TRX Gold Corporation

with this slide. TRX, what does this stand for? We're a team of experienced leaders. You see us on the line that continue to deliver on various milestones and are rapidly growing the Buck Reef project in conjunction with our management team at the Buck Reef Gold Mine site. We've had rapid production growth over the last year. We've had two planned expansions that come online. on time, on budget, and are operating very, very successfully. We'll get into that as we get through the presentation. And the Buck Reef Property Special Mining License has significant exploration upside. There are lots of targets on this property, and we've displayed this over the last year or so, particularly with Anfield, the Eastern Palfrey, and even the extensions to our Buck Reef Main Zone. So just a brief overview of the Buck Reef Gold property. It's a 2 million ounce plus gold deposit and they measure in indicated categories. Another 600,000 ounces in the inferred categories located in Tanzania. What we like about this deposit, it comes to surface, it's flat, it has great widths of 20 meters or approximately 20 meters broad. um it has consistent gold mineralization throughout the deposits along a 1.5 two kilometer strike at about three main zone we're fully permitted which means we can continue to grow this asset production profile without getting the major overarching permits in place the current special mining license goes up 2032 it's an extendable to for 10-year periods to the end of life of minor deposit our processing plant is consistently beating on production guidance it's also straightforward metallurgy in a grind crush cil we have envi minimal environmental footprint we recycle all water have good tailings management program we're on the national grid and as i mentioned we have significant exploration potential which always brings a smile to my face and andrew will get into that in a few minutes so with regards to the q2 2023 highlights um again Our 1,000-ton-per-day mill is operating great. We declared commercial production on that mill in November 2022. In the last quarter, it produced over 5,600 ounces of gold, which is a 164% increase over the last similar quarter in 2022. Records at Buck Reef, we recorded positive operating cash flow again, which is funding our exploration and operational growth. We are going to advance a third mill expansion. That mill has been ordered. That will increase throughput capacity between 75% to 100% by fiscal 2024. We continue to advance the much larger project. So we have geotech work ongoing, metallurgical work ongoing, tailings planning ongoing. and other things. And Andrew will get into that in a few minutes further on down in the presentation. But this is to get a much larger project at Buck Reef, which we believe the potential is there. We've continued drilling in the last quarter, particularly around the eastern porphyry and the anfield zones. And Andrew will give a highlight of that in a few minutes. And Most importantly, everybody's safe on site, zero lost time injuries, no reportable environmental or community-related incidents in the quarter. We did have a release that we had over a million hours with no lost time incidents. That continues to be the case, which we're very lucky for, and I'm going to knock on wood on that because I'd like that to continue. Without further ado, I'd like to hand the presentation over to our Chief Financial Officer, Mike, and he will go through our Q2 2023 results.

Well, thank you, Stephen, and good morning, everyone. Thank you for joining us. Stephen touched on Q2 was another strong quarter for the company, and we continue to see the benefits through the financial results. Again, it was the first full quarter of our new thousand ton per day mill operating at capacity. And as a result, in the operational side, we produced a record 5,636 ounces in the quarter. And we sold just over 5,500 of those ounces at a realized price of $1,845 per ounce, benefiting from the recent rise in gold prices, which, of course, touched on north of $2,000 an ounce very, very recently. In the quarter, we recognized revenues of over $10 million and operating cash flow of almost $5 million, which we substantially reinvested back into the business. And amongst other things, we've expanded our tailing storage facility, for example, which will accommodate our much, much larger production that Stephen touched on earlier. We've relocated a road, which will allow us life of mine access through the main zone. We continue to drill. We did over 1400 meters that Andrew will touch on shortly. of exploration drilling as well as grade control drilling. And we've also purchased pieces of capital equipment, things like gen sets, generators, which effectively will replace equipment that we had rented previously and over time bring down costs for it. So in summary, we continue to use that organically generated cash flow that the operation is generating to help grow the business. On the cash cost side, we recorded cash cost per ounce at $888 an ounce, which was above what we recorded in Q1, but in line with our expectations and our mine plan. The mine sequence for Q2 had us undertaking a stripping campaign, which was meant to unlock high-grade ore blocks, which we expect to see the benefit in Q3 and Q4, the second half of the year, and certainly expect to see higher production as a result. We did experience some lower head grade in part due to the wet season, had some inventory adjustments and slightly lower ounces produced in the quarter compared to Q1. which in part gave rise to that higher cash cost per ounce number. But on a full year basis, again, expect Q3 and Q4 to be our strongest quarters of the year and continue to expect our full year guidance to be between $750 and $850 an ounce on the cash cost side. As far as gross margin goes, continue to be very, very strong at around 50% for both the three and the six-month periods to date. And again, demonstrate that the plant, the new plant, is operating very, very efficiently and very, very profitably, as Stephen touched on. On a year-to-date basis, we produced and sold over 11,000 ounces, generating revenues of almost $20 million today. operating cash flow of over $11 million. We did it at cash costs at around $808 an ounce in line with our full year guidance. And again, very, very strong gross profit margins of around 50%. And again, we continue to use that cash flow that we generate to make value of creative investments right back into the business. And again, Stephen touched on it earlier, but another good example is a down payment on a much, much larger ball mill, which is expected to double throughput later this year. On the balance sheet side, it continues to be strong. We had a cash balance at the end of the quarter of around $9.5 million. We had working capital of about $5.5 million and EBITDA of around $4 million, which again is a good proxy for cash flow. All of this really demonstrates strong liquidity to again fund that organic growth that we discussed a little bit earlier. And again, importantly, we expect Q3 and Q4 to be our strongest quarters of the year. We're working to improve on all the operational and financial metrics as we grow this business. And now that the plant is up and running, fully expect that to be the case. So I'll maybe pause there and hand the presentation back to Stephen. Stephen?

Yeah, Mike, thank you. And just to give the investors in the group a sense to all the activity that's ongoing at Buck Reef, there's a new road being put in place around the SML. We also have works around tailings facilities, new generator sets going in. There's a lot of activity happening on the Buck Reef site area. currently. And there will be that activity I don't see slowing down. I actually see it ramping up as we continually expand the asset at Buck Reef. On that front, Andrew's joining us today from Cardiff in the UK. He's actually right now at SRK's offices there. And I'll switch over to the next slide. And he will tell us about some of the things that are ongoing for the much larger, larger project that's currently being planned. But in order to plan that out, we got to do the proper work and we got to de-risk it properly. And that's what the team has been doing. And a lot of that has been through our Chief Operating Officer, Andrew Cheadle. Andrew, over to you.