By Ronald Wortel, MBA, P. Eng.
NYSE: TRX
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TRX Gold (NYSE: TRX) enters 2026 with clear operational momentum and a strengthening investment case, supported by record quarterly performance, expanding production capacity, and a gold price environment that continues to work in the company’s favor. The second quarter of fiscal 2026 marked another step forward for the Buckreef operation, demonstrating the consistency of the mine’s performance and the leverage inherent in TRX’s low‑cost model. With 7,453 ounces poured and 7,314 ounces sold at an average realized price of US$4,655 per ounce, the company delivered record revenue of US$34.1 million and gross profit of US$21.1 million. Adjusted EBITDA of US$20.2 million underscores the strength of the operation and the company’s ability to convert higher gold prices directly into cash flow.
This financial performance has translated into a stronger balance sheet. TRX ended the quarter with US$26 million in cash, minimal debt, and more than US$12 million in undrawn credit capacity. The company also continued to build its stockpile that now contains an estimated 20,147 ounces of contained gold. This at surface resource asset provides operational flexibility as TRX advances its next phase of growth.
The strategic focus for 2026 is clear: expand throughput, update the resource base, and deliver a new Preliminary Economic Assessment that reflects the scale and economics of the operation under current market conditions. Metallurgical test work confirming recoveries of 89–92% has supported the decision to move toward a 3,500+ tpd SAG/Ball mill configuration, significantly above the 3,000 tpd assumed in the 2025 PEA. When combined with upgrades to the existing plant, expected to be completed by Q4 2026, TRX is positioned to materially increase processing capacity ahead of the commissioning of the new mill in 2027.
The company is also revising its life‑of‑mine plan to reflect higher throughput and a stronger gold price environment. Early analysis suggests potential for a third cutback at the Main Pit, extended open‑pit operations, and increased recoverable ounces. Additional opportunities at Stamford Bridge and Eastern Porphyry could bring higher‑grade or easily accessible material into the mine plan sooner, further enhancing near‑term production potential.
With record financial results, expanding capacity, and a supportive gold market, TRX Gold is entering a period of meaningful growth. The upcoming MRE and updated PEA, expected early in Q4, represent key catalysts that will define the next stage of the Buckreef story and set the foundation for a larger, more profitable operation.
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