Thor Mining PLC (LON:THR) reassured investors following a 50% drop in its share price by saying it remains well-funded to support work programmes and has seen “considerable progress” across key projects.
The group has seen its market value fall from £25mln in early February to just under £13mln today amid challenging conditions in the junior resource sector and in the wake of the administration of UK broker Beaufort Securities.
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In a letter to shareholders, Thor chairman Mick Billing insisted that the decline in the company’s market capitalisation does not correlate with the progress that it has achieved over the past four months.
“We recognise that the company has entered the development phase of projects, rather than exploration which tends to deliver a more emphatic rate of news flow during the project study process,” Billing said.
“As a result, the time and concentration of the company for some weeks and months has been the progression of longer tail studies and, in the case of Molyhil, the study has taken longer than anticipated.”
“In light of the above I wanted to provide some reassurance in a number of areas within our business and summarise the current position of the company.”
He said the company has sufficient cash to cover planned work programmes and working capital requirements until well into 2019.
Thor is pushing ahead with a definitive feasibility study for the Molyhil tungsten project in Australia’s Northern Territory, a scoping study at the Pilot Mountain tungsten project in Nevada, US, and development work at the Kapunda copper project in South Australia.
Billing said the group aims to deliver “considerable valuation uplifts” for the three key projects, which have already achieved “considerable progress”.