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Investing.com - H.C. Wainwright raised its price target on Tanzanian Gold Corp. (NYSE:TRX) to $1.40 from $1.20 on Wednesday, while maintaining a Buy rating on the stock following the company’s fiscal year results. This target aligns with analyst sentiment, as InvestingPro data shows TRX is currently trading below its Fair Value, with analyst price targets ranging from $0.85 to $1.75.
The gold mining company reported revenue of $57.6 million for the fiscal year, generating net income of $6.6 million. This marks an improvement from fiscal year 2024, when the company posted revenue of $41.2 million and net income of $3.5 million. InvestingPro data confirms this strong 40% revenue growth, with net income expected to continue growing this year.
The revenue growth was primarily driven by higher gold prices, with Tanzanian Gold achieving an average realized gold price of $3,033 per ounce, compared to $2,179 per ounce in fiscal year 2024.
The company generated $16.3 million in operating cash flow, which it used to fund growth initiatives without issuing additional shares to raise capital.
H.C. Wainwright noted that Tanzanian Gold’s ability to fund growth from cash flow demonstrates the company’s operational strength and management’s commitment to building long-term shareholder value.
In other recent news, TRX Gold Corporation reported record quarterly production, achieving 6,404 ounces of gold in the fourth quarter of 2025, marking a 37% increase from the previous quarter. The company also recorded sales of 6,977 ounces during this period, capitalizing on gold prices that averaged around $3,350 per ounce in the fourth quarter and $2,973 for the fiscal year. Furthermore, TRX Gold is expanding its processing plant at the Buckreef Gold Project in Tanzania beyond the initial projections outlined in its May 2025 Preliminary Economic Assessment. The development includes a 3,000+ tonne per day processing circuit for sulphide material and a 1,000 TPD circuit for oxide and transition material. This expansion is expected to surpass the projected annual gold production of 62,000 ounces. Notably, the capital cost for this expansion remains approximately US$30 million, consistent with the original estimates. These developments reflect TRX Gold’s ongoing efforts to enhance its production capabilities and capitalize on favorable market conditions.
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