TRX Gold Corporation

It's now my pleasure to introduce Christina Lally, Vice President, Investor Relations with TRX Gold. Christina, the floor is yours.

Thank you, Gaylene. Welcome, everyone, to the TRX Gold Corporation third quarter 2023 financial results presentation. As a reminder, all participants are in listen-only mode and the meeting is being recorded. After the presentation, 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 question verbally, or write a question to submit your question in writing. When you are introduced, your line will automatically be unmuted. Analysts who have dialed into the conference call may press then 1 on your telephone keypad to join the question queue. I would like to turn the meeting over to Stephen Maloney, CEO of TRX Gold.

Thank you, Christina, for the introduction. My name is Stephen Maloney. I'm the CEO of TRX Gold, as mentioned by Christina. And we're pleased to give you the Q3 2023 financial results, as well as an update on operations at the Buck Reef Gold Project. Q3 was, I believe, our third quarter with the 1,000-ton-per-day plant. started in Q1 halfway through. And so we've been learning a lot throughout our operations throughout the year. And one of the biggest things in Q3 to come forward is the fact that we processed sulfide ore, which was 6,500 tons of hard, fresh rock, went through the plant at a good recovery rate, which opens up the much broader deposit to mining. And that will be now incorporated into our mine plans. We've also upgraded the plant from our learnings from that. Recently, a cone crusher was installed, as well as the conveyors and other parts of the crushing system got upgraded in order to accommodate that harder rock. So that's a very, very exciting and extremely important value creation piece that occurred in Q3. We'll get into that in much more broader detail in the presentation. So I'm going to flip the slides here to the next slide. Obviously, I've got to say the cautionary note and forward-looking statements. You can find this note on our website, and we'll just leave it at that and move forward. Today's speakers will be myself, Andrew, our COO, who's next to me across from the table, Mike, who is also across from the table, Christina, who is sitting next to me. New people to TRX. I know there's a lot of shareholders on this call as well as analysts, but for new people, what is TRX? We are a team of experienced leaders who have been executing on the Buck Reef Gold Project very rapidly. We've gone from zero ounces of production to an annual run of 25,000 ounces and growing very quickly. It's a high-margin operation that has positive cash flow. And as we'll get into further in the presentation, the exploration upside is still here. Dairy, it is an underexplored property. There is still a lot of opportunity to increase minimum resources and mineable ounces here at Buck Reef. Again, just as a very high level around the Buck Reef Gold property, the last resource statement had two plus million ounces and measured indicated. The resources come to surface. That's where you see us mining in the oxides. Deposit is wide at 20 meters of width with consistent mineral localization over two kilometers. We say easy metallurgy because it's grind crushed CIL that is both in the oxides and has been proven out in the sulfides through the bulk sample. There's a MET study being done for the broader deposit, particularly deeper parts of the deposit with SGS in South Africa. We're fully permitted to And that special mining license is renewable for the life of the mine of the deposit. The processing plant and mine have consistently been meeting the production guidance that we've provided. We have a minimal environmental footprint. We recycle all water. We have good tailings management connected to the national power grid, which is predominantly hydropower, particularly with the Julius and Erie facility to come online. And we have expiration potential, a lot of blue sky potential in this property over time. So with regards to the Q3 2023 highlights, the 1,000 ton per day plant continues to run very efficiently. As a lot of the audience knows, there's three main ball mills there, 15 tons per hour ball mills. It equals 1,000 tons per day, which gives us flexibility in our operations. We've poured over 15,000 ounces and sold over 16,000 ounces gold, respectively, in the nine-month end of May 2023. We've recorded positive operating cash flow that will continue to fund growth at both the operation and exploration levels. I believe, Mike, to Q3 2023, it's almost $15 million of investment. That's right, just under $15 million, correct. Yeah. And so we have strong profit margins of 42% and 49% respectively. And, you know, in Q3, it was down a little bit given that the ounces weren't as high given the wet season. So we expect that to pick up, particularly with oil prices being higher now as well. We continue to reinvest the cash flows we mentioned. There is a new ball mill that will be coming to basically double the production rate, 75% to 100% of the production rate. processing capacity. That mill is now shipped. Saw pictures of it on a truck last week, Andrew, leaving China. On the way to the ports. On the way to the port. So that's the longest lead item, and it's well underway. We're getting on top of other long lead items here now. We've successfully processed the sulfide bulk sample, which I mentioned at the beginning of this call is a game changer, really, from a planning and operational perspective. We continue to achieve positive near surface drill results that Anfield needs to be offering. We are now evaluating where best to go next in order to bring in mine allowances and to increase the overall resources of the property. So in any exploration program, you have what I'll call fits of starts and stops to reevaluate. We're in that reevaluation phase now before we ramp it up again. We reported no environmental or community related incidents during the nine months ended May 31st and continue to have a very strong social license in Tanzania. So with that, I'm now going to hand it over to Mike, our CFO, who will go through our Q3 financial highlights.