Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has hailed a 'milestone' second quarter as it reported a net profit of over US$6 million after reaching commercial production from its flagship Segilola gold mine in Nigeria, while revenues came in at US$66.2 million
The miner said 23,785 ounces of gold had been generated from the mine in Osun state in the three months to June 30, 2022, and it sold 22,172 ounces of gold and 1,351 ounces of silver in the period. The company had a further gold dore inventory of 2,065 ounces on hand, with 6,069 ounces in transit which have all been sold in the current (third) quarter, it added.
"This has been a milestone quarter for the company, generating a net profit of over US$6m for the period," Segun Lawson, the CEO of Thor Explorations told investors in the results statement.
READ: Thor Explorations reports 11% gold production increase from Segilola mine in second quarter
"We are pleased to have completed another strong quarter at the upper end of our guidance, improving on our performance in the first quarter of the year," Lawson added.
The CEO noted that the period also saw the company repay its largest scheduled debt repayment, reducing its facility by 29% in the first six months of commercial production.
The company also bolstered its Environmental, Social and Governance (ESG) credentials and appointed its acting chief financial officer of the last three months Chris Omo-Osagie into the role permanently.
"We have also continued to prioritize our Environmental, Social and Governance efforts in and around the local communities and have funded a range of projects as agreed in our Community Development Agreements," Lawson said.
Thor Explorations noted that it had funded a range of livelihood restoration programs to aid the locals who lost assets (crops and trees) within the mine's footprint and said it has supported women's programs, school scholarships for children from vulnerable families and road upgrades.
In terms of processing, the mill feed grade in the second quarter was 3.66 grams per ton (g/t) gold and recovery was 95.5%, up from 94.1% in the first quarter of the year.
In June this year, the process plant continued to operate above design mill throughput, with 87,021 tonnes of ore processed at an average head grade of 3.88g/t and an overall gold recovery of 95.5%, the firm added.
On the back of the performance, the company has further revised its 2022 production guidance to between 90,000 and 100,000 ounces of gold (from 85,000 to 100,000 ounces previously) with an all-in-sustaining cost (AISC) of between US$850 and US$950 per ounce.
Thor Explorations also said it was advancing its exploration programs across the portfolio, and advancing its Douta project to a preliminary feasibility study (PFS).
As of June 30 this year, the company had cash of around US$5 million compared to US$1.2 million at the end of 2021.
Thor Explorations is focused on mineral properties in Nigeria, Senegal and Burkina Faso. It holds a 100% interest in the Segilola gold project in Osun State, Nigeria and has a 70% economic interest in the Douta Gold Project in south-eastern Senegal.
Contact the author at giles@proactiveinvestors.com