Source: TRX Gold Corp.
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  • TRX Gold Corporation (TNX) released financial results for Q3 2022
  • The company achieved a low cash cost of $508 per ounce of gold, and a significant gross margin of 73 per cent, resulting in record quarterly net income of $2.0 million
  • TRX Gold was operating cash flow positive in the quarter, the second consecutive operating cash flow positive quarter in the company’s history
  • Buckreef Gold successfully completed the first full quarter operating the 360 tonnes per day mill
  • The company exceeded guidance and achieved production of 2,733 ounces of gold, while selling 3,033 ounces of gold – both quarterly records for the company
  • Shares of TRX Gold Corporation (TNX) were 4.35 per cent lower, trading at $0.44 as of 1:10 p.m. ET

TRX Gold Corporation (TNX) released financial results for Q3 2022.

The company achieved a low cash cost of $508 per ounce of gold, and a significant gross margin of 73 per cent, resulting in a record quarterly net income of $2.0 million.

TRX Gold was operating cash flow positive in the quarter, the second consecutive operating cash flow positive quarter in the company’s history.

Buckreef Gold completed the first full quarter operating the 360 tonnes per day (tpd) mill. This is the first phase for the 1,000+ tpd processing plant.

The company exceeded guidance and achieved production of 2,733 ounces of gold, while selling 3,033 ounces of gold – both quarterly records for the company.

TRX noted that it has sufficient liquidity to fund the remaining capital expenditures for the larger 1,000+ tpd oxide processing plant, which is expected to be completed in calendar Q3 2022 and is forecast to produce 15,000 – 20,000 oz of gold per year.

Chief Executive Officer of TRX Gold, Stephen Mullowney, stated that in Q3, the company achieved low cash costs, significant gross profit margins, and record net income, proving a viable business at Buckreef Gold.

“The goal now is to make this operation much larger, with a focus on resource expansion, and build a significant gold business that unlocks shareholder value. We were able to use cash flow from operations to fund value accretive activities, including exploration. We were pleased to report a 250-metre extension to the Main Zone and are excited to test for extension of gold mineralization to the southwest with our expanded drill program. The processing plant expansion is well advanced and will triple in size to 1,000+ tpd in the next few months. We are enthusiastic about the growth potential for the Buckreef Gold project which will be funded from operating cash flow from the expanded operation. Congratulations to all of my colleagues on another milestone quarter.” 

TRX Gold Corporation (TNX) is a mineral resource company focused on acquiring and exploring natural resource properties.

Shares of TRX Gold Corporation (TNX) were 4.35 per cent lower, trading at $0.44 as of 1:10 p.m. ET.

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