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Gold explorer and miner Thor Explorations (LSE:THX) reported strong performance for the first half of the year, despite a reduction in its full-year production forecast.
For the second quarter, Thor Explorations generated $53.8 million in revenue, up from $41.3 million in the same period last year. Revenue for the first half of the year reached $87.1 million, marking a 7% increase from $81.7 million in the previous year.
During the second quarter, the company sold 23,588 ounces of gold at an average price of $2,309 per ounce. The cash operating cost was maintained at $585 per ounce, with an all-in sustaining cost (AISC) of $802 per ounce.
Net profit for the second quarter surged to $27.5 million, nearly doubling from $14.4 million a year ago. For the first half of 2024, net profit amounted to $39.9 million, compared to $17.4 million in the same period the previous year.
Thor Explorations also made significant strides in reducing its debt, repaying $7.9 million of its senior debt facility, leaving a balance of $6.5 million, which is expected to be fully cleared by the end of the year.
At the Segilola Gold Mine, the company produced 21,742 ounces of gold in the second quarter, contributing to a total of 40,285 ounces for the first half. The mine reported a high mill feed grade of 3.42 grams per tonne and a recovery rate of 94.6%. The stockpile at Segilola increased notably, enhancing future production flexibility.
The company completed a plant upgrade at Segilola, which improved operational efficiency, and initiated a 12,000-metre drilling program to explore potential underground gold resources. Initial drill results are anticipated in September.
Thor continued its exploration efforts, with regional exploration in Nigeria yielding promising results. In Senegal, the company acquired the Douta-West Licence to integrate with its Douta Project. Drilling and metallurgical testing at Douta and Douta-West are progressing, with plans to update the Douta Project resource and conduct a preliminary feasibility study by the fourth quarter.
Production guidance for 2024 has been revised to 90,000 ounces of gold, with a reduced AISC forecast of $900 to $1,000 per ounce. The company will continue its exploration programs and advance the Douta Project towards an updated resource estimate and feasibility study, alongside pursuing new concessions and joint ventures.
Segun Lawson, President and CEO of Thor Explorations, expressed satisfaction with the company’s operational performance, noting a 30% increase in second-quarter revenue and a record net profit. The reduction in production guidance, he explained, is due to a fly rock incident in July and a focus on health and safety for the local community and employees. Shares in Thor Explorations rose by 23% to 18.45p at 1148 BST.
