TRX Gold has completed three mill expansions at its Buckreef Gold Project in Tanzania, all on time and on budget. Processing capacity has increased from 120 tonnes per day to 2,000 tonnes per day.
The company is funding a fourth expansion through free cash flow. It will add 3,500 tonnes per day of capacity. Production rose from 1,836 ounces in fiscal 2021 to 29,650 ounces in fiscal 2026.
TRX Gold is also in discussions with the Tanzanian government about the project’s joint venture terms. Buckreef is held in a 55/45 joint venture with the State Mining Corporation, and the government’s 45% interest is dilutable. A 2022 framework indicates a 16% non-dilutable, free-carried interest for the government. TRX Gold is discussing a move to a 50/50 economic share. Management has not given a timeline for resolving the terms, leaving the outcome a key variable for investors.