Thor Explorations Ltd's (TSX-V:THX, AIM:THX, OTC:THXPF) Segilola gold mine in Nigeria is on track to meet 2024’s production target after the main operating units performed better than expected in the first quarter.
Gold produced from Segilola in the three months to end-March totalled 19,589 ounces at an average mill grade of 2.85 grammes per tonne and recovery at 90.71%.
Sales in the quarter were 17,420 oz at an average gold price of US$2,033 per oz with a cash operating cost of US$418 per oz sold and an all-in sustaining cost of US$632 per oz reflecting the use of lower-cost medium and high-grade stockpiles.
Due to these much lower costs, underlying profits (EBITDA) jumped to US$23.3 million (Q1 2023: US$14.7 million) with a net profit of US$12.4 million (Q1 2023: US$3.0 million) even though revenues dipped 17% to US$33.3 million.
Net debt at the period-end was US$14.3 million.
A 10,000m exploration programme starts at Segilola in June as part of a plan to produce an underground resource estimate.
At Douta, a development prospect, exploration work is ongoing to double the oxide resource to 500,000oz of gold.
For, the year, Thor expects to produce 95,000 to 100,000 oz, weighted towards the second half of the year, with an AISC guidance of US$1,100 to US$1,200 per oz.
A pre-feasibility study for Douta is also scheduled for the fourth quarter of 2024.
Segun Lawson, chief executive, added: "We are pleased with the Company's performance during the first quarter of 2024 where we completed an improved operational and financially profitable period which included a material paydown of our senior debt facility.
"The main operating units continue to perform better than expected and operate above capacity.
“We expect this to continue through to the end of the year and as such, our guidance remains unchanged, between 95,000 and 100,000 ounces for the year.