TRX Gold Reports First Quarter 2025 Results Plant Expansion Results in Significantly Lower Operating Cost Per Tonne
TRX Gold Reports First Quarter 2025 Results
Plant Expansion Results in Significantly Lower Operating Cost Per Tonne
TORONTO, Jan. 15, 2025 -- TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) (the “Company” or “TRX Gold”) today
reported its results for the first quarter of 2025 (“Q1 2025”) for the three months ended November 30, 2024. Financial results
are available on the Company’s website at www.TRXgold.com.
Key highlights for Q1 2025 include:
• Capturing record gold prices: The Company poured 4,841 ounces of gold (Q1 2024: 4,927) and sold 4,813 ounces of
gold (Q1 2024: 4,895) generating revenue of $12.5 million (Q1 2024: $9.4 million), gross profit of $4.8 million (Q1 2024:
$3.7 million) and Adjusted EBITDA 1 of $4.4 million (Q1 2024: $2.6 million). The increase in revenue, gross profit and
Adjusted EBITDA1 compared to the prior comparative period is mainly related to a record average realized gold price
(net)1 of $2,653 per ounce (Q1 2024: $1,942 per ounce).
• Production level in line with expectations and mine sequencing: Gold production in Q1 2025 was mainly in line
with the prior year comparative period and reflects higher mill throughput, offset by a lower average head grade of 1.29
g/t (Q1 2024: 2.57 g/t) and lower average recovery of 72% (Q1 2024: 81%). A planned mine sequence commenced in
Q1 2025, accessing lower grade ore blocks during the quarter, concurrent with a scheduled stripping campaign, in order
to access higher grade ore blocks in the second half of F2025. The lower average recovery in Q1 2025 was mainly due
to a higher proportion of blended material processed in Q1 2025 (24% oxide / 76% sulphide) compared to the prior year
period, where the mill processed a higher proportion of oxide material at a higher average recovery. The Company also
experienced lower recovery rates with lower grade material.
• Decreasing variable cost per tonne: Processing costs per tonne of $12.60 in Q1 2025 were significantly lower than
the prior year comparative period (Q1 2024: $26.56 per tonne) predominantly due to greater economies of scale
following final commissioning of the expanded 2,000 tonne per day (“tpd”) processing facility. Mining costs per tonne of
$4.00 in Q1 2025 were also lower than the prior year comparative period (Q1 2024: $4.25) and are expected to continue
to improve over time as owner operated equipment will be utilized to provide cost effective support for site development
projects as well as plant feed operations.
• Benefitting from economies of scale: Total ore tonnes processed at the newly expanded processing facility of 1,703
tpd in Q1 2025, were 108% higher than the prior year comparative period (Q1 2024: 817 tpd), reaching a maximum of
2,073 tpd, following commissioning of the newly expanded processing plant in early Q1 2025 (September 2024). The
higher processing plant throughput provided a higher proportion of overhead cost absorption, significantly benefitting
processing cost per tonne.
• Increase in annual gold production is expected: The Company continues to expect gold production for fiscal 2025
(“F2025”) to be higher than fiscal 2024 (“F2024”) levels, reflecting a full year of operations from the expanded 2,000 tpd
processing plant and an expected decreased reliance on lower grade stockpile inventory, partially offset by a waste
stripping campaign required to access high grade ore blocks to deliver consistent higher grade ore feed to the mill. The
Company continues to expect cash cost per ounce to be in line with F2024 levels, mainly due to the impact of higher
expected gold production and significantly lower processing costs per tonne, offset by a lower average grade profile, in
line with the scheduled mine sequence. Mining costs per tonne are also expected to trend lower in F2025.
• Best drill results to date at Buckreef Gold: During Q1 2025, the Company announced its two best drill results ever,
on a gram x tonne x meters (“gtm”) basis, intersecting 37 meters (“m”) @ 6.86 g/t Au (253.82 gtm) from 130 m (hole
BMDD315) and 35.5 m @ 5.48 g/t Au (194.54 gtm) from 64 m, located along the newly discovered and high-priority
Stamford Bridge Zone. This is a promising new gold mineralization shear zone located approximately 250 m east of the
Buckreef Gold Main Zone that is beginning to form what may become a potential 1-kilometer “bridge” between the
Buckreef Gold Main Zone and the prospective Eastern Porphyry and Anfield zones. Subsequent to Q1 2025, the
Company announced additional high-grade intercepts at Stamford Bridge (see January 14, 2025 Press Release) as part
of its ongoing exploration program focused on newly defined exploration targets.
• Growth initiatives in place: Growth capital in F2025 is expected to be consistent with F2024 levels and includes
expansion initiatives related to the long-term growth of Buckreef Gold, including plant optimizations aimed at increasing
recovery, throughput and production and study costs aimed at expanding Buckreef Gold and developing the larger
project.
• Exploration is a priority: Exploration spending is expected to increase in F2025 and includes diamond drill and
reverse circulation drilling services provided by the State Mining Corporation (“STAMICO”) for a program which includes
brownfields drilling at Buckreef Main Zone (Northeast and Southwest), Buckreef West, Eastern Porphyry, and greenfield
drilling at Stamford Bridge and Anfield.
• Health & Safety remain top of mind: The Company achieved zero lost time injuries and there were no environmental
or community related incidents during Q1 2025.
TRX Gold’s CEO, Stephen Mullowney comments: “Q1 2025 has been quite busy and has progressed in line with our plan.
Gold production is a function of tonnes processed x head grade x recovery and consequently, your major cost drivers are
tonnes moved and tonnes processed. We are pleased to see the lower operating costs per tonne come through on the plant
expansion, which has enabled the business to be profitable even when processing lower grade material. These costs savings
are expected to significantly benefit the business as the grade profile in the mining sequence improves. We have not stopped
here, our newly appointed COO Richard Boffey, has been busy with ongoing operational efficiencies which are expected to
benefit the business in the second half of the year as well. The exploration team continues to plan and execute an initial drill
program at the newly discovered Stamford Bridge Zone, which is turning into quite an exciting discovery, with the best ever drill
results to date at Buckreef Gold and the outline of a shear structure becoming more evident. Much more work will follow at this
high-priority target over the next several months, as we hope to uncover a new mineable zone. Lastly, we are laser-focused on
the mine plan in order to get to those high-grade ore blocks in the second half of this fiscal year, so that we can continue to
capitalize on our reduced cost profile and robust gold prices.”
Figure 1: Buckreef Gold new and expanded crushing circuit (Q2 2024)
Figure 2: New 350 Excavator and Haul Truck (at December 20, 2024)
Figure 3: Buckreef Gold’s Open Pit Mining Operations (Q4 2024)
Qualified Person
Mr. William van Breugel, P.Eng, BASc (Hons), Technical Advisor to TRX Gold Corporation, is the Company’s Qualified Person
under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and has reviewed and assumes
responsibility for the scientific and technical content in this press release.
Q1 2025 Results Conference Call and Webcast Details
When: Tuesday, January 21 at 11:00 AM EST
Webcast URL: https://shorturl.at/Wxbj3
Conference call numbers:
Canada/USA TF: 1-844-763-8274
International Toll: +1-647-484-8814
A replay will be made available for 30 days following the call on the Company’s website.
About TRX Gold Corporation
TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 20202, the project
currently hosts a Measured and Indicated Mineral Resource (“M&I Resource”) of 35.88 million tonnes (“MT”) at 1.77 grams per
tonne (“g/t”) gold containing 2,036,280 ounces (“oz”) of gold and an Inferred Mineral Resource of 17.8 MT at 1.11 g/t gold for
635,540 oz of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing
gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of
increasing the current mineral resource base and advancing the larger project development which represents 90% of current
mineral resources. TRX Gold’s actions are led by the highest environmental, social and corporate governance (“ESG”)
standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of
presence in the Geita Region, Tanzania. Please refer to the Company’s Updated Mineral Resources Estimate for Buckreef
Gold Project, dated May 15, 2020 2 and filed under the Company’s profile on SEDAR+ and with the SEC on June 23, 2020 (the
“2020 Technical Report”) for more information.
For investor or shareholder inquiries, please contact:
Investors
Christina Lalli
Vice President, Investor Relations
TRX Gold Corporation
+1-438-399-8665
www.TRXgold.com
Non-IFRS Performance Measures
The company has included certain non-IFRS measures in this news release. The following non-IFRS measures should be read
in conjunction with the Company’s unaudited interim consolidated financial statements for the three month ended November
30, 2024 filed on SEDAR+ and with the Securities and Exchange Commission (“SEC”), as well as the Company’s audited
consolidated financial statements included in the Company's Annual Report on Form 40-F and Annual Information Form for the
year ended August 31, 2024. The financial statements and related notes of TRX Gold have been prepared in accordance with
International Financial Reporting Standards (“IFRS”). Additional information has been filed electronically on SEDAR+ and with
the SEC and is available online under the Company’s profile at www.sedarplus.ca and the Company’s filings with the SEC at
www.sec.gov and on our website at www.TRXgold.com.
Cash cost per ounce of gold sold
Cash cost per ounce of gold sold is a non-IFRS performance measure and does not constitute a measure recognized by IFRS
and does not have a standardized meaning defined by IFRS. Cash cost per ounce may not be comparable to information in
other gold producers’ reports and filings. As the Company uses this measure to monitor the performance of our gold mining
operations and its ability to generate positive cash flow, total cash cost per ounce of gold sold starts with cost of sales related
to gold production and removes depreciation.
Adjusted EBITDA
Adjusted EBITDA is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not
have a standardized meaning defined by IFRS. Adjusted EBITDA may not be comparable to information in other gold
producers’ reports and filings. Adjusted EBITDA is presented as a supplemental measure of the Company’s performance and
ability to service its obligations. Adjusted EBITDA is frequently used by securities analysts, investors and other interested
parties in the evaluation of companies in the industry, many of which present Adjusted EBITDA when reporting their results.
Issuers present Adjusted EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability
of those issuers to meet their obligations. Adjusted EBITDA represents net income before interest, income taxes, and
depreciation and also eliminates the impact of a number of items that are not considered indicative of ongoing operating
performance.
Certain items of expense are added, and certain items of income are deducted from net income that are not likely to recur or
are not indicative of the Company’s underlying operating results for the reporting periods presented or for future operating
performance and consist of:
• Change in fair value of derivative financial instruments;
• Accretion related to the provision for reclamation; and
• Share-based compensation expense.
The following table provides a reconciliation of net income (loss) and comprehensive income (loss) to Adjusted EBITDA per the
financial statements for the three ended November 30, 2024.
Three Months
Ended
November 30, 2024
Three Months
Ended
November 30, 2023
Net income and comprehensive income per financial statements 2,137 (39)
Add:
Depreciation 906 484
Interest and other non-recurring expenses 321 340
Income tax expense 1,693 1,191
Change in fair value of derivative financial instruments (819) (199)
Share-based payment expense 156 810
Adjusted EBITDA 4,394 2,587
Average realized price per ounce gold sold
Three Months
Ended
November 30, 2024
Three Months
Ended
November 30, 2023
Revenue per financial statements $ 12,528 $ 9,404
Revenue recognized from OCIM prepaid gold purchase agreement (915) (922)
Revenue from gold spot sales 11,613 8,482
Ounces of gold sold 4,813 4,895
Ounces of gold sold from OCIM prepaid gold purchase agreement (435) (527)
Ounces from gold spot sales 4,378 4,368
Average realized price (gross) $ 2,603 $ 1,921
Average realized price net OCIM prepaid gold purchase agreement $ 2,653 $ 1,942
The Company has included “average realized price per ounce of gold sold”, “cash cost per ounce of gold sold” and “Adjusted
EBITDA” as non-IFRS performance measures throughout this news release as TRX Gold believes that these generally
accepted industry performance measures provide a useful indication of the Company’s operational performance. The Company
believes that certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.
Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Forward-Looking and Cautionary Statements
This press release contains certain forward-looking statements as defined in the applicable securities laws. All statements,
other than statements of historical facts, are forward-looking statements. Forward-looking statements are frequently, but not
always, identified by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, “possible”
and similar expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur or be achieved.
Forward-looking statements relate to future events or future performance and reflect TRX Gold management’s expectations or
beliefs regarding future events and include, but are not limited to, statements with respect to continued operating cash flow,
expansion of its process plant, estimation of mineral resources, ability to develop value creating activities, recoveries,
subsequent project testing, success, scope and viability of mining operations, the timing and amount of estimated future
production, and capital expenditure.
Although TRX Gold believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance. The actual achievements of TRX Gold or other
future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of
risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic,
competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations;
fluctuations in currency exchange rates; changes in costs; future prices of gold and other minerals; mining method, production
profile and mine plan; delays in exploration, development and construction activities; changes in government legislation and
regulation; the ability to obtain financing on acceptable terms and in a timely manner or at all; contests over title to properties;
employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the
exploration, development and mining business. These risks are set forth in reports that TRX Gold files with the SEC and the
various Canadian securities authorities. You can review and obtain copies of these filings from the SEC's website at
http://www.sec.gov/edgar.shtml and the Company’s profile on the System for Electronic Document Analysis and Retrieval
(“SEDAR+”) at www.sedarplus.ca.
The disclosure contained in this press release of a scientific or technical nature relating to the Company’s Buckreef Project
has been summarized or extracted from the technical report entitled “The National Instrument 43-101 Independent Technical
Report, Updated Mineral Resource Estimate for the Buckreef Gold Mine Project, Tanzania, East Africa for TRX Gold” with an
effective date (the “Effective Date”) of May 15, 2020 (the “2020 Technical Report”). The 2020 Technical Report was prepared
by or under the supervision Mr. Wenceslaus Kutekwatekwa (Mining Engineer, Mining and Project Management Consultant)
BSc Hons (Mining Eng.), MBA, FSAIMM, of Virimai Projects, and, Dr Frank Crundwell, MBA, PhD, a Consulting Engineer,
each of whom is an independent Qualified Person as such term is defined in NI 43-101. The information contained herein is
subject to all of the assumptions, qualifications and procedures set out in the 2020 Technical Report and reference should be
made to the full details of the 2020 Technical Report which has been filed with the applicable regulatory authorities and is
available on the Company’s profile at www.sedarplus.ca. The Company did not complete any new work that would warrant
reporting material changes in the previously reported Mineral Resource (“MRE”) and Mineral Reserve statements during the
prior reporting period. The 2020 Technical Report follows the CIM Definition Standards on Mineral Resources and Mineral
Reserves (“CIM Definition Standards”) and the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice
Guidelines (“CIM Guidelines”).
The information contained in this press release is as of the date of the press release and TRX Gold assumes no duty to
update such information.
1 Refer to “Non-IFRS Performance Measures” section.
2 See Forward-Looking and Cautionary Statements
Photos accompanying this announcement are available at
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