TORONTO, April 15, 2024 (GLOBE NEWSWIRE) -- TRX Gold Corporation (TSX:TRX) (NYSE:TRX) (the "Company" or "TRX Gold") today reported its results for the second quarter of 2024 ("Q2 2024") for the three months ended February 29, 2024. Financial results are available on the Company's website at www.TRXgold.com. Key highlights for Q2 2024 include: Organic Growth Plant Expansion to double throughput and increase production, nearing completion: The Company expects significant growth in throughput and production following completion of the plant expansion to 2,000 tonnes per day ("tpd"). The expansion is progressing on schedule with first gold expected in early Q4 2024 (June 2024). The total capital cost of the mill expansion is expected to be approximately $6.0 million, of which approximately $4.0 million has been incurred to date. The remaining capital cost is expected to be funded from a combination of existing cash resources and cash flow from operations. Following completion of this expansion, TRX Gold will be well positioned to transition to a more cash flow generative phase in the last quarter of the year and into fiscal 2025. This milestone will allow the Company to further deploy capital that is accretive to our business, beginning with a comprehensive exploration drilling campaign, as we continue to execute on the strategy of using positive operating cash flow to fund value enhancing activities. New crushing circuit is now operational: The Company substantially completed construction of the new crushing circuit as an initial phase of the plant expansion project to 2,000 tpd. This will be the Company's third successful mill expansion within the last 36 months. The expanded crushing system is now operational and is currently undergoing wet commissioning. During this commissioning phase, the crushing circuit has achieved 1,800 tpd and is ramping up towards final commissioning. The Company is finalizing some minor work on the tertiary cone crusher portion of the circuit which will improve fineness of the ore product size. Upon final commissioning, the new crushing circuit is expected to produce a finely crushed ore ‘product' suitable for the existing and future ball mills. It is expected that the new crushing circuit will help drive increased throughput and recovery percentages and will provide increased capacity (between 3,600 to 4,800 tpd) for production, in both the near-term and for potential future expansions. It is also expected to improve options for material handling, provide equipment redundancy to eliminate or reduce plant downtime, and improve grind size allowing for more efficient, cost-effective processing of sulphide ore. Following Q2 2024, the Company began to realize the benefits of the expanded crushing system, with gold production of 2,302 ounces thus far (March 1 – April 9, 2024). Exploration program expected to resume in Q4 2024: The Company expects to resume an exploration program that will include diamond drilling and reverse circulation drilling within a program which includes brownfields drilling at Buckreef Main Zone (NE and SW), Eastern Porphyry, and greenfield drilling at Anfield. Exploration drilling is expected to commence during the dry season, beginning in Q4 2024. Operational and Financial Highlights Strong operating cash flow year-to-date: During Q2 2024, the Company poured 4,067 ounces of gold and sold 3,951 ounces of gold at an average realized price1 of $2,026 per ounce. For the six-month period, the Company poured and sold 8,994 and 8,846 ounces of gold respectively, at an average realized price1 of $1,980 per ounce, resulting in positive operating cash flow of $6.2 million. Strong gross profit margins: During the quarter, the Company recognized revenue of $8.0 million, cost of sales of $4.7 million, gross profit of $3.3 million (41%), net income of $1.9 million and Adjusted EBITDA1 of $2.5 million. For the six-month period, the Company recognized revenue of $17.4 million, cost of sales of $10.4 million, gross profit of $7.0 million (40%), and Adjusted EBITDA1 of $5.2 million. Maintaining a strong liquidity profile: The Company continued to maintain a strong liquidity profile by managing expenditures during the quarter, while at the same time continuing to advance the plant expansion to 2,000 tpd. Q2 2024 cash was maintained at approximately $8.0 million, accounts payable of $12.8 million was slightly lower than Q1 2024 and adjusted working capital of $2.6 million was consistent with Q1 2024 levels. Health & Safety remains top of mind: During Q2 2024, the Company achieved zero lost time injuries ("LTI") and achieved, for a second time, 1 million hours LTI free work. TRX Gold's CEO, Stephen Mullowney commented: "We knew Q2 2024 was going to be a challenging quarter, as our existing, smaller crushing system was at its limit for crushing sulphide material, and consequently, the crushed product entering the mill was inconsistent and much too large. This led to an increase in mill downtime and a longer period to mill the ore, thus lowering throughput rates. The new expanded crushing circuit directly addresses these issues. For example, in March 2024, we have already begun to see the benefits of the new crushing system with significantly higher mill utilization and throughput rates. We expect further improvements when the tertiary cone crushers come online later this month. The Buckreef Gold project continues to demonstrate robust economics through its high-margin gold production, in what seems to be an increasingly bullish gold market environment. We very much look forward to doubling plant throughput capacity to 2,000 tpd and ramping up a comprehensive exploration program later this year." Qualified Person Mr. Andrew Mark Cheatle, P.Geo., MBA, ARSM, is the Company's Qualified Person under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101") and has reviewed and assumes responsibility for the scientific and technical content in this press release. Q2 2024 Results Conference Call and Webcast Details When: Thursday, April 18 at 11:00 AM EDTWebcast URL: https://www.c-meeting.com/web3/joinTo/MP9MKT3Z8WQC2Z/0dAfe2vKx0Lso6Cz5IOz3wConference call numbers:Canada/USA TF: 1-844-763-8274International Toll: +1-647-484-8814A replay will be made available for 30 days following the call on the Company's website. Figure 1: Buckreef Gold Drill Rig in Open Pit (Q2 2024) Figure 2: Buckreef Gold new and expanded crushing circuit (Q2 2024) Figure 3: Buckreef Gold crushed material from new crushing circuit (Q2 2024) Figure 4: Buckreef Gold 2,000 tpd plant expansion construction (Q2 2024) Figure 5: Buckreef Gold Tailings Storage Facility Expansion at TSF 2.2 (Q2 2024 – first lift completed and TSF is now fully operational) About TRX Gold Corporation TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May 20202, the project currently hosts an NI 43-101 Measured and Indicated Mineral Resource of 35.88 MT at 1.77 g/t gold containing 2,036,280 ounces of gold and an Inferred Mineral Resource of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold. The leadership team is focused on creating both near-term and long-term shareholder value by increasing gold production to generate positive cash flow. The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current gold Resource base and advancing the Sulphide Ore Project which represents 90% of current gold Resources. TRX Gold's actions are led by the highest ESG standards, evidenced by the relationships and programs that the Company has developed during its nearly two decades of presence in Geita Region, Tanzania. For investor or shareholder inquiries, please contact: Investors Christina Lalli Vice President, Investor RelationsTRX Gold Corporation+1-438-399-8665 Non-IFRS Performance Measures The company has included certain non-IFRS measures in this news release. The following non-IFRS measures should be read in conjunction with the Company's unaudited interim consolidated financial statements for the three and six months ended February 29, 2024, filed on SEDAR+ and with the Securities and Exchange Commission ("SEC"), as well as the Company's audited consolidated financial statements included in the Company's Annual Report on Form 40-F and Annual Information Form for the year ended August 31, 2023. The financial statements and related notes of TRX Gold have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Additional information has been filed electronically on SEDAR+ and with the SEC and is available online under the Company's profile at www.sedarplus.ca and the Company's filings with the SEC at www.sec.gov and on our website at www.TRXgold.com. Average realized price per ounce of gold sold Average realized price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold is calculated by dividing revenue by ounces of gold sold. It may not be comparable to information in other gold producers' reports and filings.    Three Months Ended February 29, 2024 Three Months Ended February 28, 2023 Six Months Ended February 29, 2024 Six Months Ended February 28, 2023 Revenue per financial statements $ 7,984   $ 10,098   $ 17,388   $ 19,816   Revenue recognized from OCIM prepaid gold purchase agreement   (494 )   (742 )   (1,416