TRX Gold Share Price Plunges 4.21% Despite Quarterly Profit Turnaround, Analysts Cite Risks

The share price fell to its lowest level so far this month, with an intraday decline of 4.21%.

TRX Gold’s recent quarterly results highlighted revenue growth and improved profitability, including a reversal from a net loss to a $2.45 million profit. Analysts at H.C. Wainwright maintained a “Buy” rating, with price targets suggesting up to 47.73% upside. The company outlined plans to boost gold production to 25,000–30,000 ounces in 2026, supported by a mill expansion and cost-optimization initiatives. These developments, combined with a debt-to-equity ratio of 3.78%, underscore its low leverage and operational scalability.

Despite positive momentum, risks persist. Gold price volatility, potential delays in the mill project, and regulatory uncertainties in Tanzania could weigh on performance. Recent earnings showed mixed results, with revenue exceeding forecasts but EPS falling short. While long-term guidance projects $97.28 million in 2026 revenue, achieving these targets depends on stable gold prices and execution of strategic plans. The stock’s decline reflects heightened sensitivity to external pressures and profit sustainability concerns.