Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Can't confirm but this article is interesting, noting Segun's/Thor's close ties to the government and the fact they are undertaking exploration. Knowing how things work over there, from personal experience, I am not concerned.
https://www.thearmchairtrader.com/thor-explorations-moving-into-lithium-following-profitable-year/
Dothey have a mining permit? If not, everything they find may be at risk!
Not so much a pullback as a rebalancing with Toronto on the FX, with that listing up again today (so far). It deserves more. News and volume always well received with Thor. Want to dig into the Lithium more. They don't need to develop it themselves, necessarily. Many ways to monetise these things. Mergers, acquisitions and divestment are all potential strategies on any of the concessions. Nice to see it back over $0.35 in Toronto... I bought there a long time ago!
Performing better than others isn’t it, pullback to be expected? Seems to receive more tips than similar gold producers on account of its ace card (Lithium) regardless of how far away commercial production is
Welcome aboard! I'm all ears to hear more about lithium mining!
One of the posters over at Andrada (ATM) pointed me to THX so will be joining the board and probably asking a few questions as well as hopefully answering a few
not really interested in the gold, but need to assess the lithium potential
size is hard, but those grades are very very good
Right, who knows about Lithium mining then?
Thor Lithium Exploration
Acquisition of over 500 square kilometres ("km2") of tenure in south-west Nigeria covering both known lithium bearing pegmatite deposits and a large unexplored prospective pegmatite-rich belt
As previously announced, initial field inspection and selective sampling of key sites have returned significant lithium grades from both spodumene and lepidolite mineralisation. Sampling of part of a key pegmatite deposit that falls within Thor's tenure returned an analysis of between 1.34% lithium oxide ("Li20") and 9.31% Li20
Location 6 is the site of the largest known spodumene-lepidolite pegmatite in Nigeria. The pegmatite outcrops over a strike length of several hundred metres averaging 20 metres ("m") true thickness. The full extent of this pegmatite body is yet to be determined. A small-scale mining operation is currently extracting a variety of spodumene known as kunzite for its gemstone qualities
An initial drill program of 5,000m, utilizing three RC drilling rigs, is ongoing at our priority target - (Location 6). To date, the main pegmatite has been intersected in five holes averaging 20m true thickness over 150m of strike. Samples have been dispatched for analysis
A metallurgical sampling program is due to commence in Q3 2023
Great stuff!
Thor Explorations was featured in the Mail on Sunday, written by Joanne Hart. It highlights Segun's career and how the company came to be born and then the success of Segilola and other projects in the pipeline.
https://www.thisismoney.co.uk/money/investing/article-12253899/MIDAS-SHARE-TIPS-Thor-prove-GOLDEN-opportunity-portfolio.html
THX a share tip in the DMail which is nice. Should lift the sp a bit come market open.
If I click the "SEDI: THX" link in the THX chat on: https://ceo.ca/thx - It looks like that is saying Segun bought almost $2M of shares at $0.29. If that is correct and I am not misreading it; that's a hell of a vote of confidence.
Https://www.sharesmagazine.co.uk/article/investing-in-gold-miners-the-stocks-and-funds-that-matter
Simple answer is... no idea on Lithium mining! Would be interested in hearing any thoughts from the board. Clearly it is an interesting and valuable space but one I haven't got into the last few years, despite the growth.
https://www.proactiveinvestors.co.uk/CVE:THX/Thor-Explorations-Ltd/rns/1317353
Https://mineralseducationcoalition.org/minerals-database/lithium/#:~:text=Lithium%20was%20first%20discovered%20in,deposit%20that%20geologists%20call%20pegmatite.
Thank you for a great summing up of the gold mining aspects of THX. Do you have a view on the Lithium news please? Specifically operational risk and geological. I have no knowledge in depth about lithium mining but assume ore from rock perhaps more concentrated and easy to extract than that from salt beds? The gold is OK but the Lithium could be transformational.
Lots of good stuff in there and some nuggets (deliberate pun) for the future:
- Gold production for the Period totalled 20,629 ounces ("oz")
- Mill feed grade was 2.95 grammes per tonne ("g/t") gold with recovery at 94.1%
- An increase in mining rates and the mining of higher grade ore zones is expected in Q2 2023
- The main operating units of the process plant continue to perform better than expected
- The plant is operating above nameplate capacity
- Identification of a new high grade quartz vein system..[at] Segilola... including 1 meter ("m") at 10 oz of gold per tonne!!!
- Senior debt facility reduced to US$27.9 million as at 31 March 2023
- Repayment of all outstanding EPC invoices
- Net debt of US$25 million as at 31 March 2023
- Production guidance of 85,000 to 95,000 oz for 2023 maintained
Not so good:
- All-in sustaining cost ("AISC") of US$1,346 per oz sold
- Cash and cash equivalents of US$4.5 million as at 31 March 2023 (Q1 2022: US$6.3 million)
However, we seem to be at the top of the "AISC guidance of US$1,150 to US$1,350 per oz", so I hope that infers they do expect this to drop. I'd like to hear more of a plan to address this as I suspect this is the reason for the recent drop in SP. Assume a lot of the Segilola extension and Douta exploration costs are in the calculated AISC, so that is an 'investment' into the future, which is what we need to extend the mine life.
Cash, well, I am a bit 'who cares' about that. $4.5M isn't peanuts and they made "Q1 2023 EBITDA of US$16.1 million (Q1 2022: US$13.4 million)" and a "Q1 2023 net profit of US$4.3 million (Q1 2022: US$3.5 million)" so the cash is flowing nicely and debt is paying paid down rapidly. They basically have a whole quarter's profit as a buffer.
But the SP is down around 10% in the last month, with seriously low volumes, specifically in Toronto, some days. We shouldn't have days trading at a volume of 2.5k shares. Literally a few hundred dollars can change the MCAP by millions. The company needs to drive volume here and create some shareholder value. This is a small company - it does need marketing, lots of positive comms and PR. I'd like to know how shareholder value is being addressed as 'continued solid operation at Segilola' isn't cutting it, clearly. Hopefully this can be ramped up off the back of some really positive Segilola extension news or Douta strategy to come soon. Dividends look difficult now but M&A could change all that.
A great quarter. Net debt down to $25m, news rich Q2 to come. Cash important, but NET cash/debt tells you a lot more.
Everyone has to make their own decisions and we all need to be careful to not be too greedy nor get too emotionally involved. I was badly burned on THG today (well, this week) with the buyout there dissolving. The re-rate in THX has been a long time coming and although the SP has made steady progress this year, and gold is holding $2000/oz, the world is 'struggling', to put it simply, and I can quite imagine that small cap miners in Nigeria are not top of investors' hit lists. I say that because we need buy side volume to see appreciation here and while we fly under the radar; we may have to wait. I am sure the BoD are all over the AISC, optimising the chemical/fuel costs and contracts, wherever possible. The joker in the pack for me is what they do at Douta. The gradings there and the costs of production (leading directly to AISC) need careful consideration and planning. What we have today is a mine (Segilola) that makes positive FCF, with now very low debt. That's huge vs even 2 years ago. Maybe the market is worried about the mine life but all signs point to Segilola being extended and that being a very healthy extension. Let's get that news formalised, the debt gone and look at a nice, regular dividend to entice some new entrants. Acquisitions, mergers or asset divestment could be the icing on the cake and provide investors with some near term upside. We sometimes need to step back and look at where we have come... And all the hard stuff was done during COVID. Huge success story that needs greater attention from retail and institutions alike (but that might need some more marketing)!
Fair enough but they did state the higher AISC was due to material increases in the cost of Ammonia Nitrate and Diesel.
Personally would have expected it to rise.
Decided to take profits and move to the sidelines, will watch with interest what happens here, the reason is increase in aisc without explanation. Thanks to ISA some excellent posts and good luck to all holders.
Having thought about the refinancing and the deferred debt payments the company probably new a significant increase in alsc was coming which would impact what the company wanted to do, which was either continue to pay the debt down at a rapid rate or continue to drill and explore their other areas and quantify reserves but couldn't do both, so they have chosen to continue to explore, which in turn grows the company.
The transfer to gas should have a meaningful impact as Nigeria have plenty of it at reasonable prices for in country use, interesting times.