Thor Explorations Ltd on Friday posted improved financial results in the first half of 2024, with revenue and profit on the rise, but it lowered guidance following safety concerns at its mining operation.

The Vancouver, Canada-based gold exploration company focused on projects in West Africa said pretax net profit doubled to $39.9 million in the first half that ended June 30 from $17.4 million the previous year.

Revenue rose 6.8% to $87.2 million from $81.7 million, while cost of sales declined 27% to $36.3 million from $49.8 million.

First-half production was down 14% to 37,679 ounces from 43,707 ounces.

Administration expenses were cut by 25% to $4.8 million from $6.5 million.

The flagship Segilola gold project, which has been operational for two years, is located in Osun State, Nigeria. The Douta gold project, where exploration work is currently taking place, is situated in South West Sengal.

Chief Executive Officer Segun Lawson said: ‘We have continued to focus on near-mine exploration at Segilola, and the structural studies which commenced in Q1 2024 were completed in the period. We commenced a 12,000m drilling programme targeting the possible extension of the gold mineralisation underneath the Segilola ultimate open pit and plan to share the drilling results in September 2024.

‘At Douta, we acquired the Douta West licence over the period. We completed a 15,000 metre drill programme at Douta after the period and await the remaining results from Douta and Douta-West, which combined with the ongoing metallurgical studies will be used to update the Douta resource and subsequently the Douta preliminary feasibility study.’

In the recent half, the company paid $7.9 million towards its senior debt facility, leaving the balance at $6.5 million which is scheduled to be fully repaid by the end of the year.

Full-year 2024 production guidance has been revised down to 90,000 ounces from 95,000 to 100,000 ounces, but remains above the 84,609 ounces of gold produced in 2023.

‘This reduction comes following a fly rock incident in July and a corresponding prioritisation of the health and safety of our local community and employees as we mine in the southern areas of the pit,’ Lawson said.

All-in sustaining cost per ounce sold is expected between $900 to $1,000 down from $1,100 to $1,200 in previous guidance. In 2023, AISC stood at $1,313 per ounce sold.

Thor Explorations shares were up 17% at 17.50 pence each in London on Friday morning.

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