TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) recently announced the completion of the expanded processing plant at the Buckreef Gold Project to 2,000 tonnes per day (tpd).
The new 2,000 tpd processing facility at Buckreef Gold is now operational and undergoing wet commissioning. During this phase, the plant has been averaging 1,750 tpd, with a peak performance of 1,873 tpd.
This represents a 116% increase in throughput compared to the previous quarter. Weekly gold production has risen to 616 ounces, a 60% increase. The company expects to achieve the full 2,000 tpd capacity by the end of August 2024, following final commissioning and completion of minor welding work on the carbon-in-leach (CIL) tanks, as well as some ancillary electrical work.
Additionally, TRX Gold has completed the construction of a new crushing circuit as part of the plant expansion project at Buckreef Gold. The expanded crushing system, now fully operational, consistently achieves an average of 2,000 tpd, with a maximum of 2,470 tpd. Combined with the old crushing circuit, the system can process 3,600 to 4,800 tpd of ore.
This new setup is designed to produce finely crushed ore for efficient processing, which is expected to drive increased throughput and recovery percentages.
This expansion is Buckreef Gold’s third project aimed at increasing annual gold production through a phased, self-funded approach. The increased processing capacity is expected to benefit from greater economies of scale and improved overhead cost absorption.
Q3 2024 Financial Performances
TRX Gold also released its third quarter 2024 (Q3 2024) financial results for the period ending May 31, 2024.
In Q3 2024, TRX Gold poured 4,628 ounces of gold and sold 4,515 ounces at an average price of $2,270 per ounce, generating $3.1 million in positive operating cash flow. For the nine-month period, the company poured 13,622 ounces and sold 13,361 ounces of gold at an average price of $2,079 per ounce, resulting in $9.3 million in operating cash flow.
The company reported Q3 revenue of $10.1 million, with a cost of sales of $5.8 million, yielding a gross profit of $4.4 million (43%) and an Adjusted EBITDA of $3.9 million. Year-to-date, TRX Gold recorded revenue of $27.5 million, cost of sales of $16.2 million, gross profit of $11.3 million (41%), and Adjusted EBITDA of $9.1 million.
TRX Gold maintained its liquidity by actively managing expenditures while advancing the plant expansion, ending the quarter with $7.7 million in cash and a positive adjusted working capital of $1.7 million. The total capital cost for the full mill expansion was completed on time and on budget at $6.0 million.
Stephen Mullowney, CEO of TRX Gold, expressed his excitement about the Buckreef Gold Project’s direction, noting the improved performance from the new crushing circuit and expanded milling facility. He emphasized the careful capital management that funded the expansion through internally generated cash flow and looked forward to the 2025 budget, which will focus on operational improvements and increased exploration at Buckreef Gold.
