Thor Explorations Ltd (AIM: THX, TSX-V: THX) reported third-quarter revenue of US$81.7 million from its Segilola gold mine in Nigeria, but lowered its full-year production guidance following exceptionally heavy rainfall that disrupted mining operations.
The West Africa-focused gold producer sold 19,000 ounces of gold at an average realised price of US$4,297 per ounce during the quarter, benefiting from strong gold prices despite challenging operating conditions.
Gold poured during the period totalled 15,515 ounces, with 249,607 tonnes of ore processed at an average grade of 2.10 grammes per tonne. Plant recovery rates remained strong at 92.8%.
However, severe rainfall in late August affected mining activities at Segilola, prompting Thor to reduce its 2026 gold production guidance to between 70,000 and 72,000 ounces, compared with its previous forecast of 75,000 to 85,000 ounces.
The company maintained its all-in sustaining cost guidance of US$1,000 to US$1,200 per ounce, indicating that its cost expectations remain unchanged despite the operational disruption.
Thor ended the quarter with US$224.9 million in cash and 2,825 ounces of gold bullion inventory, giving the company an adjusted net cash position of US$236.7 million.
Mining operations moved 567,059 tonnes of material during the quarter, including 303,602 tonnes of ore grading an average 1.69 grammes per tonne, containing approximately 16,523 ounces of gold.
The company also reported an ore stockpile containing 58,322 ounces of gold at the end of September, providing material for future processing operations.
Chief Executive Segun Lawson described the quarter as solid despite the exceptionally heavy rainfall, highlighting the operational team’s ability to manage difficult conditions.
Alongside production activities, Thor continued exploration programmes across its West African portfolio, including drilling at Segilola targeting additional resources suitable for potential underground mining.
In Senegal, infill drilling continues at the Douta gold project, where the company aims to convert inferred mineral resources into the higher-confidence indicated category.
Thor is targeting an updated mineral resource estimate by the end of 2026, which will support an optimised preliminary feasibility study.
The company also confirmed it is in the final stages of discussions with the Senegalese Government regarding the Douta Mining Convention, the final outstanding milestone before a potential final investment decision.
Meanwhile, exploration continues in Côte d’Ivoire, with drilling underway at the Guitry and Marahui prospects and additional early-stage targets being developed at Laoudiba and Boundiali.
Despite reducing its production forecast, Thor’s substantial cash position and continued exploration activity provide financial flexibility, with attention now turning to operational recovery at Segilola, the updated Douta resource estimate and progress towards a potential development decision in Senegal.
