TRX Gold (TSX:TNX) Corporation revealed its latest production figures from its Buckreef gold operation that showcased the mine’s highest quarterly production.
During its fiscal 3Q for the three-month period ended May 31, 2022, Buckreef delivered 2,733 ounces of gold and sold 3,033 ounces –both of which are quarterly records, according to TRX.
The company achieved a low cash cost of $508 per ounce of gold, and a significant gross margin of 73%, resulting in record quarterly net income of $2 million, it said in a statement.
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Production came in ahead of TRX’s previously stated 1Q guidance, the company added.
The quarter represented the first full quarter operating the 360 tons-per-day (tpd) mill at Buckreef to nameplate capacity, according to TRX. The company also said that it is advancing construction on a 1,000 tpd processing plant, which is expected to be completed in the latter half of 2022.
TRX CEO Stephen Mullowney told investors that the results prove the company has a “viable business” and highlighted Buckreef’s low cash costs, significant gross profit margins and record net income.
“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,” Mullowney said in a statement.
The CEO added that the company was able to use cash flow from operations to fund “value accretive activities,” including exploration. The firm reported a 250-meter extension to the Main Zone and will test for extension of gold mineralization to the southwest with an expanded drill program.
“We are enthusiastic about the growth potential for the Buckreef Gold project which will be funded from operating cash flow from the expanded operation,” Mullowney said. “Congratulations to all of my colleagues on another milestone quarter.”
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