TRX · TRX Gold Corporation

TRX Gold Corporation delivered a record second quarter for fiscal 2026, demonstrating significant operational leverage to rising gold prices. The Company poured 7,453 ounces of gold, more than doubling the output from the same period last year, while selling 7,314 ounces at an average realized price of $4,655 per ounce. This combination of increased volume and record pricing drove revenue to $34.1 million, a nearly fourfold increase year-over-year. Gross profit margin expanded to 62%, reflecting the low-cost nature of the Buckreef Gold operation, resulting in record adjusted EBITDA of $20.2 million. The GAAP net loss of $13.8 million was primarily attributable to a non-cash change in the fair value of derivative financial instruments ($23.5 million), highlighting the importance of the adjusted net income figure of $11.7 million for assessing operational performance.

Operationally, the Company is executing on an aggressive expansion strategy. Processing plant recovery rates improved to 84% in Q2, and metallurgical test work indicates potential for rates between 89% and 92%. Management has commenced tendering for a new 3,500+ tonne per day SAG mill, with completion targeted for calendar Q2 2027. This expansion, combined with upgrades to the existing plant expected by Q4 2026, is designed to significantly exceed the 3,000 tpd throughput assumption from the May 2025 PEA. Financially, the Company is well-positioned to fund this growth, holding $26.0 million in cash, over $12.0 million in undrawn credit lines, and a working capital position of $32.1 million. The Company has also engaged P&E Mining Consultants to update the PEA study, which is expected to reflect expanded production capacity and improved economics by Q4 2026.