TRX Gold Corporation

Welcome to the TRX Gold Corporation third quarter 2025 results presentation. As a reminder, all participants are in a listen-only mode, and the meeting is being recorded. 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 your screen. You will see the options, raise your hand to join the queue and ask your question verbally. or write a question to submit your question in writing. When you are introduced, you may see a prompt on screen asking you to click continue. You will be live in the call. As soon as you do, analysts who have dialed into the conference call may press star then one on your telephone keypad to join the question queue. I would now like to turn the meeting over to Mr. Stephen Maloney, Chief Executive Officer. Please go ahead, sir. Yeah, good morning, and thank you, and welcome, shareholders, to our Q3 2025 corporate presentation and investor call. We have quite a few people on the call today, so that's really good to see. Joining me on the call today is Michael, our CFO, and also in the Tanzania boardroom, we have Kalaf Rashid and Richard Goffrey, raise your hand, guys. How's the weather down there?

It's a nice sunny, 31 degrees.

As always, nice and sunny and warm. It's warm here in Toronto today as well. I think we've got a 32 degree day. Well, without further ado, I will get into the presentation and the presentation today will be led by myself with Michael Klaus and Richard all chiming in. in the appropriate section. So let's get into it. Today what I'll do is just give a high-level overview of TRX Gold, as I always do, and then we're going to jump into where we're going in the short to medium term, as well as what our 2-3 financial results look like. A high-level summary of the PEA roadmap and how we see that view played out. as well as just finishing it off with a key of the highlights of the company. So TRX Gold, obviously we're in Tanzania. Everybody on the line realizes that. In fiscal 2024, we did over $40 million in revenue and $15 million to be bidded. We expect those numbers to be higher this year as we continue on and as the script campaign winds down and we get into the higher grade portions of the four bodies. And we'll get into the results of those operations in a second. One of the major catalysts that we put out in Q3 was our PEA. As we mentioned under our last call, that PEA has a $1.2 billion net present value at around $3,000 gold. It's around $750 million after tax on the Buck-Reese Gold Project. It has 62,000 ounces average production per year at 3,000 tons per day. of processing capacity. We are currently at 2,000 tons of capacity. Our goal will be to improve those metrics over time and hope they have a larger project than what was envisioned there, both from existing main zones as well as the other additional resources that can be found over time with the drill pit. The cash costs in that study are quite low at $1,000 an ounce, and the AISC was around $1,200 an ounce, which is comparable for the same grade profile what we currently experience. As you would have seen in Q3, the cash costs were a little bit higher as a result of the grade profile that was going through the mill. So as the grade profile normalizes, cash costs will come down. In the study, we reset resources because we focused on economics. In our last resource statement, it was focused on sheer number of resources. versus economic resources. The resources haven't gone away from the last statement. They're just not included in the economics at this point in time. In the study, there were 900,000 ounces in the M&I category at around 2.6 grams per ton. And in the occurred category, there were 725,000 ounces at 5 grams per ton. So what we did was increase the cutoff rate and the grade profile going through the mill. So pause right there. On the next slide, we do have a straightforward value-enhancing business plan. The next slide will get into more of the shorter-term business plan. In Tanzania, we have the special mining license. We have a straightforward flow sheet and metal dirt sheet, which we'll get into in a second. I'm sure there's going to be some questions on recovery rate, and he will answer those and how they're going to improve. With respect to the local infrastructure, including road and power, We have significant blue sky potential, as we mentioned and continue to mention. We do need to get back to that drill bit and start drilling out our landfill that stands for big zones. We have good human capital availability in country and we're constantly operating that quality. We've gotten three successful expansions to 2,000 tons a day. We'll do another expansion. in between 3,000 and 4,000 times a day. The PEA computes 3,000 times a day. We'll do that over time. We're in planning stages of that now. That will be done over time. The business plan around the PEA is quite straightforward. Expand the plant, take the cash flow, develop the underground mine, and be willing to take on exploration. We've had a successful wrap-up of our operations. We are a high-merge and low-cost operating profile. Costs have come down. Mike will get into that in a sec, particularly on a first-time basis. Obviously, trade impacts short-term costs. We still see significant opportunities to continually reduce costs, both mining and co-setting. And the PEA sets a roadmap for that. You have a very experienced management team on this. site as well as in corporate that has done this all before and we're very excited for, you know, the significant value potential and value increase potential over time. So I'm going to pause there. Mike, anything to add? Anything to add, Richard, in that class? No, I think that was well said, Stephen. Nothing further from you. Okay. Thank you. So with regards to, you know, why we are where we are today, as Q3 indicates, revenues are growing significantly. Part of that is the gold price. Ounces will start to grow now as well as we get into a higher-grade profile. And we're self-funding this growth, and we continue to self-fund the growth. The PEA has had a straightforward business plan or a roadmap that we can move along to create value in the Buck Creek main zone. I went through some of the statistics earlier. That plan is very scalable. We've done that before, as I mentioned, and we'll continually move along that roadmap. And I really like always the blue sky potential. So the way that the roadmap can improve is both increasing the tank capacity as well as finding more higher grade ounces in Mount Stamford Bridge, Anfield and elsewhere on our property. And so we're quite comfortable with that. We do need to get back to the drill bit and that will be in our budget plans for fiscal 2026. So with that, I'm going to hand it over now to get into the nitty gritty details. I went through the PEA high level. Michael decided to get into the financial profile and the rest of these slides here, Mike, and I'll hand it over to you for the next two or three slides, please. Yeah, no problem, Stephen. Good morning, everybody. Thanks for joining us. And you touched on the PEA, which is really our focus over the next 12, 18 months is focusing on our expansion to really unlock that billion-dollar valuation that we put out into the market on that study. But in the meantime, as we talked a little bit about over the last couple of quarters, we have embarked upon a stage one tripping campaign over the first half of the year to really remove a lot of the overburdened waste that would provide access to high-calorie ore blocks as we got deeper into the pit. And Richard, his team, is managing that very closely. And the good news is we're substantially through the lion's share of that strip, and it's begun to access some of those higher-grade bonds. And consequently, what we're seeing is an increase in both production and sales. And coupled with the leverage that we have at the gold price, we're seeing increased financial metrics both quarter-on-quarter and year-on-year. I'll talk about some of the details here in a minute, but why don't we flip to the next slide so we can just touch on some of the specifics.