H.C. Wainwright Raises TRX Gold Price Target to $1.10, Maintains Buy Rating

H.C. Wainwright has raised its price target for TRX Gold from $1 to $1.10 and maintains a Buy rating. Analysts forecast an average target price of $1.20 with a high estimate of $1.75 and a low estimate of $0.85, implying an upside of 253.46%. The company has reported a significant increase in grade profile, expanded operations to 2,000 tons per day, and plans further growth, with a Preliminary Economic Assessment indicating strong economic potential. However, challenges include the current share price, timeline for expansion, operational challenges with underground development, and negotiations with the Tanzanian government.

H.C. Wainwright has increased its price target for Tanzanian Gold Corp. (NYSE: TRX) from $1.00 to $1.10, while maintaining a Buy rating on the stock [1]. This move comes following the company's fiscal third-quarter 2025 financial results, which were released on Tuesday. The stock's price target was raised due to TRX Gold's improved working capital position and strong cash flow, factors that contributed to the analyst's decision to increase the target price.

TRX Gold reported revenue of $12.5 million and a net loss to shareholders of $0.2 million for the quarter. These results represent a significant improvement compared to the same period last year, where revenue was $10.1 million and the net loss was $1.7 million. The 23% year-over-year revenue increase was driven by higher average realized gold pricing of $3,122 per ounce, a 39% increase from the previous year.

Despite the revenue growth, the company experienced a slight decrease in overall gold ounces sold, down 12% year-over-year to 3,995 ounces. This decline was partially offset by the positive impact of higher gold prices. TRX Gold began accessing higher-grade ore blocks in late fiscal Q3 2025 after completing its scheduled stripping campaign during the first half of the fiscal year.

Analysts maintain a strong buy consensus on TRX Gold, with price targets ranging from $0.85 to $1.75. This indicates significant upside potential from current levels. The company's Preliminary Economic Assessment (PEA) suggests strong economic potential, with a $1.2 billion net present value at around $3,000 per ounce of gold. The PEA also indicates an average production of 62,000 ounces over 18 years, with a target plant expansion to 3,000 tonnes per day of processing capacity.

However, TRX Gold faces several challenges. The current share price is a concern, and the timeline for expansion remains uncertain. Additionally, operational challenges with underground development and negotiations with the Tanzanian government could impact investor sentiment and share price appreciation. The company has a joint venture structure with STAMICO, which could also affect investor sentiment.

Management has emphasized operational improvements, rising production, and a clear path toward plant optimization and expansion. The company is focused on sustaining growth, executing incremental enhancements, and addressing joint venture and liquidity concerns to position itself for long-term value creation.

In conclusion, H.C. Wainwright's price target increase for TRX Gold reflects the company's strong financial performance and significant upside potential. However, investors should remain cautious about the challenges and risks associated with the company's operations and regulatory environment.

References:
[1] https://www.investing.com/news/analyst-ratings/trx-gold-stock-price-target-raised-to-110-from-100-at-hc-wainwright-93CH-4137538
[2] https://seekingalpha.com/news/4468070-trx-gold-outlines-90m-self-funding-expansion-through-2027-amid-plant-upgrades-and-enhanced