is about one point to 1.3 Gram a ton roughly on average currently and in a split between oxide and sulfide rock, which allows us basically to.
Between 3 and 5 million dollars.
We, we have procured a couple of drill rigs in RC and a diamond.
Rig, which which we'll talk about which uh, we expect will help, uh, help our drill program over the course of this year.
You know optimize what goes through the mill and also serves US 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.
Is this is sort of prioritize relative to what's on the on the stockpile to make sure the highest grade material that's going through the mill.
So 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. Uh, thank you Mike. And uh, we're going to switch into what I call operational growth here. And I'm going to hand it over to Richard, to give a brief overview. Richard of
I guess the last may be comment I'll make on the quarter and we.
We do continue to invest in which Steven talked about the that 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 sickness and elution plant in Gould rooms, and an increased oxygenation all of which is <unk>.
To help improve things like throughput gender and end to end recovery, which will lead to higher production over time, so very strong quarter a record across the board and certainly expect that to continue into Q2 and beyond.
Next slide please.
Where we are in our expansion plans and what investors can expect, uh, in the next, uh, you know, 12 to 24 months around our expansion and where we're going to get through, uh, to on throughput obviously, we're online with what was in the Pea and, and our goal is to exceed. What was that in that pea? Given that we do plan to have a, a higher throughput than what was in the Pea. Where exactly. Are we on all our items? I know a lot of exciting things around our reactors, 80 airplanes, um, looking at the confirming and finalizing Metallurgy and then getting into the SAG, D ball mill, as well as flotation cells, and thickeners, all kinds of things going on. So a lot on your plate.
Here on mute Richard.
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 of over 50% right. Now so are generating lots and lots and lots of free cash is sitting in that.
There you go.
All right. Hopefully
Have that you can hear me clearly, you can hear me just fine. The reception is good at buffery today must be any thunderstorms
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 P. A to both upgrade our existing mill and expand it and then use that cash flow to fund the underground development that Steven touched on.
No. No. We're in the middle of 1 right now, which is why I asked. Um, okay. Anyway, uh,
We've also been able to invest in things like exploration that the first stage of our exploration program was.
Effectively this geophysics study, which I think we'll talk a little bit later, but continue to advance and 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 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.
In terms of the, the work we're doing at the moment, we are still heavily focused on upgrades to our 2000 ton per day plant. Uh, so right now, we're in the midst of doing a, a, a major, uh, upgrade and and Improvement to our crushing circuit. Uh, we've got more work, uh, lined up straight after that to move on to our our meals and the power draw for the Mills, as well as the Cil circuits were installed in um, a super oxidation system that will um, hopefully give us another couple of percent recovery. Uh, uh, We've also made some major improvements that this last quarter in the recovery areas um, which uh Mike alluded to and that that's going well. And is prowing again through this quarter.
And I think the last last bit I think I've touched on venture will 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.
Uh, in terms of work towards the expansion, um, we've more or less finalized. All of our metal electrical tests work. Uh, We've we've done a full modeling inspect of the, uh,
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.
Uh the SAG circuit and for those people who may have read the, the Pea we had planned to combine our existing uh, 600 kilowatt ball mill with a sag Mill and our modeling shows. We're probably better to to just invest in a larger sag Mill and make it a simpler circuit. So, um,
That was in 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.
Uh, we're going out on price inquiry at the moment and full team are very shortly. Um, and indications are that the, the lead time on that equipment, probably of the order of uh, 7 to 9 months.
Where we are and our expansion plans and what investors can expect in the next day.
Um the float plant uh and uh and fine grind aspects of the expansion and the and the change in the process flow sheet uh have gone. Well uh that met test work was
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 dollar item side I know a lot of exciting things ramp at reactors ADR plants.
Really focused on that. Um, generally getting some excellent results in float, in the, in the lab and part of plan, uh, uh, with recoveries and mass pool, um, but both better than expected, um, and our fine grind. Uh,
Looking at them, confirming and finalizing metallurgy, and then getting into the say the ball mill as well as flotation cells Thickener has all kinds of things going off a lot on your plate.
Yeah Richard.
There you go.
Right hopefully.
However, you can hear me clearly you can hear you just fine and then receptions good appropriate.
Must be any thunderstorms.
Water at the moment. We've got oxygen plants coming to site, uh, 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, uh, some of those aspects until 20 Financial year 2027.
There are no we're in the middle of one right now which is why I asked.
Okay everyone.
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.
A major.
Upgrade an improvement to our crushing circuit.
So, generally things are working pretty well. Um, and uh, as I discussed, uh, this this change to a straight sag circuit for our new. Um our new expanded plant allows us to effectively full fully utilize, the existing plant we've got which is why we're confident that we can, we can probably improve on pea. Um,
We've got more work.
Lined up straight after that to move on to L. L meals 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 couple of weeks at her recovery.
Uh, metrics in terms of throughput and Ultimate Gold production coupled with that. We're doing a re optimization of our pits with this High, golden environment. And we're pretty confident, we're going to see some some added reserves and our, and our non reserves. So, coming out with, with a reduced cutoff grade.
We've also made some major improvements this.
So, all in all things are looking pretty positive for us.
Last quarter in the recovery areas.
Which.
Mike alluded to that that's going well and is progressing again through this quarter.
In terms of work towards the expansion.
Yeah, thank you, Richard for that. A lot of um information to intake there and uh it gives uh investors a sense of the direction and and so many news that will come out as we finalize plans. Um,
We've more or less finalized all of our middle <unk> test work.
We've spent we've done a full muddling inspector of the.
It is Richard indicated, we may not utilize a thousand time per day ball mill. Now in the
No.
The Sag circuit.
And for those people, who may have read the P. I E. We had plan to combine our existing <unk>.
600 kilowatts.
We'll move with a Sag mill and our modeling shows with probably better to just invest in.
Sag the circuit. So per prior press release, we said we wouldn't utilize the 3 smaller ball Mills so that means the existing circuit will remain intact as well as a new sagd circuit. So that's essentially higher throughput than than we announced before. But we got to finalize that
the um,
Our largest sag mill and make it simpler circuits.
We are going add on price 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.
The float plant.
also with regards to operating cost recovery, rates are up and the reason why they're 1 of the reasons why they're up is oxygenation, and we've been using hydrogen peroxide currently, and I can reactor will come in and Richard. I assume we're going to get the option rates even up higher than what we currently have with the hydrogen peroxide. So
And and fine grind.
That should, as you mentioned, the lower cost as well as increase recovery rates. Um,
Aspects of the expansion and the change in the process flow sheet.
going forward.
<unk> has gone well.
The Mitt tests work.
Really focused on that.
Generally getting some excellent results in flow in.
The lab and part of plan walks.
And as well as the upgrades to the crushing circuit, I believe the APR and Peter has been put in today, which was critical for that so that, you know, it enables us to continue to, you know, operate, our 2,000 temporary Day, plant efficiently both before, and after the expansion. So,
With recoveries and mass poll.
But both better than expected.
And al Fine grind.
Hmm.
It looks like we're going to optimize it about 20 more drones instead of 15 more trains.
I I think like things are extremely positive, um, and we should see higher throughput rates this year than we've seen as well as the great profiles going to increase. We'll get into that in a second and it was last year given where we are in the pit. And as Richard mentioned
Which again is.
In any study, and in any resource profile.
The big improvement in energy extreme mature in capital expenditure, so those aspects are going well.
you pick a gold price to figure out your, um,
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 they'll be in by the end of the financial year and say, we will see much benefit from.
Optimal pit design and underground mining plan design.
And our pea, I believe we utilize 1900 an ounce richer is what it was.
in order to do that work,
Some of those aspects into 'twenty financial year, 'twenty 'twenty seven.
So generally things are working pretty well.
And as.
As I discussed.
This this change to a strike Sag circuit for a new.
No 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.
And so that, then drives a cutoff grade. So we're Richard and team now are gone to relook at that. Given we're at 4600 an ounce now. So we'll choose a higher price there. And really the goal is, well, you'll start to see is, as you redo that mine plan. You'll have a bottleneck in your plant and your stockpile will continually increase as you take the lower grade material and just put it on the stock file for the end of mine life. And typically, that's what you'll see from a, from a mine planning perspective, but certainly the reserves and resources will go up as a result of that. So um, all in all very, very positive.
Yes.
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 and at loan reserves coming out with with a reduced cutoff grade.
So when all things are looking pretty positive first.
Uh ah, aspects of going on on the throughput side of things. So with regards to that, when you're looking at numbers, um, coming through in financial numbers, uh we haven't utilized a dollar gold price in our in our budgets. We we use a lower gold price than that. So given we are confident on. Um,
Yes. Thank you rich for that a lot of information to intake there and now.
It gives our investors a sense of the direction and some on a news that will come out as we finalize plans are.
As Richard indicated we may not utilized 1000 ton per day ball mill now in the Sag.
On our throughputs on our recovery rates. And on our goal production metrics, um, obviously that should flow through 2 to the financial metrics and we are very hopeful that, uh, we'll be hired and we were certainly were a fiscal 2025.
Sag D circuit, so a part of prior press release, we said we would utilize the three smaller ball mill. So that means the existing circuit will remain intact.
As well as a new Sag D circuit, so that essentially higher throughput and then we announced before we got to finalize that.
<unk>.
Um, if you look at our run rate right now, it's certainly higher and the significantly higher than what was achieved in fiscal 2025 and we're doing fairly well. Um, the first quarter had an increase in EVD around 10 million dollars versus first quarter of last year from a net basis. So we're all in all doing very well and obviously working capital continues to increase our judgment is you know companies
Also with regards to operating cost.
Recovery rates are up and the reason why there are one of the reasons wider op is oxygenation and we'd be using hydrogen peroxide currently and archon reactor will come in and Richard I assume are going to get the option rates, even up higher than what we currently have with our hydrogen peroxide salt.
Form, extremely well, I have a working, capital ratio, anywhere between 1.75 and, and above 2. Um, that's certainly will get there fairly soon and and are well, capitalized execute our plans. And in that, to, that point, Mike
That should as you mentioned, the lower cost as well as increase recovery rates.
Going forward.
No, I think that was well said Stephen we're well on our way as mentioned at 15 million dollars, positive for q1 with an improving profile. We'll we'll fit neatly into that working capital, uh, metric that you just described
As well as the upgrades to the crushing circuit and I believe the April Peters, who can put in today, which was critical for that so that you know and it enables us to continue to you know operate our 2000 ton per day plant efficiently both before and after the expansion so.
I think that things are extremely positive.
Yeah exactly. So our mind planning um a lot of people have come back to me on this particular slide and like it because you know it you know the saying and picture says a thousand words. It certainly does on this particular slide and explains why we had to go through the stripping campaign last year. And now we're into the, um,
And we should see higher throughput rates this year than we've seen as well as the grade profile is going to increase we'll get into that in a second minimum was last year, given where we are in the pit and as Richard mentioned not in any study and in a resource profile.
The pinks and the, uh, and the Reds that, you know, the, the nice colors, we still got some blue colors to go through, but you, you can't avoid blue colors. You got to strip in order to open up the nice colors. And Richard, you want to give it just a quick overview of, um,
You pick a gold price to figure out your optum.
Optimal pit design, an underground mining plan design in our P. A I believe we utilized $9800 an ounce richer it was what it was.
In order to do that work.
And so that then drives the cutoff grade so we're Richard and team now argon to re look at that given where our $4600 an ounce now so while she was a higher price there and really the goal is why youll start to see is as you re do that mine plan, you'll have a bottleneck in your plant.
Uh, of our mind plan for this year, um, what can be expected from a mining perspective as great profile comes through? And obviously, the thickener is a big thing because we no longer will have to, um, mix oxide to in our plant and that will increase the head grade which increases production as well. So, just give us a quick overview of, uh, of what people are seeing here. Obviously, Buck 3 gets a nicer colors as we get deeper.
Sure. Look, uh
And your stockpile will continually increase as you take the lower grade material I'll just put it on the stockpile pretty in the mine life and typically as what Youll see from our from our mine planning perspective, but certainly the reserves and resources will go up as a result of that salt.
All in all very very positive.
Aspects are going on on the throughput side of things so with regard to that when you're looking at numbers.
Coming through in financial numbers.
We havent utilized of 4000 dollar gold price in our in our budgets, we use a lower gold price than that so given who we are confident on them.
Water throughput on our recovery rates and on our gold production metrics I'm, obviously that should flow through to the financial metrics and we are very hopeful that well.
Generally our our Focus towards the the the second half of financial year, 25 was in that southern area to the left on that slide where there were were a bit of grades. Um and that was in response to some delays. To get there this year, we've got a far more steady Descent of the of the project uh, of the of the main pit. Um, and we'll be taking a pretty uh, probably about a, a 30 m overall, vertical lift right across the, the site, uh, right across the pit and that allows us a fairly even grade profile specially for the first 3 quarters. And then we actually hit some very sweet stuff in the fourth quarter, which will, will will see a bit of a boost in their, in their head rate through the mine. The the, the reason I'm stressing,
A an even profile of about 2.1. 2.2 grams, is that it
It will be higher than we were certainly where fiscal 2025.
If you look at our run rate right now is certainly higher and significantly higher than what was said achieved in our fiscal 2025, and we're doing fairly well.
Out richer producing you a little bit.
Yeah, I mute again or we lost you.
The first quarter had an increase in EBITDA of around $10 million versus first quarter of last year from a net basis. So all in all doing very well and obviously working capital continues to increase our judgment is you know companies.
That have performed extremely well have a working capital ratio anywhere between 1.75 and above to that.
Yes, that's yeah. So we lost you at the reason why I'm stressing it and even uh profile 2.1 Grand fun. So it's it's helping the plant enormously having a nice steady grade profile. Um, as as uh Steven mentioned uh in about uh,
Certainly where we'll get there fairly soon.
And there are well capitalized to execute our plans and add to that point Mike.
No I think that was well said steam we're well on our way as mentioned at $15 million positive for Q1 with an improving profile all fit neatly into networking capital metric that you just described.
So our mine planning.
Yeah, a lot of people come back to me on this particular slide I like it because they know it.
And I was saying in pitchers says a thousand words. It certainly does on this particular slide and explains why we had to go through the stripping campaign last year and now we're into the <unk>.
Pinks and there.
And the read it to you now.
The nice colors, you still got a blue collar has to go through but you can't avoid blue collars you guys strip in order to open up the nice colors are Roger you want to give you just a quick overview of <unk>.
2 and a half months, 3 months, certainly by sometime in April. We'll we'll have our our pre leaks thickener, uh, installed, and um, that will enable us to probably see about a 5% lift in the, the, the, the middle head grade. Um, so we'll start to see, you know, uh, some improvements in in production related to that as well. Um, the other thing we're doing uh, in the third quarter of this year is we're starting our a new pit, the strip for the new pit, which is called Eastern porrey. And by the end of our financial year, we'll have faced off, uh, to have or or faces, um, in the all blocks available to us. Uh, so we'll be I guess de-risking our, our production profile in that respect as well.
As our mine plan for this year of what can be expect from a mining perspective. It as grade profile comes through and obviously the thickener is a big thing because we no longer will have to.
That's great. So we we've gone through, um, on the production, side of things, what's solidifies the to pay for things? And I'm going to jump around our presentation a little bit here and let's just go straight into what our expiration programs are our vision to be. I do know. Um we do have 1 drill rig or RC rig on site.
<unk> oxide to in our plant and that will increase the head grade, which increases production as well. So just give us a quick overview of all of what people are seeing you're obviously puffery gets a nicer colors as we get deeper.
Sure Luke.
Generally L a focus towards the second half of.
Financial year 'twenty five.
Wasn't that southern area to the left on that slide where there were were better grades.
And that was in response to some delays to get there. This year, we've got a far more steady descent of the of the project.
Um, and that's currently doing, I believe Richardson condemnation drilling for some of the expansion plans. Um, but we do plan to do some uh, expiration holes with that fairly soon and describe uh, our our our um, Diamond drill rig is should be on the water pretty soon and be at site and we'll probably use some subcontract drilling as well in in 2020 26, obviously everything we've described on the production side is in the buck brief main Zone. Um, we've had a good deal physics. Uh
Of the mine piece.
Or what our plans are around, expiration.
And we'll be taking a pretty.
Probably about a.
30 meter overall vertical lift run across the site run across the pit and that allows us a fairly even grade profile, especially for the first three quarters of NIM, we actually hit some very sweet stuff in the fourth quarter, which will we will see a bit of a boost.
Drive through the phone.
The reason I'm stressing.
And even profile of about $2, one 2.2 grams is that it.
Oh.
Yeah.
Al Richard we're losing you a little bit.
Yeah.
Yeah, Amit again are we lost you.
Assets yet.
So we lost you at that normal stressing in any event.
While 2.1 Gram fraud, so it's helping the plant enormously having a nice steady grade profile.
Sure. So, um, as, as you mentioned Stephen, we've got uh, we've completed our our first geophysical study and that's high. It's a, it's basically highlighting interesting structures. Um, and it's done in in quite a high level of detail. It hasn't been done before on this project area. So, that's highlighted some really interesting targets for us and we are, we will hit hit some of those immediately with with our drills. Uh, and others we're planning to do what's called a an induced polarization or electrode resistivity. Uh, uh, uh, survey on, on those other ones to see if we can try and, uh, Identify some some deeper, uh, pyrotic, uh anomalies and therefore, that we'll put drills on those as well. So, um, across the course of the Year, we're, we're planning to probably drill of the order of about 40,000 meters of, um, of, uh, Drilling.
And total, maybe maybe even 50 to 60 if we get a good run at it.
As as Steven mentioned.
And about.
Two and a half months three months certainly bought sometime in April will will have now a pre leach thickener installed and that.
That will enable us to probably see about a 5% lift in the the mill head grade.
Yeah, and so obviously Stanford bridge will be in their anfield will be in there. And as other people just heard, there's other areas that are looking extremely good from the geophysics, uh, survey that's being done on the site, which are not anfield or Stanford Bridge that's is that correct?
So we'll start to see.
Some improvements in production related to that as well.
Yep. That's, that's absolutely correct. We've got some other very interesting little, uh, structural features that we've identified that we want to follow up on.
The other thing we're doing.
In the <unk>.
Third quarter of this year as we're starting in a new pit strip for the new pit, which is called eastern porphyry and by the end of our financial year, we'll have site staff to have ore faces.
In the old blocks available to us.
Correct, excellent. So the in summary, um, we are online RPA. Um, as a people um, understand the production profile gets quite good under the Pea. We're hopeful to exceed that um, and given current coal prices. Um, profitability looks pretty good as well.
So it will be I guess derisking, our production profile in that respect as well.
um, the next thing, uh, prior to part of our whole
Well that's great. So we've gone through them on the production side of things, our solidifies said to pay for things and I'm going to jump around a presentation, a little bit here and lets just go straight into what our expertise.
business plan. Obviously we've been open with this.
Grams are.
We are in the, you know, negotiations with the government obviously that's a little bit slower than everybody would like, um, but that is the nature of dealing internationally. Things have to go through their political process. So cough, why don't you just give a high-level overview of where we are in that?
Come off mute.
Yeah. And thank you Steve and good morning to everybody. Good evening, Richard, that, that the sites in Tanzania with me? Uh, yeah, I just okay. So, I mean that we all know that, um, that Tanzania has been through a difficult period, we're coming out of that difficult period election period. So, um, if it does feel like, uh, things are normalizing. Business is getting back to to, to how it should be. Um, obviously there's there's some aftermath of the politicians are dealing with trying to reconcile the different.
Es and and so forth. They've had been hit a little bit with International Development funding. Um, for us it's probably a positive thing because it prioritizes mining. All right, so there's a focus trying to get um, projects to new projects off the ground, uh, existing projects ourselves to scale up, um, as soon as possible. So obviously, the government gets more income, um, we've, um, as we've mentioned in the previous meetings, we've had, we've been busy negotiating, um, with the government. Um, there is a, um, as a as we all know, um, State participation regulations that the amendment was introduced in 2022, right? Um, essentially, the framework agreements, uh, and participation of the state. Um, we have an existing joint venture agreement since 2020. Um, 2011. Um, so what we're, we're looking forward to is getting to a point where um we can agree with the government better agreements. Um,
All parties, right? Um, much, uh, more transparent, uh, easier to operate, um, in Tanzania. Um,
Uh, and um, I guess, um, avoiding dispute and reducing risks for, for investment in the country. Um, so we're looking forward to that. Um, negotiations are ongoing, um, as Stephen says all bit a bit slow.
Operator: The correct line for the participants.
Stephen Mullowney: Yeah.
Operator: So we need to close the lobby and bring the two parties together so that they can hear the call start. So what I would suggest to do is that our presenters turn their cameras on and, Barry, if you can mute your camera so that you're not on camera, you'll just be listening once we go live here in a moment. So if you take, sir, your mouse and you go near where the slides are at, that box that opens in the bottom, you'll see that little camera icon. It's the left camera icon. You'll want to click that to mute your camera. All right. There we go. And Barry has muted his camera. So Stephen, what you're going to want to do is unmute your camera here.
It is.
Pretty quickly as well.
Um, yeah, we should have new agreements and better and more investable agreements. Um, so yeah, basically, in summary that that's, um, that's what it is. Stephen, do you like me to add anything else to that? No, no. I I think to it's progressing and and obviously
Operator: Our other presenters are going to want to unmute their cameras here before we get started.
Stephen Mullowney: Yeah. Yeah, that's fine. So,
Operator: Okay.
Stephen Mullowney: We'll have investors and participants on both the presenter line and the investor lines.
Pace and and politics are different in the other parts of the world versus what we would be used to in the United States and and Canada. Um, but that is part of, you know, operating internationally. I have a lot of experience around this and it has to go through its political departments and, and get to the right spot where decisions can be made. And I think we're at that spot and we will hopefully be able to progress it with a little bit more Pace than we've had. Um, before our, our, our Agreements are a little different than what you see in other companies, there are other companies are looking to put the properties in production, so they go straight to the framework agreement. We are, we are dealing with an existing joint venture to switch to framework agreement terms. Um, and in that, obviously, we're looking to
Okay.
basically, um,
Operator: Well, once we, yes. Sir, once we close the lobby, we'll bring everybody together and everybody will be in the right location.
Okay.
Sure.
Stephen Mullowney: Okay. Thank you.
Operator: You're welcome. See, Steven, if you want to unmute your camera here in a moment when you're ready, I'll go over final instructions and we'll get started.
You know, put the agreements into better agreements than what we currently have for both sides, both for us and and for the government and uh and that has been well communicated. So I think we'll come out the other side for us and for the government in a much better win-win situation.
Stephen Mullowney: Yeah, that's fine. Thank you. Give me a few minutes.
Operator: Yeah, no problem. Yep. Michael, while you're here, can I do a quick sound check with you? Just have you say your name for me, please.
Michael Leonard: Sure. It's Michael Leonard. Can you hear me okay?
Operator: Yep. Yep. Yep. You're coming through clearly. Just want to check while Stephen's getting situated there on his end. How many other speakers will there be besides you two?
Michael Leonard: There'll be another two. So there'll be four of us in total.
Yeah, no, absolutely. But perhaps I should add also, um, that we are engaging with our, um, our embassies here locally. Uh, and they're, they're weighing in and obviously quite involved as well. Uh, in this process working with the government to try and get all these things over the line as soon as possible. So yeah, that's both the American and Canadian Canadian. Yeah. Yeah. Both American and the Canadian embassies and and
Operator: Okay. Can you give me the names of those individuals, please?
When I was in Tanzania in December, I visited with both of them. Um,
and it uh, you know, both are pro-investment.
Michael Leonard: Sure. The first one will be Richard Bofey, B-O-F-F-E-Y.
Pro stability is is what I would say.
Operator: Okay.
Michael Leonard: The second is Khalaf Rashid.
All right, so with regards to us, I'm going to open up the floor. Now in a second and last part as I'm going to go through valuation, obviously we are starting to move up our chart uh somewhat um,
Operator: Okay. Thank you, sir.
As we continue to, you know, produce Good, Financial results, recapitalize the business internally and the market gets a sense of where we're going with our business plan and expansion plan. So I'm fully expect, uh, you know, hopefully as we continue to, um, execute and execute successfully, we continue to move up that chart.
We have looked at a lot of metrics of what the market is looking for um and have orientated our business plan towards that uh towards those metrics. I do think
we have a huge chunk of warrants coming off of February 11th.
Um, 80 cent warrants, and then a year later, it's the 44 Cent warrants. I think we will get into a spot where the overhang of those warrants and capital structure on the equity side becomes a lot cleaner. I think that will be a positive for the stock as well. So all in all things are going fairly well. Um, TRX is in a good position.
We?
Are generating good cash flow, particularly at 4600 gold.
I'm reinvesting that cash flow into the business. Uh we did our last Capital raise over 4 years ago and it said it raised net, 20 million dollars and we're probably going to get to a mining property.
Richard Boffey: Okay.
Stephen Mullowney: There we go. Yeah, there he is, Richard. So we have a speaker on our presenter line, Richard, as well, until we log in, so.
Operator: I believe, Stephen, Michael told me also Khalaf is our other speaker. Is that correct?
Stephen Mullowney: Yeah. Khalaf should be joining as well. Richard's from site. So guys that are on the, on the presenter line until we join live. Mr. Bofey's at site, as you can see.
That could produce 80 to 100,000 Oz, Plus off that 20 million dollars which is I don't think it's been done anywhere and and right now the the gross investment into the assets, been around 70 million bucks, off of that, 20 million dollars. So that ratio is well, over 3 times now and continues to grow. Um, we're looking confident and you're hearing the confidence in our voice. Think there's a lot of upside in the expiration side as well. And there's even upside and revising our mind plan.
Operator: Yep. And then, Richard, if I could just have you say your name for me quickly so I can get a, just a sound of your voice, make sure we can hear you.
So we're a self-funding, growth operation, both on the production, side Cash Flow side, and resource side. So looking
Richard Boffey: Sure. Richard Bofey.
Yeah. We're we're fairly confident. So I'll hand it back to the moderator uh for questions.
Operator: Coming through clearly. I haven't seen Khalaf come in yet. Would we like to wait until he joins to begin?
Thank you.
Stephen Mullowney: I mean, I think we can begin given our mix-up here, on the line.
Operator: Okay.
Stephen Mullowney: Straighten it out. And then he will join when he joins. He may be busy in some government.
Well, yes.
Operator: Okay. Okay. Not a problem at all. So Stephen, what 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 call's beginning to record.
Okay.
Stephen, as a reminder, to our analysts, 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 question, verbally, or write a question to submit your questions in writing.
Okay.
Okay.
Okay.
Okay.
Stephen Mullowney: Yes.
Operator: Or the call's going, yep. And then so we'll just wait a couple moments, and then I will let everybody know the lobby's open. And then I'll give our introduction and turn it over to you.
Okay.
We will now pause momentarily to assemble our roster.
Okay.
Stephen Mullowney: Yes.
Operator: Do you have control of the slides, Stephen?
Sure.
Stephen Mullowney: Yeah. I got control of the slides. Yep. We're good.
And today's first voice, question comes from haiko Ela with HC Wayne Wright please proceed.
Okay.
Operator: Perfect. Perfect. Okay. Yeah. We'll want to go back to the first slide here for when we go live, for everyone.
Stephen Mullowney: Yeah. Yeah. We're good.
Hey there. Thanks so much for taking my question. I'm a happy Martin Luther King Day for all the US investors.
Operator: Okay. All right. Great. All right. 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'll proceed from there. When the call ends, please wait until I, I give you the okay to begin speaking so that we know we're back in the secure lobby. Okay?
Thanks h.
Okay.
Yes.
Okay.
Okay.
Stephen Mullowney: Okay. Thank you.
Operator: All right. Yep. Have a good conference, everyone. Thank you.
Okay.
Hey, the larger processing facility. Can you walk me through potential bottlenecks during uh, you know, like when it actually ramps up and also the impacts on the labor force, how many extra staff do you think you'll need? I assume once this is up and running, it's a limited number. And then maybe, if if I could just throw in 1 more, the guests for the your your best expectations for what you'll pay for the labor this year.
Um, yeah.
Operator: The conference is now being recorded.
Okay.
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 Q4, 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.
I'll hand that back over to Richard. I assume the audience or the last part of the, of the question. Uh, I assume that you're looking at Labor as an inflationary pressures.
Is that your real your real question?
Correct. Well also, I mean it's presumably going to be more people, but, but yes, that's that's the, uh, that's the idea. Yeah, so so I, I think, uh, Richard will answer that question more around what we expect processing costs per ton to be versus, uh, labor rates. We we haven't seen a lot of inflationary pressure on labor rates in Tanzania. Um, but um, you know, certainly
Versus what you've seen elsewhere. Uh there is some but it's not the same extent so Richard you want to answer the first part of the questions.
I think you're on mute again.
There we go.
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.
Uh, we're having some difficulty hearing you Richard today.
Okay.
Yeah.
Okay.
Okay.
Stephen Mullowney: Yeah. Thank you. And thanks for everybody for joining this morning. I believe it's Martin Luther King Day in the United States, and so you have a holiday. I think we got a little bit mixed up in that. That's, it's good to see a 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 going to 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.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Sure.
Okay.
Oh, mute on mute, let's try. How about that? How about that? Yeah, fantastic. Okay, very quickly on on labor labor is not particularly increasing significantly. Uh, it's more exchange rate affected uh, than anything else at the moment. Um, we've had a pretty stable sort of 36 months uh here. Uh as we upskill our people obviously, we remunerate them a bit better but that's that will result in in slightly reduced, work forces, the uh expansion will uh
Okay.
Okay.
Okay.
Increase total Workforce, but reduce unit costs and and uh, and overall labor.
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. Then 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 by the administration. Thereafter, we have someone in the line that's probably under. There we go. Thank you, operator. Then also we have some very prospective areas of the property, particularly Stamford Bridge, Anfield. Richard will also get into what we're finding on the geophysics side. And we're quite excited for the exploration side as well. And Khalaf will give a brief summary of our government relations side. So I'm going to try not to speak as much today. I have a very strong team.
Operator: The correct line for the participants.
Stephen Mullowney: Yeah.
Operator: So we need to close the lobby and bring the two parties together so that they can hear the call start. So what I would suggest to do is that our presenters turn their cameras on and, Barry, if you can mute your camera so that you're not on camera, you'll just be listening once we go live here in a moment. So if you take, sir, your mouse and you go near where the slides are at, that box that opens in the bottom, you'll see that little camera icon. It's the left camera icon. You'll want to click that to mute your camera. All right. There we go. And Barry has muted his camera. So Stephen, what you're going to want to do is unmute your camera here.
Increments relative to uh uh, what we, what we're seeing at the moment. Um, the underground, uh, aspect of the project is not that labor intensive, compared to what we put what we're seeing in the open pit at the moment. Uh, we're looking to have quite an efficient, um, contractor run uh, uh, underground mine. Uh, probably only in employing a maximum of 300, uh, operators and and maybe another 50 staff. So, uh, it's not going to be a huge increment. Not not like some of the other African Minds. What, you're seeing thousands of people employed, um, I don't see labor being a big driver of uh, of
Okay.
Yeah.
Okay, thank you. Richard. Does that answer your question? Hi Co
Yeah.
Okay.
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 Q4 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.
Okay.
Okay.
Yep.
Uh huh.
Yes, yes. Thank you. Thank you, Richard and team. Um, and then also Figure 8 on page 7 of the press release. I mean, if you, if you just saw a look at it, uh, you know, like from a 20,000 foot view, there's lots of a great material center, right? Uh, given and and it, it seems to be getting even better as you go deeper. Um, just conceptually, when should we expect that to get mined? And is it going to be Blended in a way that that impact will be muted? Or will there be call of the quarter or 2 with, you know, sub?
Essentially above.
Uh, mine plan rates.
Our other presenters are going to want to unmute their cameras here before we get started.
Stephen Mullowney: Yeah. Yeah, that's fine. So,
Okay.
Yeah. So uh Richard answered that question earlier in the presentation that you head grade will go up as we get into uh put in place a thickener.
Operator: Okay.
Stephen Mullowney: We'll have investors and participants on both the presenter line and the investor lines.
Okay.
so, the thicker enables us not to have to mix lower grade oxides with the
Okay.
Operator: Well, once we, yes. Sir, once we close the lobby, we'll bring everybody together and everybody will be in the right location.
Okay.
Stephen Mullowney: Okay. Thank you.
Okay.
Operator: You're welcome. See, Steven, if you want to unmute your camera here in a moment when you're ready, I'll go over final instructions and we'll get started.
Cool.
With the higher grade sulfide material. And as the pit goes down deeper and we get into the underground portion, you'll see the head grade change in our pea. Um and there are peaks in there obviously, as a result of the increase in head Creek.
Stephen Mullowney: Yeah, that's fine. Thank you. Give me a few minutes.
Okay.
Operator: Yeah, no problem. Yep. Michael, while you're here, can I do a quick sound check with you? Just have you say your name for me, please.
That makes more sense now, thanks so much I'll get back to you.
No, no problem.
Stephen Mullowney: And we have 1.5 million ounces in the resource category, MRNI, about 2.5 grams a ton. So I really want to focus on what we did in the first quarter, 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 he'll be supplemented by Richard on some of the operational aspects. Go ahead, guys.
Okay.
Michael Leonard: Sure. It's Michael Leonard. Can you hear me okay?
Okay.
Operator: Yep. Yep. Yep. You're coming through clearly. Just want to check while Stephen's getting situated there on his end. How many other speakers will there be besides you two?
Yeah.
Okay.
Sure.
Operator. Again, again, if you do have a question that you would like to ask, 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 question verbally, or write a question to submit your question in writing.
Michael Leonard: There'll be another two. So there'll be four of us in total.
Operator: Okay. Can you give me the names of those individuals, please?
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. 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 H1 2025, we undertook a stage one strip campaign. The idea was to remove overburden to access higher-grade ore blocks towards the back end of last year.
Yeah.
Okay.
Michael Leonard: Sure. The first one will be Richard Bofey, B-O-F-F-E-Y.
When you're introduced, you will see a prompt on screen asking you to continue at that point. You will be live in the call when you do. So, and a further, reminder, if you joined the audio call, only please press star, then 1 on your telephone keypad to ask your question.
Okay.
Sure.
Operator: Okay.
Michael Leonard: The second is Khalaf Rashid.
As we wait for any other verbal questions that come through. Uh, I can turn it over to you Steve and there are some text questions that came through.
Scott.
Yeah so so there's some text questions so I'll get into those. Um the first 1 is could you explain
Operator: Okay. Thank you, sir.
Okay.
Okay.
Okay.
What brought the plant utilization rate from 88 to 90 percent, uh, in hopes that I have a related question? Are there any plans to
Sure.
Okay.
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'd indicated full-year production guidance of between 25,000 and 30,000 ounces. Q1 was expected to be among 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 25,000 and 30,000 ounces at a cash cost of 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.
Sure.
Sure.
Okay.
Okay.
Place a lower strip ratio for 5.8. Thanks for taking my 2 questions. Great results. This quarter. So on the first 1, the utilization, uh, has gone up a little bit but there's been a, a large focus on preventative maintenance and also bringing in a lot more, spares on the working capital perspective, both of those have had a positive impact on plant utilization. I'm Richard anything else to add to that?
Okay.
Sure.
Okay.
Okay.
Yeah.
Look only that. That, you know, we're getting this uh process plant a little bit better organized. We've brought some expatriate expertise and for for for Consulting and and management to uh, to improve our reliability, uh, based maintenance planning.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Yes.
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.
Okay.
And then with regards to the stiff ratio, the strip ratio is really um determined by the mine plan and the mine plan has the figures in it. I just mentioned 1 is gold price 1 is recovery rate. 1 is mining operating cost and what then you the my model is doing.
Okay.
Okay.
Michael Leonard: Okay.
Okay.
Stephen Mullowney: There we go. Yeah, there he is, Richard. So we have a speaker on our presenter line, Richard, as well, until we log in, so.
Okay.
Is you, you want to maximize, um, Net Present Value, and cash flow? And so, with regards to the stip ratio is down strip, ratio will go up and down depending on how much all blocks are getting versus strip blocks in there or waste in in your mind plan. So given that we're now getting when you see stock piles increasing,
Operator: I believe, Stephen, Michael told me also Khalaf is our other speaker. Is that correct?
Okay.
Okay.
Stephen Mullowney: Yeah. Khalaf should be joining as well. Richard's from site. So guys that are on the, on the presenter line until we join live. Mr. Bofey's at site, as you can see.
Sure.
Okay.
Okay.
Okay.
Operator: Yep. And then, Richard, if I could just have you say your name for me quickly so I can get a, just a sound of your voice, make sure we can hear you.
Yes.
Yes.
Okay.
Michael Leonard: 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, 2021, 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 ROM pad stockpile, which Richard can talk a little bit about in his remarks.
Yes.
Richard Boffey: Sure. Richard Bofey.
Yes.
Yeah.
Operator: Coming through clearly. I haven't seen Khalaf come in yet. Would we like to wait until he joins to begin?
That means your strip ratio is generally going to be lower when you're drawing on your St. Your, um, your, your your stockpile generally you strip rates is is higher. So what we generally look at as minors is a life of mine strip ratio. So like my strip ratio is going to be higher than than uh than 5 times um because that's the nature of the deposit particularly at 4600 gold. You'd want to in order to maximize cash flow at the high of a higher strip ratio and this deposit than that,
Okay.
Stephen Mullowney: I mean, I think we can begin given our mix-up here, on the line.
Okay.
Operator: Okay.
Stephen Mullowney: Straighten it out. And then he will join when he joins. He may be busy in some government.
Oh.
When you have a a what I'll call a a crossover point and that's when you go underground because it's more costly to strip than it is to have underground development.
Sure.
Sure.
Operator: Okay. Okay. Not a problem at all. So Stephen, what 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 call's beginning to record.
Yes.
And so, the strip ratio is consistently changing.
Right.
Okay.
Okay.
Stephen Mullowney: Yes.
Operator: Or the call's going, yep. And then so we'll just wait a couple moments, and then I will let everybody know the lobby's open. And then I'll give our introduction and turn it over to you.
Okay.
Yeah.
Stephen Mullowney: Yes.
Operator: Do you have control of the slides, Stephen?
Okay.
Michael Leonard: But we've got over 22,000 ounces sat on that ROM pad stockpile, which is about 1.2 to 1.3 grams per ton, roughly, on average currently, and 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 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.
Stephen Mullowney: Yeah. I got control of the slides. Yep. We're good.
Okay.
Operator: Perfect. Perfect. Okay. Yeah. We'll want to go back to the first slide here for when we go live, for everyone.
Yep.
With regards to the second question. The tsf 3 is listed as taken 1 quarter to build later in fiscal 2026. What are the risks of completing this on schedule given? So Richard take people through, um, tsf 3, obviously you and I were discussing this earlier on this morning. Um, we are doing a lift to tsf 2 and then doing tsf 3 and tsf 3 to remove
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 going to hear that the call is going to begin. And then we'll proceed from there. When the call ends, please wait until I, I give you the okay to begin speaking so that we know we're back in the secure lobby. Okay?
Okay.
Almost all tailings risk, um, because they'll be predominantly for the life of the mind. So just take people through the process of this.
Okay.
Okay.
Sure. So we're
Okay.
Okay.
Sure.
Stephen Mullowney: Okay. Thank you.
Okay.
Operator: All right. Yep. Have a good conference, everyone. Thank you.
Okay.
Okay.
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, elution plants, 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.
Paul.
So.
Operator: The conference is now being recorded.
Yes.
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 Q4, 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.
Yeah.
Okay.
Okay.
Okay.
Uh, we're in the full swing of, of design and and, uh, assessment of, uh, our major tsf 3, our life of Mind facility that's based upon, uh, holding all of the all of the Pea material. That that, that um, uh, we're planning to mine, uh, where in terms of risk, we've made the decision to, uh, put in a, a, a, a third and final lift on our current TSS 2.2 that'll buy us another
Okay.
Sure.
Okay.
Okay.
Yeah.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Yes.
Okay.
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.
Okay.
Okay.
Okay.
Okay.
Basically we're doing that for the economy of scale in the area of basically uh everything that we dig out, we put into walls and uh it's a very even match, so we're not importing a lot of material and that'll probably take us about 5 months to complete construction. And we've probably got another month of Permitting and final design to go.
Okay.
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.
Okay.
Okay.
Sure.
Excellent. Thank you. So it's well in hand is the answer to the question.
Yes.
You bet.
Stephen Mullowney: Yeah. Thank you. And thanks for everybody for joining this morning. I believe it's Martin Luther King Day in the United States, and so you have a holiday. I think we got a little bit mixed up in that. That's, it's good to see a 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 going to 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.
Um, the next 1 is, hi Stephen. Can you provide a view on 20206 initiatives to further promote TRX in its stock would like to see more high and ultra high Network.
Um, investors understanding the value and investing in the company, particularly given the strong operational performance. Please advise
Rich.
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 and 20 million.
Okay.
Yes.
so, with regards to marketing, we do have a couple of marketing firms, um, that have been
Okay.
hired on our behalf, um, out in the market approach, a lot of
What I'll call retail Brokers High net worth individuals, as well as institutional investors.
and that is brought in a a a lot of meetings and also with regards to the
The.
Oh.
Okay.
performance of the company that has gotten the eyes of a lot of investment Banks, who have also brought forward a lot of institutional investors
So.
Okay.
Okay.
That's correct.
Um, The Challenge I would say that we predominantly have is most people in the mining industry.
Are used to getting.
<unk>.
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 million and $5 million. We have procured a couple of drill rigs in 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.
Thanks.
Discounts through private placements.
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. Then 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 by the administration. Thereafter, we have someone in the line that's probably under. There we go. Thank you, operator. Then also we have some very prospective areas of the property, particularly Stamford Bridge, Anfield. Richard will also get into what we're finding on the geophysics side. And we're quite excited for the exploration side as well. And Khalaf will give a brief summary of our government relations side. So I'm going to try not to speak as much today. I have a very strong team.
Scott.
Okay.
<unk>.
And we're not offering that we're offering. If you want exposure to our stock, at our growth story you could purchase in the market.
Okay.
Okay.
Okay.
Okay.
Okay.
And so a lot of the institutional investors have the option of going in. There's a lot of capital raises happening going into other stocks on the capital raise or purchasing ours in the market without a discount. And we're going to hold the line on that.
Okay.
Okay.
Yes.
Sure.
Because we want to hold the line on and believe that not increasing the share count by our choice is more beneficial over the medium to long term.
Excellent.
Operator: Yeah, no, thank you. Thank you, Mike. We're going to switch into what I'll call operational growth here. I'm going to 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 going to 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?
Yes.
Yeah.
Okay.
Yes.
So you may not see the shareholder base changes quickly, as you would like as a result of that philosophy, but we're going to hold the line on that.
Sure.
Okay.
Okay.
Okay.
Okay.
Um, with regards to marketing as well, we do quite a bit of marketing in what I'll call.
Sure.
Okay.
Okay.
Yes.
Small to midcap conferences now in the United States and we already, as well as a couple of mining conferences.
Sure.
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 Q4 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.
Sure.
Sure.
Okay.
So in the small to mid-cap conferences, duct tailing that with the 2 American firms that we have actually we got 3 marketing firms,
Sure.
On board.
Sure.
Yes.
Okay.
We do find a lot of shareholders that fit what you're describing around. High net worth individuals.
Operator: I know a lot of exciting things around ARC reactors, ADR plants, looking at the confirming and finalizing metallurgy, and then getting into the SAG and 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.
Okay.
and,
um,
Yeah.
Sure.
Sure.
Okay.
Yeah.
that's been a successful Avenue for us to find new shareholders. So those are the initiatives, it is certainly a top of Mind initiative. Anything to add to what I just described Mike.
Okay.
Okay.
Yeah.
No, I think you said it. Well, Stephen I mean it's as you mentioned we are heading into conference season here. I think you and I have
Perfect.
Yes.
Okay.
Richard Boffey: All right. Hopefully. How's that? You can hear me clearly?
Okay.
3 conferences in the next 4 weeks. Um, and our challenges are already full with uh ah ah a fairly large slate of um,
Sure.
Operator: I can hear you just fine. The reception's good at Buckreef today. Mustn't be any thunderstorms.
Okay.
Okay.
That have, uh, to to help answer the question, take can take an interest in the, in the results.
Sure.
Richard Boffey: Not much. No, no. We're in the middle of one right now, which is why I asked.
Okay.
We're starting to do generate so, um, you know, there there is active interest in the market and, and over the next few months.
Operator: That's good.
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-ton-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 superoxidation 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 front of some.
Okay.
Yeah.
Okay.
Prospective shareholders, so stay tuned.
Stay tuned. Yeah.
And we have 1.5 million ounces in the resource category, MRNI, about 2.5 grams a ton. So I really want to focus on what we did in the first quarter, 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 he'll be supplemented by Richard on some of the operational aspects. Go ahead, guys.
Well, I think that's it for the questions, operator.
Scott.
Uh, yes, that is correct. There are no further voice questions at this time.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
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. 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 H1 2025, we undertook a stage one strip campaign. The idea was to remove overburden to access higher-grade ore blocks towards the back end of last year.
Okay.
Yeah.
Yeah.
Yeah.
Okay.
Thank you. Well, thanks everyone for joining the Q2. Sorry, q1 conference call. Um, results are good. Um, to continue to grow. We are on site our business plans for expansion. Um, utilizing free cash flow, the expiration results will come further on. Later in the year, as Richard mentioned, we're looking to do well, over around 40,000 meters of of drill holes. We have also
Okay.
Okay.
Okay.
Okay.
More prospective targets to just anfield and Stanford bridge to go after, and we're all excited for what the future lies in, uh, at Buck brief in Tanzania.
Okay.
thank you, Asante Santa
Sure.
Richard Boffey: We've spent. We've done a full modeling and spec of the, the SAG circuit. And 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. And our modeling shows we're probably better to, to just invest in, a larger SAG mill and make it a simpler circuit. So, we're going out on price inquiry at the moment and full tender very shortly. And indications are that the, that the lead time on that equipment's probably of the order of, seven to nine months. The flotation plant, and, and fine grind, aspects of the expansion and the, and the change in the process flow sheet, have gone well.
This brings to a close today's meeting, you may now disconnect, thank you for participating and have a pleasant day. Yeah, thanks Richard and kala for joining from Tanzania.
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'd indicated full-year production guidance of between 25,000 and 30,000 ounces. Q1 was expected to be among 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 25,000 and 30,000 ounces at a cash cost of 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.
Richard Boffey: The MET test work was really focused on that, generally getting some excellent results in float in the lab and pilot plant, with recoveries and mass pull, both better than expected. And our fine grind looks like we're going to 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 year. Well, 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.
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.
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, 2021, 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 ROM pad stockpile, which Richard can talk a little bit about in his remarks.
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 going to see some added reserves in our known reserves, coming out with a reduced cut-off grade. So all in all, things are looking pretty positive for us.
But we've got over 22,000 ounces sat on that ROM pad stockpile, which is about 1.2 to 1.3 grams per ton, roughly, on average currently, and 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 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.
Operator: 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-ton-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 got to finalize that. Also, with regards to operating cost, recovery rates are up. And the reason why they're up, one of the reasons why they're up, is oxygenation. And we've been using hydrogen peroxide currently, and ARC reactor will come in.
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, elution plants, 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.
Operator: And Richard, I assume we're going to get the oxygen rates even up higher than what we currently have with the hydrogen peroxide. So on that should, as you mentioned, the lower cost as well as increased recovery rates, going forward, and as well as the upgrades to the crushing circuit. I believe the apron feeder has been put in today, which was critical for that. So that, you know, enables us to continue to, you know, operate our 2,000 tons per day plant efficiently, both before and after the expansion. So I, I think, like, things are extremely positive, and we should see higher throughput rates this year than we've seen, as well as the grade profile is going to increase. We'll get into that in a second than it was last year, given where we are in the pit.
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.
Operator: As Richard mentioned, in any study and in any resource profile, you pick a gold price to figure out your optimal pit design and underground mining plan design. In our PEA, I believe we utilize $1,900 an ounce, Richard, is what it was in order to do that work. And so that then drives a cut-off grade. So Richard and team now are going to relook at that, given we're at $4,600 an ounce now. So we'll choose a higher price there. And really the goal is, what you'll start to see is as you redo that mine plan, you'll have a bottleneck in your plant and your stockpile will continually increase as you take the lower grade material and just put it on the stockpile for the end of mine life. And typically that's what you'll see from a mine planning perspective.
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 and 20 million.
Operator: But certainly the reserves and resources will go up as a result of that. So, all in all, very, very positive aspects of going on the throughput side of things. So with regards to that, when you're looking at numbers coming through in financial numbers, we haven't utilized a $4,000 gold price in our budgets. We use a lower gold price than that. So given we are confident on our throughputs, on our recovery rates, and on our gold production metrics, obviously that should flow through to the financial metrics. And we are very hopeful that we'll be higher than we were in fiscal 2025. If you look at our run rate right now, it's certainly higher, significantly higher than what was achieved in fiscal 2025. And we're doing fairly well.
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 million and $5 million. We have procured a couple of drill rigs in 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.
Stephen Mullowney: Yeah, no, thank you. Thank you, Mike. We're going to switch into what I'll call operational growth here. I'm going to 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 going to 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?
Operator: The first quarter had an increase in EBITDA of around $10 million versus the first quarter of last year from a net basis. So we're all in all doing very well. Obviously working capital continues to increase. Our judgment is, you know, companies that have performed extremely well have a working capital ratio anywhere between 1.75 and above 2. That certainly will get there fairly soon and are well capitalized to execute our plans. Anything to add to that point, Mike?
I know a lot of exciting things around ARC reactors, ADR plants, looking at the confirming and finalizing metallurgy, and then getting into the SAG and 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.
Operator: No, I think that was well said, Stephen. We're well on our way, as mentioned, at $15 million positive for Q1 with an improving profile. We'll fit neatly into that working capital metric that you just described.
Operator: Yeah, exactly. So on mine planning, a lot of people have come back to me on this particular slide and like it because, you know, it, you know, the saying in pictures says a thousand words. It certainly does on this particular slide and explains why we had to go through the stripping campaign last year. And now we're into the pinks and the reds, you know, the nice colors. We still got some blue colors to go through, but you can't avoid blue colors. You got to strip in order to open up the nice colors. Richard, you want to give just a quick overview of our mine plan for this year, what can we expect from a mining perspective as grade profile comes through?
Richard Boffey: All right. Hopefully. How's that? You can hear me clearly?
Stephen Mullowney: I can hear you just fine. The reception's good at Buckreef today. Mustn't be any thunderstorms.
Richard Boffey: Not much. No, no. We're in the middle of one right now, which is why I asked.
Stephen Mullowney: That's good.
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-ton-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 superoxidation 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.
Operator: And obviously the thickener is a big thing because we no longer will have to mix oxides in our plant and that will increase the head grade, which increases production as well. So just give us a quick overview of what people are seeing here. Obviously, Buckreef gets nicer colors as we get deeper.
Richard Boffey: Sure. Look, generally our focus towards the second half of financial year 2025 was in that southern area, to the left on that slide where there were better grades. That was in response to some delays to get there. This year we've got a far more steady descent of the main pit. We'll be taking probably about a 30-meter overall vertical lift right across the site, right across the pit. That allows us a fairly even grade profile, especially for the first three quarters. Then we actually hit some very sweet stuff in the fourth quarter, which we'll see a bit of a boost in our head grade through the mine.
We've spent. We've done a full modeling and spec of the, the SAG circuit. And 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. And our modeling shows we're probably better to, to just invest in, a larger SAG mill and make it a simpler circuit. So, we're going out on price inquiry at the moment and full tender very shortly. And indications are that the, that the lead time on that equipment's probably of the order of, seven to nine months. The flotation plant, and, and fine grind, aspects of the expansion and the, and the change in the process flow sheet, have gone well.
Richard Boffey: The reason I'm stressing an even profile of about 2.1, 2.2 grams is that it.
Operator: Oh, Richard, we're losing you a little bit. You're on mute again. Or we lost you?
Richard Boffey: Oh, that's.
The MET test work was really focused on that, generally getting some excellent results in float in the lab and pilot plant, with recoveries and mass pull, both better than expected. And our fine grind looks like we're going to 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 year. Well, 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.
Operator: Yeah.
Richard Boffey: Back up.
Operator: So we lost you at the reason why I'm stressing an even profile of 2.1 grams.
Richard Boffey: Yeah. Fine. So it's helping the plant enormously having a nice steady grade profile. As Stephen mentioned, in about two and a half months, three months, certainly by sometime in April, we'll have our pre-leach thickener installed. And that will enable us to probably see about a 5% lift in the mill head grade. So we'll start to see, you know, some improvements in production related to that as well. The other thing we're doing in Q3 of this year is we're starting a new pit, the strip for the new pit, which is called Eastern Porphyry. And by the end of our financial year, we'll have faced off to have all faces in all blocks available to us. So we'll be, I guess, de-risking our production profile in that respect as well.
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 going to see some added reserves in our known reserves, coming out with a reduced cut-off grade. So all in all, things are looking pretty positive for us.
Operator: That's great. So we've gone through, on the production side of things, what solidifies the paper things. I'm going to jump around our presentation a little bit here. Let's just go straight into what our exploration programs are.
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-ton-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 got to finalize that. Also, with regards to operating cost, recovery rates are up. And the reason why they're up, one of the reasons why they're up, is oxygenation. And we've been using hydrogen peroxide currently, and ARC reactor will come in.
And Richard, I assume we're going to get the oxygen rates even up higher than what we currently have with the hydrogen peroxide. So on that should, as you mentioned, the lower cost as well as increased recovery rates, going forward, and as well as the upgrades to the crushing circuit. I believe the apron feeder has been put in today, which was critical for that. So that, you know, enables us to continue to, you know, operate our 2,000 tons per day plant efficiently, both before and after the expansion. So I, I think, like, things are extremely positive, and we should see higher throughput rates this year than we've seen, as well as the grade profile is going to increase. We'll get into that in a second than it was last year, given where we are in the pit.
As Richard mentioned, in any study and in any resource profile, you pick a gold price to figure out your optimal pit design and underground mining plan design. In our PEA, I believe we utilize $1,900 an ounce, Richard, is what it was in order to do that work. And so that then drives a cut-off grade. So Richard and team now are going to relook at that, given we're at $4,600 an ounce now. So we'll choose a higher price there. And really the goal is, what you'll start to see is as you redo that mine plan, you'll have a bottleneck in your plant and your stockpile will continually increase as you take the lower grade material and just put it on the stockpile for the end of mine life. And typically that's what you'll see from a mine planning perspective.
But certainly the reserves and resources will go up as a result of that. So, all in all, very, very positive aspects of going on the throughput side of things. So with regards to that, when you're looking at numbers coming through in financial numbers, we haven't utilized a $4,000 gold price in our budgets. We use a lower gold price than that. So given we are confident on our throughputs, on our recovery rates, and on our gold production metrics, obviously that should flow through to the financial metrics. And we are very hopeful that we'll be higher than we were in fiscal 2025. If you look at our run rate right now, it's certainly higher, significantly higher than what was achieved in fiscal 2025. And we're doing fairly well.
The first quarter had an increase in EBITDA of around $10 million versus the first quarter of last year from a net basis. So we're all in all doing very well. Obviously working capital continues to increase. Our judgment is, you know, companies that have performed extremely well have a working capital ratio anywhere between 1.75 and above 2. That certainly will get there fairly soon and are well capitalized to execute our plans. Anything to add to that point, Mike?
Michael Leonard: No, I think that was well said, Stephen. We're well on our way, as mentioned, at $15 million positive for Q1 with an improving profile. We'll fit neatly into that working capital metric that you just described.
Stephen Mullowney: Yeah, exactly. So on mine planning, a lot of people have come back to me on this particular slide and like it because, you know, it, you know, the saying in pictures says a thousand words. It certainly does on this particular slide and explains why we had to go through the stripping campaign last year. And now we're into the pinks and the reds, you know, the nice colors. We still got some blue colors to go through, but you can't avoid blue colors. You got to strip in order to open up the nice colors. Richard, you want to give just a quick overview of our mine plan for this year, what can we expect from a mining perspective as grade profile comes through?
And obviously the thickener is a big thing because we no longer will have to mix oxides in our plant and that will increase the head grade, which increases production as well. So just give us a quick overview of what people are seeing here. Obviously, Buckreef gets nicer colors as we get deeper.
Richard Boffey: Sure. Look, generally our focus towards the second half of financial year 2025 was in that southern area, to the left on that slide where there were better grades. That was in response to some delays to get there. This year we've got a far more steady descent of the main pit. We'll be taking probably about a 30-meter overall vertical lift right across the site, right across the pit. That allows us a fairly even grade profile, especially for the first three quarters. Then we actually hit some very sweet stuff in the fourth quarter, which we'll see a bit of a boost in our head grade through the mine.
The reason I'm stressing an even profile of about 2.1, 2.2 grams is that it.
Stephen Mullowney: Oh, Richard, we're losing you a little bit. You're on mute again. Or we lost you?
Richard Boffey: Oh, that's.
Stephen Mullowney: Yeah.
Richard Boffey: Back up.
Stephen Mullowney: So we lost you at the reason why I'm stressing an even profile of 2.1 grams.
Richard Boffey: Yeah. Fine. So it's helping the plant enormously having a nice steady grade profile. As Stephen mentioned, in about two and a half months, three months, certainly by sometime in April, we'll have our pre-leach thickener installed. And that will enable us to probably see about a 5% lift in the mill head grade. So we'll start to see, you know, some improvements in production related to that as well. The other thing we're doing in Q3 of this year is we're starting a new pit, the strip for the new pit, which is called Eastern Porphyry. And by the end of our financial year, we'll have faced off to have all faces in all blocks available to us. So we'll be, I guess, de-risking our production profile in that respect as well.
Stephen Mullowney: That's great. So we've gone through, on the production side of things, what solidifies the paper things. I'm going to jump around our presentation a little bit here. Let's just go straight into what our exploration programs are.
