TRX Gold (TNX) 2024 Sidoti Virtual Micro-Cap Conference summary

Strategic overview and operational progress

• Transitioned from turnaround to growth phase, with a focus on operational efficiency and resource expansion for 2025 and beyond.

• Expanded mill capacity from 360 to 2,000 tons per day over three years, achieving record gross profit margins and adjusted EBITDA.

• Prudent capital management with no recent capital raises; operations funded by internal cash flow and reinvestment.

• Current production at 20,000 ounces, with plans to increase output and resource base through ongoing exploration.

• Mill operating at specification, with a focus on increasing gold recovery rates from 80% to higher levels.

Financial performance and capital allocation

• Achieved over two times return on invested capital, with further improvement expected by August 2024.

• Adjusted EBITDA and cash flow for 2024 expected to match 2023, with growth anticipated as expanded mill comes online.

• G&A expenses expected to rise moderately to support growth, but capital discipline remains a priority.

• Current cash balance is approximately $8 million, with ongoing reinvestment into operations.

• No immediate plans for capital raises unless to accelerate value-adding programs.

Asset and jurisdictional advantages

• Buckreef mine in Tanzania has 2 million ounces in Measured and Indicated resources at 1.8 g/t, with strong exploration potential.

• Gold recoveries currently at 80%, with potential to exceed 90% through operational improvements.

• Tanzania offers robust mining infrastructure, skilled local workforce, and strong government support for mining investment.

• Expansion projects completed on time and under budget, leveraging local suppliers and human capital.

• Region hosts several major gold mines, enhancing geological and operational synergies.