Thor Explorations Ltd on Tuesday said it swung to a substantial profit in 2022 following a loss in 2021, despite much higher costs and with a massive increase in revenue.
Thor is a gold exploration and production company focused on developing assets in Nigeria, Senegal and Burkina Faso.
Thor reported a pretax profit of $25.4 million in 2022 after a loss of $2.1 million in 2021, as revenue multiplied to $165.2 million from $6.0 million.
Thor said production costs soared to $68.9 million in 2022 from $3.9 million the previous year. Transportation and refining costs increased to $3.4 million from $50,985, and royalties increased to $3.7 million from $108,258.
Thor Explorations did not declare a dividend for 2022.
Gold production from the Segilola mine totalled 98,006 ounces in 2022, at the top end of Thor’s prior guidance of 90,000 to 100,000 ounces. In the first quarter 2023, production 20,629 ounces.
Thor set production guidance for all of 2023 at 85,000 to 95,000 ounces with an all-in sustainable cost guidance of between $1,150 and $1,350 per ounce. Gold was priced at $1,983.82 an ounce on Tuesday.
Thor is planning advance exploration programmes across its portfolio including at flagship asset the Segilola gold mine. Thor said it aims to complete its preliminary feasibility study at the Douta gold project in the fourth quarter.
Chief Executive Officer Segun Lawson said: ‘2022 proved to be a significant year for Thor Explorations, being our first full calendar year of commercial production at our flagship asset, the Segilola gold mine...Despite the global supply chain in issues that Thor faced, which contributed to a higher than budgeted AISC, the company still managed to achieve an annual operating profit of $40 million.
‘This highlights the quality and operating efficiency of Segilola and the value that it has to offer. Importantly, it provides us with a solid platform from which to grow.’
Shares in Thor were up 3.0% in London on Tuesday at 19.05 pence.
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