TRX Gold Reports Q4 and Year-End 2025 Results

Core Insights - TRX Gold Corporation reported record production and financial results for Q4 2025, achieving 6,404 ounces of gold poured and 6,977 ounces sold at an average realized price of $3,363 per ounce, leading to revenue of $23.5 million and gross profit of $12.6 million [2][3] Financial Performance - In Q4 2025, the company recognized revenue of $23.5 million, gross profit of $12.6 million (54% margin), and Adjusted EBITDA of $12.7 million (54% margin), all reflecting significant increases compared to Q4 2024 [2][3] - For the fiscal year ended August 31, 2025, TRX Gold poured 18,935 ounces of gold and sold 19,213 ounces at an average realized price of $3,033 per ounce, resulting in record revenue of $57.6 million and net income of $6.6 million [3][21] Working Capital and Financial Health - The company's working capital position improved significantly, with the current ratio rising to approximately 1.3 at August 31, 2025, from 0.8 at May 31, 2025 [3] - TRX Gold fully repaid its short-term borrowings of approximately $3.0 million in Q4 2025 and has full access to its liquidity lines [3] Growth Potential and Expansion Plans - The Preliminary Economic Assessment (PEA) for the Buckreef Gold expansion outlined a long-life, scalable asset with a pre-tax NPV5% of $1.9 billion at a gold price of $4,000 per ounce [2][3] - The company is executing plans for a larger processing facility than initially contemplated in the PEA, which is expected to produce average annual gold production exceeding 62,000 ounces [4][6] Exploration and New Discoveries - TRX Gold announced the discovery of a new high-grade zone, the Stamford Bridge Zone, with significant drill results, including 37 meters at 6.86 g/t Au [7] - The company plans to substantially increase exploration drilling in fiscal 2026, focusing on high-priority gold zones [7][10] Capital Expenditures and Future Outlook - Total capital expenditures for fiscal 2026 are expected to be in the range of $15 - $20 million, focusing on plant upgrades and expansion [10] - Exploration expenditures are projected to be between $3 - $5 million, including a geophysics survey and drilling on various zones [10]