TRX Gold Corporation

Hello and good morning, everyone. Welcome to today's presentation. My name is Julia Perel, a virtual event moderator here at Renmark Financial Communications. On behalf of our team, we'd like to thank everyone for joining us today for TRX Gold Corporation second quarter 2026 results. TRX Gold is trading on the Toronto Stock Exchange under the ticker symbol TRX and on the NYSE American under the ticker symbol TRX. Presenting today is Stephen Maloney, Chief Executive Officer, Michael Leonard, Chief Financial Officer, Kolof Rashid, Senior Vice President of Tanzania, and Richard Bofi, Chief Operating Officer. Following the presentation is a Q&A session, for which you can participate in using the chat box on the top right-hand corner of your screen. With that being said, I will now hand it over to Stephen.

Thank you, Julia, and thanks everyone for joining this morning. I know it's quite early and our results were released this morning. A great quarter. Lots of growth, as we mentioned last week in our update on our plant expansion. And today we're going to go through our presentation, give you an overview of the company again, as well as our growth profile. And it's going to focus a lot on growing the evaluation metrics that underline the company and how we're going to do that over the next, you know, 12 to 18 months. Online today we have Richard is joining us from Australia. He may pop in and out here. Then we have Mike and Kalaf with myself as well. So first and foremost, obviously, I got to say to the disclaimer, you can go to our website to get this. We will be talking about forward-looking statements. So just the normal securities publicly listed disclaimer and forward-looking statements. As I mentioned, Richard is joining me as well as Mike and Colas. So TRX Gold, we are in Tanzania. We trade in an IZ American and TSX under symbol TRX. Shared outstanding as of today is roughly $326 million, with a market cap of over half a billion dollars in the U.S. Very healthy cash position now at $26 million with limited borrowings. We're underpinned by 1.5 million ounces of gold at the Buck Reef Gold Project as of our last PEA in 2025. We'll be updating that, given where the gold prices are. Last resource profile was done at $1,900 gold. We'll be doing it around $3,000 gold. So, thus, the cutoff rate will go down. More than likely, resources will rise, although at a lower grade, given the way the mine plans work. Under that PEA that was released last year, again, which is getting updated, very healthy net present values of $4,000 gold, very healthy cash costs of around $1,000 an ounce to $1,200 an ounce, which would be one of the lowest in the industry. As we, you know, continue to execute and expand, the LTM numbers or last 12-month numbers are becoming quite healthy. We've done 25,000 ounces in the last 12 months, and that's growing. around $95 million of revenue and $50 million of adjusted EVTA. The last quarter alone had $20 million of adjusted EVTA at a very healthy margin. Mike will get into that in a few minutes. Obviously, that is times that by four. The run rate EVTA is quite healthy to execute on our expansion plans. As I mentioned, we're going to focus today's presentation on a couple of areas, and a major area is What underpins the valuation of mining companies? Obviously, cash flow and EBITDA is extremely important, and the growth of cash flow and EBITDA. One of the things that investors do look at is net asset value as well. That gives longevity of the project, of the asset. The last 2025 PEA had an 18-year mine life average of 62,000 ounces. We plan to be higher than that. Of course, obviously, you want to increase the production profile that comes through over time, as well as your NAV, and in order to do that, you want to replenish your resource base, so exploration is very, very important. So, as we released last week, we are going to expand. The new expansion plans is for around a 3,500 ton per day SAG ball mill combination, as well as operating the existing plant in conjunction with that. So a combined operation of a new circuit that's 3,500 tons roughly, as well as the existing 2,000 tons per day plant. So you can go additive on that. The actual amounts that will be throughput will be determined based on our mine plan that gets updated and what is possible from a mine plan perspective. that is in process. As part of that line plan update, we will update the PEA, which will then update the valuation metrics around that asset value and give the market another sense of where production can go over time, what the CapEx plans are. We do expect the open pit to be longer now than the last PEA, which was around three years. That will mean either we go early into underground or we defer underground in that related CapEx. We released the CapEx numbers for expanded plant for the open pit last week, and that will be funded from, you know, cash flow from operations. As well as we're going to get into, we've done a geophysics survey. We're now completing that up this month for targets, as you would have seen in our management discussion and analysis. There are 10 very good targets. Some of them overlap with our current discoveries like Stamford Bridge and Anfield. But we certainly are very, very, what else, excited for the potential of what else is on the Buc-3 goal project. So now I'm going to hand it over to Mike, who's going to go through our 2026 Q2 results, which were quite good. And Richard will supplement Mike as well.

Well, thank you, Stephen. Can I have you just advance the slide to slide number six, please? Terrific. So thank you, everybody, for joining us here today. We were very excited to put our Q2 results out into the market this morning. It was a record quarter for the company. We saw increases in virtually all financial and operational metrics versus last quarter, as well as the prior year comparative period. Gold production of just under 7,500 ounces was a quarterly production record for the company. That was coupled with a record average realized gold price of $4,655 an ounce. And those record numbers led to quarterly record financial metrics, including revenue of over $34 million for the quarter, gross profit of over $21 million, or a 62% gross profit margin, We had adjusted net income of almost $12 million and adjusted EBITDA of over $20 million for the quarter. And on an annualized basis, that's over $80 million of EBITDA annualized. So I'm very excited about those metrics and the record numbers that we put into the market today. These quarterly records really demonstrate the company's ability to both increase production while maintaining a low-cost operation and really has demonstrated that we can provide leverage to these record gold prices that we're currently seeing in the markets and a gold price that looks like it's back on the rise. During the quarter, we also strengthened our working capital position. We talked a little bit about this last year in the middle of what was a strip campaign that provided access to high-grade ore blocks that we're benefiting from now. But the increased working capital position that we saw this quarter was through increased production, the record operating cash flow that we put out into the market, improved liquidity, as well as increased investment in our ROMPAD and crushed ore stockpile. The ROMPAD alone has over 20,000 ounces of gold on the stockpile, and at today's gold prices, the fair value of that stockpile alone is over $100 billion, while ensuring that we have steady, consistent, steady mill feed to fill our 2,000-foot-a-day mills. Our cash position is over $26 million at Q2. Account payable balances are current within 30 to 45 days. Our working capital ratio is now a very robust 2.4 times or $32 million positive. And you couple that with access to credit lines of over $12 million, we're very, very well positioned to execute on our expansion plan that Stephen touched on earlier. In terms of guidance, we remain on track to achieve our full year production guidance of between 25 and 30,000 ounces, as well as our cash cost guidance of $1,400 to $1,600 an ounce. Our year-to-date cash cost of $1,507 per ounce is expected to improve in the second half of the year, as mining cost is expected to benefit from a higher proportion of our owner-managed fleet assisting and supplementing mining and tailing storage facility construction. and that comes at a substantially lower cost than our current contractor rates, as well as processing costs per ton. That's expected to improve and benefit from some of the upgrades that we're currently making to the existing processing plant, including things like the addition of a thickener, the Achen reactor that's up and running, the ADR plant, which is in progress, as well as additional oxygenation, which should reduce things like reagents and consumable input costs. Well, your capex continues to be towards the upper end of the $15 to $20 million guidance range as we work through those upgrades to the process plant that I just touched on, as well as construction of a life of mine tailing storage facility. Now, subject to goal prices and cash flow in the second half of the year, we may expedite expenditures related to the larger plant expansion that Stephen just touched on, really to kickstart that procurement process. But we'll update the market accordingly at that time when we make some of those decisions about the plant that we look to bring online. And finally, we do continue to expect exploration to be in the range of $3 to $5 million. During Q2, you might have seen that we did commission our first drill rig on the property. And we're using that with the goal of upgrading the mineral resource at the eastern porphyry. as well as coupling that with the results of the induced polarization survey that Stephen touched on to identify additional areas of prospectivity and to help us prioritize really over the second half of the year. So stay tuned on that. With that, Stephen, I think that's what I have for the Q2 results. So I'll pass it back to you to take us through the rest of the presentation.