Proactive Investors - Thor Explorations Ltd (LON:THX) delivered a steady operational and financial performance as it updated the City on its full-year production target from the Segilola gold mine in Nigeria’s Osun State.
For the year's first half, the firm reported gold production figures of 43,707 ounces, with the second quarter yielding 23,078 ounces of the precious metal.
Revenues for the three months ending 30 June 2023 were flat at US$41.3 million but were up to US$81.7 million for the first half from US$66.2 million a year earlier.
Underlying earnings (EBITDA) were US$19 million for the quarter, up from US$17.7 million for the comparable period in 2022, while all-in costs were steady at US$1,230 per ounce. Cash on 30 June was US$11.1 million.
Output for the full year is expected to be 85,000 ounces of gold at an all-in-sustaining cost of US$1,150-US$1,350 per ounce. This is at the lower end of the guided range.
Thor said grade control drilling for the current quarter indicates a lower-than-forecast recovered gold production.
It added the production forecast remains in line with the original target for the final three months of 2023, “with potential upside as mining conditions continue to improve”. However, it said at this point it wants to be prudent in its assessment of prospects.
While the company is looking to extend the life of Segilola, it is also expanding its mineral portfolio.
Via its subsidiary Newstar Minerals Limited, Thor has secured a substantial tract in southwest Nigeria, known for its lithium and pegmatite deposits.
The acquisition encompasses both recognised lithium-bearing pegmatite deposits and a vast, yet-to-be-explored, pegmatite-rich belt.
As part of its initial exploration efforts in the West Oyo region, Newstar Minerals embarked on a drilling program aimed at verifying and mapping out the extent of lithium-rich minerals below the surface.
The preliminary results have been encouraging. The company reported significant concentrations of lithium oxide at various depths. Notably, spodumene emerged as the dominant lithium-bearing mineral, with additional findings of lepidolite in smaller quantities.
"The company is in a good position to advance its projects in the next quarter, with further developments made at its exploration prospects as well as improvements in processing capabilities which should result in improved production. I look forward to updating the shareholders on the developments made in the next quarter,” said chief executive Segun Lawson.