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TRX Gold Reports First Quarter 2025 Results
TRX GoldTRX Gold(US:TRX) Globenewswire·2025-01-15 11:30

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]