Thor Explorations Announces Audited Financial and Operating Results for the Full Year and Three Months Ending
Thor Explorations Announces Audited
Financial and Operating Results for the Full
Year and Three Months Ending December 31,
2022
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014
("MAR"). Upon the publication of this Announcement, this
inside information is now considered to be in the public
domain.
Vancouver, British Columbia--(Newsfile Corp. - May 2, 2023) - Thor Explorations Ltd. (TSXV: THX) (AIM:
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, Senegal and Burkina Faso for the three months ending
December 31, 2022 ("Q4 2022") and the audited financial results for the year ending December 31,
2022 ("Year" or "FY 2022").
The Company's Consolidated Audited Financial Statements together with the notes related thereto, as
well as the Management's Discussion and Analysis for the year ending December 31, 2022, are
available on Thor Explorations' website at
https://thorexpl.com/investors/financials/
.
All figures are in US dollars ("US$") unless otherwise stated.
Operational Highlights
Segilola Production
Gold production for the Year totaled 98,006 ounces ("oz")
2022 was the Company's first full calendar year of production with commercial production
declared at Segilola on January 1, 2022
Gold production was at the top end of the FY 2022 guidance range of 90,000 to 100,000oz
of gold
All of the main operating units of the process plant performed as expected, and the plant
consistently operated above nameplate capacity
Segilola Near-Mine Exploration
Acquisition of additional exploration tenures, expanding the Company's Nigeria portfolio
Exploration activities ramped up across the Company's portfolio, delineating drill targets for 2023
Douta
A successful 26,000 metre reverse circulation ("RC") drilling program was completed to upgrade
certain areas of the existing resource and to target higher grade parts of the deposit
New discovery of the Sambara Prospect
Financial Highlights
92,489 oz of gold sold with an average gold price of US$1,767 per oz
Cash operating cost of US$821 per oz sold and all-in sustaining cost ("AISC") of US$1,091 per oz
sold
The higher than budget AISC was a result of materially increased prices of ammonium nitrate
and diesel
during 2022
FY 2022 revenue of US$165.2m (FY 2021: US$6m)
FY 2022 EBITDA of US$71.7m (FY 2021: loss of US$1.8m)
FY 2022 net profit of US$25.4m (FY 2021: loss of US$2.1m)
Cash and cash equivalents of US$6.7m (FY 2021: US$1.3m)
Senior debt facility significantly reduced from US$54m to US$28.4m as at December 31, 2022
Net debt of US$31m (FY 2021: US$ 65.6m)
Environment, Social and Governance
Transition from diesel to compressed natural gas ("CNG") generators is progressing. Once fully
operational they will reduce greenhouse gas emissions at the Segiola Mine Project by 53%. Total
emissions (Scope 1) for 2022 at 31,781 tons
Livelihood restoration projects initiated, including fish and vegetable farms
Community Development Agreements ("CDA") have funded local Youth and Women Initiative
programs focusing on practical skill-based courses. CDA's have also funded annual school
scholarships to enable children from vulnerable backgrounds to remain in school
In Senegal, quarterly water quality (surface and ground) monitoring commenced in Q4 2022 and
the Company has been assisting with the economic development of local communities as well as
providing funding to a women's initiative program
Post FY 2022 Highlights
Segilola gold production of 20,629 oz during Q1 2023
Identification of new high grade quartz vein system within 15km of Segilola, with multiple high
grade drillhole intercepts including 1m at 310 g/t gold which equates to 10 oz of gold per tonne
Senior debt facility with Africa Finance Corporation amended and restated to facilitate the
Company's growth opportunities
Senior debt facility reduced to US$27.9 million as at 31 March 2023
Mineral Resource Estimate at Douta updated to approximately 1.78 million oz of gold, an increase
of 144%
Updated Douta Resource encompasses the Makosa, Makosa Tail and the recently
discovered Sambara prospects, all of which remain open along strike and down dip
Drilling is ongoing at Douta with a further 40,000 metre drilling programme to be completed
in 2023, consisting of diamond drilling and reverse circulation drilling
Outlook
Production guidance set at 85,000 to 95,000 oz for 2023 with an AISC guidance of US$1,150 to
US$1,350 per oz
Advance exploration programs across the portfolio, including near mine and underground projects
at Segilola, extension and infill programs at Douta and the assessment of potential targets in
Nigeria
Completion of the Douta preliminary feasibility study ("PFS") in Q4 2023
Segun Lawson, President & CEO, stated:
"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, producing 98,006 oz of gold and
selling 92,489 oz of gold at an average price of US$1,767 per oz. Despite the global supply chain
issues that Thor faced, which contributed to a higher than budgeted AISC, the Company still managed
to achieve an annual operating profit of US$40 million and a net profit of US$25.4 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.
"We also continue to develop the Douta Gold Project and, during the year, carried out a 26,000m
drilling programme that led to the announcement of a 144% resource increase subsequent to the year
end. We will continue to advance the Douta project towards a PFS in 2023 as we believe that it has the
potential to provide significant value to shareholders.
"Regrettably, during the year, a tragic accident at Segilola resulted in the death of Mr Muyideen
Adegboyega, our thoughts and condolences go out to his family and friends. Since the incident, we
have put in place additional measures to ensure that this does not happen again and that the safety of
everyone working at, or otherwise affected by, the Segilola project is prioritised, as determined by our
ESG policy.
"ESG remains an integral part of our business strategy and we have made considerable progress with
our community development projects. We have commenced livelihood restoration programs, in the
form of fish farms and market gardens. We have provided funding, equipment, training and assisted
with the construction of these projects which presented cash-positive projects to the communities so
that they can produce goods to be sold at local markets. We have also commissioned and supervised
many youth programs and training workshops to develop and enhance necessary and transferable
skills.
We will continue to progress our projects to help the development of local communities.
"Looking to the future, our production guidance for 2023 is set at 85,000 - 95,000 ounces and I look
forward to seeing what we will be able to accomplish in 2023."
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 Burkina Faso. 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".
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
For further information please contact:
Thor Explorations Ltd
Email:
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email:
Ibu Lawson (Investor Relations)
Tel: +447909825446
Email:
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
Management Discussion & Analysis for Q4 2022 and Full Year 2022
CHAIRMAN'S STATEMENT
We are extremely pleased to have completed our first full calendar year as a commercial gold producer,
with the 98,006 ounces produced during the year being at the top end of the Company's Full Year 2022
guidance. This progress has seen the Company transition from an explorer, to a developer and
ultimately a gold producer, building and successfully operating Nigeria's first large scale commercial
gold mine within a five year period. This required significant effort from a large number of people from
our various stakeholders and the Board wishes to express its thanks to everyone involved.
This year saw a highly regrettable loss of life. We were sorry to suffer a fatal injury incident leading to the
tragic death of Mr Muyideen Adegboyega. Our condolences go out to his family and friends. Following
this tragic incident, the Company has put into place additional measures that ensure the safety of anyone
working or otherwise affected by the Segilola Project, including the ongoing work towards achieving
ISO45001. Environmental, Social and Governance ("ESG") was at the heart of our business in 2022.
Engagement with local stakeholders happened at all levels, from national government through to local
communities. This remains a priority for the Company.
Community development projects have made significant progress throughout the year. We have
commenced livelihood restoration programmes in the form of fish farms and market gardens. By funding
and assisting with the construction of these projects, providing necessary equipment, maintenance
materials and training, the communities are now presented with cash-positive projects that can produce
goods to sell at local markets and to the Segilola mine. We have also commissioned and supervised
various community youth programmes and skills training workshops throughout the year that focussed on
developing and enhancing transferable skills.
2022 has been a year where the company has consolidated itself as an operator. Production for the first
full year of operations has been commendable, with an achievement of over 98,000 ounces. We also
continued to advance exploration in Nigeria and Senegal, and look forward to accelerating exploration in
both countries in 2023.
I would like to thank all our shareholders who have been supportive through our transition. We believe we
have created a strong foundation to deliver further value in the coming years and look forward to 2023.
Adrian Coates
Chairman
CEO'S STATEMENT
2022 proved to be a year of significant milestones for Thor. The Company officially declared commercial
production from its Segilola Gold Mine on 1 January 2022 and after this, successfully produced 98,006
ounces by the end of the year. This was a successful year in terms of gold production; however, the year
was not without its challenges. Global supply chain shortages following the COVID-19 pandemic
persisted, resulting in materially increased prices of essential consumables and supplies such as
ammonium nitrate, diesel and spare parts contributing to a higher than budget AISC for the Segilola
Gold Mine of US$1,091 per ounce. Despite these challenges, we were able to demonstrate operational
efficiency, resulting in positive cash flows and a maiden annual operating profit of US$40 million and net
profit of US$25.4 million.
In the full year 2022, Segilola produced 98,006 ounces and sold 92,489 ounces of gold with an average
gold price sold of US$1,767 per ounce. Significantly, our senior debt facility was reduced from US$54
million to US$28.4 million as at December 31, 2022.
I reiterate the comments of our Chairman and also extend my condolences to the friends and family of Mr
Muyideen Adegboyega, who was tragically killed. A thorough incident investigation was undertaken (in
line with company procedures) with senior managers involved as well as the Ministry of Mines and Steel
Development as is standard practice. The lessons learnt from this fatality triggered immediate and long-
lasting actions to prevent the reoccurrence of such an event, to improve protection of SROL and Project
staff and to protect and respect local community resident's health, safety and security.
Our focus turns to achieving global best practice in health and safety with ESG continuing to be a priority
for the Company. We continue to be extremely proud of our community engagement and throughout the
period we invested heavily in a number of long-term initiatives, specifically in the areas of food and
agriculture, health, education, water and sanitation and local economic development.
The Company also completed a successful year of exploration at the Douta Project in Senegal. This
project continues to be of high priority for the Company and is well positioned to deliver significant value
to our shareholders. During the year, the major activity carried out was a 26,000 metre exploration
drilling program which was successful and culminated in the announcement of a 144% resource
increase post the period end. We look forward to completing a preliminary feasibility study of the Douta
Project in 2023.
I would like to finish by saying we are proud of our first calendar year as a producer, achieving the top
end of our guidance. We are now very well positioned to grow the company and continue its evolution
through exploration whilst continuing to deliver further on gold production and generation of strong cash
flow. I would like to thank our entire team of incredible employees for their commitment and tireless work
during the year without whom we would be unable to operate. We look forward to the years ahead and
growing Thor into a sustainable, multi- asset, mining company.
Segun Lawson
Chief Executive Officer
OVERVIEW
Thor Explorations Ltd. ("Thor" or the "Company") is a gold production, development and exploration
company focussed on West Africa and dual-listed on the TSX Venture Exchange TSX-V (TSXV: THX)
and the AIM market of the London Stock Exchange (AIM: THX).
The Company's main assets include its
flagship producing Segilola Gold mine in Nigeria and the advanced exploration project, Douta, in
Senegal. The Company also has a growing portfolio of prospective exploration licences on the
unexplored Ilesha schist belt in near proximity to the Segilola Gold mine and further exploration licences
in Nigeria and Burkina Faso.
Our strategy is to operate, develop and explore mineral properties where our expertise can substantially
increase shareholder value. The Company operates with transparency and in accordance with
international best practices and is committed to delivering value to its shareholders through responsible
development, providing economic and social benefit to our host communities and operating in a manner
where health and safety and the environment are integral to our operations and development approach.
Figure 1.1: Thor's Properties in West Africa
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7003/164431_6e8ff3df646beb7f_002full.jpg
HIGHLIGHTS AND ACTIVITIES - FOURTH QUARTER 2022 AND YEAR ENDED DECEMBER 31,
2022
Operating results remained in line with expectations for the quarter and the year highlighted by the selling
of 92,489 ounces of gold during the Year at a cash operating cost
1
of US$821 per oz sold. AISC
1
for the
Year was above guidance at US$1,091 per oz sold.
Commercial production was declared at Segilola on January 1, 2022, and the Facility Taking Over
Certificate from the EPC contractor was received on January 31, 2022. The EPC Contractor confirmed
that it would cooperate with the Company by extending the payment period of the final EPC invoices by
allowing the Company to make payment of the final EPC invoices from available cashflow. As at the date
of publishing this document, all EPC invoices due had been settled in full.
The Company's performance in Q4 2022 builds on its performance during the previous quarters and
provides good direction for 2023. The Company has set its production guidance to 85,000 to 95,000 oz,
while AISC
1
guidance for 2023 is set at US$1,150 per ounce to US$1,350 per ounce.
Table 2.1 Key Operating and Financial Statistics
Operating
Year ended
December 31,
2022
Year ended
December 31,
2021
Gold Sold
Au
92,489
3,425
Average realised gold price
1
$/oz
1,767
1,753
Cash operating cost
1
$/oz
821
-
AISC (all-in sustaining cost)
1
$/oz
1,091
-
EBITDA
$/oz
775
-
Financial
Revenue
$
165,174,531
6,049,485
EBITDA
1
$
71,680,022
(1,799,068
)
Net Income/(Loss)
$
25,398,941
(2,069,195
)
Cash and cash equivalents
$
6,688,037
1,276,270
Deferred Income
$
6,581,743
-
Net Debt
1
$
31,650,722
65,555,984
Segilola Gold Mine, Nigeria
During the year, there continued to be global supply chain issues resulting in shortages and increased
prices for a number of essential consumables and supplies such as ammonium nitrate, diesel and spare
parts contributing to a higher than target AISC of US$1,091. The Company was able to partially mitigate
these risks through the bulk purchase of most supply chain items. Despite these challenges, we were
able to demonstrate operational efficiency, resulting in positive cash flows and annual operating profit of
US$40 million and net profit of US$25.4 million.
Gold Production
During the year ended December 31, 2022 the Segilola Mine produced 98,006 ounces of gold doré
(2021: 9,888 ounces).
The Company exported gold regularly throughout the year selling 92,489 ounces of gold and 5,329
ounces of silver in the year and had a further gold dore inventory of 1,884 ounces and gold in circuit of
1,031 ounces on hand. These ounces have all been sold in the first quarter of 2023.
Mining
During the year ended December 31, 2022, 16,106,033 tonnes of material were mined, equivalent to
mining rates of 43,956 tonnes of material per day. In this period, 1,057,996 tonnes of ore were mined,
equivalent to mining rates of 2,890 tonnes of ore per day, at an average grade of 3.56g/t.
Processing
During the year ended December 31, 2022, a total of 929,760 tonnes of ore, equivalent to a throughput
rate of 2,719 tonnes per day, were processed.
The mill feed grade was 3.45g/t gold and recovery was 95.12% for a total of 98,006 ounces of gold doré
produced. We continue to review the process plant to optimize throughput and recoveries.
All of the main operating units of the process plant are performing as expected, and the plant is
consistently operating above nameplate capacity. We continue to carry out further optimization activities
for the gold recovery process.
Table 2.2: Production Metrics
Units
FY 2022
FY 2021
Mining
Total Ore Mined
Tonnes
1,057,996
309,641
Ore Processed
Tonnes
929,760
145,999
Waste Mined
Tonnes
15,048,436
6,179,443
Total Mined
Tonnes
16,106,033
6,489,014
Total Ore Mined Gold Grade
g/t Au
3.56
2.47
Ore Processed
g/t Au
3.45
2.65
Processing
Ore Milled
Tonnes
929,760
145,999
Daily Throughput Rate (average)
Tpd
2,719
86
Daily Throughput/ Nameplate
%
136.34
96.64
Capacity
Ore Processed Gold Grade
Recovery
%
95.12
83.90
Gold doré Recovered
Oz
98,006
9,888
NON-IFRS MEASURES
This MD&A refers to certain financial measures, such as average realized gold price, cash operating
costs, all-in sustaining costs ("AISC"), net debt and earnings before interest, taxes, depreciation and
amortisation ("EBITDA") which are not recognized under IFRS and do not have a standardized meaning
prescribed by IFRS. These measures may differ from those made by other companies and accordingly
may not be comparable to such measures as reported by other companies. These measures have been
derived from the Company's financial statements because the Company believes that, with the
achievement of gold production, they are of assistance in the understanding of the results of operations
and its financial position.
Average realised gold price per ounce sold
The Company believes that, in addition to conventional measures prepared in accordance with GAAP,
the average realised gold price, which takes into account the impact of gain/losses on forward sale of
commodity contracts, is a metric used to better understand the gold price realised during a period.
Management believes that reflecting the impact of these contracts on the Group's realised gold price is a
relevant measure and increases the consistency of this calculation with our peer companies.
In addition to the above, in calculating the realised gold price, management has adjusted the revenues
as disclosed in the consolidated financial statement to exclude by product revenue, relating to silver
revenue, and has reflected the by product revenue as a credit to cash operating costs. The revenues as
disclosed in the consolidated financial statements have been reconciled to the gold revenue for all
periods presented.
Table 3.1: Average annual realised price per ounce sold
Units
Year Ended
December 31,
2022
Year Ended
December 31,
2021
Revenues
$
165,174,531
6,049,485
By product revenue
$
(114,211
)
(3,727
)
Gold Revenue
$
165,060,320
6,045,758
Gain/(Loss) on forward sale of commodity contracts
$
(1,587,524
)
(43,295
)
Gold Revenue
$
163,472,796
6,002,463
Gold ounces sold
oz Au
92,489
3,425
Average realised price per ounce sold
$
1,767
1,753
Cash operating cost per ounce
Cash operating cost per oz sold, combined with revenues, can be used to evaluate the Company's
performance and ability to generate operating income and cash flow from operating activities. The
Company believes that, in addition to conventional measures prepared in accordance with GAAP,
certain investors may find this information useful to evaluate the costs of production per ounce.
By product revenues are included as a credit to cash operating costs.
Table 3.2: Average annual cash operating cost per ounce of gold