Q3 2022 was a milestone quarter for the Company as it reflected the first full quarter operating the 360 tpd processing plant at full design capacity and using the cash flow generated from mining operations to fund successful exploration.

TRX Gold recorded its highest quarterly: (i) production, (ii) sales, (iii) gross profit margins, (iv) net income, and (v) operating cash flow, at a low cash cost1 of $508 per gold ounce.

Production highlights from Q3 2022, ending May 31, 2022, include:

Low Cash Costs and High Gross Margins: The Company achieved a low cash cost1 of $508 per ounce of gold, and a significant gross margin of 73% resulting in record quarterly net income of $2.0 million. TRX Gold was operating cash flow positive ($2.0 million) in the quarter, the second consecutive (operating cash flow positive) quarter in the Company’s history.

Successful Operation of 360 tpd Process Plant: Buckreef Gold successfully completed the first full quarter operating the 360 tpd mill at Buckreef Gold to nameplate capacity. This is the first phase of 360 tonnes per day (tpd) for the 1,000+ tpd processing plant. The Company achieved production of 2,733 ounces of gold, exceeding guidance, and sold 3,033 ounces of gold – both quarterly records for the Company.

Advanced 1,000+ tpd Processing Plant Expansion: Buckreef Gold continued to advance construction on the 1,000+ tpd processing plant. During the quarter, the Company made significant progress on the plant build, including successful completion of geotechnical earthworks, carbon-in-leaching (“CIL”) tank farm foundation construction, ball mill foundation and plinth curing, plant steel fabrication, tank construction, and procurement of all key long lead items, thus reducing considerable timeline risk for plant commissioning. The Company 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.

Special Mining License extension: Buckreef Gold was granted an extension to the renewal date for the Special Mining License (SML 04/92) at Buckreef Gold extending the SML renewal period for Buckreef Gold by an additional 5 years from 2027 to 2032.

Select operating, financial and stockpile information follows below:

stockpile information table


Total ore mined in Q3 2022 increased to 55 thousand tonnes (kt) from 47 kt in Q2 2022. In Q3 2022 the strip ratio was 4.4 (waste:ore tonnes) and on a ‘project to date’ basis is 4.5 (waste:ore tonnes). During Q3 2022 Buckreef continued to build up a significant inventory of mined material. Mining costs per tonne (variable) primarily reflect contractor mining costs following the hiring of FEMA in Q1 2022 on a two-year contract to mine ore, waste and to construct the TSF at Buckreef Gold. Mining costs per tonne (variable) of $2.84 in Q3 2022 were lower as compared to Q2 2022 ($3.07) primarily due to the impact of higher tonnes mined on the fixed portion of the mining contractor management fee, combined with usage of a more efficient portable rock breaker for rock fragmentation during the quarter in place of contractor blasting activity.


The 360 tpd processing plant operated at nameplate capacity in Q3 2022 and achieved the following statistics: (i) average throughput of 378 tpd; (ii) plant availability of 93%; and (iii) average recovery rate of 91% with consistent tailings grade, regardless of head grade. Processing costs per tonne (variable) of $14.15 in Q3 2022 reflected a decrease relative to Q2 2022 ($15.59) primarily due to greater efficiency of grinding media and chemical consumption in Q3 2022.


At the end of May 2022, Buckreef Gold reported the following stockpile statistics: (i) the ROM pad contained 81,867 tonnes at 1.37 g/t with an estimated 3,613 ounces of gold; and (ii) crushed mill feed of 8,439 tonnes at 3.38 g/t containing an estimated 917 ounces of gold. As at May 31, 2022, Buckreef Gold also had 539 ounces of gold in circuit, reflecting a buildup of metal inventory in the CIL tanks which will be processed in Q4 2022. The significant stockpile and GIC balance at Q3 2022 provide support for the Company to meet its production guidance in the upcoming quarters.

stockpile summary table