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Highlights
- TRX Gold achieves solid Q1 2025 financials with a 33% increase in revenue year-over-year.
- Significant reduction in processing costs per tonne, supported by expanded 2,000 tpd processing plant.
- Best-ever drill results at Buckreef Gold indicate strong potential for new high-grade gold mineralization.
TRX Gold Corporation (TSX:TRX) has announced its financial results for the first quarter of fiscal year 2025 ("Q1 2025"), for the three months ending November 30, 2024. The company reported strong performance, bolstered by record gold prices, improved operational efficiencies, and continued exploration success. The Q1 results highlight TRX Gold’s operational momentum as it moves towards significant long-term growth and development.
During Q1 2025, TRX Gold poured 4,841 ounces of gold (compared to 4,927 ounces in Q1 2024) and sold 4,813 ounces of gold (compared to 4,895 ounces in Q1 2024), generating $12.5 million in revenue, up from $9.4 million in Q1 2024. The company's gross profit also grew, reaching $4.8 million, compared to $3.7 million in the same period last year. Adjusted EBITDA increased by 69% to $4.4 million from $2.6 million in Q1 2024. This strong financial performance is primarily attributed to a record average realized gold price of $2,653 per ounce, significantly higher than the $1,942 per ounce recorded in the prior year.
In terms of production, gold output in Q1 2025 aligned with expectations despite a lower average head grade of 1.29 g/t compared to 2.57 g/t in Q1 2024. The company also reported a lower recovery rate of 72% (compared to 81% in Q1 2024), primarily due to a higher proportion of sulphide ore processed during the quarter. This was part of a planned mine sequencing strategy, with lower-grade ore accessed in Q1 2025 in preparation for higher-grade ore later in fiscal year 2025. The company expects gold production to increase throughout the remainder of the fiscal year, as the mine accesses more high-grade ore in the second half of F2025.
The company's operating costs have also been positively impacted by economies of scale. TRX Gold saw significant reductions in processing costs per tonne, which decreased to $12.60 in Q1 2025 from $26.56 in Q1 2024. This improvement was driven by the final commissioning of its expanded 2,000 tonne per day (“tpd”) processing facility, which began full operations in September 2024. Mining costs per tonne also decreased to $4.00 from $4.25 year-over-year. The company expects continued cost improvements as it continues to ramp up production at the expanded facility.
In exploration, TRX Gold reported its best-ever drill results at the Buckreef Gold project, highlighting high-grade gold mineralization along the newly discovered Stamford Bridge Zone. Notably, the company intersected 37 meters at 6.86 g/t Au (253.82 gtm) and 35.5 meters at 5.48 g/t Au (194.54 gtm), marking a significant discovery. This discovery, located approximately 250 meters east of the Buckreef Gold Main Zone, could form a potential 1-kilometer "bridge" between multiple high-priority gold zones. These results signal strong exploration upside for the Buckreef Gold project, which is expected to contribute further to the company's growth trajectory.
Looking ahead, TRX Gold remains committed to growth initiatives, including plant optimizations aimed at increasing recovery, throughput, and production. The company expects capital expenditures in F2025 to be in line with the previous year and is focused on long-term development strategies for the Buckreef Gold project.
