TRX Gold Hikes Output 57% and Funds $50M Expansion
TRX Gold posted record production and self-funded a major mill upgrade using operating cash flow, avoiding equity dilution.
Key points
- TRX Gold produced 29,650 ounces in fiscal 2026, a 57% year-over-year increase that hit the top of guidance.
- The company is self-funding a $50 million mill expansion to 5,500 tpd capacity using operating cash flow.
- Realized gold prices rose 46% to $4,386 per ounce, driving run-rate EBITDA to approximately $80 million.
TRX Gold Corporation reported record fiscal 2026 gold production of 29,650 ounces, marking a 57% year-over-year increase. The company achieved this output while self-funding a $50 million processing expansion entirely from operating cash flow, maintaining a zero-debt balance sheet.
As detailed by cruxinvestor.com, the producer realized an average gold price of approximately $4,386 per ounce, a 46% increase from the prior year. These financial metrics drove run-rate EBITDA to roughly $80 million, allowing the firm to execute its capital plan without issuing new equity.
Record Production Meets High Prices
Quarterly output in the fourth quarter reached 8,173 ounces, up 28% from the previous year. Full-year results landed at the top of the company's guidance range of 25,000 to 30,000 ounces. This performance was driven by higher throughput and recovery rates at the Buckreef Gold Project in Tanzania.
The price environment significantly amplified revenue, with Q4 realized prices averaging $4,233 per ounce. The combination of volume growth and elevated market rates created the free cash flow necessary to fund ongoing operations and capital expenditures internally.
Self-Funded Mill Expansion Progresses
TRX Gold is constructing a new 3,500 tonnes-per-day grinding circuit ordered from Metso. This addition will run parallel to the existing 2,000 tonnes-per-day plant, creating a theoretical combined capacity of 5,500 tonnes per day. Final contract execution was completed in early Q4 2026, with initial payments already made.
The project is expected to be completed within 12 to 18 months at a total capital cost of approximately $50 million. Management stated that if additional capital becomes necessary, the company will seek debt financing from local Tanzanian lenders rather than diluting shareholders through equity issuance.
Index Inclusion Supports Future Growth
The company was recently added to the MVIS Global Junior Gold Miners Index. This inclusion positions TRX Gold for potential addition to the VanEck Junior Gold Miners ETF, which may increase passive investment interest in the stock.
Looking forward, an updated Preliminary Economic Assessment is expected by early 2027. The company also plans to increase its active drill rigs from two to five within the next four to six months to support resource expansion.
