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Gold

TRX Gold Completes Expanded Processing Facility, Reports Positive Results

Strategic Insights

— 1 min read

TRX Gold has completed its newly expanded 2,000 tpd processing facility at the Buckreef Gold Project, achieving significant milestones in throughput and gold production. The facility has consistently averaged 1,750 tpd since its expansion, with a peak of 1,873 tpd, marking a 116% increase over Q3 2024 levels. Average weekly gold production has risen to 616 ounces, representing a 60% increase from Q3 2024 levels. The company has also reported a positive operating cash flow of $3.1 million during fiscal 3Q, with revenue of $10.1 million and adjusted EBITDA of $3.9 million.

Key Takeaways:

  • The expanded processing facility has achieved an average throughput of 1,750 tpd, with a peak of 1,873 tpd, a 116% increase over Q3 2024 levels.
  • Average weekly gold production has risen to 616 ounces, a 60% increase from Q3 2024 levels.
  • The company reported revenue of $10.1 million and adjusted EBITDA of $3.9 million during fiscal 3Q.
  • TRX managed its expenditures while advancing the plant expansion, maintaining a cash balance of approximately $7.7 million and a positive adjusted working capital position of $1.7 million.
  • The total capital cost for the mill expansion was approximately $6.0 million, completed on time and within budget.
  • The company is expected to reach its full 2,000 tpd capacity once minor welding and electrical work are finalized.
  • CEO Stephen Mullowney commented on the company's success, stating, "We are excited with the direction the Buckreef Gold Project is headed, as we are already seeing improved performance from the new crushing circuit and expanded milling facility during its wet commissioning."

Statistics:

  • 116% increase in throughputs over Q3 2024 levels
  • 60% increase in average weekly gold production over Q3 2024 levels
  • 1,750 tpd average throughput since expansion
  • 1,873 tpd peak throughput
  • 616 ounces average weekly gold production
  • $10.1 million revenue during fiscal 3Q
  • $3.9 million adjusted EBITDA during fiscal 3Q
  • 60% increase in gold production from Q3 2024 levels
  • 7.7 million cash balance
  • 1.7 million positive adjusted working capital position
  • 6.0 million total capital cost for the mill expansion

Sources:

  • TRX Gold (TSX:TNX, NYSE-A:TRX) statement
  • TRX Gold CEO Stephen Mullowney's comments

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