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Highlights

  • TRX’s Q3 revenue reached USD 12.5 million; gold sold at USD 3,114 average realized price per ounce
  • Net income for Q3 was USD 1.1 million; operating cash flow totaled USD 3.4 million
  • Working capital improved from negative USD 3.3 million to positive USD 3.9 million after quarter-end

TRX Gold Corporation (TSX:TRX; NYSE American:TRX) reported financial results for the third quarter ended May 31, 2025, highlighting a profitable quarter driven by higher-grade ore access, increased daily production, and lower cost per tonne. The company generated net income of USD 1.1 million, with operating cash flow of USD 3.4 million and adjusted EBITDA of USD 4.0 million for the quarter.

TRX Gold operates the Buckreef Gold Project in Tanzania and has focused its efforts in 2025 on expanding ore access, enhancing processing efficiency, and building cash reserves. Revenue for the quarter reached USD 12.5 million, driven by the sale of 3,995 ounces of gold at an average realized price of USD 3,114 per ounce. Production benefited from lower mining and processing costs per tonne—USD 3.63 and USD 14.60 respectively—contributing to improved profitability.

In total, 4,687 ounces of gold were poured in Q3, while year-to-date figures show 12,532 ounces poured and 12,236 ounces sold, generating revenue of USD 34.1 million. Gross profit for the nine-month period reached USD 11.4 million, with net income totaling USD 1.3 million and adjusted EBITDA of USD 9.3 million. The company attributes these improvements to a combination of higher realized gold prices and more efficient cost management.

Following the completion of a scheduled stripping campaign earlier in fiscal 2025, TRX Gold began accessing higher-grade ore blocks. As a result, average daily production increased from approximately 30 ounces in Q2 to 50 ounces during Q3 and has since reached around 75 ounces per day, according to post-quarter operational data.

Working capital turned positive after the quarter ended, improving from a deficit of USD 3.3 million to a surplus of approximately USD 3.9 million. The current ratio improved from 0.8 to 1.1, aided by reductions in accounts payable and accrued liabilities totaling roughly USD 5.6 million. The company also reported substantial repayment of short-term borrowings and maintained full access to its liquidity facilities.

During the quarter, TRX Gold signed a Gold Sale Service Agreement with the Bank of Tanzania, aligning with local mining regulations that require a portion of production to be sold domestically. The agreement enabled the company to set aside 646 ounces of gold inventory for domestic sales at market rates, benefiting royalty costs and improving cash flow heading into Q4.

The company also filed a Preliminary Economic Assessment during the quarter, outlining a potential 17.6-year mine life with average annual production of 62,000 ounces. The projected pre-tax NPV5% is USD 1.2 billion, or USD 0.8 billion after tax, based on a gold price of USD 3,000 per ounce.