H.C. Wainwright has adjusted its price target for TRX Gold (TRX, Financial), increasing it from $1 to $1.10. The firm maintains a Buy rating on the stock following the company's fiscal third-quarter report. This update reflects an optimistic outlook for TRX as it continues to show promising potential in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for TRX Gold Corp (TRX, Financial) is $1.20 with a high estimate of $1.75 and a low estimate of $0.85. The average target implies an upside of 253.46% from the current price of $0.34. More detailed estimate data can be found on the TRX Gold Corp (TRX) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, TRX Gold Corp's (TRX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TRX Gold Corp (TRX, Financial) in one year is $0.83, suggesting a upside of 144.48% from the current price of $0.3395. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TRX Gold Corp (TRX) Summary page.
TRX Key Business Developments
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TRX Gold Corp (TRX, Financial) reported a significant increase in the grade profile, leading to lower cash costs and higher profitability.
- The company has successfully expanded its operations to 2,000 tons per day and is planning further expansions, demonstrating operational growth.
- The Preliminary Economic Assessment (PEA) indicates a pre-tax NPV of $1.2 billion and a post-tax NPV of $766 million at $3,000 gold, showcasing strong economic potential.
- TRX Gold Corp (TRX) is operating in a tier-one jurisdiction in Tanzania, with a special mining license allowing for unencumbered growth.
- The company has a robust plan for underground development, which is expected to be capital efficient and enhance production capabilities.
Negative Points
- The company faces challenges with the current share price, which has not reflected the operational improvements and economic potential.
- There are concerns about the timeline for expansion, as accelerating it could increase the risk profile.
- The underground development requires careful planning around existing voids from previous mining operations, which could pose operational challenges.
- TRX Gold Corp (TRX) is still in negotiations with the Tanzanian government regarding joint venture shares, which could impact future operations.
- The company needs to continue exploration efforts to fully realize the potential of its assets, which requires additional investment and time.
