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Tanzanian Royalty Exploration
(NYSE MKT:TRX)
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Rating:64Neutral
Price Target:
C$1.00
▼(-50.25% Downside)
Action:N/A
Date:07/11/26
The score is driven primarily by improving financial performance and a strong, low-leverage balance sheet, reinforced by a positive earnings update with reiterated guidance and strong recent operational results. This is tempered by clearly weak technicals (price below all major moving averages with negative MACD) and valuation uncertainty from a negative P/E and no dividend.
Positive Factors
Low Leverage Balance Sheet
Extremely low leverage (debt-to-equity ~0.05) gives durable financial flexibility, lowering refinancing and liquidity risk. This balance-sheet strength supports funding of expansion from operations or modest credit, and provides a buffer against commodity or operational shocks over the medium term.
Negative Factors
Thin & Volatile Net Earnings
Net margins remain very thin despite strong operating profit, reflecting non-operating costs or one-offs that compress bottom-line returns. Limited net-income buffers increase sensitivity to cost inflation or gold-price declines and constrain internal retained earnings for growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage Balance Sheet
Extremely low leverage (debt-to-equity ~0.05) gives durable financial flexibility, lowering refinancing and liquidity risk. This balance-sheet strength supports funding of expansion from operations or modest credit, and provides a buffer against commodity or operational shocks over the medium term.
Read all positive factors
Tanzanian Royalty Exploration (TRX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$365.04M
Dividend YieldN/A
Average Volume (3M)169.04K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth109.91%
EPS Growth-895.00%
CountryCA
Employees241
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)-0.10
Shares Outstanding325,931,670
10 Day Avg. Volume160,435
30 Day Avg. Volume169,045
Financial Highlights & Ratios
PEG Ratio-0.65
Price to Book (P/B)2.01
Price to Sales (P/S)1.97
P/FCF Ratio44.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.33Price Target Upside65.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.01
Revenue Forecast (FY)C$180.33M
Tanzanian Royalty Exploration Business Overview & Revenue Model
Company Description
TRX Gold Corporation is engaged in the exploration, development, and production of mineral resources, operating exclusively within Tanzania. Its core asset is the Buckreef Gold Project, also situated in Tanzania. The company, originally establishe...
How the Company Makes Money
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Tanzanian Royalty Exploration Earnings Call Summary
Earnings Call Date:Apr 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and financial achievements: record quarterly production, record realized prices, strong revenue, high gross margin (62%), healthy adjusted EBITDA (> $20M for the quarter and annualized > $80M), robust cash and working capital, a sizeable ROM stockpile, an active and prioritized exploration program, and a funded expansion plan with procurement underway. Key near-term headwinds include elevated processing reagent costs (being addressed by an oxygen plant), supply‑chain and construction timing risk for the planned mill expansion, deferral of the main underground plan driven by pit deepening, and ongoing government/JV negotiation uncertainty. Management reiterated guidance, confirmed the capital structure is clean, and emphasized funding expansion from cash flow rather than heavy dilution. On balance, the positive operational momentum, strong quarter-over-quarter performance and clear growth pathway outweigh the listed risks.Positive Updates
Record Quarterly Production
Q2 FY2026 quarterly gold production was a record at just under 7,500 ounces, bringing year-to-date production to ~14,000 ounces and keeping the company on track for full-year guidance of 25,000–30,000 ounces.
Negative Updates
Elevated Near-Term Processing Costs
Processing costs have been higher due to increased reagent use (hydrogen peroxide for oxygenation) to boost recovery. Management expects costs to decline once the dedicated oxygen plant and other upgrades (thickener, ADR, oxygenation) are fully commissioned.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Production
Q2 FY2026 quarterly gold production was a record at just under 7,500 ounces, bringing year-to-date production to ~14,000 ounces and keeping the company on track for full-year guidance of 25,000–30,000 ounces.
Read all positive updates
Company Guidance
Management reconfirmed full‑year 2026 guidance of 25,000–30,000 oz of gold (YTD 14,000 oz; Q2 ~7,500 oz) with cash‑cost guidance of $1,400–$1,600/oz (YTD cash cost $1,507/oz) and said H2 should be stronger; Q2 delivered a record average realized price of $4,655/oz, revenue >$34M, gross profit >$21M (62% margin), adjusted net income ≈$12M and adjusted EBITDA >$20M (annualized >$80M), while YTD revenue is ~$60M and YTD adjusted EBITDA ~$33M (LTM: ~25,000 oz, ~$95M revenue, ~$50M adjusted EBITDA). Balance sheet and liquidity metrics include cash >$26M, ROM stockpile >20,000 oz (fair value >$100M), working capital ~$32M (ratio 2.4x), accounts payable current within 30–45 days and access to credit lines >$12M. CapEx guidance remains $15–$20M (towards the upper end) with exploration budget $3–$5M; management is expediting procurement for a new ~3,500 tpd SAG/ball‑mill circuit (to run additively with the existing ~2,000 tpd plant) with delivery lead times quoted at ~30–40 weeks and commissioning targeted end Q2/start Q3 2027, and processing upgrades (thickener, Aachen reactor, ADR, oxygen plant) are expected to lower processing and reagent costs; the forthcoming PEA update (previous study assumed ~$1,900/oz resource cut‑off and showed ~62,000 oz/yr average, cash costs ~$1,000–$1,200/oz and average revenue ~$250M/yr with average EBITDA ~$176M at $4,000/oz) will be refreshed at a higher gold price (~$3,000/oz).Tanzanian Royalty Exploration Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
79
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Aug 2023 | Aug 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 131.00M | 80.41M | 55.52M | 51.90M | 19.82M | 0.00 |
| Gross Profit | 71.89M | 33.13M | 24.18M | 24.64M | 12.31M | -420.00K |
| EBITDA | 34.11M | 27.68M | 18.24M | 23.23M | -1.69M | -6.27M |
| Net Income | -30.58M | 958.80K | -633.98K | 3.05M | -3.05M | -3.91M |
Balance Sheet | ||||||
| Total Assets | 216.18M | 161.06M | 133.35M | 114.05M | 94.33M | 71.01M |
| Cash, Cash Equivalents and Short-Term Investments | 35.53M | 10.67M | 11.24M | 10.33M | 11.13M | 16.90M |
| Total Debt | 6.31M | 3.86M | 1.81M | 136.80K | 0.00 | 0.00 |
| Total Liabilities | 62.71M | 59.02M | 44.27M | 31.35M | 27.16M | 12.68M |
| Stockholders Equity | 116.22M | 78.67M | 74.06M | 73.01M | 64.07M | 60.26M |
Cash Flow | ||||||
| Free Cash Flow | 1.94M | 3.54M | 2.21M | -623.06K | -12.79M | -20.94M |
| Operating Cash Flow | 34.00M | 22.36M | 20.66M | 23.47M | 3.88M | -9.44M |
| Investing Cash Flow | -34.55M | -19.72M | -18.87M | -24.21M | -18.21M | -8.32M |
| Financing Cash Flow | 27.18M | -3.41M | -843.06K | -409.05K | 7.80M | 29.57M |
Tanzanian Royalty Exploration Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$365.04M | -10.70 | -35.56% | ― | 109.91% | -895.00% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | C$400.97M | -54.50 | -10.34% | ― | ― | -125.00% | |
51 Neutral | C$355.59M | -27.56 | -32.72% | ― | ― | -180.15% | |
47 Neutral | C$620.55M | -135.85 | -5.03% | ― | ― | 19.23% | |
47 Neutral | C$391.30M | -121.13 | -3.50% | ― | ― | -6.78% | |
44 Neutral | C$267.50M | -17.19 | -8.10% | ― | ― | 47.58% |
* Basic Materials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.