TRX Gold (TRX) 18 Jan 242024 Q1 Earnings call transcript

Company Profile

Participants

Christina Lalli	executive
Stephen Mullowney	executive
Michael Leonard	executive
Andrew Cheatle	executive
Jacob Sekelsky	analyst
Heiko Ihle	analyst

Call transcript

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Operator

It's now my pleasure to introduce Christina Lalli, Vice President, Investor Relations with TRX Gold. Christina, the floor is yours.

Christina Lalli

Thank you, Gavin. Welcome, everyone, to TRX Gold Corporation First Quarter 2024 Results Presentation. [Operator Instructions] And meeting is being recorded. the to hand I'll Instructions]. Stephen, conference you. over [Operator

Stephen Mullowney

a of technical you, Christina. this bit got We've Thank difficulties little morning.

So Mike's you're iPhone. actually hearing us from

as just fine me across morning. I So the this everybody different table hope us see and people hear you'll can speak, move the iPhone

to webcast. right Mike you thank start now, going and me. -- Andrew and results we on plant us a line very We first quarter for can the So at our interesting are when with come joining to XXXX for new We're smell point because both it's online.

really the or getting so So That we're build around through is think, now, I are. XX% circuit. to XX% crushing

rain. they're So of a having lot

It that online the of So on the particularly lot we're weather. It's come will rained Tanzania. it Africa, than in hopeful East all year was anticipated a in this dependent to between mid-February. more end January, early

exciting. that So is

time, like as are mill And ball components the at stuff well. to same starting and then underway the get are that installed

we're half coming to the gets the flow in be really cash towards that that drill as year, bit excited put back enables us the for online. So the at the on calendar should given increase that plant through of because really

So exciting it's we're a really Because period. really, excited. really

So refer will there be without company, people Public and further to the ado, this fact that forward-looking obviously, I to presentation. note have as a in reference the cautionary statements

other ask any the our investors people would note. to And and cautionary go I to view so website to

have Chief joining myself, from Executive the Officer. So is on us the today, Andrew Tanzania. we line

we Mike me; him in orange shirt. possible. here, an who's who like Tanzania And next and he's me is Christina, keep as to see to as to can in You next as much have well. then We

make presentations, in gold and experienced are call, in Tanzania. a just off for we developing Gold. who's new points a this project TRX rapidly of leaders with some particularly developing we on anybody, all starting We're that So similar team

minutes. have We have significantly We'll achieving new special we And mining into been positive an sky significant -- a license for has that potential cash high operating margin a plant that's discoveries. gold flow. few blue get in that

our of ounces The wide. surface, indicated of to meters statement deposit do and the The category. which million had in this, to measured it's X comes enables overview An resource property. us XXXX all XX

We have license. under a crush permitted We're metallurgy, straightforward and grind special fully mining CIL.

year per current that's processing the license of and a production Our day, completely XXXX had deposit. for of renewable cost been is the the plant until that consistently tonnes is at We've X,XXX over a meeting online end just life guidance.

minimal We have We water. environmental a footprint. recycle

tailings good grid. to have power the We national connected management

communicated it exploration the before, smile And cash the been to as business potential to increase always plan mentioned is our that I my a has around increase production and gold great to flow face eventually property, this brings is exploration.

years So was capital things one proud as a in Mike? I haven't of in believe, and the to that And starting we X been -- show we've done and really now, grow to starting it raise numbers. of over really very the is

Michael Leonard

Correct.

Stephen Mullowney

Yes.

historical originally we're that all lot So we the to business investors a doing. when the got the do things we as business recapitalize aware, to of had into are

around raised we've that as and that's when that, by, the million free was look by look property into those in equity years $XX.X we around the at net from now that invested ago cash So X.Xx we multiplier cash been raises was what over when in the raised asset. as is The both well growing. and on X equity generated then, the since flow at

much that increase out flow. we going that investment increase starting go the is different business we're is to this and as cash model than to So prove to build

and EBITDA production the both the adjusted operation numbers. flow cash in that seeing you're as as from And numbers well

So which million, $XX ] from August, million. $XX of million sales cash around flow and we $XX million over had $XX operations in fiscal almost XXXX, over with [ adjusted was of EBITDA of

the it G&A controlling expense plan great. which this working. the business results starting of financial same -- we're We've which done in really company's So is at to time, a see while the is

Buckreef period grown check. people from we've over to -- G&A of in keeping including So from around Buckreef's contractors XXX employees in now XX, while that including time our XX well at to

QX get and in highlights, XXXX will this into second. Mike a

level. at this phrase to going a high I'm So very

operating the We reinvested again has in flow in been have this quarter, project. cash positive growth which

So I think we reinvested million. $X almost

continue have capital to As prudent I we earlier, management. mentioned

mill consecutive third a on are expansion. We

million spend generated we sources. As have $X approximately of today, million of which from cash other flow operations in to $X.X we on that, and

margins. We profit have continue strong gross to

second really to now. thereafter, as for gold achieve on comes much that those towards would use And the starting plant. but new at quarter capital to will scale rise new a We online, year. drilling, of of more that if the plant expect And out program, we're part new online it to the end from the expect the given plant economies level. then same that comes our year. prior of slow to that stay the much down we of come commence spend sense plant prices the it the in-depth expansion. we and just the got half fiscal cash And more plan to plant calendar drilling online, should makes cash as we the there We flow back And to

robust the that exploration So more we plan. of a end have program much at

we're we second time, at record doing that's really safety have work LTI hours again, to things free. why on great a We've for So doing the And Buckreef. orders achieved the million a X we're continue sequential the it. that

at working everybody for Buckreef Kudos So to safely.

over now like So I'd hand presentation the to to Mike.

to said, I'm As I the going over. phone push

Mike hear from were. won't the through much go So on me results and too what financial you this, will

Michael Leonard

over what a quarters. X QX just quarter Production steady you, today. to Thank and ounces. you our good the for seen state under Thank last was Stephen, fairly was morning, relative for QX have would X,XXX everybody. us call joining you

you our or day and X,XXX from X of we've If near operating per capacity. been at QX, at look achieving consistent year, that's tonne with outlook X last the plant

Year-over-year have quarter running running, down production and where first X last get operating. quarter. that was to up through commercially and it done we the or high-grade material And year what of we were plus QX as was we slightly it first and was oxide put mill for to get gram a up the prioritized

We expect average a based had which have as that of roughly ore would for plant. on at to of well recovery as is been this were we QX year-over-year said, well of XX%, an noted on production. our put open current partly we've improve above end robust through mill latter the improve expanded the on, that that consequently will very to sulphide of that come putting on rock been part is into operationally, as online that which and very grindability that's expected the have this the head you year, lower recoveries the grade grams the also deposit operations. a of With and rock realized the circuit MET But head excited is really pit seen of material through crushing X.X what of tonne, recoveries and still year. almost the we're which grade our the average we oxide, we're Stephen and about expected very, as rates we've about touched as what realizing and we studies through seeing XX-XX retention impacted size our composition, and -- material times grind We and from impact enhanced for to

Stephen Mullowney

Yes.

So to pause Mike, I'm for going explain a second just that. you and

your mining So and throughput any a recovery your balance rate. in operation, rate there's between

you you that. by operations is do try balancing flow maximize So cash to what from

So higher retention we tanks know in ore higher recovery a in has our time, or if rate. a we're the longer sits

it also finer, we'll if lot we rate. grind get a We recovery higher much know a

so base. attempt and lining the to available, flow plant a have. in we MET we bottleneck rate into from is balance out operations a cash that And order now, given recovery up that build throughput versus the rates that's maximize we the we're have in an given Right studies

those need improve we through a current a much process. order this to free which size much one circuit ball with why to more to the be new circuit to is current in running is have the more of mill how more crushing good go crushing So to the rates the in we to consistent system, circuit first When the decided crushing the up a mill even recovery increase to the reasons we have milling service rates product first, in circuit online, up handle to obtain comes grind and provides recovery able the the and the consistent milling of in crushing on because bottleneck system. them. versus the And mill to

Michael Leonard

Stephen. Thanks

we ounces financial just the sold side, X,XXX quarter. On for under the

So And all we of of million. rise effectively, to what revenues gave $X that over produced.

see levels. selling $X,XXX quarter. million been So $X,XXX robust We quarter. this well lofty the the realized screen. you Gold of still realized on at and prices price are again, an We've the for north ounce

lots So gold price. potential on upside of

is Stephen just under profit alluded million or as XX% $X Our gross to.

just this as there high-margin to that is million. continues So the almost operation. EBITDA And $X be a talk well we

for flow. proxy cash good a So

between over $X,XXX above the recorded year the of for cash In range just of an we full That's $XXX and ounce. $XXX of terms guided costs, cash cost an quarter. ounce

in So largely on talked year-end expectations we call. our with is this line as about

fuel results, run on operating been any to power. in by to higher be impacted grid in our unstable us year-end capacity cost consistent costs in to keep As cash QX year-end associated with the part we mill has having our at generators touched and

As far of power. we connected the the a operating latter year. and you right now processing power to generated November grid that call at benefit expect head roughly to things substation since the into we versus part to then like on we year-end XX% close costs XX% site in We're as this talked

to expect we $XXX as year get over between number X So full and QX, cash and X $XXX to back that ounce. guidance that improve and an costs

in that expansion done in million for for but pieces [indiscernible] allow facility -- compare. of over it the and touched cash on like effectively operating capital equipment well much I guess, we do organically we positive managers back of as to fixability on so profile. place And growth asset low cash with robust we've million. We of in Stephen generated $X to who [ cash to $X put tailings operation generated the in over working We've opportunities that a sheet to larger as strong, growth accommodate that as as balance ] capital touched storage to well Stephen got the said almost part is finally, would value-accretive $X capital we flow like put invest what million prudent flow it,

Stephen Mullowney

Yes.

what second. So on I'd cash cost like Mike, for to touch a mentioned you around

on where doesn't mining bit cost very we're more expanded cash extra the a is they fixed think the very where incur to that lower. we little on And not plant tonne. fixed down start Now per costs, those cost. we costs processing But come will little a can comfortable put any or cost down the and lot are,

So It's we [indiscernible] out, overhead fixed really, order plant. And you're And costs. a have absorption can due driving cost lot what's costs going the plant that's rates. small continually really that and absorption expand processing more get higher a the to in to other mine. we Buckreef in both to And the scale the those of versus relatively have and need still cash plant skies to cost get on what and have for higher to be. throughput absorption

Michael Leonard

point, No, the it's a economies I have of significant point. will Stephen. exactly mean scale, your to plant good

from to overhead. your a throughput day doubling a X,XXX day any tonnes You're without X,XXX additional tonnes

So we online. in plant be of, principal, that ton QX your a say, should halved $XX as processing reported in we cost get roughly that expansion

in efficiency current the of scale. new lots So

Stephen Mullowney

Yes, exactly.

crushing some as the that move here, day you the new plant, arrived as X,XXX given will tonnes out on, we we're has equipment the So pictures I progress see smiling, outside. making said a And here.

see you facility you just think Manager less cone jaw expanded to then tailings to General a a by new I truck that. the crusher. crusher, -- our matter you'll go see on our see And

the and then to things in works that. like you'll And see conveyors and place start the being put concrete

all soil You the still. pretty know moist is

day lot of normal, going it, Tanzania, the more and As I night in a shifts on on of lots constructing shifts been than point this continually there's constructing site. is managing time team we're earlier, mentioned through and but both our plant. new They're rain at

we'll do with put we there's need mill on all to move order together, what's going crushing the capital and on. or of so we're ball circuit but available that's So it only circuit first pretty much to and excited in one then the grinding labor to got the reasons the

has warehouse will a of pretty on suppliers of want Our the to and place put spares the and and lot putting in we a potential things critical to them we order us in in -- crushers be nature. place close reduce that critical parts breakdowns and a

to with very, lot over And that Anything out production exploration is cost bringing an So and looks flow, as of production a to this savings the turning a well be drive very bit as of value to relationship. drill good end Andrew? and which will to profile hopefully time. be this project up expected increased cash increased add, increased

Andrew Cheatle

very you both you at marveling I'm an just sitting very, of thank technical doing are how amazing and description much. here,

down Xnd and we're so to am about need grindability. I you call but positive. we're be January. there site getting mentioned, in on popcorn that will happening now the that XX% back move since enhance thing and sulphide, here what at key our is to I I progress The the very going mills is, here crushing it's crusher. [indiscernible] The greatly is then of terms size of with As very, think

We're targets [indiscernible] all and the terms So think ] and to are us. the keen it's them get having around see and to I The keeping they're add. geologists of like explore out [indiscernible]. about core on the to SML functioning in busy continue still them out [

Stephen Mullowney

forward slide I'm to just should the about in of start move half continue second just Andrew, on, the to you and what going the So see year.

Andrew Cheatle

itself and red main the order, there. of to pink outline, we're of in people at kilometers. the that's I the the in itself be XX SML mining. and end in is We're short the We could of zone as it's process more red much currently will Yes, sourcing mining start dewatered of What's sort there. spots, year. South see obviously the square That all what remind currently is We pumps dewater magenta pit. the we'll

Then in of that operation. he's to drill Porphyry southern run where now adjacent thing call ground key between what terms will Eastern of the the piece us we for boundary, be exploration, an Chinese

We had have drilling campaign. at to X to that our just some great Stephen, test. kilometers results right remind over and take end But listeners a the I'll we just of last go moment, our

results, meters we about again X.X I [indiscernible] surface in Anfield X.X shallow really And the Eastern tonne And grams or from XX And then really to of shallow grams XX point from XX XX have meters a at Porphyry X.X out, XX obviously tonne. saw are the the kilometers meters. do meters better X these very from southwest XX had at a surface. that, and running meters

smart was great take quarters to which up that. is operational number of of active is changed. going white hasn't it's geology clear pick the that's scale, drilling, overall that deposits through us in going So all by [indiscernible] evidence mines a It it's to none But of a dots a team. get to those the and sourced Southwest, with Gold miner, story. Northeast to

drilling. It So we changed, it's a thesis. good hasn't like

Stephen Mullowney

Excellent. Well, you, that. thank for Andrew,

remind the full So The get programs. from of the the what for rate, per at the exploration Obviously, tonnes year as we're ounce increase cash Basically, will this that's put doing when and guidance production time be plan. I property. appropriate give slide an that's ounces. around XX,XXX in then operating, cash additional online. tonne to on to for we'll guide ESG have new cost reiterating X,XXX greater the are production The used the capital employees expect [indiscernible] are at I be more should plan is plant $XXX drilling our expansion expanded Obviously, we're there'll cash and for and we X,XXX will are and and mill the what business costs, XX,XXX focus slide. they we the guidance the to programs, come that the that. CSR, next increase day run the $XXX and than with that, what guidance an reiterating reiterating around market us in on our to

have people local our the on to with regards We integrate communities, local So build lot keep to X next I months. we sure continuing hire we operating we as as significant of always such as ESG making a assets. a to to to pay always contractors mindful a and lot well cost of the people say over X that Starting us into and expect people, local in We forth eye happy profile. on that work facilities prudent. With are communities taxes of our And schools, they to result. have ESG. other royalties good the be medical around are what and a amounts

our and we there. surprises to Geotech Currently, coming studies study are of MET Our an end. see lot

are be mine to, we'll -- and that a, a plan call, So will integrate update. coming I'll into what regards with consistently we

solutions, markets order thickeners give will out how are around as investors to in and today at known the roll more on and in Buckreef business is don't call We for regards come think point long-term market likes anybody what's the an at some that much time. guided market. as a tomorrow this going program have the And time. With what over plan in tailing performed. study detail a things to of we'll and how current I is looking to nature. updated bit That well little exploration with more

Also the different. been we for years the continue, also We are last more plus alternatives investing is means That have expensive. to that expected are in people a higher is XX interest which than rate or in so. environment much have capital

there there get certainly to -- out story. tell our need we get and So out to

price, to we like which we'd And our story, it growth stock good. self-funded to have have now is it higher. although always like are We higher,

are Again, is okay. But the and ramp relative future story, to comes plant expansion And are Buckreef, online. think are on actually expanding up see about it's held and this as new what on that is I in there self-funded to pictures. expect rapidly relations this investor bring peers we we're we certainly, format. in excited consistently for that something growth some to note, the to particularly

it So like over hand to to Gavin, any I'd questions.

Operator

Jake first Our Instructions] Global Sekelsky Partners. is question from with [Operator Alliance

Jacob Sekelsky

them bit the to Mike on doing equipment you're in like. through improvements expect network So and that just of I They're second half some XXs the this upgraded on with calendar type and work improve we thing? a of and this should recoveries, the that more them. those the starting is 'XX and Are touched quarter? think something a quarter Or low of

Stephen Mullowney

Yes.

mills. it's should comes So Well quarter, to I quarter as grinding consistent actually, get think online second not much crushing more going the product the be ball second circuit -- to circuit half. third but the more

a ore it So sulphide throughput flow balance is and recoveries. with between and cash

a rate. There's in through, concerning time in this release and press their recoveries. that's recovery retention experiencing that gives not does balance. so longer that concerns size also the have We an know get that increase seeing do to grind we that had anything higher when much increase throughput anything at size, that and And point what currently doubled we we're seeing relative retention had and in are this been recovery Buckreef. the to times making quite studies not done complete August, I'm us grind that out at significantly, the put the rates times

Jacob Sekelsky

That's helpful.

Stephen Mullowney

ore actually thought is ore the it -- acting we the would. The way

that's positive. real So

Andrew Cheatle

the crushing plant. remind test to just of investors final mining here we these initial old that the to now very was days are are the And, similar studies, our very from that circuit very mentioned have and weeks the sulphides It's metallurgical Stephen Yes. the as the having very expected. And circuit I ball a just into as going literally we're new running. mills. will earlier, we product away crushing And quite up into good for

this photographs your on standing Senior for Just your we've draw to zone sulphides, Manager, right-hand Jake, to the now the just there, just got the the also Paschal, visual top appearance. attention to high-grade of into bottom

Jacob Sekelsky

XXs? it up should Is get color you do be range that there that the helpful. back would expecting? you might XXs to something think And or Okay. we be high Any

Stephen Mullowney

Yes.

evaluating we'll to think, But mid-XXs, say would I it trade-off XXs that yes, commit into high We've that, but to to I quickly. range. get There's is mid- that Jacob, achievable. we'll the and do we'd be capital the in require get at date. grown and to time. can't ways this further high at a just studies point certainly, so XXs We into

Jacob Sekelsky

sense. Makes

Okay. And end expansion with vein that the on completion an the then sort here. of recent coming most in to growth, of

you growth going some additional here, obviously the I far as in And ultimately of that you're expansion? staged you on. considering a that You've decision that single couple large sort or just touch options forward. you're how on routes as tackle of got how guess what expansions Can hinges viewing a whether

Stephen Mullowney

Yes.

as are or rightfully options said, you what processes there. thought So your

XXX,XXX that. this which time. I step project this So that's And capital will at ways time, over we focus point because not exploration than expansion, be after to decisions, I flow evaluate ounces what's that's in in the increase expansion. various as do XX-plus that in something the make to that will well goal. would get at with to that's be a to a with program There's we there, our years can point larger to this bit. determined cash back or plus expansion. Ultimately, be well and this will it best an allocation get ultimate the for going say business those drill exploration either needs them another even as greater fully expect But and between an for think doubling,

Operator

Heiko from is with question next H.C. Ihle Wainwright. The

Heiko Ihle

it's What not working expansion, tonne expansion labor? I any just really your on with are you really It's right? staff? assume the X,XXX seeing employees per outside day with that really

Stephen Mullowney

companies well. staff from it's as it's Yes, some and of outside our

like So for instance. electrical,

and like contractors in and the that an contract outside things You of welding for in. bring outside that, you'll some some bring

our both outside that staff we of combination manage. a it's and So contractors

Heiko Ihle

bit a that? Can a breakdown of you give maybe of

Stephen Mullowney

roughly XX-XX? that what's Well, Andrew?

Andrew Cheatle

of operators We construction in in bring you then and Yes. the civils. electricals bringing we're as it the together provide that the, then mentioned. are the a terms contractors you like, bolts, phase. for CSI we Energy of if of the lot putting sort in But Heiko. During the nuts Because

Michael Leonard

interrupt to sort approach first one, to the is managing say the similar you, it is we're is methodology, an which fair to Sorry not EPC of manage taking it's the project. Andrew, the expansion it to We're in-house.

of need trades be. outsourcing Sort as

Andrew Cheatle

What Yes, we've is brought projects. the We've that's we've a one [indiscernible] photographs, actually Manager Capital right. at in who's of done those capital site, Project's hired Gaston Mujwahuzi.

So, but also the is on you end the Heiko, then that can contractors in the the involved as it and project. at but then carry the team idea with keep site a plant away, construction with that behind well in specialized if you team up core then fall

Heiko Ihle

We're people right? do the watching smart work,

Andrew Cheatle

Well, yes.

best So really when is it ever Africa, I've actually the contractors some electrical one people. of as frankly engineering, to comes have, you the people that's worked the smart you We of the of in people, in crucial use East name things to with to one heavy do CSI. have of say, best want smart the

got get that to You've right.

Heiko Ihle

enough. Fair

to of Speaking with the us or turnover, kind costs you're stuff? we'll of you you year? think share that I see negotiations with with seeing in for what can what anything staffing, labor remainder just maybe do mean, the of that regards

Stephen Mullowney

the type America. here same as North a that North would we're increases comes in there labor of rate seen not from I seeing American in our increases of perspective seeing European of think have economies here. and more question you We're Heiko,

Andrew Cheatle

Yes.

inflation we're inflation of in the negotiations. terms approximately cost not So yes, in or X%. is currently, And

Stephen Mullowney

not as some No. getting other jurisdictions. And to the currency same the unlike emerging you're jurisdictions, extent you depreciation sharing, getting are into, other but of not

Andrew Cheatle

correct. That's

Operator

Paulson Robert is with from question next Strategy The Group. ] [ Paulson

Unknown Analyst

$X,XXX-plus. congratulations Michael, while, is that say growth appreciate gold many, right, really Andrew, be the team all done high about holding Volatility being and questions, as to around needs to probably TRX, similar be curiosity, profitable, for like with lot Christina great grow a Stephen, all-time steady, been really I basically my the I'd a more strong transforming things of improvements, as as is to great successful. minimal, and expansion, answers. And TRX doing Central more needs keep looking flow positive, these going is team, on, communities strong margins, happen going with that banks question, like little just is, exploration of it's TRX do you their bit? questions companies to really wondering external great. or My earlier cash elaborate to under question way. to exposure are everybody. Hello, to far on what like and could reflect and event de-dollarization profit that believe like solid a internal or the if personal an something for for like a all is is things you great us an event just increasing

Stephen Mullowney

your a bit of on granularity, that's for at down thank get very but try comments broad question, to and to the little you I'll Yes, to a more outset the turnaround the company.

right over like reestablish part say, to like direction. we been X way, has as time. The I've inning to would in do to the I years, And that. relationships the we'd it. original recapitalize, expand around trying seventh here internally. the it just We're pointed here we're phrase and mentioned, company get been or in sixth long And was thereafter, here. the you of what Obviously, a probably started to then into and stabilize, company things another

So with we're regards someone to actually and up of what will when notice take stand doing.

you with of What of a and even marketing. is and don't sense financial a but think can't your We're lot like of going to it's I this, results. say road we more out-market out will are, current be disagree markets, doing I'm seeing to on think companies what a in your lot, you're there the I question. than is I marketing

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former than and on a eye happens I mining but in you keep eye happened to it you project, it think, my long-term things your on as In quickly. would slower an keep like, the very role, got price.

I we those at say, think financial do, what's necessary continually while metrics, same increase here continually those base. time, the financial profile, we continually is growing the as resource execute,

and great. is going project, the hit that think it. come approach have We're I grams mentioned can't you catalyst but mining That's a do then to in a always any a in if on along steady just slow drill be XXX to tonne and bit. bank you you I more, you drilling what

got what there You've that do sense? that's those do that plan to you out in have it, get holes. then business. make and then you of sure can that drill the Does bring And your make if continually optionality hit [indiscernible] business to you

Unknown Analyst

it sense. Yes, respecting thank make the question. does And then for you

doing You job. wonderful guys are a

I lot short people that clean a think looking grounded, of like really company, a for that's time things company financials, can opportunity, a much ago the looking everybody a more marketplace agree was versus attractive. now more where are it the in is different quite

things that intuition Or not pulse doing? other you question see. all we see and on not really that should it's doing things doing my like It's that things considering is your saying right people we're as thing? a the we're guys be -- just the is, fingers may there have And patience are and

Stephen Mullowney

when around, to what's okay, you these of as best increasing capital. control, I lot up, answered. that one question the have A of can but you have take outside in you say, answering control? that consideration these asked things our Because of speed the every that's Yes. discussions believe doing, the things financial of adding Look, you what's day just our we is prudent that just consistently it interest we shareholders. that extremely being profile, with into

but instance, time, takes you not the come the we just the for share So bit in keep year is little or ago that denominator is internally as X do we decided could the last in making consideration, flow. shareholders? And and the generated in have so equity to Yes, value have had and just online to But that months now and count. months. cash best more long-term a raised into X that decision, went great of in it [indiscernible] interest

value through over the things to we of get medium capital allocation and term. try are best for those in make the getting the decisions that to long sort on shareholders So,

Unknown Analyst

Fair enough.

with or me that the allow one or Is question ask future discussing. in of see close line we could you If in we like the when way wise, things kind that that's there about right just kind of can be that's the from us doing anything more to now that what want back there obstacle something we're something that to we is see that hold doing? would being in we talk

Stephen Mullowney

on into Right so. a don't business redundancy this think model. now, We've of lot built purpose in I

For X but August, instance, in down described going we the, mills, at in had year-end, ball we mills. motors

crushing redundancy go me didn't down without built into The able that piece on circuit that to get of and that shutdowns I because is important, equipment well nature. of every going at production So with through things that give the crushing a thing as go is it there's be site. and we down circuit team, and to XXX% very whole sure were that, and shut equipment make could any piece of through

can us slow infill some we We'll study that. on... on undergo go enter. now got need to only right We and longer-term a have could at we year time in point would to the that. order we That's to strategy to that handle and really I much a a on of around thing out. that to to down need to soon handle better so it I to the go say term, see but in medium need on it up build with it, we get We come tailings. In handle And got

Andrew Cheatle

off kicked Stephen. already that's Yes, first

Stephen Mullowney

Yes, that's dry already kicked a off. [indiscernible] to get to stack.

So we're ahead the out see. that of we stuff can

should asking is you think happen I and you're hard them that then [indiscernible], time, one's That's a to unknowns, and predict that to can you it's most there. they take what out you're can't see time figure And be trying is building up? you That but get redundancy up the what I'm the questions trip right? okay. hardest what to you philosophy really right. we

Andrew Cheatle

It's the yes. but it's But really has Whilst it's dry. we've money. the Niño were of Stephen, not we flooding, mining. effect pit keeping come having often prepared, lot El the that are commented rest a better. hard, pumps We're Yes.

Stephen Mullowney

Yes.

I to it's is, always look thing at if one okay, say we're that happen. So just something

We have site. a large stockpile on

larger there a XX,XXX to I much need and system there's ounces think when We get stockpile. work on now crushing new in which running. we'll crush stockpile, get we the up

policies all I to of into build call, So the company. internal insurance kind how what think those, I'd okay, I'll do like about,

Unknown Analyst

a and a for questions. for questions. and kind who've forward looking to road. they're [indiscernible] Thank very seems been your you I at rest of down doing, those are and and are what and of to some There around team been while we're fans certainly while Andrew -- what we've our of it know coming the be the you answering Michael the

place where to that was thank a maybe and we end. congratulations, started for So be and great me Congratulations you. would maybe

Operator

back I'd Mullowney, who submitted in like to meeting Stephen through over hand to the will questions us take writing.

Stephen Mullowney

submitted in writing. question the So

here think XXXX, on for we lines. slides time question comment one M&A -- So have and opportunities I it's XXXX

So let's the on M&A for talk a about that second.

it's along think more out opportunities what are of there. I lines M&A just the

well opportunity up and I That getting as at roll And bit consistently similar sense got make as the always when get we're So looking this a your team. be our a shareholders. maybe to would there, you little in where would for sense that mind into really we came messy sleeves, opportunities from don't you're value is, it. situations M&A create to as

the from equity evaluate things the perspective, not capital-intensive over that undercapitalized get are Buckreef, And sure sheet an upset very your problematic. time. cannibalize and that ends becomes making cannibalize happening rank we'll would business. on sheets from equity usually business that. When price very difficult balance on trouble mining a What that's very may make opportunities growth do of ahead up So is we that on typically their to market cap at what stuff we companies that have perspective, at we're clean securities are is sense. I And in because very that bring look out they say prudent balance of is a

But potential. opportunities. Buckreef to growth also, prudently has to it we also for Buckreef, vis-a-vis given a shareholders. increase make evaluate potential has has It it because sense So growth lot of will

it so sense, than for Buckreef order has and make potential to better that's shareholders to difficult And growth does have in to find.

And opportunities. so that's we evaluate M&A how the

Michael Leonard

comment might just that Yes. briefly, the XXXX, I XXXX. add And on ground Stephen, the to

to So it's at entering operating X,XXX consistently tonnes is before effectively where for this obviously, day predictably you've elsewhere. and point itself start upcoming deep our and Buckreef waters heard running getting into year too the a focus we strategic

Stephen Mullowney

Yes.

of they're Buckreef, lot doing Thank come no We approach what you talking a that, us to but But is say you start and worth then have opportunities. seeing and oh this, people you, those help holders its worth at can all the us. we're time you that of we're thank on saying, there. equity

next the here acquire X that any again growth X the next question mining long plans is, get So mines or years. miners small-cap there very in additional cooperation,

] will deposits we an also out for that. hub-and-spoke are we there will time. do smaller high-grade I interesting as further our there -- models. that Yes, think I around. I And question. be companies evaluate continue evaluate landscape. [ We've growth Tanzania is that few And be over there look profile just something evaluated answered that other a quite that And have think group. are will to

we have had to we roads. in Buckreef build So

effectively. how build learned to have very We plans, cost

profile expansion, there to this as at longer-term where will really that look our which strategy. to, get growth start today, focus to be for we needs So is are through opportunities

our with are that's I asked by there today. board very been certain happy people investors questions on that the think are

Andrew Cheatle

our that Yes. they're know comes maybe We as percentage it, inventory. little around a just to just a And us large geological what give team, level. very very do who's what spend a a of Stephen, we doing. to time more At but give we and like high high-level from bit of on you'd don't expect so

Stephen Mullowney

that's today. in think I -- that's questions all So the are that really queue the

Operator

you Would remarks like any right. we to That's before conclude? concluding give

Stephen Mullowney

Yes. remark. There's one final just

I excited the said it. future. think We're we very for

tell the I plant. And at through cash and can moving as pit. geologist looking the the business plan increase We anticipated, flow are to Andrew no from expanded team chopping you, this intended, pun forward are in

Andrew Cheatle

Actually you. yes, that's true. Thank

Stephen Mullowney

Thank Gavin. you,

Operator

concludes This the meeting.

may have participating You you day. Thank and a pleasant disconnect. for

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