TRX Gold Corporation's stock is experiencing a decline today following the release of its first-quarter 2025 financial results. Despite reporting a 33% increase in revenue to $12.5 million compared to the previous year, the company's gold production figures showed a slight decrease. TRX Gold poured 4,841 ounces of gold and sold 4,813 ounces, both slightly down from the previous year's figures. The company attributed this to a planned mine sequence that accessed lower-grade ore blocks, resulting in a lower average head grade and recovery rate. This strategic move is part of a broader plan to access higher-grade ore blocks in the latter half of fiscal 2025.
Additionally, the broader market sentiment towards gold may be impacting TRX Gold's stock. Recent reports indicate that gold prices have hit resistance near $2,700, influenced by a 0.2% rise in the U.S. core Consumer Price Index (CPI) in December. This macroeconomic factor could be contributing to the pressure on gold-related stocks, including TRX Gold.
TRX Gold's stock is currently trading at $0.3199, down 3.06% from its previous close of $0.3300 and 5.21% from its opening price of $0.3375.