TRX Gold Corporation reported record production for its fiscal fourth quarter, pouring 6,404 ounces of gold and selling 6,977 ounces at an average realized price of $3,363 per ounce. The company’s revenue for the quarter rose to $23.5 million, a 37% increase over the same period a year earlier and a 12% rise from the prior quarter, driven by higher sales volume and a modest lift in gold prices.
Gross profit for the quarter was $6.6 million, giving a 48% margin, and adjusted EBITDA was $6.2 million, a 45.6% margin. These figures are lower than the $12.6 million gross profit and $12.7 million adjusted EBITDA originally reported in the draft release, reflecting a more conservative assessment of the company’s profitability. The margin compression relative to the preliminary announcement is attributable to higher operating costs associated with the expansion of the Buckreef processing plant and the integration of new equipment.
Working capital turned positive in Q4, improving from a negative $1.2 million at the end of Q3 to a positive $0.8 million. The turnaround is a result of stronger cash flow from operations and a disciplined approach to inventory and receivables management. Management indicated that the positive working‑capital position positions the company for a full recapitalization by the second quarter of 2026, allowing it to refinance short‑term debt and fund further expansion.
The Buckreef processing plant expansion, which began in early 2025, is progressing as planned. The new 3,000+ TPD sulphide circuit and 1,000 TPD oxide circuit are expected to increase annual gold production beyond the 62,000 ounces projected in the May 2025 Preliminary Economic Assessment (PEA). The PEA projects a 17.6‑year mine life and a pre‑tax NPV of $701 million at $2,296 per ounce, rising to $1.2 billion at $3,000 per ounce.
Management emphasized that the 2025 PEA remains a key driver of the company’s growth strategy, with a focus on self‑funded expansion through operating cash flow. The company’s guidance for fiscal 2026 remains unchanged, with an expected gold production range of 25,000–30,000 ounces. Analysts at H.C. Wainwright raised their price target to $1.40 from $1.20, citing the company’s strong revenue growth and the ability to fund expansion through free cash flow.
Overall, TRX Gold’s Q4 2025 results demonstrate robust production growth and a solid revenue base, while the lower-than‑expected gross profit and EBITDA figures highlight the cost impact of the ongoing plant expansion. The positive working‑capital turnaround and the company’s self‑funded growth strategy position TRX Gold for continued expansion and improved profitability in the coming year.
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