TRX Gold Reports Second Quarter 2025 Results

Core Viewpoint - TRX Gold Corporation reported strong financial results for Q2 2025, driven by record gold prices and improved operational efficiencies, setting the stage for future growth and exploration opportunities [3][5][11]. Financial Performance - In Q2 2025, TRX Gold generated revenue of $9.1 million, up from $8.0 million in Q2 2024, and operating cash flow increased to $2.0 million from $1.0 million [3][5]. - Year-to-date revenue for F2025 reached $21.6 million, compared to $17.4 million in H1 2024, with Adjusted EBITDA of $5.4 million, slightly higher than $5.2 million in the prior year [3][5]. - The average realized gold price in Q2 2025 was $2,739 per ounce, significantly higher than $2,026 per ounce in Q2 2024 [3][21]. Cost Management - Mining costs per tonne decreased to $3.90 in Q2 2025 from $4.10 in Q2 2024, while processing costs dropped to $15.90 from $24.97 per tonne, attributed to economies of scale from the expanded processing plant [3][5]. - The company expects further reductions in operating costs as it continues to optimize its operations [5]. Production Outlook - Gold production in Q2 2025 was 3,004 ounces, down from 4,067 ounces in Q2 2024, due to accessing lower grade ore blocks as part of a waste stripping campaign [3][5]. - The company anticipates increased production in H2 2025 as it begins to access higher grade ore blocks, with daily production rising to approximately 50+ ounces in March and April 2025 [3][5]. Expansion and Exploration - TRX Gold is developing a larger-scale Buckreef Gold operation, focusing on mill expansions, efficiency improvements, and exploration drilling, particularly at the promising Stamford Bridge Zone [3][5][11]. - The company reported its best drill results ever at Stamford Bridge, with significant gold mineralization identified, which is now a priority for exploration [3][4]. Liquidity and Financing - TRX Gold entered into a $5 million revolving credit facility and a $4 million vehicle and asset financing facility with Stanbic Bank, along with a Gold Prepayment Facility with Auramet [7]. - The company renewed its At The Market Offering Agreement, allowing it to raise up to $25 million through common share sales, enhancing its liquidity and financial flexibility [7]. Leadership and Governance - The company appointed John McVey to its Board of Directors, bringing extensive experience in underground mine development and engineering, which will support the next phase of Buckreef Gold's expansion [7].