TRX Stock Forecast & Price Target

TRX Gold Corp has benefited from a significant increase in gold prices, rising 37.4% since mid-July 2024, which bodes well for the company's revenue and profitability. The company reported a 23% year-over-year revenue increase, primarily driven by a higher average realized gold price of $3,122 per ounce, reflecting strong demand and improving market conditions. Additionally, TRX Gold has enhanced its working capital due to strong cash flow and has begun accessing higher-grade ore blocks, supporting an optimistic outlook for increased production and financial stability moving into fiscal year 2026.

TRX Gold Corp reported revenue of $12.5 million for the quarter, marking an increase from $10.1 million in the previous fiscal year, yet still incurred a net loss of $0.2 million, indicating ongoing financial challenges despite improved revenue. The company is focused on its Buckreef Gold Project, yet the reliance on internal cash flow to fund a $20.0 million expansion and exploration program raises concerns about its ability to sustain operations and manage expanding debt levels effectively. These factors, combined with historical net losses, create a precarious financial outlook for TRX Gold, as ongoing investments may not yield immediate returns necessary for long-term viability.