TRX Gold Delivered 3 Tanzania Expansions While Government Terms Stay Open

• TRX Gold completed 3 mill expansions at Buckreef on time and on budget, taking the plant from 120 to 2,000 tonnes per day, and is funding a fourth, adding 3,500 tonnes per day from free cash flow.
• Tanzania recorded over US$2 billion of merger, acquisition, and initial public offering deals in 24 months, and TRX Gold sources more than 80% of its procurement in-country.
• Buckreef is held in a joint venture that is 55% TRX Gold and 45% State Mining Corporation, so the fourth expansion is built inside a structure where the 45% government interest is dilutable.
• Tanzania's 2022 framework carries a 16% non-dilutable free-carried interest, and TRX Gold is in constant discussions to move toward a 50/50 economic share with the government.
• Management has given no timeline for a change, which makes the government terms the main open variable in the investment case.

Tanzania Has Hosted 3 On-Time Expansions at Buckreef

TRX Gold Corporation (TSX: TRX | NYSE American: TRX) has built its Buckreef Gold Project in Tanzania through 3 completed mill expansions. Each was self-funded, on time, and on budget; together, they took the plant from a 120-tonne-per-day test plant to 360, then 1,000, and now 2,000 tonnes per day. A fourth expansion, adding 3,500 tonnes per day, is underway and funded by free cash flow. Production grew from 1,836 ounces in fiscal 2021 to 29,650 ounces in fiscal 2026, which met guidance of 25,000 to 30,000 ounces.

Buckreef is held in a joint venture with the government, so the fourth expansion is built inside a 55/45 structure whose terms are still being worked out.

A Mining Sector With Deal Flow, Power & Talent

Tanzania recorded over US$2 billion of merger, acquisition, and initial public offering transactions in the last 24 months, and the gold industry contributes about 10% of gross domestic product (GDP). Mining passed 10% of GDP in 2025, and gold exports were worth US$2.95 billion in 2023, up 39% from 2022.

The inputs for a mine build are available locally. Hydroelectric power, a deep talent pool, and an efficient supply chain built on a long mining history support operators in the country, including Barrick Gold and AngloGold Ashanti. TRX Gold sources more than 80% of its procurement locally and in-country.

Local Content & Government Engagement Run Through the Build

TRX Gold built the plant with local contractors. Chief Executive Officer Stephen Mullowney describes the working relationship with the government:

"We have a good, visible, highly communicative, constructive relationship with the government."

Meetings with the Government of Tanzania on terms and agreements are making progress, and the company works with industry peers and associations toward a more predictable and transparent regulatory environment. Near the project, TRX Gold has built schools and clinics and is increasingly focusing on vocational skills and support for local industries such as subsistence farming.

The Fourth Expansion Runs Through the 55/45 Joint Venture

Buckreef is held in a joint venture that is 55% TRX Gold and 45% State Mining Corporation (STAMICO), the government of Tanzania's mining entity, so the fourth expansion is built inside the same structure. The 45% government interest is dilutable.

The 2025 preliminary economic assessment models a 17.6-year mine life and average production of 61,700 ounces per year at US$4,000 per ounce, so the value split with the government applies across a long-life asset.

The 2022 Framework Offers a Different Structure

Tanzania's 2022 framework works differently. It includes a 16% non-dilutable free-carried interest, and TRX Gold is in ongoing discussions with the government to move toward a 50/50 economic split that accounts for taxes and royalties. The government side of that split would be royalties, taxes, excise taxes, and dividends, and the TRX Gold side would be dividends.

Under the current structure, the Buckreef board controls dividends, and TRX Gold recovers its capital loan first, which applies to the Buckreef cash flow that funds the fourth expansion. Mullowney describes the best outcome as a win-win-win structure that creates value for TRX Gold and the government and leaves room to grow beyond Buckreef, including into new properties.

Management has given no timeline for a change to the 55/45 structure. Mullowney says the outcome depends on the other side.

What Has to Hold for the Fourth Expansion

The Tanzania case depends on 2 things. The first is delivery. The fourth expansion adds a 3,500 tonne-per-day circuit alongside the existing plant, funded from free cash flow, and TRX Gold is targeting operation of the expanded plant around the end of calendar 2027, with a step change in production in fiscal 2028. The existing plant is the source of that cash flow. The third quarter of fiscal 2026 brought record throughput of 1,690 tonnes per day, up 16%, and recovery of 84.9%, up from 67%. Revenue reached US$92.0 million in fiscal 2026 year-to-date, up from US$2.5 million in fiscal 2021, and TRX Gold held US$26.8 million in cash against US$2.9 million in borrowings as of May 31, 2026.

The second is the joint venture structure, because the fourth expansion is built inside it. A move from the current 45% dilutable interest toward the 2022 framework would change how value from the expanded plant is shared between TRX Gold and the government, and it needs the government to agree. Delivery can be tracked quarter by quarter. The terms depend on a counterparty.

Operating news flow should continue in the meantime. TRX Gold expects an updated preliminary economic assessment in the fourth quarter of 2026, and Mullowney puts a larger open pit study toward the end of 2026 or early 2027. The company plans to run 4 to 5 drill rigs over the next 6 months, used partly for grade control and operational drilling as well as exploration.

The Investment Thesis for TRX Gold

• TRX Gold completed 3 mill expansions at Buckreef on time and on budget, which shows the operating base in Tanzania has supported the build.
• Tanzania recorded over US$2 billion of merger, acquisition, and initial public offering deals in 24 months; mining contributes about 10% of gross domestic product, and TRX Gold sources more than 80% of its procurement in-country.
• Tanzania hosts established mining operators, hydroelectric power, a deep talent pool, and an efficient supply chain, which supports the operating base.
• The fourth expansion, adding 3,500 tonnes per day, is funded from free cash flow inside a joint venture that is 55% TRX Gold and 45% State Mining Corporation, and the 45% government interest is dilutable.
• The 2022 framework carries a 16% non-dilutable free-carried interest, and TRX Gold is in constant discussions with the government to move toward a 50/50 economic share.
• Management has given no timeline for a change to the structure, so the terms of the government interest are the main open variable in the investment case.

The case for TRX Gold in Tanzania is one argument. The fourth expansion is funded by a plant that delivered 3 expansions on time and on budget, and it is built inside a joint venture whose government terms are still open. Delivery is in the company's hands, and the terms depend on the other side agreeing, so watch whether TRX Gold reports a change to the 45% dilutable interest or a move toward the 2022 framework while the expansion is built.

TL;DR

TRX Gold completed 3 mill expansions in Tanzania on time and on budget, in a country with over US$2 billion of mining deals in 24 months and more than 80% local and in-country procurement at Buckreef. The fourth expansion is funded from free cash flow inside a 55/45 joint venture with STAMICO, where the 45% government interest is dilutable, the 2022 framework carries a 16% non-dilutable free-carried interest, TRX Gold is working toward a 50/50 economic share, and management has given no timeline for a change.

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