Craig Sutherland's questions to TRX Gold Corp (TRX) leadership • Q4 2024
Question
Asked about the apparent disconnect between the company's strong operational execution (meeting budget and timeline goals) and its poor stock performance, questioning what specific metrics larger investors are looking for and inquiring about the potential for M&A.
Answer
The executive identified several key impediments to the stock price: the unfavorable 55-45 joint venture structure with the Tanzanian government, the stock's 'penny stock' status which deters institutional investors, the company's small market cap in a market favoring large caps, and lingering investor concerns about jurisdictional risk in Tanzania. Regarding M&A, he confirmed they are constantly evaluating opportunities to gain scale and diversity, leveraging their operational expertise in Africa.