Latest news with #BankofTanzania
Yahoo
6 days ago
- Business
- Yahoo
TRX Gold Corp (TRX) Q3 2025 Earnings Call Highlights: Strong Financial Performance Amid ...
Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TRX Gold Corp (TRX) reported strong financial results for Q3 2025, with increases in revenue, gross profit, and net income compared to previous quarters. The company has successfully expanded its processing capacity to 2,000 tons per day and plans further expansions to 3,000-4,000 tons per day. TRX Gold Corp (TRX) has a robust PEA with a $1.2 billion NPV at $3,000 gold, indicating significant potential value. The company is self-funding its growth and has a straightforward business plan to expand operations and develop underground mining. TRX Gold Corp (TRX) has entered into an agreement with the Bank of Tanzania to sell a portion of its gold production locally, benefiting from a reduced royalty rate. Negative Points The company is currently facing challenges with negative working capital, which it aims to rectify in the short term. There are concerns about the joint venture agreement with Semenko, which is less favorable compared to other jurisdictions. The company is reliant on short-term liquidity lines to finance long-term assets, which may pose financial risks. TRX Gold Corp (TRX) has not yet fully optimized its plant operations, with ongoing efforts to improve recovery rates and processing efficiency. The market has not yet fully recognized the company's potential, as reflected in its stock price not appreciating as much as some non-producing juniors. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with TRX. Q: During the quarter, we saw a 25% oxide and 75% sulfide mix in throughput. How do you expect this to trend in the coming quarters? A: Steven Maloney, CEO: We aim to reduce the oxide percentage as we install a pre-leach thickener by the end of this calendar year, which will allow us to process more sulfides and improve head grade by about 0.3 to 0.4 grams. Q: Can you provide more details on the recovery improvements and the timeline for these enhancements? A: Richard Goffy, Technical Expert: We are working on achieving a stable grind size of 75 microns, which will improve recovery. The flotation plant and associated fine grinding are expected to be operational by FY 2027, leading to significant recovery improvements. Q: With the current strong gold price environment, what are the main challenges to increasing annual production beyond 62,000 ounces? A: Richard Goffy, Technical Expert: The main bottleneck is the mill capacity. We plan to ensure our SAG mill has extra capacity to potentially increase throughput beyond 3,000 tons per day. Underground expansion will require additional declines and optimization studies. Q: Why not sell 100% of your production to the Bank of Tanzania given the reduced royalty rate? A: Michael Clo, CFO: While we have the option to sell more than the 20% minimum, we still require some US dollar revenue for expenses. Additionally, the Bank of Tanzania's refining capacity is currently limited, but we may increase sales to them as they improve. Q: How do you plan to address the market's concerns about your working capital and joint venture agreement? A: Steven Maloney, CEO: We are focused on normalizing our working capital and improving our financial metrics. Additionally, we are in discussions with the Tanzanian government to revise our joint venture agreement to be more favorable, which should help improve market perception. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
7 days ago
- Business
- Business Insider
Gold dethroned as tourism emerges Tanzania's top export earner
Tourism has officially overtaken gold as Tanzania's top foreign exchange earner, marking a historic milestone in the country's economic rebound from the pandemic. Tourism has become Tanzania's top foreign exchange earner, surpassing gold. In the year ending May 2025, tourism revenue reached $3.92 billion, contributing 55.1% to service-related earnings. A rise in international tourists to over 2.17 million drove this growth in the sector. Tourism has officially overtaken gold as Tanzania's top foreign exchange earner, marking a historic milestone in the country's economic rebound from the pandemic. The Bank of Tanzania's June 2025 Monthly Economic Review shows that tourism generated $3.92 billion in the year ending May 2025, up from $3.63 billion the year before, now making up 55.1% of all service-related earnings. The earnings placed tourism just ahead of gold, which brought in $3.83 billion over the same period. A surge in international arrivals played a central role in the sector's rise, with visitor numbers reaching 2,170,360, up from 1,961,870 in the prior period. Policy reforms support sector expansion President Samia Suluhu Hassan has played a central role in promoting Tanzania's tourism sector, with her administration introducing targeted policy reforms aimed at easing operational constraints and driving industry growth. On July 8, 2025, the central bank granted tour operators partial exemptions from certain foreign exchange controls, a move widely praised by industry stakeholders. The new exemptions allow tourism operators to use foreign currency for two key purposes: paying for services on behalf of non-resident tourists and acquiring specialised tourism vehicles from local suppliers. The central bank's decision reflects an effort to ease operational bottlenecks while maintaining broader currency stability. The move also signals a broader strategic commitment to tourism as a cornerstone of Tanzania's economic development. With world-renowned attractions like Mount Kilimanjaro, Serengeti National Park, and the beaches of Zanzibar, the country is steadily carving out its place as a top choice for global travellers. Tanzania's appeal as a tourist hotspot continues to grow, with the country earning top honours at the 2024 World Travel Awards, including Africa's Leading Destination and the World's Leading Safari Destination.
TimesLIVE
03-07-2025
- Business
- TimesLIVE
Tanzania central bank cuts policy rate by 25 basis points
Tanzania's central bank lowered its benchmark interest rate by 25 basis points to 5.75% in a decision announced on Thursday. The Bank of Tanzania targets inflation of 5%, and consumer inflation has hovered around 3% since it launched its policy rate in January 2024. The East African country's government sees economic growth rising to 6% this year, up from 5.5% last year, helped by the start of electricity generation at the Julius Nyerere hydropower dam. President Samia Suluhu Hassan's administration has been pushing ahead with large-scale infrastructure projects like the dam and a railway network ahead of elections due in October.
The Star
03-05-2025
- Business
- The Star
Tanzania's central bank bans use of foreign currency for local transactions
DAR ES SALAAM, May 3 (Xinhua) -- Tanzania's central bank said in a statement late Friday that it has prohibited the use of foreign currency for local transactions and payments. The Bank of Tanzania (BoT) said under regulations issued by the government in 2025, pricing and payment for all goods and services within the country must be made in Tanzanian shillings. The statement, signed by BoT Governor Emmanuel Tutuba, said the regulations also specify transactions that are permitted to be conducted in foreign currency. It said foreigners, including tourists, are required to exchange foreign currency at commercial banks or exchange bureaus in Tanzania. They can still pay with bank cards or other digital methods. The BoT also urged the public to report any violation of these regulations to the central bank through the Financial Intelligence Unit, the police, or any other law enforcement authority for appropriate action.
Zawya
04-04-2025
- Business
- Zawya
Tanzania central bank holds key rate, eye on global trade
Tanzania's central bank on Friday kept its key interest rate unchanged at 6%, saying that while inflation was under control global trade tensions posed a risk. It was the fourth monetary policy meeting in a row that the rate was maintained. "Maintaining the central bank rate will help to minimise negative spillover effects of trade tariffs and geopolitical conflicts on the economy," central bank deputy governor Yamungu Kayandabila told a press conference. This week U.S. President Donald Trump unveiled far-reaching tariffs that have triggered a plunge in world financial markets and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalisation. The Bank of Tanzania targets inflation of 5%, and consumer inflation has hovered around 3% since it launched its policy rate in January 2024. The East African country's economy is projected to grow about 6% this year, from an estimated 5.4% in 2024, its finance minister and central bank governor said in November. Kayandabila said the country's foreign exchange reserves stood at around $5.6 billion, enough to cover imports for four-and-a-half to five months. (Reporting by Nuzulack Dausen Writing by George Obulutsa Editing by Alexander Winning and Peter Graff)
