Thor Explorations Share Discussion Threads

[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.

[stevea171] 01/3/2024 21:30

News. We are due an updated MRE for Douta any day now. Q1/24 is current guidance. This is expected to increase both the resource to c. 2 million oz gold and the average grade.

This is to be followed by the PFS for Douta delayed from Q4/23 to Q1/24 with only a month now left in Q1. With this information in the public domain there will be visibility of the valuation of the asset and development issues and costs. Segun thinks Thor can build a mine there without dilution of shareholders but Endeavour's huge mine, Sabodala, is just trucking distance away from Douta, and other predators incl possibly the Chinese will no doubt take a close interest when this PFS is released.

At the moment Douta is valued at zero in the THX share price which gives the AISC $1150, 100k oz producing mine at Segilola a derisive valuation. THX share price was recently smashed even lower by a further 20% by a large seller wanting out at any price over a 3 day period but the shares are starting to bounce back with likely more on news.

[hamidahamida] 22/2/2024 10:03

Honesty at an EV of GBP65m (10.50p a share) for production of 95000 oz at AISC of c. $1,150/oz in a $2,050/oz environment, and there is bonus of the lithium drill news due soon. 2024 Gold production guidance 95,000 oz and 100,000 oz at an average ALL IN COST of USD1,150/oz. leading the most conservative broker to forecast a USD33m swing in net cash in FY24.That is based on 95000 oz at AISC of $1,150 and a gold price of $2,026/oz.YTD gold price currently running slightly above that level.Douta PFS is due this quarter along with an updated mineral resource estimate. Bringing in a second jurisdiction and so spreading risk. Douta would be another 100000 oz mine.One concern I've had is mine life extension but underground drilling at Segilola starts in H1 2024 on a resource that hasn't been explored at depth.Plus in the Q4 update, some very impressive near-mine results perhaps got missed by many.

[stevea171] 22/2/2024 09:18

Selling in smallish chunks in the last hour or so here yesterday, in Canada over night and now again here this morning. Seems to be one or more distressed holders with limited buyers to soak it all up so crashing the share price

LSE comments:
Last night. The share price is down 8% on something like £12k of sells broken in to about 10 trades so its hardly like a large holder trading in this manor. This is clearly retail as incredibly amateur and very distressed to hit out small trades below bid.

Honestly think in 6 months time here we could be looking 25-30p should they extend the mine life as expected. Chucking out 85-90m ebitda at the moment call it 1 x Mcap.

This morning. The volume in Toronto was 3x the average, it was a large (selling) volume day. If there weren't many trades, then it's likely it was one (or a small number of) large holder(s). Are institutions buying or trading this in any sort of volume? No. Large holders selling are not professional investors and likely need the money (or bored of waiting for returns) and this is exactly what the share price is at the mercy of. Which is exactly what has been written here for years. Saying it's just some amateur is to miss the point that this hasn't always been going on and will continue to go on. Unless this share is more widely distributed (or someone wants a big stake or buyout), we will never see fair value. This is an asset for the handful of people who own the majority of shares to be utilised/monetised/liquidated when needed. It's been written on here that we needed more institutional and retail interest many times before. It wasn't happening naturally so it was suggested the Company should spend some money on promotion. That was shouted down by others on here because it would definitely happen naturally. The share price is now a lot lower.

We must be approaching halfway through the original Segilola mine life and we're now at my first buy-in price, from well before ground was broken, many years ago. No share price appreciation whatsoever for being a producing, profit-making, low debt mine, with potential for extension, additional gold leases for development, lithium... etc. Add in many years of inflation and I am well down. And that doesn't consider I have averaged up over the years, so I am very, very down. The prospects were improving, right? Why wouldn't you add? Having slept on it though; a market-settling RNS wouldn't help.

There is no 'market' issue. Someone (probably one person) is selling... no one is interested in buying, as usual. Clearly very few people know about this or very few people are interested in this. What can be done to address that?
Let's get definitive news on Segilola extension, the plans for Douta (sell it if it doesn't make sense and return the money to investors), more clarity on how the AISC will be reduced, plans for buy-backs, dividends (it's not 'only' been operating 2 yrs, it's profitably halfway through mine life), etc, etc.
What is it, ~60% down from the recent high in ~8 months and the gold price is higher today than it was then? But nothing has changed. It's incredibly frustrating.

[swinsco] 22/2/2024 08:52

Still the selling continues. Sorry state of affairs.

[swinsco] 21/2/2024 15:16

Value halved in less than six months. I guess mine life down to 2 years 9 months now. Haha. This Twitter ramped share could be worth looking at soon.. need some meat on the bone first though!

[stevea171] 02/2/2024 11:00

Segilola mine life is being addressed with recent drilling at high grade Kola which, if a resource is proved up, could be trucked to Segilola. Also first ever deep drilling at Segilola for resource beneath the main pit and surrounds.

Segilola underground exploration drilling program to commence in H1 2024.

The greenfield discovery at Kola located 23km to the south returned several high-grade encouraging drill results and has opened up a new front of exploration potential to the south, an area which is now of priority.

Southern Prospects located 25km south of Segilola was drilled during Q4 2023 and returned encouraging high-grade intercepts, including at the Kola Prospect:

o SGRC188: 4 metres at 30.2g/t Au from 14 metres

o SGRC 189: 8 metres at 3.0g/t Au from 56 metres

o SGRC 190: 7 metres at 26g/t Au from 49 metres

o SGRC 194: 7 metres at 34.2g/t Au from 49 metres

o Previously unreported drilled in Q4 2023

o SGRC 236: 2 metres at 12.61g/t Au from 49 metres

o SGD 295: 5 metres at 11.25g/t Au from 15 metres

o SGD 296: 3 metres at 2.49g/t Au from 55.5 metres

FY 2024 outlook
Strong exploration focus on Segilola near mine drill targets and underground drilling program in H1 2024 with an initial 5,000 metre drilling program delineated

[swinsco] 31/1/2024 16:47

This one is a dog. Maybe worth revisiting if they can improve gold mine life. I think 3 years left.. no wonder the share price is struggling.

[ukgeorge] 31/1/2024 14:31

shhhhh don't tell anyone.....

[lord buffett] 31/1/2024 14:21

Thor's lithium grades are excellent, so I won't be disappointed.

The company did a presentation last year in which it highlighted an outcrop of large spodumene crystals containing 7.19% Li2O at the Oyo State Project and a lepidolite sample containing 9.13% Li2O in evolved lithium-caesium-tantalum (LCT) pegmatites.

Also, Thor has already acquired a large scale lithium exploration portfolio of some 600km2, which is highly prospective and ready-to-go.

Add to this a current market cap of about one year's earnings, with little (soon to be zero) debt, and the lithium business and expansion of the gold business is all thrown in for free, to be comfortably funded out of cashflow.

[stevea171] 31/1/2024 13:33

Lithium grades are not what we see with gold resources so there may be some disappointment with the Thor grades announced from drilling so far. But 2% lithium grade is excellent as they do not go above c.3% for which there is a technical explanation.

Thor. Some early drilling results have been announced confirming the existence of high grade lithium viz.

Significant drill intersections to date include 11m grading 1.53% lithium oxide (“Li2O”), 9m grading 2.42% Li2O and 11m grading 2.61% Li2O.

Orosur. Mapped pegmatite systems were noted over substantial strike lengths of several km's and of varying widths from sub-metre to over 30m in one massive example. Numerous pegmatite samples returned high levels of lithium, with several over 2% Li2O.

"Grades of about 1.6% lithium oxide, which are seen at Firefinch’s world-class Goulamina project in Mali, are pretty much the “gold standard”. “It’s really hard to see grades much higher, you do get grades up in the twos and so forth, but the average grade, if it’s less than 1%, it’s going to struggle,” If it’s getting closer to 1.5% then it’s pretty interesting."

[stevea171] 23/1/2024 09:25

Lithium exploration in Nigeria is hotting up with Orosur now involved as well as Thor.

31/5/23. Thor announced formation Of Nigeria Focused Lithium Subsidiary With Acquisition Of Over 600km2 Of Prospective Lithium Pegmatite Exploration Tenure. Since then exploration has started and some early drilling results have been announced confirming the existence of significant lithium.

16/10/23. Orosur announced a lithium JV in Nigeria. Initially 4 licences were announced but subsequently two additional licences have now been confirmed, taking the total area of prospective land under title to 533km2, representing one of the most dominant land positions in Nigeria. Orosur is to spend $3 million over 3 years on exploration to earn 51% and another $2 million over 2 years to earn 70%. Exploration commenced immediately on one of the licences.

Orosur CEO Brad George commented: "These outstanding results from our first field program in Nigeria are exciting but not surprising. We pegged these licences with a very clear understanding of the geological processes in play and so we expected to find lithium. To then confirm this confidence and to find so many lithium bearing pegmatites, some extremely thick, is very positive and bodes well for work on the next 5 licences that is underway now."

[royalalbert] 17/1/2024 17:01

£88.56m for the whole company, absolute nuts.

[stevea171] 17/1/2024 12:37

Douta is in elephant country.
54Moz of gold surrounding Douta in Senegal and Mali.

The Douta Gold Project is 700km from the capital, Dakar, in eastern Senegal near the border with Mali. It has a gold exploration permit that covers an area of 58 km² and is located within the Kéniéba Inlier which hosts over 40 million oz of gold deposits and has attracted major international mining companies.

Douta, Thor Explorations 70%, IMC 30%, has an estimated resource of 1.78 million oz of gold at 1.3 gm/t with this expected to increase to 2 million oz plus with grade increases from drilling continuing in 2023. The gold is partly free milling and partly non free milling (refractory) requiring special treatment by BIOX, similar to Massawa (see below).

Nearby gold properties are:

Sabodala. This is a world class mine complex, the largest in Senegal owned by Endeavour. Douta is aprox 30 km SE of Sabodala mine and Processing Facility. Sabodala, ex Teranga, has been in operation for more than 10 years with historic production of 2 million oz of gold and reserves of 2.6 million oz at 1.3 gm/t. It has production from open pits at both Sabodala and now Massawa at 350k oz pa at 2.9 gm/t in 2022 with AISC $700/oz. Combined M&I resources are 6.3 million oz.

Massawa. Douta is 4 km E of the Massawa Gold Deposit which has reserves of 2.6 million oz at 3.94 gm/t and a resource of 4.4 million oz. The ore is partly free milling and partly non-free milling requiring different treatment via BIOX. It was acquired (90%) by Teranga Gold Corp from Barrick for US$380 million in cash and shares in 2020 (then Teranga was subsequently acquired by Endeavour Mining in 2021).

Other properties in the region include:
 Mako Gold Mine, 90% owned by Resolute Mining Limited (operated by Petowal) ia a mature mine with gold production of 120k oz pa. It has a JORC-compliant Mineral Reserve and Ore Resource of 0.7 million oz and is located approximately 35 km SW of Douta.

 Makabingui gold project, recently sold by Bassari Resources because of insolvency to Bishop Resources is immediately to the east of the northern part of Douta's licence with a JORC-compliant Inferred Resource of 1 million oz at 2.6 gm/t.

Loulo (W Mali) - 12.5Moz. Barrick.
Goukoto (W Mali) 5.4Moz. Barrick.
Sadiola (W Mali) - 13Moz. IAMGold & AngloGold Ashanti. etc.

The Sabodala-Massawa mine is one of Endeavour’s cornerstone assets and is currently undergoing an expansion which will elevate it to top-tier status with a targeted production of above 400koz/year at an industry leading AISC.

Sabodala-Massawa is the largest producing gold mine in Senegal with Sabodala in operation for over a decade. Massawa ore is trucked to Sabodala for processing. It was acquired as part of Endeavour’s acquisition of Teranga in 2021.

Endeavour is currently expanding the Sabodala-Massawa mine with the addition of a new BIOX processing facility for processing the deeper refractory ore. The new processing facility will add incremental production of 1.35Moz at a low AISC of $576/oz over its mine life.

[stevea171] 16/1/2024 14:38

Spotlight on Douta and valuation.
A lot is happening here. But what is Segun up to with Douta?

The PFS has been moved back from Q4/23 to Q1/24 to give more time for a new MRE to be issued in Q1 ahead of the PFS where the resource of 1.78 million oz gold is expected to be expanded to 2 million oz at a higher grade, with more converted from inferred to indicated category and for development of the mining process with the Chinese in conjunction with the metallurgy work in Perth.

Exploration here has so far been limited but with further exploration and drilling along a 15 km mineralised corridor the resource can be expanded further.

Douta is not a straight forward development due to the refractory ore element as with the nearby Massawa development (Endeavour).

The cost of building a 100k oz pa mine at Douta will not come cheap. $120 million for Stage 1? It can be done in two stages with the oxide ore CIL processing first followed by a BIOX. Stage 1 could be financed 50% by a Finance Co and the balance through cash flow this year and next. Commence 18 month build early 2025 with completion mid 2026.

Randgold/Barrick did not develop the much higher grade and larger Massawa deposit for 10 years before selling out for $380 million in 2020.

Then there is the salutary lesson of the failed development of the adjacent Makabingui deposit in 2020 by Bassari Resources.

When the PFS comes out it is sure to trigger interest from predators and in particular from Endeavour to add to their regional supply of ore to their huge operation at nearby Sabodala. The economics for the low grade ore could be improved for Endeavour by installing a crusher and ore sorter at Douta before trucking to Sabodala.

What price would Endeavour offer for Douta? $100 million?
(B2B Gold sold its 1.1 million oz, 2.3 gm/t Toega resource in Burkina Faso to West African Resources in 2021 for $45 million).

Segun says he is not looking to dilute shareholders with future development of Douta or the recent Nigerian lithium deposits but is open to partners/JV's. He has strong links to the Chinese who were contracted for construction of Segilola and are involved with the process design for Douta.

So it's likely the ball will kick off with the PFS in a couple of months time. Future development of a second mine for Thor in Senegal? Or a sale providing funds for gold and lithium mines in Nigeria where Thor is the first mover with plenty of attractive prospects.

None of this is in the share price at a near low of 14.25p since listing on AIM in 2021.

Thor: "Our vision is to create significant shareholder value by being the largest producer of gold and the leading and sustainable supplier of lithium in Nigeria."

THX Mkt Cap is £93.5 million at share price of 14.25p.
Dual listed. Also on the TSXV (THX) with share price CA$0.23.
Major holdings: Segun Family 15%. Segun 4.5%.

Comparison: Shanta 100k oz pa. Mkt Cap £136 million at 13p.
Target Price: 30p - Canaccord Genuity 15/1/24
If significant lithium deposits are discovered and developed Thor could become a billion dollar gold and lithium producer.

News 15/1/24: Q4/23 production results.

[meanreverter] 15/1/2024 20:52

Segun talks to Proactive:

[lord buffett] 15/1/2024 13:00

Today's RNS is about as good as it gets, in terms of positive news and indicators.

EBITDA for this year looks like it could exceed the current market cap, according to the guidance given, and with virtually no debt an EV/EBITDA of about 1!

Thor appears extremely undervalued to me, so I've bought some more today.

[stevea171] 15/1/2024 09:20

Segun Lawson, President & CEO, stated :

"I am pleased that the Company was able to successfully complete what was projected to be the most operationally challenging year in the Segilola mine plan. We were able to complete the year producing 84,600 ounces, however, most importantly, we have positioned the mine very strongly for the coming years.

"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.

"In Nigeria, we have made small but very important discoveries within trucking distance of the Segilola plant. The area within a 40km radius of the Segilola Mine has been a key exploration focus for potential high-grade satellite resources that can be transported economically to the central processing plant at Segilola. There were encouraging high-grade drill results from the Kola Prospect in the Southern Prospects, which opens up a new front of exploration potential to the south. In addition, further encouraging geochemical sampling results from the Central Prospects are indicative of the potential for high-grade resource within close proximity to the plant. We are looking forward to our drilling program on our delineated targets in the first half of this year. Now we have completed the push back of the west wall, our priority this year is on exploration aimed at increasing the Segilola mine life. With this in mind, we are also commencing our underground drilling program in H1 2024.

"We are also pleased with the progress made at Douta. We were encouraged by the final set of drill results received in Q4 2023 and have been working on the Preliminary Feasibility Study. The current focus has been on the metallurgy and the process flowsheet, and we expect to update the market with an updated resource estimate and, subsequently, a Preliminary Feasibility Study in Q1 2024."

[stevea171] 15/1/2024 09:18

Q4 production report:

Segilola 2023 Operational Highlights

FY 2023 gold production of 84,609 ounces:

21,798 oz during the Quarter at an average grade of 2.77 gm per tonne of gold.

--Successfully completed push back of Segilola Western Wall
--Successfully upgraded process plant elution and electrowinning system
--Acquisition of additional gold and lithium exploration tenure in Nigeria
--Continuation of drilling programs on near mine and regional targets
--Segilola underground exploration drilling program to commence in H1 2024

Lithium Exploration
--Initial set of encouraging drill results received in Q3 2023 as previously announced
--Land portfolio increased to include additional project areas
--Focus on scout drilling across a number of targets through H1 2024
--Continued acquisition of prospective lithium exploration ground in Nigeria

FY 2024 outlook and catalysts
--FY 2024 production guidance range set at 95,000 to 100,000 oz of gold
--FY 2024 All-in Sustaining Cost ("AISC") guidance range set at $1,100 to $1,200

-- Strong exploration focus on Segilola near mine drill targets and underground drilling program in H1 2024 with an initial 5,000 metre drilling program delineated

--Updated Mineral Resource Estimate at the Douta Project to be completed in Q1 2024

-- Preliminary Feasibility Study ("PFS") test work is ongoing at the Douta project in Senegal, focusing on the metallurgy and process flow sheet targeting publication in Q1 2024 following the updated Mineral Resource Estimate.

[swinsco] 12/1/2024 09:14

Still dropping. Seller about I guess. With gold prices near all time highs you'd think Thor wouldn't be at all time lows.