Thor Exploration has maintained its production guidance for the current year at between 85-90,000oz gold weighted toward the second half despite what it says was a challenging first quarter
Sustaining costs will also be in the guidance range of between US$1,150 to US$1,350 per oz, it added, even though grades in the first three months dipped and there were difficult mining conditions in the Segilola Pit west wall.
Sales in the first three months totalled 21,533oz at an average of US$1,902 an oz, generating revenue of US$40.3mln and a net profit of US$4.3mln.
Net debt at the end of the quarter was US$25mln.
Segun Lawson, chief executive, said: “The main operating units continue to perform better than expected and operate above capacity, so our production at the mine totalled 20,629 ounces.
"Our costs were at the higher end of our guidance, however, we expect our costs to reduce materially in the second half of the year as we complete our mining in the current difficult areas.
“We have also had our first significant exploration success outside the Segilola Mine footprint, identifying a new high-grade quartz vein system within 15 kilometres of mine and have already begun expanding exploration with multiple drill hole intercepts.”
Away from Segilola, in Nigeria, Lawson said completion of the preliminary feasibility study for Douta in Senegal is on track for the fourth quarter of this year.