13th Jan 2025 13:06
(Alliance News) - Thor Explorations Ltd on Monday said it met production guidance for 2024, which was reduced twice previously, and remained optimistic about the year ahead.
The Vancouver-based mining company, focused on west Africa, has set 2025 gold production guidance between 85,000 and 95,000 ounces, with an all-in sustaining cost range of USD800 to USD1000 per ounce.
This follows the revision of its 2024 guide to 90,000 ounces in August, and 85,000 in October. Initial guidance for 2024 was between 95,000 and 100,000 ounces.
Thor Exploration reduced expectations, despite reporting higher half-year revenue and profit, after a "fly-rock incident" at its Douta mine in Senegal raised safety concerns.
Actual total gold poured in 2024 was 85,057 ounces, the firm said, representing an increase from 84,609 ounces in 2023.
Unaudited sales in the fourth-quarter were for 24,936 ounces of gold, at an average realised price of USD2,497 per ounce, the company said. This leaves quarterly unaudited revenue at an estimated USD62 million.
Thor Explorations said it has begun 2025 without senior debt, after repaying of a loan from the Africa Finance Corporation, and noted positive drilling results at its flagship Segilola project in Osun State, Nigeria.
However, the company is still negotiating with the Nigerian government, following allegations of tax evasion and unethical practice on the part of its subsidiary, Segilola Resources Operating Ltd, brought by Osun State officials. The company in September described these as "false claims".
Chief Executive Segun Lawson on Monday said: "We anticipate that there will be no substantiation of any of the allegations made. We have, in the interim, taken the opportunity to review our corporate social responsibility programme."
Thor Exploration plans to commence the next drilling phase at Segilola, targeting about 7,500 metres. Meanwhile at the Douta site, pre-feasibility studies at the have taken "longer than envisaged". These are expected to complete and be released to the market in the first quarter of 2025.
The company will continue scouting Nigerian prospect zones, it said, and aims to begin exploration on its Ivory Coast licenses. Lawson added: "We start the year 2025 well positioned for a strong operational and financial performance."
Thor Explorations shares rose 7.2% to 19.30 pence each on Monday morning in London.
By Holly Munks, Alliance News reporter
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