TRX Stock Forecast & Price Target

TRX Gold Corp has experienced a significant positive impact from the rising prices of gold, which increased by 37.4% since mid-July 2024, reaching $3,328 per ounce, alongside substantial gains in silver and copper prices. The company reported a 23% year-over-year increase in revenue, primarily driven by a 39% rise in the average realized gold price to $3,122 per ounce, indicating strong financial performance amidst favorable market conditions. Additionally, TRX's operational improvements, including access to higher-grade ore blocks and a successful stripping campaign, are expected to enhance its production profile and set the stage for a more stable and profitable financial year in 2026.

TRX Gold Corp reported a revenue increase to $12.5 million during the quarter, compared to $10.1 million in FY3Q24, indicating some growth; however, the company also posted a net loss of $0.2 million, an improvement from the $1.7 million loss incurred in the previous fiscal year. Despite this positive trend in revenue, the high reliance on internal cash flow for funding its $20 million expansion and exploration program raises concerns about sustainability, particularly in a capital-intensive industry. Furthermore, the continued risks associated with mineral exploration and the necessity for long-term financing suggest significant challenges ahead for TRX Gold's operational viability and financial stability.