Thor Explorations Announces Financial and Operating Results, for the Three and Six Months Ending June 30, 2026
Thor Explorations Announces Financial and Operating Results, for the Three and Six Months Ending June 30, 2026
Vancouver, British Columbia--(Newsfile Corp. - August 11, 2026) - Thor Explorations Ltd. (AIM: THX) (TSXV: THX) ("Thor Explorations", "Thor" or the "Company") is pleased to provide an operational and financial review for its Segilola Gold mine, located in Nigeria ("Segilola"), and for the Company's mineral exploration properties located in Nigeria and Senegal, for the three months ("Q2 2026" or the "Period") and six months to June 30, 2026 ("H1 2026").
The Company's Unaudited Condensed Interim Consolidated Financial Statements together with the notes related thereto, as well as the Management's Discussion and Analysis for the three and six months ended June 30, 2026, are available on Thor Explorations' website at:
www.thorexpl.com/investors/reports-presentations.
All figures are in US dollars ("US$") unless otherwise stated.
Financial Highlights for Q2 2026 and H1 2026
17,050 ounces ("oz") of gold ("Au") sold in Q2 2026 with an average gold price of US$4,554 per oz.
Cash operating cost of US$760 per oz sold and all-in sustaining cost ("AISC") of US$1,262 per oz sold in Q2 2026.
Q2 2026 revenue of US$77.6 million (Q2 2025: US$82.7 million).
Q2 2026 EBITDA of US$55.4 million (Q2 2025: US$60.3 million).
Q2 2026 net profit of US$48.7 million (Q2 2025: US$51.6 million).
In H1 2026, the Company achieved half yearly records in revenue, EBITDA and net profit:
H1 2026 revenue of US$151.9 million (H1 2025: US$146.8 million).
H1 2026 EBITDA of US$108.4 million (H1 2025: US$103.9 million).
H1 2026 net profit of US$95.5 million (H1 2025: US$86.1 million).
Adjusted net cash of US$218.6 million as at June 30, 20261.
1 The cash balance, adjusted net cash position and gold bullion inventory reported in the Company's Q2 2026 operational update of US$225.6 million have been revised to cash of US$193.1 million and adjusted net cash of US$218.6 million including gold bullion inventory of 6,367oz valued at US$25.5 million. The revisions reflect the completion of reconciliation procedures during the Group's transition to a new financial consolidation system and do not affect the Company's reported operating performance.
Operational Highlights for Q2 2026 and H1 2026
Segilola Production
Gold poured totalled 19,153 oz for Q2 2026, and 39,409 oz for H1 2026 (Q2 2025: 22,784 oz; H1 2025: 45,574 oz).
Mill feed grade for Q2 2026 was 2.57 grammes per tonne ("g/t") Au with recovery at 93.3%.
A total of 240,769 tonnes of ore were processed with no significant downtime periods.
The process plant maintained good recovery performance in Q2 2026 reducing the gold in circuit ("GIC") by 583 oz of gold.
The stockpile balance increased by 8.09% to 58,431 Au oz of ore at an average grade of 0.74 g/tAu. The significant stockpile available (approximately two years of process plant supply) offers flexibility and low risk for future process plant production.
Segilola Exploration
The focus remained on the Segilola life-of-mine extension drilling program and regional target generation as the Company continues to assess opportunities to extend the current Segilola mine life.
Diamond drilling continued during Q2 2026 to test potential depth extensions of the Segilola deposit, with 10,614 metres ("m") completed across 37 holes using four owner-operated diamond drill rigs.
The drill holes were completed at a combination of 40m and 80m inter-hole spacings to test the continuity of the steeply south-plunging, high-grade shoots beneath the current open-pit mine design.
Results reflected narrow zones of mineralisation intersected below the limits of the current final open-pit design.
Drilling continued following the end of the Period and is expected to continue through to the end of the calendar year to further delineate zones with the potential to support underground mining.
The Company engaged a mining consultancy to undertake a high-level review of the underground mining potential based on the currently compiled potential resources and to support the continuation of the drilling program.
Regional exploration activities progressed across the Company's Segilola licences during Q2 2026:
Geochemical sampling continued across the Ondo, Kajola, Central and Western prospects, comprising auger, rock-chip, termite-mound and stream-sediment sampling. The principal areas investigated were west of Ondo, northwest of Igila and west of the Segilola Mine.
Within the Western Prospect, infill auger sampling northwest of Igila returned significant gold assay results of up to 0.401g/tAu, following up on anomalies identified through the initial wide-spaced auger sampling programme. Further auger sampling was also completed west of the Mine area.
At the Ondo Prospect, geochemical sampling targeted interpreted geophysical structures, primarily west of the north-south-trending quartzite-quartz schist ridge.
Regional stream-sediment sampling outside the Ondo Prospect returned significant gold values of up to 2.12 g/tAu, providing additional targets for follow-up exploration.
Senegal
During Q2 2026, the Company completed a total of 19,356m of reverse circulation ("RC") drilling and 6,150m of rotary air blast and air core ("RAB/AC") drilling across its Senegal projects.
At the Douta Project, sterilisation drilling commenced during the Period to support the planning and location of future mine infrastructure.
At Douta-West, RC drilling continued at the Baraka 3 Prospect, with the drilling extended the mineralisation to the north and confirmed that the mineralised system remains open in that direction.
At the Boussankhoba Project, exploration focused on testing and extending gold mineralisation along the 10-kilometre northeast-trending corridor between the Sekhoto North and Massa Massa prospects.
Ongoing RC drilling continued to demonstrate continuity of mineralisation between Sekhoto North and Massa Massa, indicating that the two prospects form part of a single mineralised system with significant potential for further resource growth.
Côte d'Ivoire
During Q2 2026, exploration activities in Côte d'Ivoire focused on continued target generation and drill testing at the Guitry and Marahui projects, together with early-stage target generation activities across the Laoudiba and Boundiali projects.
At the Marahui Project, soil geochemical sampling and geological mapping defined two parallel anomalous structures:
The larger anomaly extends over approximately four kilometres in length and 200m in width.
A follow-up RC drilling programme comprising 50 holes for a total of 5,125m intersected multiple narrow zones of gold mineralisation over a strike length of approximately one kilometre.
Environment, Social and Governance
Environmental compliance monitoring continued on a monthly basis during Q2 2026, with quarterly summary reports submitted to the Federal Ministry of Environment ("FMEnv") and copied to the Environment Division of the Ministry of Solid Minerals:
Ambient air quality and noise levels remained consistent with those recorded in Q2 2025 and within FMEnv-prescribed thresholds.
The onset of the rainy season in April resulted in a reduction in Total Suspended Particulates, while water turbidity temporarily increased in line with expected seasonal conditions.
Groundwater and surface water parameters, including pH levels, remained within natural ranges.
The Company published its 2025 ESG and Sustainability Report on 18 June 2026, highlighting performance across its six material ESG topics: Corporate Governance, People, Health and Safety, Environment, Community and Social, and Cultural Governance.
Continued operational efficiencies and reduced mine haulage distances resulted in environmental benefits during Q2 2026:
Raw water withdrawals decreased by 36% to 31.24 megalitres ("ml"), compared with 50.27ml in Q2 2025.
Total greenhouse gas emissions decreased by approximately 16% to 9,818 tonnes of carbon dioxide equivalent ("tCO₂e"), compared with 11,621tCO₂e in Q2 2025.
Emissions intensity remained stable at 0.51tCO₂e per ounce of gold produced, unchanged from Q2 2025.
Notable milestones with respect to the Company's community development and corporate social responsibility activities during Q2 2026 included:
Hosting the fifth annual inter-community football competition, with 10 men's and four women's teams comprising Segilola Mine employees and members of the host communities competing.
Progressing the construction and renovation of community buildings, businesses and infrastructure supported under the Company's Community Development Agreements, including renovations to Odo-Ijesha High School, the Imogbara community palace, community road construction and the Iperindo Water Bottling Factory.
Ongoing support for elderly residents, administering examinations under the Annual School Scholarship Programme and monitoring beneficiaries of the Company's women's initiatives and youth empowerment programmes.
In Senegal, following the approval of the Environmental and Social Impact Assessment for Phase 1 of the Douta Project in January 2026, the Company continued planning and progressing the actions set out in the approval.
The Company expanded its health, safety, social and environmental resources during Q2 2026, including the appointment in June of a new team leader who commenced the role in July 2026.
In Côte d'Ivoire, the Ngnira Gold community team developed an Education, Health and Social Action Plan to guide initiatives across the communities surrounding the Company's four exploration licence areas.
A stakeholder engagement plan is also being developed to support ongoing exploration activities.
Outlook
FY2026 production guidance of 75,000 to 85,000 oz maintained, while AISC guidance remains at US$1,000 to US$1,200 per oz.
Advance exploration program across the portfolio:
Segilola: continuation of underground exploration drilling program targeting additional resource definition during 2026 and an updated MRE by the end of the year.
Nigeria: continuation of scout drilling programs on identified near-mine and regional targets.
Senegal (Douta Project):
Infill drilling at Makosa North, Makosa East and Baraka 3 targeted at converting inferred resources to indicated resources.
Drilling program in Bousankhoba licence to delineate scale of opportunity and potentially include additional resources in the Douta Preliminary Feasibility Study ("PFS") mine plan.
Further reverse circulation ("RC") drilling targeting additional oxide resources. Target updated Douta Mineral Resource Estimate by the end of the year to be used for an optimised PFS.
Côte d'Ivoire: Guitry, Marahui and Boundiali licenses, continuation of geochemical work programs and initial drill programs on identified targets with results from the Guitry and Marahui licence to be released in Q3 2026.
Advanced ongoing discussions with the Government of Senegal regarding the Mining Convention expected to be completed during Q3 2026 in parallel to the Company's objective of reaching Final Investment Decision.
Segun Lawson, President & CEO, stated:
"I am pleased with the Company's operational performance for the second quarter and first half of 2026. Despite lower production compared with the prior year, the strength of the gold price, together with continued cost discipline and operational efficiencies, resulted in half-year records across revenue, EBITDA and net profit. We ended the Period with a strong adjusted net cash position of US$218.6 million.
"During the Quarter, we poured 19,153 ounces of gold and sold 17,050 ounces at an average price of US$4,554 per ounce. The process plant has continued to perform well, achieving a recovery rate of 93.3% with no significant downtime, while cash operating costs were US$760 per ounce sold and AISC was US$1,262 per ounce sold.
"Exploration work progressed at Segilola, with the ongoing extensive drilling program. This drilling is producing encouraging results, intersecting multiple high grade intercepts hundreds of metres beneath the current open-pit mine design. Drilling will continue through to the end of the year as we further assess the underground potential. We are also continuing with our regional exploration in Nigeria, with geochemical sampling across the Ondo, Kajola, Central and Western prospects generating further targets for follow-up exploration and scout drilling.
"In Senegal, we are in advanced stages of discussions with the government regarding the finalisation of the Douta Mining Convention which forms a key component of the Douta Project Final Investment decision. In parallel, we continue to advance exploration across our licence tenure as part of our strategy to expand the Douta resource base ahead of an updated Mineral Resource Estimate and optimised Preliminary Feasibility Study.
"In Côte d'Ivoire, exploration work continued across the portfolio with most of the focus on the Guitry and Marahui licences. Follow-up drilling is being carried out based on initial encouraging exploration results and we look forward to releasing the drilling results in Q3 2026.
"We also continued to progress our ESG and community development programmes across the portfolio. During the Quarter, raw water withdrawals at Segilola decreased by 36% year on year and total greenhouse gas emissions declined by approximately 16%. We also published our 2025 ESG and Sustainability Report and continued investing in community infrastructure, education, enterprise and social initiatives across Nigeria, Senegal and Côte d'Ivoire.
"Looking ahead, our strong and growing balance sheet continues to enable us to carry out our exploration activities across the portfolio where we are aiming to deliver value adding milestones of mine life extension at Segilola, Final Investment Decision at Douta and a maiden resource from our portfolio in Côte d'Ivoire."
About Thor Explorations
Thor Explorations Ltd. is a mineral exploration company engaged in the acquisition, exploration, development and production of mineral properties located in Nigeria, Senegal and Côte d'Ivoire. Thor Explorations holds a 100% interest in the Segilola Gold Project located in Osun State, Nigeria and has a 70% economic interest in the Douta Gold Project located in south-eastern Senegal. Thor Explorations trades on AIM and the TSX Venture Exchange under the symbol "THX".
Qualified Person
The above information has been prepared under the supervision of Alfred Gillman (Fellow AusIMM, CP), who is designated as a "qualified person" under National Instrument 43-101 and the AIM Rules and has reviewed and approves the content of this news release. He has also reviewed QA/QC, sampling, analytical and test data underlying the information.
THOR EXPLORATIONS LTD.
Segun Lawson President & CEO
THOR EXPLORATIONS LTD.
For further information, please contact:
Thor Explorations Ltd.
Email: [email protected]
Canaccord Genuity (Nominated Adviser & Broker)
James Asensio / Henry Fitzgerald O'Connor / Harry Rees Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou Tel: +44 (0) 20 7907 8500
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren Tel: +44 207 138 3204
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah Tel: +44 (0) 20 3004 9512
Condensed Interim Consolidated Financial Statements For the Three and Six Months Ended June 30, 2026, and 2025 (in thousands of United States Dollars)
NOTICE TO READER
Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed interim consolidated financial statements by an entity's auditor.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION In thousands of United States dollars (unaudited)
Note $ $
ASSETS Current assets
| Cash | 193,128 | 137,750 | |
| Inventory | 4 | 51,069 | 37,204 |
| Trade and other receivables | 5 | 10,938 | 11,711 |
| Total current assets | 255,135 | 186,665 |
Non-current assets
| Inventory | 4 | 98,049 | 86,328 |
| Trade and other receivables | 5 | 220 | 223 |
| Right-of-use assets | 6 | 3,187 | 5,422 |
| Property, plant and equipment | 8 | 54,573 | 67,995 |
| Intangible assets | 9 | 77,171 | 60,449 |
| Total non-current assets | 233,200 | 220,417 | |
| TOTAL ASSETS | 488,335 | 407,082 |
LIABILITIES Current liabilities
| Accounts payable and accrued liabilities | 10 | 24,157 | 19,363 |
| Lease liabilities | 6 | 158 | 2,550 |
| Total current liabilities | 24,315 | 21,913 |
Non-current liabilities
| Lease liabilities | 6 | - | 45 |
| Provisions | 7 | 5,143 | 5,117 |
| Total non-current liabilities | 5,143 | 5,162 |
SHAREHOLDERS' EQUITY
| Common shares | 11 | 84,287 | 83,106 |
| Other reserves | 11 | 443 | - |
| Currency translation reserve | 11 | (3,090) | (4,247) |
| Retained earnings | 11 | 377,237 | 301,148 |
| Total shareholders' equity | 458,877 | 380,148 | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 488,335 | 407,082 |
These condensed interim consolidated financial statements were approved for issue by the Board of Directors on August 10, 2026, and are signed on its behalf by:
(Signed) "Adrian Coates" (Signed) "Olusegun Lawson"
Director Director
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, In thousand of United States dollars (unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Note $ $ $ $
Continuing operations
| Revenue | 3 | 77,647 | 82,794 | 151,964 | 146,857 |
| Cost of sales | 3 | (23,857) | (27,039) | (45,132) | (51,829) |
| Loss on forward sale of commodity contracts | - | - | |||
| Gross profit from operations | 53,790 | 55,755 | 106,832 | 95,028 | |
| Amortization and depreciation - other assets | 3 | (102) | (160) | (220) | (330) |
| Other administration expenses | 3 | (5,399) | (3,643) | (12,248) | (7,645) |
| Profit from operations | 48,289 | 51,952 | 94,364 | 87,053 | |
| Interest Income | 479 | 1,249 |
| Interest expense | (32) | (278) | (111) | (895) | |
| Net profit before income taxes | 48,736 | 51,674 | 95,502 | 86,158 | |
| Income Tax | - | - | - | - | |
| Net profit for the period | 48,736 | 51,674 | 95,502 | 86,158 |
Attributable to:
Equity shareholders of the Company 48,736 51,674 95,502 86,158 Net profit for the period 48,736 51,674 95,502 86,158
Other comprehensive profit
Foreign currency translation (loss)/profit attributed to equity shareholders of the company 488 (1,819) 1,157 (861) Total comprehensive income for the period 49,224 49,855 96,659 85,297
Net earnings per share
Basic 14 $ 0.073 $ 0.079 $ 0.144 $ 0.131 Diluted 14 $ 0.073 $ 0.077 $ 0.144 $ 0.129
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, In thousands of United States dollars (unaudited)
Three Months Ended Six Months Ended June 30, June 30,
Note 2026 2025 2026 2025
Cash flows from/(used in):
Operating
Net profit 48,736 51,674 $ 95,502 86,158 Adjustments for:
| Share based compensation | - | - | 1,624 | - | |
| Amortization and depreciation | 3 | 11,012 | 8,434 | 22,050 | 16,943 |
| Unrealized foreign exchange (gains)/losses | 3 | 52 | (385) | 370 | (244) |
Unrealized fair value movements on forward gold sale
| contracts | - | - | - | (1,900) |
| Interest expense | 32 | 278 | 111 | 895 |
| 59,832 | 60,001 | 119,657 | 101,852 |
Changes in non-cash working capital accounts
| Inventories | (11,531) | (832) | (25,586) | (2,741) |
| Trade and other receivables | 603 | (353) | 776 | (1,801) |
| Accounts payable and accrued liabilities | 4,148 | (8,235) | 4,973 | (21,237) |
| Deferred income | - | (5,868) | - | (4,463) |
| Net cash flows from operating activities | 53,052 | 44,713 | 99,820 | 71,610 |
Investing
| Purchase of intangible assets | 11 | - | (15) | - | (15) |
| Property, Plant & Equipment | 10 | (3,812) | (995) | (6,014) | (2,642) |
| Exploration & Evaluation assets expenditures | 11 | (8,162) | (3,950) | (16,524) | (7,773) |
| Net cash flows used in investing activities | (11,974) | (4,960) | (22,538) | (10,430) |
Financing
| Share subscriptions received | 13 | - | - | - | 760 | |||
| Dividends paid | (6,206) | (5,847) | (19,413) | (5,847) | ||||
| Repayment of loans and borrowings | 9 | - | (4,534) | - | (12,669) | |||
| Interest paid | 9 | - | - | - | (44) | |||
| Payment of lease liabilities | 6 | (1,256) | (1,129) | (2,517) | (2,517) | |||
| Net cash flows used in financing activities | (7,462) | (11,510) | (21,930) | (20,317) | ||||
| Effect of exchange rates on cash | 13 | (148) | 26 | (50) | ||||
| Net change in cash | 33,629 | 28,095 | 55,378 | 40,813 | ||||
| Cash, beginning of the period | 159,499 | 24,758 | 137,750 | 12,040 | ||||
| Cash, end of the period | 193,128 | 52,853 | 193,128 | 52,853 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY In thousands of United States dollars (unaudited)
Currency Total
| Common | translation | Retained | shareholders' | |||||
|---|---|---|---|---|---|---|---|---|
| Note shares | Option reserve | reserve | earnings | equity | ||||
| Balance on January 01, 2025 | 81,633 | 1,920 | (3,873) | 121,573 | 201,253 | |||
| Net profit for the period | - | - | - | 196,211 | 196,211 | |||
| Other comprehensive loss | - | - | (374) | - | (374) |
| Total comprehensive profit for the period | - | - | (374) | 196,211 | 195,837 | |||
| Options exercised | 13 1,473 | (1,920) | - | 1,207 | 760 | |||
| Dividends | - | - | - | (17,843) | (17,843) | |||
| Balance on December 31, 2025 | 83,106 | - | (4,247) | 301,148 | 380,007 | |||
| Balance on December 31, 2025 | 83,106 | - | (4,247) | 301,148 | 380,007 | |||
| Net profit for the period | - | - | - | 95,502 | 95,502 | |||
| Other comprehensive income | - | - | 1,157 | - | 1,157 | |||
| Total comprehensive profit for the period | - | - | 1,157 | 95,502 | 96,659 |
Contributions by and distributions to owners
| Share-based compensation | 13 | 1,181 | 443 | - | - | 1,624 |
| Dividends paid | 13 | - | - | - | (19,413) | (19,413) |
| Balance on June 30, 2026 | 84,287 | 443 | (3,090) | 377,237 | 458,877 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026, AND 2025 In thousands of United States dollars, except where noted (unaudited)
1. CORPORATE INFORMATION
Thor Explorations Ltd. (the "Company"), together with its subsidiaries (collectively, "Thor" or the "Group") is a West African focused gold producer and explorer, dual-listed on the TSX-Venture Exchange (THX.V) and the Alternative Investment Market of the London Stock Exchange (THX.L).
The Company was formed in 1968 and is organized under the Business Corporations Act (British Columbia) (BCBCA) with its registered office at 550 Burrard St, Suite 2900 Vancouver, BC, CA, V6C 0A3
2. BASIS OF PREPARATION
a) Statement of compliance
These condensed interim consolidated financial statements ("interim financial statements") have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, of International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").
These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2025, which have been prepared in accordance with IFRS.
These interim financial statements were authorized for issue by the Board of Directors on August 10, 2026.
b) Basis of measurement
These interim financial statements are presented in United States dollars ("US$").
These interim financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value at the end of each reporting period.
The Group's accounting policies have been applied consistently to all periods in the preparation of these interim financial statements. In preparing the Group 's interim financial statements for the three months ended June 30, 2026, the Group applied the critical judgments and estimates as disclosed in note 3 of its annual financial statements for the year ended December 31, 2025.
These interim financial statements include the accounts of the Company and its subsidiaries.
Subsidiaries are entities controlled by the Company, which is defined as having the power over the entity, rights to variable returns from its involvement with the entity, and the ability to use its power to affect the amount of returns. All intercompany transactions and balances are eliminated on consolidation. The Company's subsidiaries at June 30, 2026 are consistent with the subsidiaries as at December 31, 2025 as disclosed in note 3 to the annual financial statements.
None of the new standards or amendments to standards and interpretations applicable during the period has had a material impact on the financial position or performance of the Group. The Group has not early adopted any standard, interpretation or amendment that was issued but is not yet effective.
3. PROFIT FROM OPERATIONS
3a. REVENUE
Three months ended Six months ended June 30, June 30,
| 2026 | 2025 | 2026 | 2025 | |||
| Gold revenue | 77,647 | 82,556 | 151,964 | 144,439 | ||
| Silver revenue | - | 238 | - | 518 | ||
| Unrealized fair value movements on forward gold sale contracts | - | - | - | 1,900 | ||
| 77,647 | 82,794 | 151,964 | 146,857 |
Gold revenue
The Group's revenue is generated in Nigeria and arises from the sale of gold to established market counterparties in the international gold market.
3b. COST OF SALES
Three months ended Six months ended June 30, June 30,
| 2026 | 2025 | 2026 | 2025 | |
| Mining | 4,004 | 7,618 | 11,562 | 14,732 |
| Processing | 6,021 | 7,918 | 8,979 | 14,176 |
| Support services and others | 3,118 | 1,814 | 5,700 | 3,463 |
| Foreign exchange (gains)/losses on production costs | 52 | (119) | 370 | (63) |
| Production costs | 13,195 | 17,231 | 26,611 | 32,308 |
| Transportation and refining | 623 | 810 | 1,137 | 1,514 |
| Royalties | 2,973 | 724 | 3,541 | 1,394 |
| Depreciation, depletion and amortization - operational assets | 7,066 | 8,274 | 13,843 | 16,613 |
| Cost of sales | 23,857 | 27,039 | 45,132 | 51,829 |
3c. AMORTIZATION AND DEPRECIATION
Three months ended Six months ended June 30, June 30,
| 2026 | 2025 | 2026 | 2025 | |
| Depreciation, depletion and amortization - operational assets | 7,066 | 8,274 | 13,843 | 16,613 |
| Depreciation, depletion and amortization - other assets | 102 | 160 | 220 | 330 |
| 7,168 | 8,434 | 14,063 | 16,943 |
3d. OTHER ADMINISTRATION EXPENSES
Three months ended Six months ended June 30, June 30,
| 2026 | 2025 | 2026 | 2025 | |
| Employee compensation | 1,103 | 638 | 4,810 | 2,238 |
| Professional services | 1,065 | 543 | 2,085 | 960 |
| Pioneer service charge | 852 | 798 | 1,678 | 1,364 |
| Other corporate expenses | 2,379 | 1,663 | 3,675 | 3,082 |
5,399 3,642 12,248 7,644
4. INVENTORIES
Current:
| Plant spares and consumables | 15,665 | 12,163 |
| Gold ore in stockpile | 20,873 | 16,225 |
| Gold in CIL | 2,619 | 5,602 |
| Gold doré | 4,183 | - |
| Gold bullion | 7,729 | 3,214 |
51,069 37,204
Non-current:
Gold ore in stockpile 98,049 86,328 98,049 86,328
There were no write downs to reduce the carrying value of inventories to net realizable value during the periods ended June 30, 2026 and 2025.
5. TRADE AND OTHER RECEIVABLES
June 30, December 31, 2026 2025 Current:
| Advance deposits to vendors | 4,233 | 5,067 |
| Prepaid expenses | 1,108 | 2,950 |
| Other receivables | 585 | 402 |
| Other prepayments | 5,012 | 3,292 |
10,938 11,711 Non-current:
Deposits 220 223 220 223
Included in Advance deposits to vendors, are payment deposits towards key equipment, materials and spare parts, with longer lead times to delivery, which are of critical importance to maintain efficient operations of the mine and process plant. These were made to mitigate against price volatility and inflation currently affecting the sector.
As at June 30, 2026, the Group recognized $3.0 million and $1.5 million, respectively, as other prepayments within trade and other receivables, representing amounts paid in connection with the proposed acquisitions of the remaining 30% interests in the Douta project licence, Demande 11618, and the Douta West licence, EL03709, for which completion remained subject to certain conditions precedent, including final approval from the Minister of Mines. The Group currently expects these approvals to be obtained and the acquisitions to be completed during the 2026 financial year. Further details are provided in Note 9.
6. LEASES
Leases relate principally to corporate offices and the mining fleet at the Segilola mine. Corporate offices are depreciated over 5 years and mining fleet over the life of mine of Segilola.
The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position for the period ended June 30, 2026, were as follows:
Right-of-use Lease liability Income asset statement Carrying value December 31, 2025 5,422 (2,595)
| Depreciation | (2,581) | - | (2,581) |
| Interest | - | (61) | (61) |
| Lease payments | - | 2,517 | 2,517 |
| Foreign exchange movement | 346 | (19) | 327 |
| Carrying value at June 30, 2026 | 3,187 | (158) | 202 |
Current liability (158)
Non-current liability -
The key impacts on the Statement of Comprehensive Income and the Statement of Financial Position for the year ended December 31, 2025, were as follows:
Right-of-use Lease liability Income asset statement
| Carrying value December 31, 2024 | 7,302 | (7,210) | |
| Depreciation | (1,901) | - | (1,901) |
| Interest | - | (403) | (386) |
| Lease payments | - | 5,037 | - |
| Foreign exchange movement | 21 | (19) | (36) |
| Carrying value at December 31, 2025 | 5,422 | (2,595) | (2,323) |
Current liability (2,550)
Non-current liability (45)
7. PROVISIONS
June 30, 2026 Fleet demobilization Restoration
| Other | costs | costs | Total | ||
|---|---|---|---|---|---|
| Balance at Beginning of period | 23 | 173 | 4,921 | 5,117 | |
| Unwinding of discount of | - | - | 29 | 29 | |
| Foreign exchange movements | (3) | - | - | (3) | |
| Balance at end of the period | 20 | 173 | 4,950 | 5,143 | |
| Current liability | - | - | - | - | |
| Non-current liability | 20 | 173 | 4,950 | 5,143 |
December 31, 2025 Fleet demobilization Restoration
| Other | costs | costs | Total | ||
|---|---|---|---|---|---|
| Balance at beginning of period | 19 | 173 | 4,869 | 5,061 | |
| Unwinding of discount of | - | - | 52 | 52 | |
| Foreign exchange movements | 4 | - | - | 4 | |
| Balance at period end | 23 | 173 | 4,921 | 5,117 | |
| Current liability | - | - | - | - | |
| Non-current liability | 23 | 173 | 4,921 | 5,117 |
The restoration costs provision is for the site restoration at Segilola Gold Project in Osun State Nigeria. The value of the above provision is measured by unwinding the discount on expected future cash flows using a discount factor that reflects the credit-adjusted risk-free rate of interest.
It is expected that the restoration costs will be paid in US dollars, and as such US forecast inflation rates of 2.5% and the interest rate of 4.25% on 2-year US bonds were used to calculate the expected future cash flows, which are in line with the life of mine. The provision represents the net present value of the best estimate of the expenditure required to settle the obligation to rehabilitate environmental disturbances caused by mining operations at mine closure.
The fleet demobilization costs provision is the value of the cost to demobilize the mining fleet upon closure of the mine.
8. PROPERTY, PLANT AND EQUIPMENT