TRX Gold Targets Major Buckreef Expansion, Bigger EBITDA and New Discoveries

Key Points

• TRX Gold is expanding Buckreef’s processing capacity in Tanzania from 2,000 to a planned 5,500 tons per day through a self-funded 3,500-ton-per-day plant, though actual throughput will depend on the mine plan.
• The company is updating its economic study to reflect the larger operation. Its prior PEA projected roughly 62,000 ounces of annual production, about $1,200 per ounce in all-in sustaining costs, and EBITDA exceeding $200 million in years three through five at a $4,000 gold price.
• TRX Gold is accelerating exploration with four or five drill rigs targeting 10 geophysical anomalies, including the Stamford Bridge and Anfield zones. The company reports approximately 1.5 million ounces of resources, $80 million in trailing-12-month EBITDA, no debt and $27 million-$30 million in cash.

TRX Gold NYSEAMERICAN: TRX is advancing a self-funded expansion of its Buckreef Gold Project in Tanzania, with Chief Executive Officer Stephen Mullowney outlining plans to increase processing capacity and pursue additional exploration targets.

Speaking at a company presentation, Mullowney said the company has completed three prior expansions at Buckreef, reaching processing capacity of 2,000 tons per day. Those expansions were funded through free cash flow following the company’s initial capital raise more than five years ago, he said.

The company is now constructing an additional 3,500-ton-per-day plant alongside its existing 2,000-ton-per-day facility. The combined nameplate capacity is expected to reach about 5,500 tons per day, although Mullowney said actual throughput will ultimately depend on the mine plan and would not necessarily reach the full capacity level.

Updated Study Expected

Mullowney said TRX Gold released a preliminary economic assessment, or PEA, in May 2025 and is now updating the study. The earlier assessment contemplated production of approximately 62,000 ounces annually over an 18-year mine life, beginning with two to three years of open-pit mining followed by underground operations.

According to Mullowney, the prior PEA indicated an almost $2 billion net asset value at a gold price of about $4,000 per ounce. He cited projected cash costs of approximately $1,000 per ounce and all-in sustaining costs of about $1,200 per ounce. The company expects to complete its updated business plan toward the end of the year or early next year, he said.

The existing study was based on a 3,000-ton-per-day operation, while the current expansion is designed for substantially greater capacity. Mullowney said the updated plan should reflect a larger project than the one outlined in the previous assessment.

Focus on Cash Flow and EBITDA Growth

The Buckreef project currently has 1.5 million ounces of gold in measured, indicated and inferred resources at an average grade of roughly 2.5 grams per ton, according to Mullowney.

He said the operation is producing at a run rate of around 30,000 ounces and has generated approximately $80 million in last-12-month EBITDA. In the prior PEA, EBITDA was projected to exceed $200 million in years three through five at a $4,000 gold price. Mullowney said increased production, rather than gold-price gains alone, has been the primary driver of the company’s growth profile.

“We are a high-margin business, and we are a growing business,” Mullowney said, adding that management is focused on expanding EBITDA, net asset value and the resource base rather than short-term share-price movements.

Exploration Program Expands

TRX Gold is also increasing its focus on exploration, with four or five drill rigs either at the site or expected to arrive shortly, Mullowney said. A geophysical study completed last year identified 10 targets, and the company has begun drilling them while also conducting infill drilling around existing resources.

Mullowney highlighted the Stamford Bridge and Anfield zones as areas that have produced stronger drill results than the Buckreef Main zone. He said a Stamford Bridge intercept measuring 200 gram-meters was the company’s best drill-hole result to date and would receive greater attention over the next year.

The company operates in Tanzania’s Lake Victoria region, where Mullowney said established mining activity has supported access to infrastructure, human capital and the national power grid. He also said the company has approximately 1,000 employees and contractors, up from about 15 employees when he joined the company.

TRX Gold has roughly 327 million shares outstanding, no debt, and between $27 million and $30 million in cash as it executes its expansion program, Mullowney said. The company is listed in New York and Toronto under the TRX ticker.

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.

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