TRX Gold (TNX) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a lower grade profile (1.25 g/t vs. 2.5 g/t in Q1 2024), but production remained in line with expectations due to increased plant throughput and operational efficiencies.

• Q1 2025 revenue rose to $12.5M from $9.4M year-over-year, driven by record gold prices and higher throughput.

• Cash flow from operations and Adjusted EBITDA increased year-over-year, supported by higher gold prices and lower operating costs.

• Plant expansion enabled significant cost reductions and improved economies of scale.

• Ongoing reinvestment of operational cash flow is focused on exploration and expansion, with a prudent approach to capital management and minimal shareholder dilution.

Financial highlights

• Realized gold price averaged $2,653/oz in Q1 2025, up $700/oz year-over-year.

• Throughput increased by over 100% year-over-year, reaching over 1,703 tpd.

• Processing cost per ton dropped to $12.60, a 111% decrease from the prior year and well below international averages.

• Gross profit increased to $4.8M (Q1 2024: $3.7M) and Adjusted EBITDA to $4.4M (Q1 2024: $2.6M).

• Revenue, gross profit, and EBITDA all grew year-over-year, driven by higher gold prices and improved cost structure.

Outlook and guidance

• Gold production is expected to be higher in 2025 than in 2024, with cash costs anticipated to remain in line with last year.

• Head grades are projected to improve significantly in Q3 and Q4 as higher-grade ore is accessed post-stripping campaign.

• Operational efficiencies, including plant upgrades and a potential flotation circuit, are expected to further enhance recovery rates and reduce costs.

• Growth capital and exploration spending to remain robust, focusing on Buckreef Gold expansion and new targets.

• Quantitative guidance on production and costs will be provided in the Q2 release.