Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) told investors that output at its Segilola gold mine in Nigeria had been steady over 2022 as the company posted a set of strong third-quarter operating and financial results.
In the three months to September 30 this year, the miner reported net profit of US$4.1 million on revenue of US$55.7 million.
First gold at the mine in Osun state was poured in July, 2021, and in the latest third quarter, the company said 28,787 ounces (oz) of gold and 1,931 oz of silver were sold. The average mill feed grade during the three months was 3.58 grammes per tonne (g/t) while recovery was 95.5%.
"This has been another outstanding quarter for the company," CEO Segun Lawson told investors in a statement.
He said that over the nine months to end-September, the Segilola mine had "continued to produce at a steady rate, with the company increasing production guidance twice over the last nine months".
READ: Thor Explorations hails latest positive drill results from Makosa deposit at Senegal gold project
He also highlighted that Thor had also repaid another "large sum" of its senior debt facility (US$10.3 million) in the nine-month period and has now reduced the facility by almost half (now stands at US$28.9 million) since commercial production had begun.
"The exploration programmes upcoming across our portfolio provide great potential for the company and I am positive that we have the teams, both managerial and on the ground, to realise the full potential of each project," he added.
The all-in-sustaining cost (AISC) for the operation came in at US$986 per ounce in the quarter, while as at September 30, Thor had cash of US$2.4 million. The net debt stands at US$40.7 million (Q2, 2022: US$47.4 million).
The company is guiding for production in the full year to come at between 90,000 and 100,000 ounces of gold.
Among the other highlights of the third quarter, Thor Explorations also struck a joint venture deal over a further exploration licence in Kwara State, Nigeria, while an initial 1,280 metres of reverse circulation (RC) and diamond drilling was carried out at Segilola.
The company is also continuing to advance its Douta project towards a preliminary feasibility study (PFS).
The quarter saw a total of 824m of RC drilling at the Sambara prospect at the Douta asset completed and gold mineralisation was discovered over around 500m of strike.
Notably, Thor said it continues to fund a range of livelihood restoration programmes, including preparing sites for fish farms and for vegetable nursery farms. It is also involved in community development work included Youth Initiative and Women's Initiative programmes.
Notably, post period-end, the firm completed a full transition from diesel to six megawatt (MW) compressed natural gas generators, reducing Greenhouse Gas Emissions (GHG) by 53%.
The company holds a 100% interest in the Segilola project and has a 70% economic interest in the Douta gold property in south-eastern Senegal.
Contact the author at giles@proactiveinvestors.com