Trx Gold Corporation · AMEX:TRX
Trx Gold — Tanzanian Gold — IPO Roadshow (April 2020)
32 slides from Trx Gold's IPO roadshow presentation, Apr 15, 2020
Slide 1: Management Discussion and Analysis – Financial Highlights
Management Discussion and Analysis February 29, 2020 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: Financial Highlights (continued)
Management Discussion and Analysis February 29, 2020 · On March 4, 2019, the Company completed the sale of 625,557 common shares at a price of US $0.45 per common share, raising an aggregate of US $281,000 in a registered direct offering. On January 16, 2019, the Company completed the sale of 3,924,
Slide 3: Operational Highlights
Management Discussion and Analysis February 29, 2020 Operational: · The Company continued processing Phase 1 & 2 Resource upgrade drilling results by updating the Buckreef database and fine tuning the geology/structure model as well as the mineralization model in preparation for the compilation of a
Slide 4: Overall Performance
Management Discussion and Analysis February 29, 2020 · In order to maintain the existing site of mining and exploration licenses, the Company is required to pay annual license fees for both active licenses and any other licenses that have since forfeited with a debt. The Company has paid certain of
Slide 5: Funds available and going concern
Management Discussion and Analysis February 29, 2020 C$ (000) Funds available August 31, 2019 3,389 Net proceeds from convertible loans and gold bullion loans 3,576 Net proceeds from private placements, net of issue cost 4,636 Mineral property expenditures including licences, environmental and explo
Slide 6: Selected Financial Information
Management Discussion and Analysis February 29, 2020 markets. Uncertainty in the credit markets has also led to increased difficulties in borrowing or raising funds. Companies worldwide have been negatively affected by these trends. As a result, the Company may have difficulties raising equity and d
Slide 7: Results of Operations – Consulting and Directors' Fees
Management Discussion and Analysis February 29, 2020 Consulting fees for the six month period ended February 29, 2020 were $649,193, compared to $386,523 in the comparable six month period ended February 28, 2019. Consulting expenses were higher in the current year due to additional work and consult
Slide 8: Results of Operations – Expenses
Management Discussion and Analysis February 29, 2020 of the unaudited interim condensed consolidated financial statements for the three and six month periods ended February 29, 2020 and February 28, 2019 for details of stock options issued. For the six month period ended February 29, 2020, travel an
Slide 9: Legal Proceedings – Crede CG III
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 to acquire 3,100,751 common shares. T
Slide 10: Legal Proceedings (continued)
order in the State Claim pending appeal. On October 17, 2019, the court in the State Claim order the delivery of 1,332,222 shares of common stock with an officer designated by the court and that a bond of $200,000 be posted. The Company appealed the Supreme Court of the State of New York’s authority
Slide 11: Related Party Transactions
Management Discussion and Analysis February 29, 2020 Six months ended, Notes February 29, 2020 February 28, 2019 Legal services (i) $Nil $Nil Consulting (ii) $121,061 $111,024 Consulting (iii) $nil $50,810 Consulting (iv) $39,653 $Nil (i) The Company previously engaged a legal firm for professional
Slide 12: Key Management Compensation
Management Discussion and Analysis February 29, 2020 Six months ended, February 29, 2020 February 28, 2019 Fees, salaries and benefits (1) Share based payments (2), (3) Fees, salaries and benefits (1) Share based payments (2), (3) Management $ 322,839 $ nil $ 255,675 $ nil Directors 90,188 nil 55,81
Slide 13: Omnibus Plan and Critical Accounting Estimates
Management Discussion and Analysis February 29, 2020 For more particulars about the Omnibus Plan we refer you to the Company’s Management Information Circular dated June 26, 2019 or the copy of the Omnibus Plan included with the Form 20-F Annual Report. The Omnibus Plan replaces all previous equity
Slide 14: Critical Accounting Policies
Management Discussion and Analysis February 29, 2020 embedded in the gold bullion loan requires estimates of interest rate, life of the warrant, stock price volatility and the application of the Black-Scholes option pricing model. See note 5 of the February 29, 2020 unaudited interim condensed conso
Slide 15: Impairment of Long-lived Assets
Management Discussion and Analysis February 29, 2020 and allocated to mineral properties explored. All other overhead and administration costs are expensed as incurred. Once an economically viable reserve has been determined for a property and a decision has been made to proceed with development has
Slide 16: Financial Instruments
Management Discussion and Analysis February 29, 2020 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: COVID-19 Impact
Subsequent to the period , the COVID-19 pandemic has caused significant and negative impact to the global financial market. Our business and exploration activities could be disrupted by the recent outbreak of COVID-19. As a result of measures imposed by the Tanzanian government, travellers to Tanzan
Slide 18: Outlook
Management Discussion and Analysis February 29, 2020 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 February 29, 2020 status for each respective project area are summarized in the sections below. Actual fieldwork was mainly concentrated on the Buckreef Project during the reporting period. Exploration Summary The continuity of expenditures on mineral properties is
Slide 20: Buckreef Project
Buckreef Project 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 Sound, via tarred national road and th
Slide 21: Mining Buckreef South Pilot Pit
Management Discussion and Analysis February 29, 2020 Mining Buckreef South Pilot Pit The following cumulative work on mining and process plant operations was completed up to 29 th February2020: · No mining or ore processing activities conducted at the Buckreef project during the reporting period. ·
Slide 22: Diamond Core Drilling and Assay Results
Management Discussion and Analysis February 29, 2020 Diamond Core (DD) Drilling: Deep Drilling (U/G Potential) · Commenced with Phase 3Diamond Core (DD) deep drilling program targeting deeper levels of the mineralization for underground potential studies. These deep diamond core holes are first pre-
Slide 23: Mineral Resource Estimate
Management Discussion and Analysis February 29, 2020 The results confirm that the down-dipextension of a wide and robust mineralized shear to at least 400m below the open pit bottom as defined in the June 2018 PFS report. Mineral Resource and Mineral Reserve Estimates The Buckreef Gold project miner
Slide 24: Mineral Reserve Estimate
The Buckreef Gold project pit-optimized mineral reserves as at 29 th February2020using a cut-off grade of 0.3g/t is as summarized in the table below: Buckreef Gold Project Mineral Reserve Estimate as of 29 th February 2020 (Source Virimai Projects, 2018)
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: Buziba Resources and Itetemia Project
Management Discussion and Analysis February 29, 2020 Based on an NI43-101 compliant Preliminary Economic Report published in 2012 and subsequently in 2014, the global gold resources (Measured, Indicated & Inferred) estimated over approximately 2.5km strike length and to a depth of 230 metres below s
Slide 27: Luhala Project and License Holding Status
Management Discussion and Analysis February 29, 2020 gold deposit which consists of five anomalous hilltops. The mineralization is stratabound shear-zone hosted gold mineralization (stratigraphic and structural control) within a distinct unit of felsic rocks with associated ferruginized mafic and fe
Slide 28: License Holding and Joint Venture Status
· 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 the JV agreement. · The Company still has not received any information back from the Government on its request to review the propose
Slide 29: Historical PLs License Holding: Forfeited Portfolio
Management Discussion and Analysis February 29, 2020 Historical PLs License Holding and Status: Forfeited Portfolio The Company continued its efforts to pay off the bulk of the liabilities wholly arising from forfeited licenses as per the latest government updated debtors’ list of 31stJanuary 2020.
Slide 30: 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 31: Internal Control Over Financial Reporting
Management Discussion and Analysis February 29, 2020 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 February 29, 2020 and co
Slide 32: Approval and Cautionary Note Regarding Forward-Looking Statements
Management Discussion and Analysis February 29, 2020 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