TRX Gold (TRX) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw lower head grades (1.25 g/t vs. 2.5 g/t in Q1 2024), but production remained flat year-over-year due to increased plant throughput and operational efficiencies.

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

• Gross profit increased to $4.8M (Q1 2024: $3.7M) and Adjusted EBITDA to $4.4M (Q1 2024: $2.6M), with cash flow from operations also up.

• The expanded 2,000 tpd plant operated at capacity, reducing processing costs per ton by over half and reinforcing the asset's low-cost, high-margin profile.

• Exploration at Stamford Bridge and Anfield yielded record drill results, supporting future resource expansion.

Financial highlights

• Realized gold price averaged $2,653/oz, $700/oz higher than Q1 2024, driving revenue, gross profit, and EBITDA growth.

• Processing cost per ton dropped to $12.60, well below international averages and down 111% year-over-year.

• Adjusted EBITDA was $4.4M, up from $2.6M; net income and comprehensive income were $2.1M.

• Total ore processed averaged 1,703 tpd, up 108% from 817 tpd in Q1 2024.

• Over two times the original capital investment has now been reinvested into the Buckreef asset.

Outlook and guidance

• Gold production is expected to be higher for the full year, driven by increased throughput and anticipated higher grades in H2 2025.

• Cash costs are expected to remain in line with last year, with mining costs per tonne anticipated to trend lower as higher-grade ore is accessed.

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

• Operational improvements, including a potential flotation circuit and plant upgrades, are planned to further boost recovery rates and efficiency.

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