Canaccord Genuity (TSX:CF, LSE:CF) analysts responded positively to new operational numbers from Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF), which released figures from its Segilola gold project this week.
Total gold production came in at 7,220 ounces during the month of March, taking production for the first quarter of the year to 21,343 ounces. Recovery in March averaged 95.1% with average recovery for 1Q at 94.1%.
In a note, Canaccord said that the results were in line with its expectations, putting the mine on track to achieve the top-half guidance range of between 80,000 to 100,000 ounces for the year.
READ: Thor Explorations says Segilola Gold Mine in Nigeria continued operating at a steady state in March 2022
“We expect production to increase throughout the year as head grades rise and recoveries improve to around 96% by year-end,” Canaccord analysts wrote.
“(The) announcement provides further comfort that the mine’s earlier commissioning issues appear to be ironed out, with the operation set to top (or beat) guidance.”
The analyst firm noted that gold sales of around 17,000 ounces were lower than production, which it attributed to a timing issue between quarters. Sales occur around two weeks after production due to customs and export approval, Canaccord said.
The firm added it expects the timing to “significantly improve” as Thor seeks bulk approval for shipments.
Canaccord has a 'Buy' rating on Thor shares, which were up over 10% at C$0.32 in Monday trading in Toronto.
Thor owns the Segilola gold mine in Nigeria as well as assets in Senegal and Burkina Faso.
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