TRX Stock Forecast & Price Target

TRX Gold Corp has demonstrated a promising trajectory with a notable increase in its quarterly gold grade to 1.88 grams per tonne, reflecting a 46% improvement from the previous period. Additionally, the significant rise in gold prices by 72.4% to $4,614 per ounce, alongside a growth in gold sales to 6,492 ounces—up 35% year-over-year—indicates a strong revenue outlook. The company's ongoing exploration efforts, particularly at the Stamford Bridge Zone, further position TRX Gold for growth and enhanced production capabilities, suggesting a more stable and profitable outlook for 2026.

TRX Gold Corp has demonstrated a reliance on internal cash flow to fund its operations, with a significant $20.0 million allocated to expansion and exploration, indicating potential liquidity concerns given its operational risks. Despite generating revenues of $25.1 million, the company reported a net loss of $4.2 million for the quarter, contrasting sharply with a net income of $1.0 million in the same quarter of the previous fiscal year. This shift from profitability to loss, alongside the challenges inherent in mineral exploration and the need for long-term financing, raises concerns about the sustainability of TRX Gold's financial health and growth trajectory.