TRX: Positioned for Significant Growth in 2023TRX Gold Corporation has long been suppressed along with other junior miners. As anyone who has invested in junior miners over the years knows, the bear markets in junior mining stocks are often brutal, with 80-90% drawdowns.
When the bear market ends, however, the asset price has been so suppressed that it can easily spike 1000% or more, as the valuations have, by then, become so absurdly low vs the measured resources in the ground.
TRX has many great things going for it, which are not yet reflected in the stock price.
• The company had long been starved for cash and was forced to issue shares into a down market to fund its development and continued operations. This has placed downward pressure on the stock price along with sector-wide bearish pressures.
• The company has completed and fully commissioned its 1,000 tonne per day processing plant. It is now in full operation. With this plant, the company is now making all the money it needs to fund its operations at the Buckreef mine. No more cash burn or share issuance will be necessary to build a future for this company. A turning point has been reached.
• Gold recoveries using new processing plant are 90%, so they are making good use of the resources they're extracting.
• The exploration drilling at the Buckreef site is continuing to show that the resource may be much larger than originally thought.
• The TRX share price may be breaking out of the recent down-trend.
• With the processing plant in full operation from the beginning of 2023, the company is going to have a tremendous amount of cash to work with, to keep developing the company. Every new investment will lead to even more growth in the company.
• The Buckreef resource has 43-101 resource of over 20,000,000 ounces
• Q4 2022 Cash costs of only $560 per ounce of gold with gold trading around $1700-1800.
The company has consistently delivered on the promises of the current management team and likely will going forward.
