Thor Explorations Sees Profit Surge Amid Record Gold Prices

3 min read | August 23, 2024 12:00 AM EDT | By Team Kalkine Media

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Thor Explorations Ltd, a company in the gold mining sector, https://kalkinemedia.com/ca/stocks/metal-and-mining reported a significant increase in its second-quarter profits, buoyed by strong gold prices. The company recorded a 90% rise in profits, supported by its gold production at the Segilola gold mine in Nigeria.

During the three-month period, Thor sold 23,588 ounces of gold at an average price of US$2,309 per ounce. The company’s strategic use of high-grade stockpiles helped to keep cash costs at US$585 per ounce, with an all-in-sustaining cost (AISC) of US$802 per ounce.

Key Financial Metrics

Thor Explorations (TSX:THX) second-quarter revenues rose to US$53.8 million, up from US$41.3 million in the previous quarter. The company’s profits also saw a notable increase, reaching US$37.6 million, compared to US$25.6 million in the same period last year. Net profits for the quarter amounted to US$27.5 million, up from US$14.4 million.

For the first six months of the year, Thor’s net profits more than doubled to US$39.9 million, compared to US$17.4 million in the prior-year period. The company also reported a reduction in net debt, which decreased to US$2.7 million by the end of the second quarter.

Operational Highlights and Outlook

Thor Explorations highlighted its operational achievements during the quarter, particularly the commissioning of various plant upgrades at the Segilola mine. The company achieved a recovery rate of 94.6%, marking the highest level of gold pouring in the last five quarters.

The company has initiated a 12,000-meter drilling program aimed at exploring the potential extension of gold mineralization beneath the Segilola ultimate open pit. Results from this drilling campaign are expected to be shared in September 2024.

Additionally, Thor acquired the Douta West license during the quarter and completed a 15,000-meter drilling program at the Douta project. The company is currently awaiting the remaining results from both Douta and Douta-West.

Revised Production Guidance for 2024

Looking ahead, Thor has revised its production guidance for the full year, now expecting to produce 90,000 ounces of gold in 2024. This adjustment follows an incident in July, where a fly rock event occurred, leading the company to prioritize the health and safety of its local community and employees. Consequently, AISC estimates for the year have been adjusted to between US$900 and US$1,000 per ounce.

Potential for Future Dividend Growth

While Thor Explorations has adjusted its production outlook for the remainder of the year, the company remains focused on operational efficiency and cost management, which could support its long-term financial health.

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