TRX Gold Corporation Benefits from Soaring Gold Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy TRX?
Source: Fool
- Profit Boost from Rising Gold: With gold prices surging 87% since early 2025, TRX Gold's adjusted EBITDA margin has increased from 35.2% to 52.5%, indicating a significant enhancement in profitability during rising gold price periods.
- Single Project Risk: TRX Gold relies solely on the Buckreef Gold Project in Tanzania, where any technical failures or weather events could impact operations, although its joint venture with the Tanzanian government provides some level of security.
- Self-Funded Future Expansion: The company generated a record revenue of $25.1 million in Q1 and plans to fully fund a $30 million plant expansion through internally generated cash flow over the next 18 to 24 months, avoiding shareholder dilution.
- Optimistic Market Outlook: TRX Gold's stock has risen 178% since September, and as a speculative mining stock, it is expected to continue benefiting from strong gold price performance amid ongoing bullish sentiment.
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Analyst Views on TRX
Wall Street analysts forecast TRX stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 1.380
Low
1.25
Averages
1.47
High
1.75
Current: 1.380
Low
1.25
Averages
1.47
High
1.75
About TRX
TRX Gold Corporation is a Canada-based gold company advancing the Buckreef Gold Project in Tanzania. The Company is engaged in the exploration, development and production of mineral property interests in the United Republic of Tanzania. The Buckreef Project's prospects include Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba. The Buckreef Project encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Company produces gold at its 2,000 tons per day processing plant. The Buckreef Gold Project hosts a Measured and Indicated Mineral Resource of 10.8 million tonnes (MT) at 2.57 grams per tonne (g/t) gold containing 893,000 ounces (oz) of gold and an Inferred Mineral Resource of 9.1 MT at 2.47 g/t gold for 726,000 oz of gold. Its Eastern Porphyry and Anfield zones are located approximately 250 m to 700 metres (m) east of the Buckreef Main Zone.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Strong Financial Performance: In its first full year of operations at the Buckreef Gold Project, TRX Gold reported a 40% revenue increase to $57.6 million and a 44% rise in adjusted EBITDA to $22 million, reflecting robust profitability and market demand.
- Record Production Milestone: For the second quarter of fiscal 2026, TRX Gold achieved record production of 7,453 ounces of gold, a 13% increase from the previous quarter, with sales reaching 7,400 ounces, potentially generating $34.6 million in revenue compared to $9.1 million a year earlier.
- Optimized Shareholder Structure: The company has retired all outstanding warrants, eliminating the risk of share dilution and clarifying its ownership structure, which is expected to attract more institutional investors.
- Significant Expansion Potential: Currently processing 2,000 metric tons of ore daily at Buckreef, TRX plans to increase this to 3,000 metric tons, which could yield 62,000 ounces of gold annually, significantly enhancing its market competitiveness and valuation if achieved.
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- Significant Revenue Growth: In its first full year of operations at the Buckreef Gold Project during fiscal 2025, TRX Gold reported a 40% increase in revenue to $57.6 million, reflecting strong performance in gold mining and boosting market confidence in its future profitability.
- Record Production: For the second quarter of fiscal 2026, TRX Gold achieved record gold production of 7,453 ounces, a 13% increase from the previous quarter, which not only enhances sales but also lays a solid foundation for future revenue growth.
- Optimized Shareholder Structure: The company announced the expiration or retirement of all outstanding warrants, reducing the risk of share dilution in the market, which increases the attractiveness of TRX stock to institutional investors and could drive the stock price higher.
- Expansion Plans: TRX Gold aims to increase the processing capacity at Buckreef from 2,000 metric tons to 3,000 metric tons per day, anticipating an annual gold yield of 62,000 ounces, a strategy that will significantly enhance the company's production capacity and market competitiveness.
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- Consumer Acceptance Rise: Recent research shows that 50% of U.S. consumers are open to using stablecoins for payments, with acceptance rates soaring to 71% among Gen Z, highlighting a strong interest in new payment methods that could drive widespread adoption of stablecoins.
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