TRX Gold (TNX) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $41.2 million and adjusted EBITDA of $15.3 million for fiscal 2024, driven by strong gold production, high realized gold prices, and operational efficiency.

• Completed a third mill expansion to 2,000 tpd on time and on budget, increasing plant capacity and supporting future growth.

• Discovered the Stamford Bridge Shear Zone, yielding best-ever drill results and indicating strong exploration potential.

• Maintained a disciplined, non-dilutive growth strategy, reinvesting operating cash flow into expansion and exploration.

Financial highlights

• Full year revenue rose to $41.2 million, with gold sold at an average price just under $2,180/oz.

• Gross profit reached $17.9 million, representing a 44% margin.

• Operating cash flow was $15.3 million, with adjusted EBITDA of $15.3 million.

• $14 million of operating cash flow reinvested into the asset, including $6 million for plant expansion.

• Ended the year with over $8 million in liquidity and remained debt-free.

Outlook and guidance

• Fiscal 2025 gold production expected to exceed 2024, benefiting from a full year of expanded plant operations.

• First half of 2025 anticipated to be softer due to lower-grade ore and increased stripping; stronger performance expected in the second half.

• Cash costs projected to remain around $1,100/oz, with a temporary increase in H1 2025 before declining in H2 2025.

• Ongoing focus on plant efficiency upgrades, optimization, and potential further expansion to increase throughput and recovery rates.

• Operating cash flow will be reinvested in exploration, plant optimization, and ESG initiatives.