Motley Fool highlights miner TRX Gold as a 'leveraged play on gold prices'
This comes as gold hits new highs
TRX Gold stands to benefit from rising gold prices, says a Motley Fool analyst. / Photo: TRX Gold
Gold investors who are optimistic about the yellow metal may want to take a closer look at TRX Gold Corporation, a small Canadian gold miner listed in New York, argues Motley Fool analyst Courtney Carlsen. The company’s revenue and working capital are growing, as is its stock price, which has climbed 208% over the last six months. At the same time, TRX Gold remains a speculative investment whose value is directly tied to gold prices, Carlsen warns.
Details
Carlsen advises investors who are optimistic about gold’s prospects to pay attention to TRX Gold shares. Rising prices for the precious metal have supported the company’s revenue growth and allowed it to generate positive cash flow, he writes.
Gold prices rose 87% in 2025, according to the Motley Fool article, supporting the company’s recent financial performance. In the first quarter of fiscal 2026, ended November 30, TRX Gold’s revenue doubled year over year to $25.1 million, while operating cash flow increased 67% to $4.0 million.
Risks
TRX Gold is a speculative asset whose value is directly tied to gold prices, Carlsen cautions.
As gold prices rise, the company’s revenue increases while costs remain broadly unchanged, which supports higher profitability. In the first quarter of fiscal 2026, TRX Gold’s EBITDA margin increased year over year by 17.3 percentage points to 52.5%. “While this benefits it during periods of rising gold prices, it can also hurt the miner if gold prices fall sharply,” Carlsen writes.
Another risk highlighted by the analyst is asset concentration. TRX Gold operates a single mine in Tanzania, meaning technical equipment failures, adverse weather, or disputes with local authorities could expose the company to political and operational risks, Carlsen notes. During a January conference call, Khalaf Rashid, managing director of TRX Gold in Tanzania, said that the country had been "going through a difficult period" but that "things are normalizing."
Stock performance
TRX Gold shares have risen 256% over the last 12 months.
The stock gained 14% to $1.29 per share in morning trading Monday, January 26, after gold prices climbed above $5,100 per troy ounce ever.
The company currently has three analyst ratings, all “buy,” according to MarketWatch data. The average target price is $1.60 per share, implying upside of about 40% versus the Friday closing price.
