Group 1 - TRX Gold Corporation has successfully completed its continuance from Alberta to British Columbia, effective March 27, 2025, following shareholder approval on February 27, 2025 [1] - The company’s certificate of continuance and articles of incorporation are available on SEDAR+ [1] Group 2 - TRX Gold is advancing the Buckreef Gold Project, which has a Measured and Indicated Mineral Resource of 35.88 million tonnes at 1.77 grams per tonne gold, containing 2,036,280 ounces of gold [2] - The Inferred Mineral Resource is 17.8 million tonnes at 1.11 grams per tonne gold, containing 635,540 ounces of gold [2] - The leadership team aims to increase gold production to generate positive cash flow, which will be used for exploratory drilling to expand the mineral resource base [2] - The company adheres to high environmental, social, and corporate governance standards, demonstrated by its relationships and programs in the Geita Region, Tanzania [2]

Core Points - TRX Gold Corporation held its Annual General and Special Meeting on February 27, 2025, with 123,954,147 common shares voted, representing 43.98% of the issued and outstanding shares [1] - All items of business were approved by shareholders, including the appointment of five directors and the renewal of the Omnibus Equity Incentive Plan [1] - John McVey was welcomed as a new member of the Board of Directors, bringing extensive experience in engineering and construction [1][2] Voting Results - The number of directors was set at five, with 121,582,773 votes in favor (98.09%) and 2,371,374 against (1.91%) [1] - Stephen Mullowney was appointed as a director with 121,454,345 votes in favor (98.26%) [1] - Dr. Norman Betts received 84,511,871 votes in favor (97.92%) for his appointment as a director [1] - Shubo Rakhit was appointed as a director with 84,338,957 votes in favor (97.72%) [1] - Richard J. Steinberg received 83,862,461 votes in favor (97.17%) for his appointment [1] - John McVey was appointed as a director with 84,534,226 votes in favor (97.94%) [1] - The appointment of Dale Matheson Carr-Hilton Labonte LLP as auditors was approved with 121,526,104 votes in favor (98.04%) [1] - The renewal of the Company's Omnibus Equity Incentive Plan was approved with 87.85% in favor [1] - The continuance to the jurisdiction of British Columbia was approved with 96.48% in favor [1] Company Overview - TRX Gold is advancing the Buckreef Gold Project, which has a Measured and Indicated Mineral Resource of 35.88 million tonnes at 1.77 grams per tonne gold, containing 2,036,280 ounces of gold [3] - The Inferred Mineral Resource is 17.8 million tonnes at 1.11 grams per tonne gold, containing 635,540 ounces of gold [3] - The leadership team aims to increase gold production to generate positive cash flow for exploratory drilling and project development [3] - The company adheres to high environmental, social, and corporate governance standards, particularly in the Geita Region, Tanzania [3]

Core Viewpoint - TRX Gold Corporation has secured new financing agreements to enhance its capital access and financial flexibility, which will support its growth initiatives in the short to medium term [1][13]. Financing Agreements - Buckreef Gold Limited has entered into a $5 million revolving credit facility and a $4 million vehicle and asset financing facility with Stanbic Bank Tanzania, providing supplementary liquidity for working capital [2][3]. - The revolving credit facility has a maximum tenor of twelve months, while the vehicle and asset financing facility has a maximum tenor of thirty-six months [2]. - Buckreef Gold has also established a Gold Prepayment Facility with Auramet, allowing the sale of up to 1,000 troy ounces of gold, potentially providing approximately $2.75 million for working capital [6][7]. At The Market Offering Agreement - The Company renewed its At The Market Offering Agreement with H.C. Wainwright & Co. and Roth Capital, allowing it to offer common shares with an aggregate offering price of up to $25 million [8][11]. - This renewed facility replaces a prior $10 million ATM facility and a $10 million purchase agreement that expired in January 2025 [8][11]. Strategic Implications - The new financing arrangements are expected to provide TRX Gold with increased financial flexibility to manage working capital fluctuations and accelerate growth [1][13]. - The CEO highlighted the importance of these facilities in supporting the transition from a small test plant operation to a larger commercial operation [13].

Financial Data and Key Metrics Changes - TRX Gold Corporation reported its Q1 2025 results, with specific financial metrics to be detailed later in the call [3][4]. Business Line Data and Key Metrics Changes - The company is focusing on its operations at Buckreef, indicating potential for growth in this area, although specific metrics were not disclosed in the initial remarks [5]. Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the initial part of the call [3][4]. Company Strategy and Development Direction - The introduction of Richard Boffey as the new Chief Operating Officer suggests a strategic emphasis on enhancing operational capabilities at Buckreef, which is viewed as a significant resource for the company [4][5]. Management Comments on Operating Environment and Future Outlook - Management has expressed optimism regarding the potential of Buckreef, indicating a positive outlook for future operations [5]. Other Important Information - The call included a reminder that all participants were in listen-only mode and that the meeting was being recorded, which is standard for such earnings calls [3]. Q&A Session Summary Question: Introduction of new COO - Richard Boffey introduced himself and expressed enthusiasm about joining TRX Gold and working at Buckreef, highlighting the resource's potential [5].

Core Insights - TRX Gold Corporation reported significant improvements in financial performance for Q1 2025, driven by record gold prices and operational efficiencies from plant expansion [1][2][4] Financial Performance - The company generated revenue of $12.5 million in Q1 2025, up from $9.4 million in Q1 2024, with a gross profit of $4.8 million compared to $3.7 million in the prior year [2] - Adjusted EBITDA increased to $4.4 million in Q1 2025 from $2.6 million in Q1 2024, primarily due to a record average realized gold price of $2,653 per ounce, compared to $1,942 per ounce in the previous year [2][18] Production Metrics - Gold production was 4,841 ounces in Q1 2025, slightly down from 4,927 ounces in Q1 2024, with a lower average head grade of 1.29 g/t compared to 2.57 g/t in the prior year [2] - The processing costs per tonne significantly decreased to $12.60 in Q1 2025 from $26.56 in Q1 2024, attributed to economies of scale from the expanded processing facility [2] Operational Efficiency - The total ore tonnes processed increased by 108% to 1,703 tpd in Q1 2025, compared to 817 tpd in Q1 2024, following the commissioning of the new processing plant [2] - Mining costs per tonne also decreased to $4.00 in Q1 2025 from $4.25 in Q1 2024, with expectations for continued improvement as owner-operated equipment is utilized [2] Exploration and Growth Initiatives - The company announced its best drill results to date at the Buckreef Gold project, with significant intersections at the newly discovered Stamford Bridge Zone [2][4] - Exploration spending is expected to increase in F2025, focusing on both brownfields and greenfield drilling initiatives [7] Future Outlook - TRX Gold anticipates higher gold production for fiscal 2025 compared to fiscal 2024, supported by a full year of operations from the expanded processing plant [2] - The company is focused on accessing higher-grade ore blocks in the second half of the fiscal year to capitalize on reduced costs and robust gold prices [4]

Company Performance - TRX Gold reported break-even quarterly earnings per share, matching the Zacks Consensus Estimate of $0.01, with no change from the previous year's earnings [1] - The company posted revenues of $12.53 million for the quarter ended November 2024, missing the Zacks Consensus Estimate by 25.87%, compared to $9.4 million in the same quarter last year [2] - Over the last four quarters, TRX Gold has not surpassed consensus EPS or revenue estimates [2] Stock Movement and Outlook - TRX Gold shares have increased by approximately 7.8% since the beginning of the year, while the S&P 500 has declined by 0.8% [3] - The future performance of TRX Gold's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $17.2 million, and for the current fiscal year, it is $0.06 on revenues of $70.2 million [7] Industry Context - The Mining - Gold industry, to which TRX Gold belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TRX Gold's stock performance [5][6]

Revenue and Profitability - Revenue for the three months ended November 30, 2024, was $12,528,000, representing a 33.5% increase from $9,404,000 in the same period of 2023[6] - Gross profit for the same period was $4,834,000, up from $3,717,000, indicating a gross margin improvement[6] - Net income for the three months ended November 30, 2024, was $2,137,000, compared to a net loss of $39,000 in the prior year[6] - The Company reported a basic and diluted earnings per share of $0.00 for the three months ended November 30, 2024, compared to a loss per share of $(0.00) in the same period of 2023[6] - Net income attributable to shareholders for the three months ended November 30, 2024, was $0.981 million, compared to a net loss of $0.966 million in the same period of 2023[40] - The company reported a comprehensive income of $2.6 million for the three months ended November 30, 2024, compared to $2.1 million in 2023[51] Assets and Liabilities - Total assets increased to $102,632,000 as of November 30, 2024, from $98,860,000 at August 31, 2024, reflecting a growth of 3.0%[3] - Current liabilities decreased to $20,395,000 from $21,283,000, a reduction of 4.2%[3] - Non-current assets increased to $85.8 million as of November 30, 2024, compared to $81.1 million as of August 31, 2024[62] - The carrying value of Mineral Property, Plant and Equipment increased to $89.706 million as of November 30, 2024, from $84.344 million as of August 31, 2024, reflecting a 6.3% growth[25] - Total amounts receivable increased to $2.307 million as of November 30, 2024, from $1.958 million as of August 31, 2024, representing a 17.8% increase[21] - Total inventories rose to $6.534 million as of November 30, 2024, up from $6.249 million as of August 31, 2024, indicating a 4.6% increase[24] - Lease liabilities rose to $2.854 million as of November 30, 2024, compared to $1.343 million as of August 31, 2024, marking a 112.5% increase[34] Cash Flow and Expenses - Cash at the end of the period was $6,787,000, down from $8,331,000 at the beginning of the period, representing a decrease of 18.6%[11] - Cash provided by operating activities for the three months ended November 30, 2024, was $3.6 million, down from $6.1 million in 2023[51] - Total general and administrative expenses for the three months ended November 30, 2024, were $1.4 million, a decrease of 36% from $2.2 million in 2023[55] - Share-based compensation expense for the three months ended November 30, 2024, totaled $0.2 million, a decrease of 78% from $0.9 million in 2023[42] - Total non-cash items for the three months ended November 30, 2024, amounted to $1,547,000, down from $2,955,000 in 2023, a decrease of 47.7%[66] Investments and Expenditures - Exploration and evaluation expenditures for the period were $431,000, compared to $91,000 in the prior year, indicating increased investment in development[11] - The Company recovered $0.9 million in VAT refunds from the TRA during the three months ended November 30, 2024, compared to $nil in the same period of 2023[22] Shareholder Information - The company’s share capital increased to $166,313,000 as of November 30, 2024, from $165,945,000 at August 31, 2024[3] - Non-controlling interest increased to $12,292,000 from $11,136,000, reflecting a growth of 10.4%[3] - The weighted average number of common shares for basic EPS increased to 291,668,469 for the three months ended November 30, 2024, from 285,283,429 in the same period of 2023[40] - The company had 36.2 million warrants outstanding as of November 30, 2024, with a weighted average exercise price of $0.62[47] - As of November 30, 2024, the company had 10.5 million stock options and 36.2 million warrants that were anti-dilutive for the period[41] Taxation and Financial Instruments - The Company recorded an income tax expense of $1.7 million for the three months ended November 30, 2024, compared to $1.2 million in the same period of 2023[29] - Deferred income tax expense rose to $1,291,000 in 2024, up from $899,000 in 2023, marking an increase of 43.6%[66] - The change in fair value of derivative financial instruments showed a loss of $819,000 in 2024 compared to a loss of $199,000 in 2023, indicating a significant increase in losses[66] - Derivative warrant liabilities decreased to $1.454 million as of November 30, 2024, down from $2.273 million as of August 31, 2024, a reduction of 36.1%[36]

Core Insights - TRX Gold Corporation has announced promising drill results from the Stamford Bridge Shear Zone, with significant gold intersections reported from drill holes BMDD319, BMDD320, and BMDD321 [1][2][3] - The Stamford Bridge Zone is geologically similar to the Buckreef Main Zone and shows potential for a mineralized shear zone extending over 1 kilometer [2][9] Drill Results Summary - Hole BMDD319 intersected 21 meters at 8.63 g/t Au from 81 meters [1] - Hole BMDD320 intersected 20.50 meters at 5.14 g/t Au from 125.5 meters [1] - Hole BMDD321 intersected 5 meters at 2.74 g/t Au from 157 meters [1] - These results confirm downdip and up-dip extensions of previously identified mineralized zones [2] Geological Significance - The drill results confirm an interpreted mineralized shear zone trending 070 degrees East Northeast, with intersections covering approximately 150 meters of strike length [2][9] - The Stamford Bridge Zone is located between the Buckreef Main Zone and the Eastern Porphyry deposit, indicating its potential significance [2] Future Exploration Plans - The company plans to conduct a ground geophysical survey to support targeted drilling in the Stamford Bridge Zone [3]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for strong investment picks [1][2]. Value Investing - Value investing remains a popular strategy across various market conditions, utilizing established valuation metrics to identify undervalued stocks [2]. - The Zacks Rank and Style Scores system assist investors in finding stocks with specific traits, particularly in the "Value" category for value investors [3]. Company Spotlight: TRX Gold Corporation - TRX Gold Corporation (TRX) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4]. - The stock's P/E ratio is 5.37, significantly lower than the industry average of 12.60, suggesting it may be undervalued [4]. - Over the past year, TRX's Forward P/E has fluctuated between 5.37 and 37.87, with a median of 6.96 [4]. - The P/S ratio for TRX is 2.38, compared to the industry's average P/S of 2.87, further indicating potential undervaluation [5]. - Overall, TRX's strong earnings outlook and key metrics suggest it is an impressive value stock at this time [6].

Core Insights - TRX Gold Corporation reported record financial results for the year ending August 31, 2024, with annual gold production of 19,389 ounces and record revenue of $41.2 million, driven by high gold prices and operational efficiencies [2][4][5] Financial Performance - Annual production of gold was 19,389 ounces, slightly down from 20,759 ounces in 2023, while gold sold was 19,075 ounces compared to 20,864 ounces in the previous year [4] - Full year revenue reached $41.2 million, an increase from $38.3 million in 2023, with gross profit of $17.9 million, representing a gross margin of 44% [4][5] - Operating cash flow for the year was $15.3 million, consistent with the previous year, and adjusted EBITDA also reached a record $15.3 million, up from $13.7 million in 2023 [4][5] Operational Highlights - The company successfully expanded its processing plant to 2,000 tonnes per day (tpd), which was fully commissioned at the end of Q4 2024, enhancing throughput and expected to benefit gold production in fiscal 2025 [2][6] - In Q4 2024, the company poured 5,767 ounces of gold, a 25% increase from the previous quarter, and sold 5,715 ounces at an average realized price of $2,412 per ounce [5][6] Exploration and Growth Potential - The discovery of the Stamford Bridge Zone, a new gold mineralization shear zone, was announced, with the best drill results ever recorded for the company, indicating significant exploration potential [2][7] - The company plans to increase exploration drilling in fiscal 2025, focusing on high-priority gold zones including Stamford Bridge and Buckreef Main [7][9] Future Outlook - For fiscal 2025, gold production is expected to exceed fiscal 2024 levels, with a waste stripping campaign planned to access high-grade ore blocks, anticipated to enhance production in the latter half of the year [9] - Cash costs per ounce are expected to remain in line with fiscal 2024 levels, with a slight increase in H1 2025 and a decrease in H2 2025 as higher-grade ore becomes accessible [9]