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(Kitco News) - TRX Gold (TSX: TNX) reported today that in the three months ended February 28, 2023 ("Q2 2023"), its Buckreef gold mine in Tanzania recorded its highest quarterly production to date of 5,636 ounces and sold 5,505 ounces, resulting in positive operating cash flow for the company of $4.8 million.
The company said that year to date, Buckreef 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.
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% and adjusted 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% and adjusted EBITDA of $8.7 million.
TRX added that at mid-year, the company 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 costs of $750 - $850 per ounce.
Subsequent to quarter-end, the company said it used cash flow from operations to order an additional 1,000 tonne tpd ball mill for the Buckreef project as part of the short-term objective of increasing Buckreef Gold's current average annual throughput by 75-100%.
Importantly, the company noted that Buckreef Gold has commenced the long-lead items for de-risking the larger mine development project.
CEO Stephen Mullowney commented, "We are happy to deliver another solid quarter of financial results. 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."
TRX Gold is advancing the Buckreef gold project in Tanzania. Anchored by a Mineral Resource published in May 2020, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 ounces of gold and an Inferred Mineral Resource of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold.
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