TRX Gold Targets $200M EBITDA With Buckreef Expansion in Tanzania

Key Points

• TRX Gold plans to expand Buckreef’s processing capacity in Tanzania from 2,000 to as much as 5,500 tonnes per day, with the project expected to be largely operational by the end of calendar 2027. Management expects annual production to exceed 80,000 ounces.
• The company is targeting more than $200 million in annual EBITDA within three to four years, up from an annualized run rate of about $80 million. Expansion and exploration spending is estimated at $45 million–$50 million over the next year and is intended to be funded primarily through operating cash flow.
• TRX Gold is preparing an updated study for late 2026 or early 2027 and is expanding exploration across 10 prospective targets, supported by four to five drill rigs. The company also continues discussions with Tanzania over a potential restructuring of its joint venture and government ownership terms.

TRX Gold NYSEAMERICAN: TRX is advancing an expansion of its Buckreef Gold Project in Tanzania, with Chief Executive Officer Stephen Mullowney saying the company expects the project’s processing capacity to increase to 5,500 tonnes per day from 2,000 tonnes per day through the addition of a 3,500-tonne-per-day circuit.

Speaking during an Investor TV webinar, Mullowney said the company’s strategy is to use cash flow from existing operations to fund expansion and exploration rather than relying on equity issuance. The company expects to spend approximately $45 million to $50 million over the next year on project expansion and exploration, he said.

Expansion targets higher production and EBITDA

Buckreef, located in Tanzania’s Geita region, produced nearly 30,000 ounces over the past year, according to Mullowney. He said the company recorded record revenue and EBITDA during fiscal 2026, with a current annualized EBITDA run rate of about $80 million based on third-quarter EBITDA of approximately $20 million.

The planned plant expansion is expected to be completed over the next 12 to 18 months, with operations anticipated largely by the end of calendar 2027, or during the company’s fiscal 2028. While the ultimate throughput rate will depend on the mine plan, Mullowney said it is expected to exceed the 3,000-tonne-per-day scenario evaluated in the company’s 2025 study, though it may not reach the full 5,500-tonne-per-day nameplate capacity.

Management expects annual production to exceed 80,000 ounces after the expansion is complete. Mullowney said the prior study contemplated average annual production of 62,000 ounces over an 18-year mine life, with cash costs near $1,000 per ounce and all-in sustaining costs of approximately $1,200 per ounce.

“If I can increase EBITDA from the run rate, which is around $80 million today, to over $200 million for less than $50 million, that’s a no-brainer,” Mullowney said. He said the company expects EBITDA of more than $200 million over the next three to four years based on current gold prices and the expansion plan.

Operational improvements support recent production

Mullowney attributed recent production gains to mine-plan optimization, favorable grade profiles and improved recoveries. Gold recovery rates have risen from the mid-70% range to the mid-80% range, he said.

The company is also pursuing lower processing costs. Planned upgrades include improvements to crushing capacity and battery systems designed to improve the consistency of power supplied to the plant. Mullowney said the mine receives electricity from the national grid, but inconsistent power quality has required greater use of diesel generators than the company would prefer.

TRX Gold reported third-quarter throughput of 1,833 tonnes per day, up 25% from the corresponding period a year earlier. Mullowney said plant maintenance, mill rebuilds and variations in ore hardness have contributed to throughput performance. He described the current 2,000-tonne-per-day plant as largely optimized, making the expansion the next major source of growth.

Updated study and exploration program underway

The company is preparing an updated business plan and study, which Mullowney said is expected toward the end of 2026 or early 2027. The revised plan is expected to include a larger and longer-running open pit before eventual underground development.

TRX Gold’s May 2025 preliminary economic assessment was based on a 3,000-tonne-per-day operation and outlined a pre-tax net asset value of approximately $1.9 billion at a gold price of $4,000 per ounce, and an after-tax value of approximately $1.2 billion. Mullowney said the updated study should reflect higher throughput and potentially improved project economics, though he did not provide new estimates.

The company reported 1.5 million ounces in measured and indicated resources at approximately 2.5 grams per tonne. Mullowney said exploration is increasingly becoming a focus, following a geophysics program that identified 10 prospective targets. Drilling is planned at areas including Stamford Bridge and Anfield, as well as other targets.

He said the company expects initial drill results within the next several months. TRX Gold expects to operate four to five drill rigs over the coming six months, with rigs supporting both exploration and grade-control work.

Funding, Tanzania relationship and shareholder base

Mullowney said TRX Gold is debt-free aside from equipment leases and had approximately $30 million in cash. He said expansion spending is intended to be funded from operating cash flow, although the company could delay capital expenditures if gold prices decline materially.

The company continues discussions with Tanzania’s government regarding its joint venture structure with state-owned STAMICO. Mullowney said the current arrangement is a 55/45 relationship, with the government’s 45% interest dilutable. He said the parties are discussing a potential framework arrangement that could provide for a 16% non-dilutable government interest and a 50/50 economic sharing structure accounting for taxes, royalties and other payments.

“It’s slow, though. It’s more political,” Mullowney said of the discussions, adding that the company maintains constructive relationships with government and local communities.

TRX Gold has also joined four additional indexes this year, including GDXJ, according to Mullowney. He said index inclusion and recent investor outreach have contributed to growing institutional interest, while the company continues to have a predominantly retail shareholder base.

About TRX Gold (NYSEAMERICAN:TRX)

TRX Gold Corporation is a Canadian-based gold exploration, development and production company focused on the Buckreef Gold Project in north-central Tanzania. The company's common shares trade on the NYSE American under the symbol TRX and on the Toronto Stock Exchange under the symbol TNX.

Buckreef Gold is the company's principal asset and includes open-pit mining and ore-processing operations, along with significant exploration and development potential. TRX Gold produces gold doré and continues to invest in expanding processing capacity, improving operations and evaluating additional mineral resources across the project area.

The Buckreef project is operated through a joint venture with Tanzania's State Mining Corporation, giving TRX Gold a long-term operating presence in Tanzania.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.