TRX Gold Reports Third Quarter 2025 Results

Core Viewpoint - TRX Gold Corporation reported strong financial results for Q3 2025, highlighting significant improvements in production, revenue, and working capital, alongside a clear growth strategy for the Buckreef Gold Project [1][2][3]. Financial Performance - In Q3 2025, TRX Gold recognized revenue of $12.5 million, gross profit of $4.4 million, and net income of $1.1 million, all reflecting increases compared to the prior year [3]. - The company sold 3,995 ounces of gold at an average realized price of $3,114 per ounce, benefiting from lower mining costs of $3.63 per tonne and processing costs of $14.60 per tonne [3]. - Year-to-date, the company poured 12,532 ounces of gold, generating revenue of $34.1 million, gross profit of $11.4 million, and net income of $1.3 million, all showing growth from the previous year [3]. Production and Operational Highlights - Average daily production increased from approximately 30 ounces per day in Q2 2025 to about 50 ounces per day in Q3 2025, with further increases to approximately 75 ounces per day post-May 31, 2025 [3]. - The company successfully completed a scheduled stripping campaign, allowing access to higher-grade ore, which is expected to enhance production and cash flow [2][3]. Working Capital and Liquidity - TRX Gold's adjusted working capital improved from a negative $3.3 million at May 31, 2025, to approximately $3.9 million, with the current ratio rising from 0.8 to 1.1 [2][3]. - The company has substantially repaid short-term borrowings and has full access to its liquidity lines, indicating a strengthened financial position [2][3]. Growth Strategy - A Preliminary Economic Assessment (PEA) for Buckreef Gold indicates an average annual production of approximately 62,000 ounces of gold over a 17.6-year mine life, with a pre-tax NPV5% of $1.2 billion at a gold price of $3,000 per ounce [3]. - The company plans to fund growth capital for expansion through internal cash flows generated from existing operations [3]. Domestic Sales Agreement - TRX Gold signed a Gold Sale Service Agreement with the Bank of Tanzania, committing to sell a minimum of 20% of its local gold production domestically, benefiting from a reduced royalty rate of 4% [4]. - During Q3 2025, the company set aside 646 ounces for domestic sale, which positively impacted revenue and working capital [4].