3 Things Investors Need to Know About TRX Gold Corporation in 2026

Core Viewpoint - Investors interested in gold may find TRX Gold Corporation an attractive option due to its significant stock price increase and the overall rise in gold prices, which have surged 87% since the start of 2025, with TRX Gold's stock rising 178% since September [1]. Group 1: Company Performance - TRX Gold has a market capitalization of $327 million and has seen its stock price increase by 12.87% to $1.14, with a 52-week range of $0.27 to $1.14 [2]. - The company reported an average gold price of $3,860 per ounce in the first quarter, leading to an increase in its adjusted EBITDA margin from 35.2% to 52.5% [4]. - TRX Gold generated record revenue of $25.1 million in the first quarter and is transitioning from a negative to a positive working capital position, aiming to fund future expansions through operational cash flow rather than equity sales [7]. Group 2: Operational Risks - TRX Gold operates primarily from a single project, the Buckreef Gold Project in Tanzania, which exposes the company to risks such as technical failures, weather events, and political issues [5][6]. - The company operates as a joint venture with the Tanzanian government, which may limit its control over certain operational decisions [6]. Group 3: Future Outlook - The capital cost for the planned plant expansion is estimated at $30 million, which the company expects to finance entirely through internally generated cash flow over the next 18 to 24 months [8]. - TRX Gold is not hedged, providing it with full exposure to rising gold prices, making it a speculative investment for those bullish on gold [9].