TRX Gold Corporation

Hello and good morning, ladies and gentlemen. Welcome to today's presentation. My name is Julia Perron, 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's third quarter 2026 results. TRX Gold is trading on the Toronto Stock Exchange under the ticker symbol TRX and on the NYC American under the ticker symbol TRX. Presenting today is Stephen Mullowney, Chief Executive Officer, Michael Leonard, Chief Financial Officer, Khalaf Rashid, Senior Vice President, Tanzania, and Richard Boffey, Chief Operating Officer. The presentation will last approximately 20 to 25 minutes and will be followed by a formal 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 and welcome everybody to today's Q3 corporate presentation of results. Richard is not on the line yet. I was just talking to him on top of the TSF and he's making his way back to the office, so he should join us in about five to ten minutes time. He's at Buck Reef today. Also, as Julia mentioned, Michael and Khalaf are here with me as well. We're coming back in Toronto today. I was in Tennessee and Texas last week. I should have stayed there given I came home to 38, 40 degrees and now we have yellow skies and apparently the big campfires up north have blanketed us with smoke. So anyways, it was pleasant to be down in the United States last week. So without further ado, Julia, can you, ah, here's Richard. Richard is joining us now from Buck Creek. How are you doing today, Richard?

Yeah, afternoon everybody. Apologies for being late. Just got back from a little bit of an inspection.

Yeah, exactly. I tell them that you were talking to me on top of the TSS. So, if we can go to slide number four. Excellent. So, oh, no, no, you're skipping all the way down.

Yes, there we go.

Obviously, we're going to have a prior slide with forward-looking statements. There will be some forward-looking statements today in this presentation. So with regards to Buck Reef Gold, we had a great third quarter. We actually had a good start to the year, nine months to the year. Our goal here at TRX Gold is to rapidly develop the Buck Reef Gold project into a world-class mining operation. It is today a world-class mining operation and is expanding quite rapidly. And we'll get through the details of that in a few minutes with the mill expansion, TSS expansions, and other enhancements that are going on at Buck Reef, as well as the exploration programs. But a little summary on the year to date, we've done almost 28,000 ounces for an LPM period. That's starting Q4 of last year to the end of Q3 this year with $115 million of revenue and a healthy $66.8 million of adjusted EBITDA. This is what gives us confidence in funding our expansion projects. In that time period, we've made significant capital investments as per the press release this morning. We've made almost, I believe, $47, $48 million of investments over the last 12 months, both in working capital, which we've normalized now. That investment will no longer go forward in around $70, $80 million, and the rest on CapEx. The focus now going forward is on CapEx. and Exploration. The Buckery project is anchored by 1.5 million ounces at around 2.5 grams a ton. We're online with the PEA that was released last year with first year production of around 27,000 ounces. As I mentioned in the press release, we've already achieved our guidance of 25 to 30,000 ounces. As of today, and expecting to be within that range as we get through Q4, more likely towards the top of that range. With regards to the CapEx program that was in that PEA, the first part of that PEA was mill expansion. The mill has been ordered, which we'll get into that in a few minutes. and that capital project is well underway and planning is done and it's now starting to be executed. I will remind people, I know I'm going to get a lot of questions around stock price. We're going to address that later in valuation and things of that nature. The pre-tax NPV on the study that was released in May of last year was $1.9 billion at $4,000 gold. That study is now being updated with the new capacity as well as the new mine plan. The mine plan will drive the throughput rates. We expect to have excess capacity. and then some of the SOS to figure out how we're going to fill it. But it's certainly going to be well above 3,000 tons per day that were in the prior PEA study. What does that mean? That more than likely means a higher NAV. It also, with the increase in gold price, should drive higher resources, but that work is yet to be finalized. And it will be finalized in the next couple months. We expect that PEA to be released in Q4 of calendar 2020 Can we go to the next slide, Julie? So like I said, our focus is growing the underlying valuation metrics. So valuation works by having certain multiples. The multiples go up and down depending on markets. Multiples are compressed on either DA basis with a gold price defined in this last couple months. We expect those to get to normalize over time. And what the market does is say, okay, you have a little bit of a decrease in gold price. So EVDA will be coming down in minor, so we have to adjust the forward multiples. That's typical of what happens in a market adjustment. Our EVDA will continue to grow. It will grow as a result of an increase in production over time. We're very comfortable at today's gold price of $4,000 an ounce. As I mentioned, the expansion is underway, so there'll be new 3,500 ton per day sag and ball mill that will operate with existing optimized and upgraded plant operating alongside of it. We expect emerging or cost reductions, particularly on the processing side of things, Richard will get into that in a minute, with this improved scale as well as the enhancements that have been made. For instance, we put in place an oxygen plant. that reduces chemicals such as hydrogen peroxide to get oxygenation up. So we're going to continue to be a low-cost operation going forward. Our merchants are quite healthy. With regards to NAV, we just discussed that. We're still updating the PEA to give a good sense of what Buck Creek Main Hill can be, and it will be revised, and that will be put into the market in Q4 2026. And also we'll get into an exploration program. The geophysics study is done. we now are going to start to just drill out some targets there as well as go back to prior targets such as Stamford Bridge and Anfield to hopefully grow the resource base. There are some significant good targets around this property and that drill bit will start to really start to ramp up soon and assays will start to flow into the market shortly thereafter. So we have a proven track record. doing these expansions. This is our fourth expansion. We are a self-funded model with a very improved balance sheet, $27 million in cash, significant EVTA, significant working capital buildup, and on-drawn credit lines. We can go out and get further credit lines and credit facilities if we want to. They're offered to us every day. We just don't see the need to do that today. It's very easy to get a credit facility in the $50 to $100 million range at Buck Creek at this point in time. but right now we don't see a need to put that onto the balance sheet. We are located in Tanzania where we get, we're able to get things done. There's a lot of geology in the area. We're also looking at other properties in the area as well as we have discussions with government. We have right now a large high quality resort space. Next slide please. So now I'm going to hand it over to Mike, and Richard will also poke in on some of the things around processing costs and some of the other items around operations. So Mike and Richard, over to you guys. And Mike, please take the lead.

Well, thanks, Stephen, and good morning, everyone. Thanks for joining us here today. Richard, it looks like you may have some connectivity issues, so I'll do my best to talk to the process and cost improvements that you touched on earlier, Stephen. Q3, I mean, you mentioned it at the outset. It was a very, very strong quarter for us, both operationally and financially. The plants, as you will have seen, achieved record quarterly throughput of 1,690 tons per day of throughput. And that was not only an increase from last year's prior year comparative, but also last quarter. We also achieved a grade of 1.96 gram a ton for the quarter. But importantly, recovery continues to improve. And year over year, you would have seen recovery increase from 67% last year to almost 85% this year. As we make some of those metallurgical improvements that Stephen touched on, as well as upgrades to our 2,000 ton a day plant, we commissioned things like a thickener, an oxygen plant, and a knock-in reactor this quarter. We're bringing online additional improvements like an ADR plant and gold room in the coming quarters. So we expect both recovery and throughput to continue to improve. But those benefits that we saw this quarter through the mill drove gold production of over 7,400 ounces this quarter. And that's almost 60% relative to the prior year comparative period. You couple that with a Q3 realized gold price of over $4,700 an ounce, which was up 50% from the prior year, and we recorded revenue of almost $33 million, which obviously is a significant year-over-year improvement on the back of both higher production and higher gold prices. So the company continues to demonstrate leverage to that high gold price environment. And illustratively, Buck Reef, continues to show that it's a low-cost, high-margin operation. Stephen touched on it early, but at an average cash cost on a full-year basis of between $1,400 and $1,600, we've been able to produce gross profit margins of almost $20 million for the quarter. We're running at about a 60% gross margin ratio. Now, with that all said, there is an opportunity for margins to continue to improve as we go forward. will see mining costs at just over $3 a ton. That started to normalize this quarter from about $4 a ton last quarter following the signing of a new contract mining arrangement. And on the processing cost per ton side, we are up over $25 a ton, as Stephen mentioned, using things like hydrogen peroxide and other consumables and reagents to maximize recovery and consequently produce more gold. But as these mining Thank you very much. and very importantly, a record adjusted EBITDA number of almost $21 million. That's a record for the company. And if you annualize that, I know Stephen touched on the last 12 months of being about $66 million. But if you annualize this quarter's EBITDA, you end up at over 80, which puts us in a really, really good position to fund and execute our growth plan and our capital plan. and, you know, you couple that with our working capital position. We reported working capital of 2.2 times or over $36 million. We got a cash position of almost $27 million. Stephen touched on the undrawn credit lines. So, again, really well positioned to fund our capital plan. And just sort of looking forward, we did report a record buildup in in-circuit inventory in the CIL tanks this quarter as we worked on metallurgical improvements and enhancements We've got almost 1,600 ounces in those tanks at the end of Q3, coupled with a ROMPAD stockpile of over 19,000 ounces. The expectation in Q4 is to draw down on some of that inventory to help supplement and benefit production into Q4. And looking at our full-year guidance numbers, we've reported full-year guidance of between 25,000 and 30,000 ounces. We've already achieved the low end of our guidance range as of today. So we achieved our full year guidance numbers, but over the next six weeks, we expect to continue to produce at these levels, draw down in inventory, and what we hope is to have a record production quarter for Q4. And finally, I'll just touch on the cash cost. We continue to be right in the middle of that $1,400 to $1,600 an ounce cash cost range, which, again, is in part what's driving that significant gross margin that we see in this quarter. So all in all, a record quarter, both financially and operationally, and the cash flow EBITDA that we're generating positions that's very, very well to fund our capital plan and growth plan going forward. Stephen, back to you.

Excellent. Thank you. So with regards to next slide, Julia, or Mike. So with regards to rapid EBITDA growth, as I mentioned, the project is being expanded again. So obviously with higher throughput, you're going to get higher results and higher EBITDA going forward. This is our fourth expansion. With regards to the CapEx plans that we have around this over the next 12 to 18 months, we have roughly a $50 million budget, which includes $30 million for the new mill. That includes the actual mill and all the other workings. The TFF will be around $10 million. That will be a plan for predominantly the life of the mine, which is great because we're currently doing it in pods. and we have state sustaining capital over at $10 million. Of that $50 million, I would think around $6 to $8 million has already been spent and the rest of it will be paid for over the next 12 to 18 months out of cash flow. If we do have bulges in that CapEx, which we don't anticipate too many, we have those on-drying credit lines to smooth out any of those bulges. So we're quite comfortable with that and we're quite comfortable that we're going to get to do much higher David DeA number as a result of executing that plan. It's a very reasonable plan and it's well planned out and it is starting really rapidly. Mike, anything to add to that? I know Richard's not on the line.

No, I think you summarized it pretty well. I mean, again, hopefully folks get a sense for, you know, annualized EBITDA run rates of 80 plus million dollars against the capital profile that you just mentioned. Again, positions us very, very well to fund it over the next 12 to 18 months over using cash flow from operations.

And thus, the forward EBITDA is going to be very significant as per the PEA that was released in May 2025. In the next couple of years, in 24 to 36 months, you're looking at well over $200 million of potential EBITDA. So it's a significant, significant increase. in profitability. Next slide, please. So with regards to... Oh, this is the same slide, isn't it?

Yeah.

Okay. With regards to the PEA, I'll just go over some of those numbers. Like I said, the PEA is being updated, so we expect these numbers to be better. Take a look at the cash costs with scale. Cash cost comes down. Mike is referencing around $1,400. Cash costs in the study were around $1,000. It's going to be expanded even larger than that now, so I would expect cash costs to be around the same, as well as all the sustaining costs and the pre-tax MPVs. Hopefully, our goal is to get these significantly higher as well with annual production, hopefully ranging in the range of anywhere from 80 to 100,000 ounces over time. Next slide, please. So as I mentioned, look, we are on track with our PEA, particularly in the capital bills around the expanded plant. If you look at year one here, you had 27,000 ounces of production. We're already into that range. Year two has around 38,000. So we're well on track with regards to, you know, the profile of PEA. PEA was always contemplated. Do the plant first, expand that. Expand your mining operations at the same time. If they open pit, it was originally envisioned here three years. We expect that to go on longer and then go into your underground development. All self-funded. That's why we didn't release an IRR because it's infinite. If you want to put an IRR on that $1, then it would be exponential. So it's a very good plan here that's been put in place by Richard and the team and they're well through the execution on that. and can we go to the next slide? With regards to increasing the resource base you know Tanzania has a lot of resources and we are in one of the better resources in the inner arc of the Victoria Lake Victoria Greenstone Belt and a lot of other major assets in the area. I'll get into it in a second with how we discuss these sort of things with government but One of the things is there are a lot of resources that may or may not become available over time in Tanzania that we wouldn't mind taking a look at. Next slide, please. Richard, I'm going to turn this over to you with regards to exploration and where we're planning them. There was never a geophysics study done at Buck Reef, but now that there is one, you now have a much better sense of where to go.

Thanks, Stephen, and hi, everybody. Well, there were geophysics studies done in the past by IAM Gold and Anglo over the past 20 or 30 years, but for one reason or another, a lot of the data, the raw data was missing, and a lot of the test work that was done was looking very shallow deposits, and as we've found in Main Zone and Stamford Bridge, these things are a lot deeper. So we came to the conclusion that starting again with pretty much the standard geophysical approach to most of these RK and Gold systems would give us some new targets and probably confirm some of our existing targets and that's exactly what's happened. Over the last three quarters we've done a detailed magnetic survey followed up by an electro resistivity pole to dipole survey followed up again with overlaps on the highs and anomalies from those two on a dipole-to-dipole survey. And from that, we've now given ourselves about nine or ten strong targets that we've developed drill programs for, and the first of those targets will be drilled next week, basically. We should be hopefully moving the drill on there about Monday. so yeah we're pretty excited to see all of that and we've got to do a lot of strategizing now with the resources we have we have two exploration drill rigs on site at the moment a third has been delayed at our port but it's in country and we're expecting it any any week now and that'll immediately go to work on Stamford Bridge and then a A fourth drill rig is sitting in China at the port, ready to come over to us. And we've got an option now on a fifth. So yeah, we're pretty excited about getting into these new targets and getting into some of the stuff that was never really drilled properly at Anfield and a few other areas as well. So there's a lot going on with exploration there. in the coming months and we expect that we'll start getting some essays back on some of these nine anomalies from the geophysics starting in August and we'll probably have our first round of drilling done I would suggest in September which results out in October.

So there's a lot of drilling to happen coming up with four to five drill rigs on site potentially turning. which is great. And part of that will be, you know, with regards to ongoing operations, part of that is on the exploration program. So we've got Stamford Bridge. I won't go over this again. As Richard mentioned, it will be subject of the new drill rig that's in country. It will get started on this area again. Expecting to see a very

That's the assay results thus far.

With regards to stakeholder engagement and communication, for this one we're going to bring it over to Khalaf and I'll add a few bits and pieces as well.

Go ahead, Khalaf. Thank you, Stephen. Good morning to everybody in North America and good afternoon or evening to us in Tanzania. Just a short brief discussion update on what I would say is three focus areas for us. are really designed to reduce our risks, improve operational efficiency and just basically avoid business disruption and increase our opportunity to opportunities in the future. So when it comes down to the three main areas we've been focused on, community development, which is essentially all the projects that we're doing, in and around our mine sites with the immediate communities around us, the roads that neighbour us. We've done quite a lot of work and we have been doing for a number of years in health and education, supporting schools and some of the health centres. Obviously, we do look at the local procurements by our immediate community and what can be supplied and what services can be provided and many others. We have a very good relationship with the local government authority in Gator and maintain very good relationships with them. Government engagement as you can imagine is hugely important in our part of the world. Relationships are important. We exist in, I would say, an overly regulated environment, so maintaining and keeping good relations with government gets the mine operating better. So we maintain a very strong relationship with our central government authorities. I personally attend all of the meetings with the team here, various meetings, especially on regulatory matters so that we can provide our input and advocate for change, where we find that there are things which are difficult for us to work with. And obviously, I think, Stephen, you might want to say a little bit more about the current negotiations ongoing with the government of Tanzania.

I think we've mentioned this a few times, that we are quite, I believe, advanced, and

and the outcome that we want is basically better terms and more investable terms for TRX Gold. I'm sure you'll mention that. And the last bit that I would like to just mention is we've enhanced our communication, basically just to raise the image of TRX Gold as an investor in terms of communicating different media channels about all the various benefits that come as a consequence of our investment, particularly in creating jobs, obviously paying taxes, procurement that has been generated from all the good work that we have done at the mine site, and we've communicated this across all different media, targeting all different levels of government and public, some direct, some obviously using various channels, social media and traditional media. So we are, I would say, very visible. We've been very consistent with our messaging. So, you know, we are, I believe, in a very good position and we are looked at in Tanzania as a thought leader. Industry, I would say, one of the more high-profile operators in Tanzania. Yeah, basically that's my...

Yeah, Buckery said that anybody would have seen is, particularly on our latest video that Richard and I did with Isaac, it's becoming a substantial operation. It has around 1,000 employees and contractors in and around site, particularly with the build at this point in time. And it's profitable, as everyone can see. And with profitability, there's royalties, taxes, and a lot of jobs. and so that leads well into government relations as well as we're very keen on local content as well. We have a lot of good suppliers that we utilize in country and work well with them and are very supportive of the development that is happening at Buck Creek. So we have an overall good relationship and that is leading into what I'll say is negotiations around joint venture and gold forward are further along I still can't give a definitive timeline on those sort of things given it is in the political realm and politics takes a little longer as an African saying that we have the watch but they have the time. And so it's an ongoing process but we're more confident in a successful outcome. That's a win-win-win situation. Next slide please. And with regards to valuation, I'll answer this more substantially in the Q&A portion. Obviously, valuations across the sector have come up. Not only our valuation stock price decline, but it's come across the entire sector. This gives you an idea of we've fallen down versus where we were before, given I believe our decline has been further than others. with regards to that. But as I said, we know we're constantly onto the evaluation metrics of growing them, particularly the EVDA and PNAVs and resources. Those are all part of the business plan. The plant expansion is EVDA. The PNAV is new studies and better mine plans. And the resources is on exploration. So all three of these buckets is being looked after in the business plan. And eventually someone will recognize them. Eventually someone will, but you've got to be patient, and eventually it will get there. Next slide, please. With regards to capital structure, the capital structure is now clean, and there's no warrants outstanding. There's $27 million of capital or cash on the balance sheet, very little debt. There's a few leases outstanding. That's about it. and Andra on liquidity line. So we're in extremely good position with the cash flow that we have as well as liquidity line, the cash to execute our business plan around CapEx to get this plan expanded. And once this plan gets expanded, Richard will be all smiles. He likes building it, but he'll be all smiles with all the cash flow that comes out of it as well, particularly with the higher mining.

Next slide, please.

So the key investment highlights, you know, we're growing. And we're going to continue to grow. We're very confident in the growth. We're going to grow EVTA. We're going to grow NAV. We're going to grow resources. That's the business plan. Quite simple. Grow, grow, grow with internally generated cash flow. We have approved an operational track record. You know, robust expiration potential. Can operate in the jurisdiction that we are in. and we have the leadership team to do it and they're very confident. And if you look at the last four quarters, they're really good quarters and we expect that to continue going forward. So now I will hand it over to Q&A.

Excellent. Thank you all for the presentation. As mentioned, we will start the Q&A. Your first question for today is? So, with regards to the joint venture agreement and how it's set up, is the current joint venture agreement.

It's 55-45% equity ownership. So, what does that mean? That means that the cash flow that's generated at Bob Grief can be reinvested to grow that business and grow the value of that business. In the board structure TRX can determine whether there's any dividends or not. Right now their choice is to put the capital that's being generated by the business back into the business to grow the business. And the rationale for that is to increase the value of the overall business. So when I get on to the valuation metrics, if we achieve EVTA numbers like are in that PEA in three to four years' time, you'll get the EVTA multiple on that. So if, you know, that $4,000 gold is projected to be $250 million of EVTA, you're going to get your valuation multiple on that. That's a good $50 million investment for that increase in EVTA. The same with the price, the net asset value and revising the mine plan and putting money into exploration to increase resources. That all increases the value of the overall business, which is a benefit to TRX shareholders, but it's also a benefit to government stakeholders. In fact, there's more jobs, royalties to taxes and cash flow to government as a result of that much larger operation. So, with regards to 5545, that comes into play after our capital loans are repaid and if we declare a dividend at a buck rate.

Excellent. Thank you for your answer, Stephen. Moving on to your next question. What is the status of the 5545 deal?

The status is, as I mentioned, and I mentioned this throughout the presentation, We are in discussions with government. I had a discussion last week actually in the United States versus elsewhere. And so we are well advanced in what we desire. Now it's for the government to go back and talk to their stakeholders in what can be done. And so those discussions are moving towards that stage is what I would say. obviously have it quite clear that we would prefer to be into the framework agreement like Barrick, Perseus, and others have, which has ranged from 84 to 16% non-dilutable, 16% non-dilutable on the government side. Some agreements are 80-20 with 20% non-dilutable on the government side. In those agreements and in their law, it's a 50-50 economic split, which then acts as a stabilization mechanism. Khalaf, anything there to that?

No, I think you summarized it well and I would say that they understand the concept and I think that they are starting to appreciate the importance of them working with us so that we get obviously much better valuation for all of us including themselves.

Thank you both. Moving on to your next question. When will we start seeing drill results, and what are the drilling plans for next year?

Richard provided a good summary of that in the presentation. If the drill rigs are arriving on site, like you said, we'll have four to five drill rigs in the next couple months, once we ship from China and others. The drilling program is going to ramp up now. and we just start to see assays in the fourth quarter of calendar 2020.

Excellent. Thank you, Stephen. Moving on to your next question. It's a bit of a long one, so bear with me. The viewer commented, Management has noted strong Q3 operational momentum with record throughput of 1,833 tons per day and recovery of 84.6%, alongside accelerated expansion to a new 3,500 tons per day SAG slash ball mill circuit and plant upgrades targeted for Q4 2026 completion. You are also actively revising the LOM plan and expect an updated PEA in Q4 2026. can you share preliminary findings from the LOM review including any contemplating changes to the mining sequence such as additional open pit cutbacks at the main zone, potential deferral or acceleration of underground development at Stamford Bridge or faster mining at Eastern Porphyry and how these factors combined with higher processing capacity and the current gold price environment are expected to affect recoverable ounces, average annual production rates, mine life and overall project economics versus the May 2025 PEA?

Look, I love that question. I'll tell you why I love that question. That tells me that's a shareholder that's very in tune with everything, which is great, and has read the details that we put out. And I've answered a lot of those sort of things in the presentation itself, but I'll provide a summary. So recovery rates have gotten to around 85%. That's correct. And we expect them to go higher as a result of the new mill into more study ranges of 88% to 90%, maybe even a little bit higher than that. We expect costs to get those recovery rates to come down as well as we stop using as much reagents as we have. We put in place a new ADR plant. Our crushing costs will come down as well, given it will be a SAG-D ball mill followed by a ball mill. So that's good. We're also going to have, theoretically, you know 3,500 tons per day sag ball mill combination as well as the existing 2,000 ton per day plant which gives us a theoretical capacity rate of around 5,500 tons per day potential but you gotta feed it right so the good news is is that they're going to be separate circuits multiple ball mills in the existing circuit so there's a lot of flexibility of feeding and so the mine plan review right now that's being done is to figure out what is a good number to feed it, an achievable number to feed it. There will be excess catastrophe. We won't get the 5,500 tons tomorrow when it's turned on because it takes time to add up mining. And a pit is only so large and you only have so much room to move around. So right now, yes, there will be additional cutbacks to the pit in theory. It will go deeper. It will go longer. Thus, the underground and the related CapEx will be deferred at least a couple years. That's what we're looking at at this point in time, and we've made those statements before. We wouldn't be doing this if we didn't think it led to increased profitability. The last study was done in $1,900 gold, so obviously it's going to be done at a higher gold price. but we do expect some more resources to come in that weren't in the last study because now they become economic in the study. But in order for them to become economic, they're lower grade resources than in the current study. But they're still within profitable resources. So I think that answers all the questions. So yeah, there will be more recoverable ounces, obviously, if you bring in more resources that are now economic as a result of your gold price assumptions in there, given we do expect gold prices to continue to increase over time and the recent gold price pullback will reverse at some point in time. I think that answers all the questions. Mike, did I get all of those answered in one? Did I get all of those answered in one?

It hit all the highlights and certainly look forward to getting that updated study into the market in the coming months for folks to see what improvements and enhancements in value that we hope to add.

Yeah, and I think the last part of that is, can you go underground while expanding your open pit? And the answer is yes, there's optionality to do that, particularly if we need it to be beneficial to the mine plants such as Stamford Bridge, etc. And also, given we're going to have excess capacity to find any resources as a result of the new drill program, they can be added in pretty quickly as well.

Excellent. Thank you both.

If anybody knows me, they know that I like optionality.

Excellent. Thank you. Moving on to your next question. Regarding supplies of diesel for running the plant slash equipment and sulfur oxide for leaching purposes, both products being affected by the Strait of Hormuz, how are the procurement of these necessary supplies being affected by the Iran war? What are the cost implications going forward? Do you see a problem with having enough diesel to continue processing and running mining equipment, trucks, digging machines, etc., without significant disruptions to production over the next 6 to 12 months? What effect do you expect on future costs slash profits? Do you have any hedging in place for diesel supplies? Do you have the ability to source supplies from the United States? And if so, at what increased cost for shipping?

So Richard and the team has recently redone the contract. So what we expected to see, just like the market expected to see, a... squeeze on potential oil and fuel supplies. But we aren't seeing that. So when Richard and team sat down with the fuel supplier to renegotiate the contract, Tanzania has ample supply. Actually, I believe they're at full capacity of diesel stock. So we were surprised to hear that. Tanzania diesel is refined. It predominantly comes in from the Middle East and India. into the country and there's ample supply there now and I think the market also sees that and that's reflected in the global oil price that despite the Iran war there appears to be ample supplies and that's currently what we're experiencing in Tanzania so we haven't seen any squeeze in supply at this point in time. Richard, anything to add to that? I can't hear you right now.

It appears we have an audio issue for Richard.

Yeah. Just give me a thumbs up if I predominantly got it right. There we go. There we go. Yeah. Yeah.

Thank you. Go ahead, Julia. Your next question. Any plan for a dividend buyback in the future? Are there any plans to reduce operating costs, i.e., long-term fuel contracts, Any plans to graduate to the NASDAQ or NYSE? Any strategic partnerships with firms in the work, CAT or Volvo or others, Chinese, Korean? Any uptick with other semi-precious metals or minerals on buckwheat?

Wow, that's a fully loaded question. So what was the first part of that, Julia?

Of course, the first part of the question was any plan for a dividend buyback in the future?

So with regards to dividends slash buyback, so with regards to dividends, I think the cash being reinvested provides a lot more value for shareholders at this point. And the reason why I say that is that's the cash within Buck Reef is reinvested in Buck Reef to grow the value of the asset. To prepare dividends out of Buck Reef, it currently, under joint venture agreements, needs $65.45, but there's a lot more value to be created in the actual asset itself. The returns on that capital are significant. So if you can increase, indicate from $80 million to over $200 million for less than $50 million and not raise a dollar to do it, then that's what's going to be done. So with regards to then around potential buybacks, I'm going to defer that question because I'm going to answer that question more broadly in what we kind of see happening in markets. And I'll answer that question as part of that. But certainly it's one tool that's out there. to help alleviate what we're seeing going on in the market. Next part of the question.

Of course. The next part of the question is, are there any plans to reduce operating costs, i.e., long-term fuel contracts?

Yeah, so we did get into, and Mike got into this, on the processing cost return side. Richard and team continually have a pulse on lowering operating costs. As you can see, mining costs are gonna come down with scale. Processing costs will come down with scale as well as the enhancements that have been made. So yeah, we do have a pulse cost. One of the reasons we're very profitable in head to margins that we do is because Richard and team are constantly on cost. And a lot of the enhancements that are being made increases availability or increasing throughput even in the existing plant. which lowers overall cost per ton and ounce as well.

Excellent. And the next part of the question, any plans to graduate to the NASDAQ or NYSE?

At this point in time, we're on the New York Stock Exchange American and the main board on the TSX. I have not evaluated whether to graduate to the NASDAQ or the New York Stock Exchange. But if I feel that it attracts more potential investors and demand for stock. It certainly can alleviate some of the things we've seen in the market. It would be a consideration.

Thank you for that response. And the final part of that question was, any strategic partnerships with firms in the works, CAT or Volvo or others, Chinese, Korean, any uptake with other semi-precious metals or minerals on buckwheat?

Yeah, we've had some partnerships. Look, we have, you know, CAT equipment on site and and other equipment. I wouldn't say there's formal partnerships, but we work with a lot of the firms that you just mentioned in procurement of equipment. I don't see any vision necessary to have strategic partnerships with those different firms. They provide good service and some of them we work with.

Thank you, Stephen. Moving on to your next question. Do you anticipate reporting after-tax net profits?

After-tax net profits?

We'll report it. That's the financial stages. We've got no choice but to report that.

Yeah, just to comment briefly on that, Julia, so we did report $8.4 million of after-tax net income. So, yeah, record gap results for the company.

Excellent. Thank you, Mike. Your next question is, when do you expect to do a stock buyback to help support the stock?

Okay, so now I'll answer the question more broadly, because we've been asked this by a lot of shareholders, and I got quite a few pings on this last night, around great operating results, great forward outlooks, management team that can execute, but it seems the stock price is in perpetual fall, like other stocks that are out there. Stephen, can you try to address what I'm seeing as a disconnect? And so some shareholders are of the view that there's a big disconnect between what potential valuation is now and where the share price is. And to give you a sense of what we do, So we look at the shareholder registry on a quarterly basis to see whether there is movement in our shareholder group. And we have a very good shareholder group. Not a lot of change there. We'll get the results of that for June in the next couple weeks. And I expect to see a similar type of pattern in it. So what does that tell us? That the share price decline isn't a result of a lot of current shareholders trading stock. So it's on the periphery. It's the best way I could say that. So the supply that's coming onto the market, I don't believe is created by significant shareholder turnover, given the data that we have. So where does supply come from? and who is trading the stock and who can be incented to bring it lower over time. And then we're getting into a much more of a black box. It's a very opaque market in the United States. There are various market makers that do have shares in our stock. We do have a lot of hedge funds in 12S as well. And now we're starting to see some institutional investors which I'll call non-hedge fund institutions, investors show up in 12S as well. What I find very interesting is market makers who create liquidity legally, they're able to make it short their stock, cover with options, things of that nature. I think there may be potential around that. I can't confirm that. But certainly, trading-wise, you can do it and create liquidity. There's also others that are incented. You know, I look at this morning. I think, Mike, when we're looking at it, the October options were really high, hey? On out-of-the-money options. Like, there must be at least 15,000 to 20,000 contracts in October?

Yeah, almost unprecedented levels, basically.

Unprecedented contract levels that are out-of-the-money on all options. And so, you know, obviously that's used as a tool for something. And that sort of thing. So I'm getting the sense that a lot of our trading is not based on fundamental value. It's based on others who make money from the stock existing and that are centered on the downside. And that's not only for us. That's across the sector at this point in time. and across other sectors. As buyers have fled the sector over the last couple of months, I believe, you know, my theory is that firms take advantage of it. And we're caught up into that. So how do you reverse that?

Is create a good business, which we've done, which we're doing.

And also that creation should get buy-in. to overturn the negative sentiment, and we're going to continue to grow. And one tool may or may not be a potential buyback in that, to mop up some of the, whether it's real selling or fake selling, that is occurring.

Thank you for your comments on that, Stephen. We're coming up to your last two questions for today. The next question is, What are the opportunities to acquire land within trucking distance from the larger combined plant?

So the opportunity to acquire land within, I would say, the radius of the existing plant is... There may be some opportunity. I shouldn't say there's none, but I would say it's more limited. Is there opportunity to acquire other lands in Tanzania? that have a similar profile to Druckbrief that could be built out the same way as Druckbrief and provide a win-win-win solution? Yes. And can we have discussions around that? I think we can. And so that is just giving you a little bit of insight into our thinking around how do you diversify operations. Khalaf, anything to add to that? You're all over this stuff, so.

Yeah, no, sure. I think there are, as you say, opportunities, but a lot of it has been divided into very small land parcels. So you literally have to go through hundreds of small owners to get significant size of land for it to be meaningful for any development here.

So we need to figure out a business strategy around that, and we've started that sort of, what I'll say, a Thinking around potential business strategies to consolidate.

Excellent. Thank you both. And your last question for today is, a viewer commented, most of high value intersection at Stamford Bridge appear to be deeper than open pit access. Is it safe to assume that drilling activities for your four or five rigs are focused on finding shallow resources on other parts of the properties?

Richard can answer that. When we like shallow resources, we don't mind high-grade, deeper resources either.

Sure. Can you hear me okay?

Yeah, you're good now.

Fantastic. Great. A bit of both, I think, is the right answer. As Stephen has explained, our mining plan for our existing resources, of which we have about one and a half million ounces, is... probably going to be limited somewhere around about the three and a half, maybe 4,000 tonne per day range. And it will still leave us capacity for, you know, maybe one and a half thousand tonnes per day of upper material. So finding oxides near the surface across the non-exploration targets we've got, plus these new nine targets, that is an important priority for us. and having said that, we can't ignore the opportunity to get a quick underground mine going, small underground mine hauling very good grade gold to supplement our larger open pit operations and that's something that we're looking for in the new PEA to try and see if we can get down onto Stamford Bridge either through the expanded open pit or from the service. I suspect we'll be able to get from the final wall of the open pit and save ourselves a bit of money and time to get there quickly.

Excellent. Thank you to our presenters for all of your answers today. And thank you to our viewers who submitted your questions. If you do not get a chance to submit your question, feel free to reach out to the appropriate account manager here at Redmark. This concludes our presentation for today. But before we go, I'll turn it back over to you, Stephen, for final remarks.

Yeah, no, I would like to thank you for being very supportive of us. And we have a great growth business plan in place. And we're hopeful that the valuation will catch up. to our growth profile. We're going to have significant increases in EVTA, a new study in the market, and lots of exploration. So we're well aware of what drives value of mining companies and have a business plan in place to drive those valuation metrics. So stay tuned. Lots of exciting things happening. We're quite comfortable at $4,000 gold. are quite comfortable operating at those levels, even quite comfortable operating at lower levels. So we are well capitalized, and we're going to just put our head down and move forward. Thank you.

Excellent. Thank you again to Stephen and the TRX team for the presentation, and thank you again to everyone for joining us today for TRX Gold Corporation's third quarter 2026 results. TRX Gold is trading on the Toronto Stock Exchange under the ticker symbol TRX and on the NYC American under the ticker symbol TRX. The playback will be available on our website 24 to 48 hours after this presentation under the VNDR library tab. Stay tuned for the next quarterly call and see you next time.