Thor posts strong first half, lowers full-year production guidance

Gold explorers and miner Thor Explorations reported a solid first-half performance on Friday, although it lowered its full-year production guidance.

The AIM-traded firm said its revenue reached $53.8m in the second quarter, up from $41.3m a year earlier.

For the first half, revenue totalled $87.1m - a 7% increase from $81.7m in the same period last year.

The company sold 23,588 ounces of gold in the second quarter at an average price of $2,309 per ounce, maintaining a low cash operating cost of $585 per ounce and an all-in sustaining cost (AISC) of $802 per ounce.

Thor's profitability also saw a substantial rise, with second-quarter net profit at $27.5m, nearly doubling from $14.4m year-on-year.

First half net profit stood at $39.9m, compared to $17.4m a year earlier.

The company said it made progress in reducing its debt, paying down $7.9m on its senior debt facility, leaving a balance of $6.5m, expected to be fully repaid by year-end.

At the Segilola Gold Mine, Thor produced 21,742 ounces of gold in the second quarter, contributing to a total of 40,285 ounces for the first half.

The mine achieved a high mill feed grade of 3.42 grams per tonne and a recovery rate of 94.6%.

Its stockpile increased significantly, providing flexibility for future production.

Thor also completed a plant upgrade at Segilola, which improved operational efficiency, and initiated a 12,000-metre drilling program targeting potential underground gold resources.

The company said it planned to release initial drill results in September.

Thor also continued its exploration efforts across its properties.

In Nigeria, regional exploration, including stream sediment and soil sampling, yielded promising results.

Senegal meanwhile saw the acquisition of the Douta-West Licence, which would be integrated with its existing Douta Project.

Drilling at Douta and Douta-West progressed, with metallurgical testing underway.

Thor said it planned to update the Douta Project resource and complete a preliminary feasibility study by the fourth quarter.

The company revised its 2024 production guidance to 90,000 ounces of gold, with a lower AISC guidance of $900 to $1,000 per ounce.

It said it would continue its exploration programmes, and advance the Douta Project towards an updated resource estimate and preliminary feasibility study, while also pursuing new concessions and joint venture opportunities.

“We are pleased with the company's operational performance for the second quarter and first half of 2024, where our financial performance has continued to improve year-on-year and we once again made a material paydown of our senior debt facility,” said president and chief executive officer Segun Lawson.

“With gold prices continuing to rise over the quarter, second quarter revenue has increased by 30% compared to 2023, generating a record net profit of $27.5m for the period - an impressive increase of 91% compared to the second quarter of 2023.

“The company has reduced its senior debt to $6.5m, which is scheduled to be fully repaid this financial year.”

Lawson said the firm also made progress on its payables, making a $6.4m reduction in the period.

“Looking ahead to the rest of the year, we have reduced our production guidance to 90,000 ounces for 2024.

“This reduction comes following a fly rock incident in July and a corresponding prioritisation of the health and safety of our local community and employees as we mine in the southern areas of the pit.”

At 1148 BST, shares in Thor Explorations were up 23% at 18.45p.

Reporting by Josh White for Sharecast.com.