TRX Stock Forecast & Price Target

TRX Gold Corp's positive outlook is supported by its recent achievement of mining higher-grade ore, as evidenced by a quarterly gold grade increase of 46% to 1.88 grams per tonne, which is a key driver for enhanced production capabilities. Additionally, the company has successfully increased gold sales by 35% year-over-year, totaling 6,492 ounces, bolstered by a significant rise in gold prices, which surged by 72.4% since January 2025. The firm is also positioned for future growth with promising drilling results at the Stamford Bridge Zone, indicating potential for increased throughput and production that may exceed initial forecasts.

TRX Gold Corp reported a revenue increase to $25.1 million; however, the company also incurred a net loss of $4.2 million during the quarter, contrasting sharply with the prior year's performance, where it posted a net income of $1 million. This shift from profit to loss raises concerns about the sustainability of the company's financial performance, especially in a high-risk sector like mineral exploration and mining. Coupled with the reliance on internal cash flow for funding and debt repayment, these financial metrics suggest potential challenges in maintaining operational viability and securing future financing for its mineral properties, including the Buckreef Gold Project.