Thor Explorations cuts gold production guidance after heavy rainfall

Thor Explorations Ltd cut its 2026 gold production guidance after "exceptionally heavy" rainfall disrupted operations at its Segilola mine in Nigeria as the company posted its quarterly results.

The West Africa-focused gold producer said gold poured in the third quarter ended September 30 totalled 15,515 ounces, down 31% from 22,617 ounces per year earlier and 19% from 19,153 ounces in the second quarter.

Ore processed edged down 0.3% to 249,607 tonnes from 250,459 tonnes a year earlier, but rose 3.7% from 240,769 tonnes in the second quarter. The average gold grade fell 32% year on year to 2.10 grammes per tonne from 3.11g/t, and declined 18% from 2.57g/t in the second quarter. The processing plant achieved a recovery rate of 93%, compared with 94% a year earlier.

Gold sales totalled 19,000 ounces at an average realised price of USD4,297 per ounce, generating revenue of USD81.7 million. The realised price compared with USD3,535 a year earlier. Thor reported a cash balance of USD224.9 million at September 30 and gold bullion inventory of 2,825 ounces, giving an adjusted net cash position of USD236.7 million.

Thor cut its 2026 gold production guidance by a median of 11% to between 70,000 and 72,000 ounces from 75,000 to 85,000 ounces following severe rainfall at Segilola in late August.

"Despite the challenging operating conditions experienced at Segilola as a result of exceptionally heavy rainfall during the period," President and Chief Executive Officer Segun Lawson said, "our team has demonstrated considerable resilience in navigating these challenges."

"Exploration continues to be an important driver of our growth strategy, and I am particularly encouraged by the progress achieved across our portfolio during the quarter," Lawson added.

In Nigeria, Thor said it continues its underground exploration drilling at Segilola and regional exploration to identify additional gold resources.

In Senegal, Thor continues drilling at its Douta project, aiming to publish an updated resource estimate by year-end. Thor also said talks with the Senegalese government over the mining convention are in their final stages.

In Ivory Coast, Thor reports encouraging high-grade drilling results at its Guitry and Marahui projects, while exploration continues at Laoudiba and Boundiali.

Thor maintained its quarterly dividend at CAD0.0125, about 0.66 pence per share.

Shares in Thor were down 5.9% to 56.00p on Wednesday morning in London.

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