Mike Niehuser's questions to TRX GOLD (TRX) leadership • Q4 2024
Question
Asked for confirmation of the company's disciplined capital allocation strategy focused on using cash flow for growth, and inquired about the development timeline for the new Stamford Bridge zone and the potential shift to underground mining.
Answer
The executive confirmed the current business plan is to reinvest cash flow rather than raise equity, unless a very high-return opportunity arises. He explained that the Stamford Bridge zone requires significant infill drilling before it can be added to the resource, a process dependent on cash flow. The shift to underground mining is projected for when open-pit stripping costs become uneconomical, likely in 5-7 years, and may not be significantly more costly due to the wide ore body minimizing dilution.