Thor Explorations Share Discussion Threads

[stevea171] 12/6/2024 07:50

Digger and Adw. Good luck to you both.

Segun is at great pains not to over egg the pudding! His forecasts are conservative.
Re AISC we will have to see Q2/H1 numbers to get decent volume and a better guide for FY. Higher production and draw down of gold in circuit should be favourable for AISC but lower grades would work the other way. The draw down of gold in circuit is expected to continue from March to end of year.

Q1/24. 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.

btw Thor have a tax holiday for 5 years from start up. So 2024 and 25 there is no Nigerian corporate tax which has been confirmed by Segun many times.

Also Thor has 100% interest in Segilola mine with no State participation as Nigeria wants to develop the mining industry from a very low base.

[adw198] 12/6/2024 07:27

Some great posts, Steve - thanks.
I have a small holding but am looking to get much more heavily involved prior to Q2 results in July.
1 thing that I’m unclear on…thre AISC were freakishly low ($632) in Q1, but the year guidance has stayed the same. Wouldnt that imply that at some point during the year they’re going to be well above the $1100-1200, as otherwise how would they average that throughout the year?

[digger18] 11/6/2024 19:14

Just looked at this thread based on your ref in ALtn thread Steve. Looks very undervalued and thank you for your updates above.

[stevea171] 07/6/2024 11:19

Segun invests £1.6 million in his own company.

A year ago in June Segun made an off market purchase of 6.6 million shares for approx £1.1 million and spent approx £500k on the exercise of 5.5 million options at CA$0.145 taking his Thor holding to 29.1 million shares or 4.45 per cent of the company.

So in June 2023 Segun invested a total of £1.6 million of his own money on 12.1 million Thor shares which if ever there was a vote of confidence by a CEO in his own company this must be it!

His family own another 15 per cent which is further massive support of the company.

Their combined holding should prompt Segun to think carefully about dividends, so payouts should be on the cards as soon as practicable.

[stevea171] 29/5/2024 15:06

Q1 2024 net profit of US$12.4 million (Q1 2023: US$3.0 million).
Q1 EPS is 1.5p

Very strong outlook for the remainder of the year could see about 7p in net earnings for 2024.

2025 looks even stronger.

Few junior gold miners can match this performance in terms of net earnings yet Thor is trading at a miniscule net earnings multiple of approx 2.2 times.

At current POG, typical net earnings multiple is about 7 times for a 100,000 ounce producer.

So Thor could easily triple from here and still be cheap ...

Q1 2024 EBITDA of US$23.3 million (Q1 2023: US$14.7 million).

Free Cash Flow is even more valuable in terms of multiple trading valuations because so few junior gold producers can manage to generate signifucant free cash flows.

$100 million US in annual free cash flows in 2024 would be at or above most intermediate gold producers producing 250,000 ounces or more per year .

With AISC guidance of $1100-1200 and current gold prices they're making $1,000+ per oz 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.

[stevea171] 29/5/2024 10:08

Q2 with the extra 1000-1500 oz per month drawn down from circuit is going to blow the doors off.
25k oz sold at $2300/oz?! Revenue $58m vs $33.3m in q1? It’s not out of the question.

Segun Lawson, President & CEO, stated:

"We are pleased with the Company's performance during the first quarter of 2024 where we completed an improved operational and financially profitable period which included a material paydown of our senior debt facility.

"The main operating units continue to perform better than expected and operate above capacity. We expect this to continue through to the end of the year and as such, our guidance remains unchanged, between 95,000 and 100,000 ounces for the year.

"Following our exploration work in Q1 2024, we have now commenced follow up drilling programmes targeted at extending the Segilola mine life, with the priority being the Segilola Underground Resource. The drilling programmes are designed to increase the existing defined underground resource as well as explore untested target areas underneath the current open pit that were generated in Q1 2024. We look forward to updating the market with the drilling results.

"At Douta, we have ramped up exploration following the acquisition of the Douta-West licence. With the PFS workstreams ongoing, we believe we can grow the shallow oxide component of the resource which will be value accretive to the overall project and have committed to 15,000 metres of drilling on this project.

"In the remainder of the year, our main objective in Nigeria is to extend the Segilola mine life and being completely deleveraged from our senior debt facility. Our production guidance and AISC remain unchanged, and we look forward to unlocking the Company's upside potential through exploration at Segilola and at Douta."

[stevea171] 29/5/2024 08:16

Q1/24 AISC of US$632 per oz sold.

FIRST QUARTER 2024 FINANCIAL AND OPERATING RESULTS



Financial Highlights

· 17,420 oz of gold sold with an average gold price of US$2,033 per oz.

· Cash operating cost of US$418 per oz sold and all-in sustaining cost ("AISC") of US$632 per oz sold.

o In Q1 2024, lower cost medium and high grade stockpile was fed through the mill resulting in a lower than expected cash operating cost and AISC.

· Q1 2024 revenue of US$33.3 million (Q1 2023: US$40.3 million).

· Q1 2024 EBITDA of US$23.3 million (Q1 2023: US$14.7 million).

· Q1 2024 net profit of US$12.4 million (Q1 2023: US$3.0 million).

· Cash and cash equivalents of US$2.8 million as at March 31, 2024 (Q1 2023: US$4.5 million).

· Senior debt facility reduced to US$15.2 million as at March 31, 2024.

· Net debt of US$14.3 million as at March 31, 2024.

Segilola Near-Mine Exploration

· Exploration during the Period has prioritised working up near mine drill targets as well as carrying out structural studies aimed at designing drill programmes for the Segilola Underground Resource in Q2 2024.

o 10,000 metres of drilling expected to commence in June 2024, with a likely increase to the size of the drilling programme should there be successful drilling results.

· The Company is aiming to define an updated underground resource before the end of 2024.

Douta

· In the post period, the acquisition of the Douta-West Licence (announced on April 3, 2024) was completed.

· The licence lies contiguous to the Company's existing Douta Permit and contains advanced exploration targets.

· Thor's strategy is to combine both licences and scale up the size of a combined Douta Project for the Douta Preliminary Feasibility Study ("PFS").

· The Douta PFS workstreams continue, alongside the growth of the oxide component of the resource across both licences.

· This growth will add to the existing mineral resource estimate ("MRE") that currently comprises of a total of approximately 1.78 million ounces ("Moz") of gold.

· A 15,000 metre drilling programme commenced after the Period and is targeted at growing the current oxide component of the resource from approximately 250,000 oz to over 500,000 oz over the next six months.

[ukgeorge] 20/5/2024 10:46

He comes across very well.

[stevea171] 20/5/2024 09:56

Another recent interview with Segun.

He reiterates that main debt will be paid off this year and considers the share price considerably under values the company.
$300 million free cash flow from 100k oz pa for the next 3 years at AISC $1150 oz even if no extra value added from Segilola drilling, Douta, Senegal drilling and PFS, and lithium exploration in Nigeria.
But he expects to be able to report good results on all fronts.

re Douta; prospects for 10 year mine life at 100k oz pa production. PFS in H2 will give first clear indication of valuation of the project.



Segun has confirmed many times that the five year tax exemption applies with three more of those years still to come - 2024, 25, 26.

[bushtuckaman] 20/5/2024 07:33

Nice break on the chart of the 200ma


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[bushtuckaman] 20/5/2024 07:22

I traded out my SRB position a few weeks ago for some THX, glad to see she's moving up again.

With pog moving up again the debt should be cleared soon and this becomes a cash machine.

I'm keen to see the drill results under the pit to extend mine life. I'd expect a significant re-rating if they're good.

[ukgeorge] 18/5/2024 05:59

Must be making some good money with the current gold price :)

[allviewswelcome] 10/5/2024 19:40

Re:the payable, have they offset the gold in circuit against something else financially at year end, but they still hold the gold making it a payable?

[stevea171] 09/5/2024 07:02

Maybe this is about to change?! Prospects for Thor's lithium exploration this year in Nigeria seem bright.

High-grade lithium has been discovered in Nigeria. In 2019 the total production volume of lithium, not high grade, in Nigeria reached 50 metric tons This is small compared to Zimbabwe which produced 1,200 metric tons the same year.

Kaduna is one of several Nigerian states with lithium deposits. At least seven other states in the country are confirmed to have the mineral — essential in the manufacturing of EV batteries — in commercial quantities.

Kaduna, a state in northwestern Nigeria, has selected China’s Ming Xin Mineral Separation Nig Ltd. (MXMS) to build the country’s first lithium-processing plant, with a plan to manufacture batteries for electric vehicles (EVs). The Kaduna State’s mining company said the plant is being built on 9.3 hectares of land in 2023.

[stevea171] 04/5/2024 10:50

I asked Segun directly by email this same question. No answer so far.

[swanvesta] 03/5/2024 13:45

He related the payables to gold in circuit. Can someone explain the accounting logic?

[ukgeorge] 03/5/2024 12:32

I think this was covered in the Q&A on the recent presentation

[swanvesta] 03/5/2024 11:22

Can someone explain why Accounts Payable is so high? I'm not an accountant but AIUI AP is a short term liability, but it's been outsized for more than a year now and has increased significantly.

[ukgeorge] 01/5/2024 11:27

Really good presentation on Investor Meet today

[stevea171] 29/4/2024 21:06

"In 2024, the Company's strategy will be focused on growth.
The first priority is to extend the Segilola Mine life where there is currently an underground resource of over 100,000 ounces that has not been incorporated into the existing mine plan.
At the current prevailing high gold prices, we aim to assess our options in re-optimising the Segilola Pit to produce gold from this resource prior to transitioning into an underground mine.
We also aim to carry out further exploration at depth aimed at increasing the existing underground resource which has not been closed out.

Q1/24.
Payment of US$8.2m towards outstanding senior debt facility, leaving a balance of US$15.2m to be paid in 2024.
Cash balance (unaudited) as at 31 March 2024 of US$3.1m

2024 Operational Guidance and Outlook

Gold Production
95,000-100,000 oz

All-in Sustaining Cost ("AISC")
US$/oz Au sold $1,100 - $1,200

Capital Expenditure
US$2,000,000 - 4,000,000

Exploration Expenditure:
Nigeria
US$4,000,000 - 6,500,000
West Africa
US$ 3,500,000 - 4,500,000

[ukgeorge] 29/4/2024 07:37

Good to see the debt being paid off. Should be debt free by early h2.

[stevea171] 27/4/2024 06:31

Thor Explorations To Host Investor Webinar

Thor Explorations Ltd. (TSXV / AIM: THX) (“Thor Explorations” or the “Company”;) is pleased to announce that Segun Lawson, President, and CEO, will provide a live investor session via the Investor Meet Company platform on Wednesday 1st May 2024 at 12:00pm BST.

The session will discuss the upcoming FY23 results that are expected to be announced on 29 April 2024, the recent Q1 2024 Operational Update, along with the Company’s corporate strategy.

[ukgeorge] 26/4/2024 11:50

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

Hopefully heading back in the right direction.

[stevea171] 19/4/2024 16:14

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.