TRX Gold (TNX) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 gold production of 6,597 ounces and sales of 6,492 ounces, a 35% year-over-year increase, with revenue of $25.1 million and adjusted EBITDA of $13.2 million, driven by high gold prices and operational expansion.

• Buckreef Gold Project in Tanzania is in production, with a robust PEA outlining a 17.6–18-year mine life, average annual production of 62,000 ounces, and ongoing plant expansion and exploration.

• Advanced process plant expansion and upgrades, including a new 3,000+ tpd sulphide circuit and 1,000 tpd oxide/transition circuit, are underway, targeting higher throughput and recovery.

• Working capital and cash position improved, with a current ratio rising to 1.7 and cash balance over $9 million.

• Maintained a strong health, safety, and environmental record with zero lost time injuries and no reportable environmental incidents.

Financial highlights

• Q1 2026 revenue reached $25.1 million, up from $12.5 million in Q1 2025, with gross profit of $14.2 million and adjusted EBITDA of $13.2 million.

• Gross profit margin exceeded 50%, with EBITDA margin improving to 52.5% from 35.2% year-over-year.

• Realized gold price in Q1 2026 was $3,860/oz, up from $2,653/oz in Q1 2025, with spot prices rising above $4,600/oz post-quarter.

• Cash cost per ounce in Q1 2026 was $1,508, within the annual guidance range of $1,400–$1,600/oz.

• Operating cash flow was $4.0 million, up from $2.4 million year-over-year, and adjusted net income was $7.7 million.

Outlook and guidance

• Fiscal 2026 production guidance is 25,000–30,000 ounces at a cash cost of $1,400–$1,600/oz.

• Capital expenditures for fiscal 2026 are projected at $15–$20 million, with exploration spend of $3–$5 million.

• Plant expansion and upgrades are expected to be funded from internal cash flow over the next 18–24 months, with benefits from new equipment likely realized in FY2027.

• Exploration drilling planned for 40,000–60,000 meters in 2026, targeting new and existing zones, with results from ground magnetic survey and metallurgical testwork expected in Q2 2026.