Thanks as always.
TXG is a small-cap gold producer with assets located in Mexico. TXG has generated decent cash flow over the last few years with strong organic growth. The company has been reinvesting heavily back into the business through capital investment. Therefore, TXG does not pay any dividends or repurchase shares yet. The company has been on really strong momentum recently, given the tailwind from high gold prices and strong operating results.
In Q4-2024, TXG reported good results; the company managed to achieve annual production guidance for a sixth consecutive year. TXG produced 452,523 ounces for FY2024, which was within the already upwardly revised guidance range of 450,000 to 470,000 (previous guidance was 400,000 to 450,000 oz). TXG reported an EBITDA of $154M, an 8% growth from last year of $142.6M. TXG has a strong balance sheet with minimal net debt and is currently trading at 9.4x Forward P/E. With solid momentum and a strong gold price, we think TXG’s risk/reward at the current price is attractive.