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Be the first with the news that moves the market- TRX Gold Corp. (TNX) said it was on track to meet its gold production forecast for the fiscal year 2023
- Q2 2023 represents the first full quarter of gold production from its newly expanded 1,000-plus tpd processing plant at Buckreef Gold
- Buckreef Gold recorded its highest quarterly production to date of 5,636 ounces of gold and sold 5,505 ounces of gold, resulting in positive operating cash flow for the company of $4.8 million
- TRX Gold Corp. (TNX) opened trading at $0.76
TRX Gold Corp. (TNX) said it was on track to meet its gold production forecast for the fiscal year 2023.
The gold miner reported its results for Q2 2023, including the three months ended February 28, 2023, on Friday.
Q2 2023 represents the first full quarter of gold production from its newly expanded 1,000-plus tonne per day (tpd) processing plant at Buckreef Gold, following its declaration of commercial production back in November 2022.
Buckreef Gold recorded its highest quarterly production to date of 5,636 ounces of gold and sold 5,505 ounces of gold, resulting in positive operating cash flow for the company of $4.8 million. Year to date, Buckreef Gold poured and sold 11,030 and 11,258 ounces of gold, respectively, both half-year production records, resulting in positive operating cash flow of $11.4 million. At mid-year, the company said it is on track to meet its annual gold production guidance for fiscal 2023 of 20,000 to 25,000 ounces of gold, at total average cash costs1 of $750 – $850 per ounce.
In Q2 2023, the company recognized revenue of $10.1 million, cost of sales of $5.2 million, gross profit of $4.9 million, gross profit margin of 49 per cent and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.3 million. Year to date, the company recognized revenue of $19.8 million, cost of sales of $9.6 million, gross profit of $10.2 million, gross profit margin of 52 per cent and Adjusted EBITDA of $8.7 million.
TRX Gold’s CEO, Stephen Mullowney commented on the news.
“Buckreef Gold’s newly expanded mill is operating well and generating cash flow which has allowed us to reinvest in the project to drive long-term value. Our growth plans are on track as we work on yet another expansion with the goal of increasing near term gold production, while our geological team of experts is hard at work advancing many projects aimed at developing Buckreef Gold into a much larger and significant gold producer. A little over 24 months ago we hit “reset” at the Buckreef Gold project and since then we have seen the project develop quickly with significant growth potential ahead.”
TRX Gold Corp. (TNX) is a mineral resource company engaged in the acquisition of interests and the exploration of natural resource properties. The company’s main area of interest has been in the exploration and development of gold properties.
TRX Gold Corp. (TNX) is a stock to watch, having grown 94.8 per cent since this time, last year. Year to date, TNX has climbed 68.8 per cent and was up 7 per cent higher than it was at the beginning of the week. The company’s shares opened trading at $0.76.
