TRX Gold Reports Second Quarter 2025 Results Stage Set for Next Phase of Growth
PRESS RELEASE
For immediate release
TRX Gold Reports Second Quarter 2025 Results
Stage Set for Next Phase of Growth
TORONTO, Ontario, April 15, 2025 – TRX Gold Corporation (TSX: TRX) (NYSE American: TRX) (the “Company” or
“TRX Gold”) reported its results for the second quarter of 2025 (“Q2 2025”) for the three and six months ended
February 28, 2025. Financial results are available on the Company’s website at www.TRXgold.com.
Stephen Mullowney, TRX CEO commented: “The past couple of years ha ve set the foundation for continued
growth at Buckreef Gold. We have significantly de -risked Buckreef Gold’s operations , building production
capacity on-time and on-budget. Our technical team continues to deepen their knowledge of Buckreef Gold’s
ore metallurgy and how best to mine the deposit on a cost-effective basis. All of these points come through in
our most recent quarter. Our strip campaign over the first half of this year is well advanced, and we are already
starting to see improved mining grades. We are now in a much stronger position to pursue drilling and
exploration with our recent promising results at Stamford Bridge, and are firmly focused on the bigger prize,
developing a longer-term business plan which can generate much higher production, revenues and profits. This
business planning is in its final stages, and we are excited to release a new study in the coming weeks. Consider
our work to date as a de-risking exercise that sets the stage for the next phase of growth for the benefit of all
stakeholders. This is exciting, stay tuned!”
Key highlights for Q2 and Year to Date 2025 include:
• Leverage to record gold prices: In Q2 2025, the Company recorded higher revenue, operating cashflow
and lower mining and processing cost per tonne compared to the prior year comparative period . The
Company generated revenue of $9.1 million (Q2 2024: $8.0 million), operating cash flow of $2.0 million
(Q2 2024: $1.0 million) and Adjusted EBITDA1 of $0.9 million (Q2 2024: $2.5 million). Year to date F2025,
the Company recorded revenue of $21.6 million (H1 2024: $17.4 million) and Adjusted EBITDA1 of $5.4
million (H1 2024: $5.2 million), also higher than the prior year comparative period. These strong results
are mainly driven by a record average realized gold price 1 of $2,739 per ounce in the quarter and
significantly lower mining and processing costs per tonne.
• Lower operating costs per tonne: In Q2 2025, mining cost per tonne of $3.90 (Q2 2024: $4.10 per tonne)
and processing cost per tonne of $15.90 (Q2 2024: $24.97 per tonne) were significantly lower than the
prior year comparative period mainly due to greater economies of scale following commissioning of the
expanded 2,000 tonne per day processing plant combined with cost effective support for site
development projects and plant feed operations from the Company’s newly commissioned owner
operated equipment.
1 Refer to “Non-IFRS Performance Measures” section.
• Gold production expected to increase in H2 2025: In Q2 2025, the Company poured 3,004 ounces of
gold (Q2 2024: 4,067 ounces) and sold 3,401 ounces of gold (Q2 2024: 3,951 ounces). During Q2 2025,
the scheduled mine plan accessed lower grade ore blocks , in line with a scheduled waste stripping
campaign, which was undertaken to access higher grade ore blocks in the second half of the year .
Following substantial completion of the scheduled waste stripping campaign during the first half of
F2025, it is expected that the mine sequence will begin to access higher grade ore blocks starting in Q3
2025. Subsequent to February 28, 2025, average daily production has increased to approximately 50 +
ounces per day in March and April 2025, an increase from approximately 30 ounces per day Q2 2025,
and daily production is expected to continue to increase over the remainder of Q3 and Q4 2025.
• Larger scale Buckreef Gold operation with improved economics : TRX is currently developing a larger-
scale Buckreef Gold operation with improved economics, supported by ongoing work with geological
and mine engineering consultants. Key areas under review include mill expansions to increase annual
throughput capacity, flowsheet optimizations to improve mill efficiency, metallurgical engineering to
improve ore recovery, open pit mine design to enhance production scheduling, underground mine
design to efficiently access deeper ore blocks, and exploration drilling to include high-grade gold zones
such as Stamford Bridge in the mine plan . The Company anticipates it will provide a new study on the
larger Buckreef Project in H2 2025. Stay tuned!
• Continued exploration success: In F2025 to date, the Company announced its two best drill results ever,
which led to the discovery of a promising new gold mineralization shear zone named the Stamford
Bridge Zone, which is highly prospective and may become a bridge between the Buckreef Main Zone,
Eastern Porphyry and Anfield Zones. At the Stamford Bridge Zone, during Q1 2025 the Company
announced 37 meters (“m”) @ 6.86 g/t Au (253.82 on a gram x tonne x meter basis (“gtm”)) from 130
m (hole BMDD315) and 35.5 m @ 5.48 g/t Au (194.54 gtm) from 64 m. During Q2 2025, the Company
announced three additional drill hole results providing further evidence of gold mineralization along the
Stamford Bridge Zone, which has quickly become the Company’s exploration priority. The Company is
preparing a geophysical survey campaign along this trend line, followed by a strategic drill campaign on
this newly defined, high priority target.
• Liquidity: To date, we have been financing the build out of our facilities with working capital and support
from key suppliers and partners. As we move into the second half of 2025, we expect to bring our
working capital to more normalized levels from cash flow. During Q2 2025 the Company entered into its
first ever credit agreement with Stanbic Bank Tanzania Limited (“Stanbic”) and a Gold Prepayment
Facility with Auramet International, Inc. (“Auramet”). The credit agreement with Stanbic consists of a $5
million revolving credit facility and a $4 million vehicle and asset financing facility that may be used at
the Company’s discretion. The Gold Prepayment Facility with Auramet enables the Company, at its
discretion, to sell to Auramet up to a maximum, aggregate amount of 1,000 ounces of gold, up to a
maximum of 21 calendar days prior to delivery. Additionally, the Company renewed its At The Market
Offering Agreement (“ATM”) with H.C. Wainwright & Co., LLC as Lead Agent and Roth Capital Partners,
LLC as Co-Agent. Under the renewed ATM agreement, the Company, at its discretion, may offer and sell,
from time to time, through the Lead Agent, common shares without par value having an aggrega te
offering price of up to US$25 million (the “ ATM Offering”). The combination of the credit agreement,
prepayment facility and ATM Offering provides the Company with access to supplementary capital,
strengthens liquidity, and provides additional financial flexibility.
• Board strengthened with new member: The Company welcomed John McVey as the newest member of
the Company’s Board of Directors. Mr. McVey is an experienced director with an extensive background
in underground mine development, mine engineering and construction, and will be a valuable resource
in advising the Company on the next phase of expansion and growth of Buckreef Gold.
TRX Gold’s CFO, Michael P. Leonard comments: “In Q2 2025, we continued to deliver higher revenue and strong
cash flow at Buckreef Gold, supported by our expanded 2,000 tonne per day plant and record realized gold
prices. While quarterly gold production was impacted by scheduled ore sequencing and stripping, we expect
stronger performance in the second half of the year as we begin to access higher -grade ore. We are especially
encouraged by our ongoing operational improvements, exploration success at Stamford Bridge, and the
potential for a larger -scale Buckreef Gold operation that would significantly enhance project economics. As
Stephen mentioned above, the stage has been set!”
Figure 1: Buckreef Gold expanded crushing circuit
Figure 2: Buckreef Gold Open Pit Main Zone (Southern Portion of Pit Stripped with Higher Grade Ore)
Figure 3: New 350 Excavator and Haul Truck
Figure 4. Buckreef Gold’s Open Pit Mining Operations
Q2 2025 Results Conference Call and Webcast Details
When: Wednesday, April 23 at 9:00 AM EST
Webcast link: https://www.c-meeting.com/web3/joinTo/MP9MKT3Z8WQC2Z/35mUcC-RBRd602oA-Xk8rw
Conference call numbers:
Canada/USA TF: 1-833-752-3900
International Toll: +1-647-849-3080
A replay will be made available for 30 days following the call on the Company’s website.
About TRX Gold Corporation
TRX Gold is rapidly advancing the Buckreef Gold Project. Anchored by a Mineral Resource published in May
20202, the project currently hosts a Measured and Indicated Mineral Resource (“M&I Resource”) of 35.88 million
tonnes (“MT”) at 1.77 grams per tonne (“g/t”) gold containing 2,036,280 ounces (“oz”) of gold and an Inferred
Mineral Resource of 17.8 MT at 1.11 g/t gold for 635,540 oz of gold. The leadership team is focused on creating
both near-term and long-term shareholder value by increasing gold production to generate positive cash flow.
The positive cash flow will be utilized for exploratory drilling with the goal of increasing the current mi neral
resource base and advancing the larger project development which represents 90% of current mineral
resources. TRX Gold’s actions are led by the highest environmental, social and corporate governance (“ESG”)
standards, evidenced by the relationships and programs that the Company has developed during its nearly two
decades of presence in the Geita Region, Tanzania. Please refer to the Company’s Updated Mineral Resources
Estimate for Buckreef Gold Project, dated May 15, 20202 and filed under the Company’s profile on SEDAR+ and
with the SEC on June 23, 2020 (the “2020 Technical Report”) for more information.
Qualified Person
Mr. William van Breugel, P.Eng, BASc (Hons), Technical Advisor to TRX Gold Corporation, is the Company’s
Qualified Person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”)
and has reviewed and assumes responsibility for the scientific and technical content in this press release.
For investor or shareholder inquiries, please contact:
Investors:
Investor Relations
TRX Gold Corporation
+1-437-224-5241
www.TRXgold.com
Non-IFRS Performance Measures
The company has included certain non -IFRS measures in this news release. The following non -IFRS measures
should be read in conjunction with the Company’s unaudited interim consolidated financial statements for the
three and six months ended February 28 , 2025 filed on SEDAR+ and with the Securities and Exchange
Commission (“SEC”), as well as the Company’s audited consolidated financial statements included in the
Company's Annual Report on Form 40-F and Annual Information Form for the year ended August 31, 2024. The
financial statements and related notes of TRX Gold have been prepared in accordance with International
Financial Reporting Standards (“IFRS”). Additional information has been filed electronically on SEDAR+ and with
the SEC and is available online under the Company’s profile at www.sedarplus.ca and the Company’s filings with
the SEC at www.sec.gov and on our website at www.TRXgold.com.
Cash cost per ounce of gold sold
Cash cost per ounce of gold sold is a non- IFRS performance measure and does not constitute a measure
recognized by IFRS and does not have a standardized meaning defined by IFRS. Cash cost per ounce may not be
comparable to information in other gold produce rs’ reports and filings. As the Company uses this measure to
monitor the performance of our gold mining operations and its ability to generate positive cash flow, total cash
cost per ounce of gold sold starts with cost of sales related to gold production and removes depreciation.
2 See Forward-Looking and Cautionary Statements
Adjusted EBITDA
Adjusted EBITDA is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and
does not have a standardized meaning defined by IFRS. Adjusted EBITDA may not be comparable to information
in other gold producers’ reports and filings. Adjusted EBITDA i s presented as a supplemental measure of the
Company’s performance and ability to service its obligations. Adjusted EBITDA is frequently used by securities
analysts, investors and other interested parties in the evaluation of companies in the industry, man y of which
present Adjusted EBITDA when reporting their results. Issuers present Adjusted EBITDA because investors,
analysts and rating agencies consider it useful in measuring the ability of those issuers to meet their obligations.
Adjusted EBITDA represents net income before interest, income taxes, and depreciation and also eliminates the
impact of a number of items that are not considered indicative of ongoing operating performance.
The following table provides a reconciliation of net income (loss) and comprehensive income (loss) to Adjusted
EBITDA per the financial statements for the three and six months ended February 28, 2025.
Average realized price per ounce gold sold
Average realized price per ounce of gold sold is a non -IFRS measure and does not constitute a measure
recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce
of gold sold is calculated by dividing revenue by ounces of gold sold. It may not be comparable to information in
other gold producers’ reports and filings.
The Company has included “average realized price per ounce of gold sold”, “cash cost per ounce of gold sold”
and “Adjusted EBITDA” as non-IFRS performance measures throughout this news release as TRX Gold believes
that these generally accepted industry performance measures provide a useful indication of the Company’s
operational performance. The Company believes that certain investors use this information to evaluate the
Company’s performance and ability to generate cash flow. Accordingly, they are intended to provide additional
information and should not be considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
Forward-Looking and Cautionary Statements
This press release contains certain forward -looking statements as defined in the applicable securities laws. All statements,
other than statements of historical facts, are forward -looking statements. Forward -looking statements are frequently, but
not always, identifi ed by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”,
“possible” and similar expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur
or be achieved. Forward -looking statements relate to future events or future performance and reflect TRX Gold
management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect
to continued operating cash flow, expansion of its process plant, estimation of mineral resources, ability to develop value
creating activities, recoveries, subsequent project testing, success, scope and viability of mining operations, the timing an d
amount of estimated future production, and capital expenditure.
Although TRX Gold believes the expectations expressed in such forward- looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance. The actual achievements of TRX Gold or other
future events or conditions may differ materially from those reflected in the forward -looking statements due to a variety of
risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic,
competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations;
fluctuations in currency exchange rates; changes in costs; future prices of gold and other minerals; mining method,
production profile and mine plan; delays in expl oration, development and construction activities; changes in government
legislation and regulation; the ability to obtain financing on acceptable terms and in a timely manner or at all; contests over
title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the
risks involved in, the exploration, development and mining business. These risks are set forth in reports that TRX Gold files
with the SEC and the various Canadian securities authorities. You can review and obtain copies of these filings from the SEC's
website at http://www.sec.gov/edgar.shtml and the Company’s profile on the System for Electronic Document Analysis and
Retrieval (“SEDAR+”) at www.sedarplus.ca.
The disclosure contained in this press release of a scientific or technical nature relating to the Company’s Buckreef Project
has been summarized or extracted from the technical report entitled “The National Instrument 43- 101 Independent
Technical Report, Updated Mineral Resource Estimate for the Buckreef Gold Mine Project, Tanzania, East Africa for TRX
Gold” with an effective date (the “Effective Date”) of May 15, 2020 (the “2020 Technical Report”). The 2020 Technical Report
was prepared by or under the supervision Mr. Wenceslaus Kutekwatekwa (Mining Engineer, Mining and Project
Management Consultant) BSc Hons (Mining Eng.), MBA, FSAIMM, of Virimai Projects, and, Dr Frank Crundwell, MBA, PhD,
a Consulting Engineer, each of whom is an independent Qualified P erson as such term is defined in NI 43- 101. The
information contained herein is subject to all of the assumptions, qualifications and procedures set out in the 2020 Technical
Report and reference should be made to the full details of the 2020 Technical Report which has been filed with the applicable
regulatory authorities and is available on the Company’s profile at www.sedarplus.ca. The 2020 Technical Report follows the
CIM Definition Standards on Mineral Resources and Mineral Reserves (“CIM Definition Standards”) and the CIM Estimation
of Mineral Resources & Mineral Reserves Best Practice Guidelines (“CIM Guidelines”).
The information contained in this press release is as of the date of the press release and TRX Gold assumes no duty to update
such information.