Thor Explorations Share Discussion Threads

[ukgeorge] 26/4/2024 12:50

Just bought 13,300 and 33,300 more at 15p

Hopefully heading back in the right direction.

[stevea171] 19/4/2024 17:14

Later this quarter and Q3 we should start to see drill results coming through from:
Segilola near mine and deep drills beneath the pit,
Douta and the newly acquired adjacent licence,
and the Lithium licences with a 4,000m drilling programme commencing in May, including a geochemical anomaly of approximately 1.2km.

[ukgeorge] 19/4/2024 12:07

IGindex wont let you go long this stock.

[ukgeorge] 19/4/2024 10:29

yes, they likely made around $18M last quarter.

This quarter should be great we should produce something like 24k oz (if the 8koz per month can be maintained) could have a margin conservatively of 1200/oz so could be a whopper of a quarter coming up

[stevea171] 19/4/2024 10:26

Segun is always very conservative unlike a lot of management of other companies.
So he is not assuming these elevated gold prices will remain although we all hope and expect they will ....!

[swanvesta] 19/4/2024 10:15

At AISC of $1100-1200/oz I would expect them to have significantly more than $8m for debt repayment and capital projects. Something more like $25m?

[ukgeorge] 19/4/2024 10:15

He comes across very well. Everything seems to be heading in the right direction and clearly making some good money at these prices.

[stevea171] 19/4/2024 09:50

Segun says another $7-8 million will be paid off the outstanding senior debt facility of $15 million at the end of June leaving a balance of only c. $8 million which should be cleared in H2 leaving Thor debt free.

Repayments and interest on the loan are near ending which will allow all cash generation to be used for company projects and company development.

[swanvesta] 19/4/2024 09:19

Thanks. 8,400oz for the remaining months to reach low end guidance. 8,900oz for top end.

[stevea171] 18/4/2024 20:09

Plant upgrades were in progress Q4/23 but it seems further upgrades carried over into this quarter. To increase efficiency and allow draw down of gold in circuit. The plant build was probably a stripped down version to save on capex when raising capital was difficult but now funds are available to upgrade.

March production was 8,200 oz which is 98k oz annual run rate to fit with guidance for this year.

Q4/23 production report:
Successfully upgraded process plant elution and electrowinning system.

“We expect that the successful completion of the west wall push back and the improvements made to the processing plant will allow the mine to operate more efficiently whilst also making accelerated drawdown of the current high levels of the gold in circuit through the course of the year.

Q1/24 production report:
Successfully upgraded and commissioned three additional CIL tanks in the process plant with drawdown of excess gold in circuit successfully commenced in March 2024.

In March, over 8,200 ounces of gold was produced which included the start of the drawdown of the gold in circuit. We look forward to maintaining an increased level of production for the remainder of the year in parallel with continued drawdown of the gold in circuit.

[swanvesta] 18/4/2024 10:18

I haven't been here long so would appreciate if anyone could correct me on the following:

1. Were the production issues due to plant upgrades in Jan/Feb flagged at all? I'm a bit surprised they had to upgrade a plant they only commissioned a couple of years ago.

2. Grades remain low vs feasibility study, even though a leaner period was predicted. Hopefully they pick up to spec.

Anyway, 24 guidance was maintained and the market seems to be happy to be offered a discount this morning.

[divmad] 17/4/2024 12:57

This is depressing. Even a $2400 pog does absolutely nothing for the share price or valuation here.

[swanvesta] 03/4/2024 12:49

Is it just me or are they giving away rather a lot with these 5% and 10% perpetual free carries?

[stevea171] 02/4/2024 10:12

It's likely significant gold resource will be discovered beneath the open pit with this first ever deep drilling at Segilola due to start this quarter. If the drilling proves up another 300k oz at a decent grade this would add a further 3 years to the mine life without taking into consideration potential resources being drilled at satellite deposits within trucking distance of the mine.

Initial budget of $4 million for 2 rigs deeper drilling near the pit and another rig for satellite prospects near mine. Results will be given out from Q2 onwards.

Watch for these drill results as they come in.

In themselves they could near double the valuation as the discount for a perceived short mine life is removed.

Canaccord: A further 5p to be added to the valuation per year of mine life extension (1-2 years expected) from Q2 drilling.

[aberloon2] 02/4/2024 08:53

Hadn’t noticed Thor before and they seem to beat most small gold miners on AIM in terms of revenue.

[royalalbert] 22/3/2024 20:31

Must be worth more than 13p you would have thought.

[stevea171] 22/3/2024 10:21

New Crux Investor interview 21/3/24 with Segun. 23 mins.


Thor Explorations - Surging Cash Flow, Debt Paydown and Exploration Upside for 2024

2024 is called year of delivery. After doing the hard yards last year, Thor have confirmed that they are now mining the relatively high-grade ore body, which means they'll be averaging 4+ g/t for the next few years in the open pit. At nameplate, the mine should produce about 100,000 oz per annum, with a reduced ASIC due to the higher-grade mining.

With AISC guidance of $1100-1200 and current gold prices they're making $1,000 an ounce of free cash flow, equating to $100 million free cash per year. Segun expects $300 million free cash over the next three years which clearly gives Thor an awful lot of options going forward.

Thor expects to fully repay its $22 million in debt by the end of 2024, with large debt repayment already at the end of March of $8 million, leaving the company with a clean balance sheet and strong cash flows to fund growth initiatives.

Douta. Segun has now said that they have found and are about to drill more oxide targets in Q2, which should add to the commerciality and profitability of the resource. The PFS is pushed back beyond Q1/24 to as soon as possible thereafter due to additional metallurgical testing - oxide, transition, sulphide ores. Waiting to hear back from the Labs (incl Australia) for confirmation of the process flow sheets they are using. There's a lot of detail in the PFS. If it's decided to follow with a Bankable DFS then a lot of the work for this has already been done.

Q2 drilling for more oz at Segilola and lithium exploration. Initial budget of $4 million for 2 rigs deeper drilling near the pit and another rig for satellite prospects near mine. Results will be given out from Q2 onwards.

[loganair] 19/3/2024 13:52

LB - If any spare cash going I much prefer a small dividend rather then a share buy back as on the whole I'm not in favour of share buy backs.

[loganair] 19/3/2024 13:51

Gold production expected to be up by between 10% and 20% in 2024 compared to 2023 while both AISC and debt going down.

[lord buffett] 11/3/2024 20:00

From memory, I seem to remember Segun saying that Thor will have paid-off their outstanding debt towards the end of H1 this year.

Another really value accretive move would be to buy-back some shares, which would not only support/increase what is a historically low share price (on a prospective p/e of possibly less than 1!), but also enhance any potential dividends per share in future years when I foresee the company having grown into something much bigger.

(The caveat around buy-backs is that they may not currently have the mandate/authority to do; I simply don't know.)

[ukgeorge] 11/3/2024 19:00

Be nice to see debt reduced to zero.

If I were a gold company I would be hedging this gold price ($2180) lock in say 50% for the year.

[royalalbert] 11/3/2024 16:18

Gold at 2184 come on #THX after AISC we are shifting around $1000 an ounce, production for this quarter forecast 20,000oz, mental share price.

[stevea171] 10/3/2024 21:50

Gold $2178. How high will gold and silver go? We could see gold and silver blow vertical soon. Gold was not allowed to go above $2,100 per ounce, and silver is not allowed to go above $26. . . . As long as the dollar is the world reserve currency . . . this control mechanism has stood.

When the dollar loses its world reserve currency status, gold and silver are going to blow vertical. Silver could go up three-fold in a single day, and that only starts the biggest bull market with gold and silver in history.”

“You cannot stop what is coming. The US dollar will be dethroned as the world’s reserve currency. Billionaires are front-running this trade. You can see it visually with Bitcoin. . . . Bitcoin is front-running what gold and silver are about to do this year. It will be much sooner than later. I think it could begin in March and into April. We are going to see gold and silver do a huge catchup game to what Bitcoin has been doing for years.”

Bitcoin is up 55% in the past month from $45,000. Keep in mind, when Bitcoin first started, it sold for less than a dollar per unit, and now, it's at an all-time high eclipsing its previous high of $60,000 in 2021. It has just touched $70,000.