Trx Gold Corporation · AMEX:TRX
Trx Gold — Tanzanian Gold — IPO Roadshow (January 2020)
40 slides from Trx Gold's IPO roadshow presentation, Jan 15, 2020
Slide 1: Management Discussion and Analysis – Highlights
Management Discussion and Analysis November 30, 2019 The following Management’s Discussion and Analysis (“MD&A”) of the financial condition and results of operations for Tanzanian Royalty Exploration Corporation (the “Company”) should be read in conjunction with the unaudited interim condensed conso
Slide 2: Management Discussion and Analysis – Highlights (continued)
Management Discussion and Analysis November 30, 2019 · During the year ended August 31, 2019, the Company closed $287,800 (US $216,857) in gold loans. Under the terms of the loan agreements, the bullion loans are for a period of one year, are subject to renewal, and carry an 8% interest rate payable
Slide 3: Mining activities and license holdings
Management Discussion and Analysis November 30, 2019 · No mining or ore processing activities were conducted at South Pit and Plant during the quarter. Cumulative Total Ore mined from the Buckreef South Pit (ROMPad + Pad#1+Pad#2+Pad#3+Crusher pad) as of 30 th November 2019 remains at 119,725.59 tonn
Slide 4: Overall Performance
Management Discussion and Analysis November 30, 2019 Overall Performance As at November 30, 2019, the Company had current assets of $3,746,571, compared to $4,135,316 on August 31, 2019. The decrease is mainly due to inflows from proceeds of convertible loans issued of $2,502,010 (2018 - $1,596,401)
Slide 5: Additional funding and financing risk factors
Management Discussion and Analysis November 30, 2019 Additional funding may be derived from revenues generated in the future from anticipated completion and operation of its Buckreef mine currently under development. Management continues to explore alternative financing sources in the form of equity
Slide 6: Selected Financial Information
Management Discussion and Analysis November 30, 2019 These trends may limit the Company’s ability to discover and develop an economically viable mineral deposit. Selected Financial Information As at and for the three month period ended November 30, 2019 As at and for the year ended August 31, 2019 A
Slide 7: Results of Operations – Expenses
Management Discussion and Analysis November 30, 2019 Directors’ fees for the three month period ended November 30, 2019 were $27,906, compared to $27,906 in the comparable three month period ended November 30, 2018. The amounts were the same as prior period. Office and general expenses for the three
Slide 8: Summary of Quarterly Results
Management Discussion and Analysis November 30, 2019 Summary of Quarterly Results (unaudited) (Expressed in thousands of dollars, except per share amounts) 2020 Q1 2019 Q4 2019 Q3 2019 Q2 2019 Q1 2018 Q4 2018 Q3 2018 Q2 Total revenues $0 $0 $0 $0 $0 $0 $0 $0 Net Income (Loss) $(1,618) $(24,442) $(2,
Slide 9: Legal proceedings – Crede lawsuit
On January 19, 2018, Crede CG III, LTD (“Crede”) filed suit against the Company in the Supreme Court of the State of New York, County of New York, claiming, among other things, breach of contract for failure to allow Crede to exercise 1,300,000 Series A Warrants, as described in Note 5, to acquire 3
Slide 10: Federal Claim and potential share issuance
The Federal Claim is in its initial stage and discovery has been initiated. In the event that the Company is forced to allow Crede to exercise the Warrants pursuant to the Supreme Court of the State of New York’s order and/or are subject to damages, the Company may be required to issue additional co
Slide 11: Related party transactions
Management Discussion and Analysis November 30, 2019 (ii) During the three month period ended November 30, 2019, $55,539 (2018 - $55,105) was paid for consulting and website/data back-up services to companies controlled by individuals associated with the former CEO and current director. (iii) During
Slide 12: Key management compensation and Omnibus Equity Incentive Plan
Management Discussion and Analysis November 30, 2019 (1) Salaries and benefits include director fees. The board of directors do not have employment or service contracts with the Company. Directors are entitled to director fees and RSU’s for their services and officers are entitled to cash remunerati
Slide 13: Critical Accounting Estimates
Management Discussion and Analysis November 30, 2019 Critical Accounting Estimates Assessment of Recoverability of Mineral Property Costs The deferred cost of mineral properties and their related development costs are deferred until the properties are placed into production, sold or abandoned. These
Slide 14: Critical accounting policies
Management Discussion and Analysis November 30, 2019 Critical accounting policies Mineral Properties All direct costs related to the acquisition and exploration and development of specific properties are capitalized as incurred. If a property is brought into production, these costs will be amortized
Slide 15: Impairment of Long-lived Assets
Management Discussion and Analysis November 30, 2019 Once an economically viable reserve has been determined for a property and a decision has been made to proceed with development has been approved, acquisition, exploration and development costs previously capitalized to the mineral property are fi
Slide 16: Financial Instruments
Management Discussion and Analysis November 30, 2019 Financial Instruments Fair Value of Financial Instruments Trade and Other Receivables and cash are classified as loans and receivables, which are measured at amortized cost. Trade and other payables, leases payable, convertible loans and gold bull
Slide 17: Financial instrument risk exposures
Management Discussion and Analysis November 30, 2019 A summary of the Company's risk exposures as they relate to financial instruments are reflected below: Credit Risk Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations.
Slide 18: Outlook
Management Discussion and Analysis November 30, 2019 Outlook The Company’s Board of Directors has confirmed the strategic objective of the Company is to develop the Buckreef Project based on the conceptual production plan as published in the NI43-101 compliant Mining Feasibility Report (June 2018).
Slide 19: Exploration Summary
Management Discussion and Analysis November 30, 2019 Exploration Summary The continuity of expenditures on mineral properties is as follows:
Slide 20: Continuity of expenditures on mineral properties
Buckreef Kigosi Hetemia Tuhala (a) (b) (c) (d) Total Balance, September 1, 2018 $ 28,137,335 $ 12,490,641 $ 5,948,261 $ 3,336,617 $ 49,912,854 Exploration expenditures: Camp, field supplies and travel 186,634 - - - 186,634 License fees and exploration and field overhead 829,148 45,945 - 2,733 877,82
Slide 21: Mine Development and Operations
Management Discussion and Analysis November 30, 2019 Mine Development and Operations The Buckreef Project is in the Geita District of the Geita Region south of Lake Victoria, some 110km southwest of the city of Mwanza (see Figure, overleaf). The project area can be accessed by ferry across Smiths So
Slide 22: Diamond Core (DD) Drilling
Management Discussion and Analysis November 30, 2019 Diamond Core (DD) Drilling · DD drill-holes with a combined total metreage of 3,227.57m (all done by Coreworthy) were completed during the reporting period. The core drilling was targeting down-dip extensions of the Buckreef Main and Buckreef Nort
Slide 23: Buckreef Mineral Resource Estimate
MEASURED INDICATED INFERRED. MEASURED + INDICATED In Situ In Situ In Situ In Situ Prospect Tonnes Grade Content Tonnes_| Grade Content Tonnes_| Grade_| Content Tonnes _| Grade Content Au Au Au (Mt) (g/t) Au (Oz) (Mt) (g/t) Au (Oz) (Mt) (g/t) Au (Oz) (Mb Au (g/t)_| Au (Oz) Buckreef 8.90 72 491,368 13
Slide 24: Buckreef Mineral Reserve Estimate
Management Discussion and Analysis November 30, 2019 The Buckreef Gold project pit-optimized mineral reserves as at 30th November 2019 using a cut-off grade of 0.3g/t is as summarized in the table below: Buckreef Gold Project Mineral Reserve Estimate as of 30th November (Source Virimai Projects, 201
Slide 25: Buziba Project
Buziba Project During the reporting period, no fieldwork was conducted in the project area. The Buziba Project comprises a single prospecting license (PL6545/2010) located some 25km east of the Buckreef project in the Geita district (see Figure, overleaf). The project area can be accessed from Buckr
Slide 26: Buckreef Gold Project PL Portfolio Status
Management Discussion and Analysis November 30, 2019 Buckreef Gold Project PL Portfolio Status – License Status and Liabilities as of 30th November 2019
Slide 27: Buckreef-Buziba fees liability and Itetemia Project
· According to the updated Government Records the Buckreef-Buziba Project Annual Fees Liability as of 30th November 2019 is USD0.00. · The Company, through its JV partner, Stamico, is still in the process of negotiating with the Mining Commission to issue new Licenses to preserve the PL holdings for
Slide 28: Itetemia Mining License conversion process
The process to convert the PL covering the Horseshoe Gold Prospect at Itetemia into a Mining License
Slide 29: Itetemia Mining License application status
Management Discussion and Analysis November 30, 2019 (ML) commenced on 4 th November 2015. Despite numerous enquiries by the Company, no official feedback has been received from authorities in the Ministry of Mines or the Mining Commission on the status of this application during the reporting quart
Slide 30: Itetemia licenses and Kigosi Project
· All three of the critical PLs were successfully renewed. · Current liability (no penalties) on the Itetemia licenses totals US$2,666 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above. Kigosi Project During the reporting p
Slide 31: Management Discussion and Analysis
Management Discussion and Analysis November 30, 2019
Slide 32: Kigosi Gold Project: Historical Resource/Reserve results
Kigosi Gold Project: Historical published Resource/Reserve results The table below shows the status (as of 30th November 2019) of the Kigosi Project license portfolio (identified as critical to the project) has 4 active PLs all covering a surface area of 61.98km 2 (excluding the Kigosi ML096/2013 th
Slide 33: Kigosi licenses and Luhala Project
· Applications for renewal of three (3) of the critical licenses were successfully submitted. · Current liability (no penalties) on the Active licenses totals US$23,397.75 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above .
Slide 34: Luhala Project drilling and historical resources
Management Discussion and Analysis November 30, 2019 Drilling at the Luhala Project has been concentrated on the Luhala Hills (Luhala Hill, Kisunge Hill, Shilalo Hill South and Shilalo Hill West). A total of 3,279m of diamond core drilling (26 holes) and 8,665m of RC drilling (144 holes) was complet
Slide 35: Rest of Gold Project PL Portfolio Status
Management Discussion and Analysis November 30, 2019 During the reporting period, the Company managed to pay off the bulk of the liabilities (as per the latest government updated debtors’ list of September 30, 2019) for Prospecting Licenses proposed for possible Joint Venture partnerships (blue text
Slide 36: License fees outstanding and Summary
· All the PLs have outstanding annual fees and penalty fee payments were paid up during the reporting period. · Current liability (no penalties) on the Active license totals US$3,499 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the ta
Slide 37: TRX All Project PL Portfolio Status
Management Discussion and Analysis November 30, 2019 The table below summarizes the liability by company. TRX All Project PL Portfolio Status – License Status and Liabilities as of 30 th November 2019
Slide 38: Risk Factors
Risk Factors The Company is subject to a number of extraneous risk factors over which it has no control. These factors are common to most exploration companies and include, among others: project ownership and exploration risk, depressed equity markets and related financing risk, commodity price risk
Slide 39: Internal Control Over Financial Reporting
Management Discussion and Analysis November 30, 2019 Internal Control Over Financial Reporting (“ICFR”) Requirements of NI 52-109 include conducting an evaluation of the effectiveness of ICFR. Management conducted an assessment of the effectiveness of the ICFR in place as of November 30, 2019 and co
Slide 40: Approval and Cautionary Note on Forward-Looking Statements
Management Discussion and Analysis November 30, 2019 Approval The Board of Directors of Tanzanian Gold Corporation has approved the disclosure contained in the interim MD&A. A copy of this interim MD&A will be provided to anyone who requests it. It is also available on the SEDAR website at www.sedar