TRX Gold shareholders approve board appointments

TORONTO - TRX Gold Corporation (TSX: TRX) (NYSE American: TRX), a mining company advancing the Buckreef Gold Project, announced the results of its Annual General and Special Meeting held on February 27, 2025. The company reported that shareholders voted in favor of all proposed resolutions, including the appointment of five directors and the approval of the company’s Omnibus Equity Incentive Plan and continuance to the jurisdiction of British Columbia. According to InvestingPro data, TRX Gold has demonstrated strong operational performance with revenue of $44.28M and an impressive gross profit margin of 49% in the last twelve months.

John McVey, former CEO of Procon Mining & Tunnelling, was welcomed to the board as its newest member. McVey brings extensive experience in engineering and construction, having held various roles at Bechtel and Bantrel, and is also involved with other mining companies. Stephen Mullowney, CEO of TRX Gold, expressed confidence in McVey’s ability to contribute to the company’s growth.

The meeting saw a 43.98% turnout of common shares, with the number of directors set at five and the reappointment of auditors Dale Matheson Carr-Hilton Labonte LLP. The votes for director appointments ranged from 97.17% to 98.26% in favor. The Omnibus Equity Incentive Plan was renewed with 87.85% approval, and the continuance to British Columbia jurisdiction received 96.48% approval.

TRX Gold is focused on increasing gold production at the Buckreef Gold Project to create shareholder value. The project has a reported Mineral Resource of over 2 million ounces of gold in the Measured and Indicated categories and an additional 635,540 ounces of gold in the Inferred category. The company aims to use positive cash flow from increased production for further exploratory drilling and project development. Financial metrics from InvestingPro indicate positive momentum, with revenue growth of 16.5% and EBITDA of $17.38M in the last twelve months. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The company’s actions are guided by strong environmental, social, and corporate governance standards, as evidenced by its long-standing presence and community programs in the Geita Region of Tanzania. This announcement is based on a press release statement from TRX Gold Corporation.

In other recent news, TRX Gold reported its financial results for the first quarter of fiscal year 2025, highlighting a revenue of $12.5 million and a net income of $2.1 million, which translates to $0.00 per share. This marks a significant improvement compared to the same quarter last year, where the company recorded $9.4 million in revenue and a net loss of $39,000. The revenue growth of 33% year-over-year was largely due to an increase in the average realized gold price, which rose by 37% to $2,653 per ounce. However, gold production slightly decreased by 2%, with 4,841 ounces of gold poured during the quarter.

TRX Gold’s total costs of sales were $7.7 million, resulting in a gross profit of $4.8 million and a gross profit margin of 39%. The company followed a planned mine sequencing strategy, processing lower-grade ore in preparation for higher-grade production anticipated in the latter half of fiscal year 2025. Looking ahead, TRX Gold’s management expects gold production in FY2025 to exceed the levels of FY2024, supported by the expanded processing plant operating at a capacity of 2,000 tonnes per day.

In analyst updates, H.C. Wainwright adjusted its price target for TRX Gold, reducing it to $1.00 from $1.50, while maintaining a Buy rating on the stock. This adjustment followed the company’s recent financial performance announcement.

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