Thor Explorations Ltd on Thursday reported lower gold production in the first half of 2023, but announced growth in profit and lower operating costs.

However, Thor lowered its outlook for the third-quarter production.

The Vancouver, British Columbia-based mineral exploration company said gold output in the first six months of 2023 fell to 43,707 ounces from 45,128 ounces a year prior.

However, pretax profit rose 20% to $12.2 million from $10.2 million. Thor paid no income tax either year, so net profit was the same.

Revenue jumped 23% to $81.7 million from $66.2 million. The average realised gold price in the six months to June 30 was $1,945 per ounce, up 5.0% from $1,852 a year prior.

Operating costs eased by 4.2% to $942 per ounce of gold produced from $983 a year prior.

For the second quarter alone, pretax profit rose 17% to $7.9 million from $6.8 million, while revenue was flat at $41.4 million.

Cash jumped to $11.1 million as at June 30 from $4.5 million at March 31, while net debt was reduced by 33% to $16.8 million from $24.9 million.

Looking ahead, Thor said it expects production at the Segilola gold mine in Nigeria ‘to be below original expectations at the beginning of the financial year’. It added that fourth quarter gold output remained in line with original expectations.

Thor anticipates its preliminary feasibility study at the Douta project in Senegal to complete in the fourth quarter of 2023.

Thor Exploration shares were down 6.3% to 18.50 pence each on Thursday morning in London.

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