Member Info for Schmidt1

Sorry that was german:-)

Yes, I have Twitter. But I've never written anything there.. @StefanS310583 I hope you can find me there.. Thank you

Yes, I have Twitter. But I've never written anything there.. @StefanS310583 I hope you can find me there.. Thank you

Thanks for the info chris. Which 4 are you talking about? I was actually only expecting the Douta PFS and maybe a dividend introduction. Thanks for your feedback

I suggest something: could the adults from the THX board please stop posting on the matad board and the adults from the matad board please stop posting on the THX. That would help everyone. I hope you all have a nice day.

@harchris please don't misunderstand me. I didn't want to compare you to tenbagtag. I just wanted to point out that everyone should make their own investment decisions.

I really couldn't read anything useful from your posts. So bring arguments and facts or please go away...

OK, then I'm assuming that you've informed yourself about the company, right? I can only warn you if I have fundamental concerns, right? Have you read the financial reports? If you want to warn someone, then I back it up with arguments and facts... Otherwise it's nonsense

Hey guys, this is going to be really tough here... I can only recommend that everyone take a close look at their companies. Before I invested in THX, I looked at the financial reports several times, read Segilola's technical report and checked the country risk. Then I bought. I don't need HarChris or Tenbagbag for that... Why am I in this forum? You should discuss specific company details here. Everyone has their knowledge in special areas and that should be shared here and discussed constructively. Have a nice weekend

I would like to briefly address the question of whether a company should try to keep its profits as low as possible in order to pay less taxes.

And this is exactly what is so brilliant about this process.

The low grade ore was already included in the balance sheet at 1900 USD/ounce.

The profit is increased but the company is currently not paying any taxes. If it is now processed in the mill after, let's say, 5 years, then it removed from the balance sheet. However, the 1900 USD/ounce is now added to the operating costs, which reduces the profit and less taxes have to be paid.

And now to Q4/24:

total mined Q4: 3,781,881

total mined Q1: 4,939,647

So much less waste had to be removed than in Q1, which should have a positive effect on the mining costs.

Hence my forecast for Q4.

Costs: Operating costs including administration + sustaining capital+ non sustaining capital:

25 million USD.

repayment of loans and borrowings + lease liabilities:

10 million USD.

accounts payable: 10 million USD

total: 45 million

revenue: 62 million USD.

change in cash: 17 million USD.

Total cash end of Q4: 24 million USD.

2025: mid point production: 22,500 ounces/quarter

Gold price 2,650 USD.

revenue/quarter: 60 million USD.

Costs: AISC + non sustaining capital:

25 million USD/quarter

Gold stream + lease liabilities: 5 million USD/quarter.

Free cash flow/quarter 30 million USD.

Not included are any further possible repayments of accounts payable.

Free cash flow: 120 million

Market capitalization: 170 million USD.

Price/free cash flow: 1.4

This is crazy!

Sorry, it should read: the increase in low grade ore in Q1/24 was USD 13 million.

I'll try to explain:

Q1/24 is a good example of this.

The low grade ore in stockpile is shown in the balance sheet as a cost. With 1900USD/oz or a total of 13 million USD for Q1

These costs are deducted from operating costs, resulting in this extremely low mining cost of USD 4.8 million. Compared to Q1/23 with $21 million.

This increases the company's profits.

In the cash flow statement, which was more important to me, these USD 13 million were added again, as the operating costs were USD 4.8 million + USD 13 million. This USD 13 million should actually flow into the AISC.

So the really paid costs for mining were not 4.8 million USD, but 18 million USD.

This is also an easy way to explain why Q1/24 had such low AISC and yet such low cash flow.

I have now dealt extensively with the low AISC of THX.

The right AISC for me is about 500 USD higher for THX this year.

Why?

Take a look at the financial reports of other companies.

E.g. Mandalay resources or Fortuna mining.

The change in inventory is included in the calculation. THX does not do this and therefore THX's AISC is not comparable to that of other companies.

If THX were to include the change in inventory, the AISC would be around 1250 USD.

I don't want to badmouth anything here, THX is my largest portfolio position, but we should discuss it objectively in the forum.

And note, the AISC always refers to the ounces sold.

In Q4, almost 25K ounces were sold.

The true AISC should be around $1000 for the last quarter and that's really fantastic.

At the end of September, the company had 5500 ounces of gold doré in its inventory.

Since only 300 ounces more were sold in Q4 than poured, the company should still have 5200 ounces of gold doré in its inventory at the end of 2024.

Wouldn't it make sense to sell it at current gold prices?

That would currently be almost USD 15 million.

End of April

Today I would like to talk about the ever-growing ore in stockpile.

At the end of 2024, the ore in stockpile is more than 44,000 ounces of gold. It is divided into high grade, medium grade and low grade.

But I would like to deal with the low grade ore, which is currently almost 40,000 ounces. It has grown by more than 25,000 ounces in 2024.

I expect this ore in stockpile to continue to grow and we may be hoarding 80,000 ounces by the end of 2026. According to Segun, this ore can then be processed very cheaply (approx. 700USD/ounce AISC) because it is practically already in front of the mill.

This ore has a grade of only about 1g/ton, so the mill at its current capacity will take a little over two years to extract the gold from the stockpile.

Nevertheless, in these two years at the current gold prices, 120 million USD free cash after tax (30%) would be generated alone from the stockpiles

In addition, there is an underground resource of currently 135,000 ounces, but still in the inferred category.

And we have the satellite deposits

you see, even if THX didn't find any new resources (which I don't expect), the mill would be producing until 2030 and beyond.

Have a nice Sunday everyone.

There has been an order for 1 million shares in the BID at 0.34CAD on the TSX since last week.

Do these new thread participants have anything to do with it...?

Hmmmm...

Since more criticism is requested from somewhat strange posters, I am willing to offer some criticism in addition to the many positive things already.

I think the 7,500m drilling program is quite small. I would like 30,000m + 30,000m brownfield. If you want to redefine the resource in 2025 then the drills have to be glowing. They would have the cash flow for it.

I'm also still a bit skeptical about Douta's PFS at the moment. Segun said in the last interview that it only included the 900K ounces measured&indicated and that would be a bit small. I would have liked at least 1.2 million ounces. It seems a bit questionable to me whether we can achieve an NPV of USD 500 million.

I expect strong price movements at the end of April when the annual report is published. Closely followed by the Q1 results in mid-May.

A prior announcement of a dividend policy would be desirable, but I don't expect this until the Q1 results.

An absolute buy for me based on the fundamentals.

Hello Genghis,

of course we don't know what the result will be, but for me the facts we have are pretty clear. Nigeria is trying to attract foreign companies and offer tax exemptions. Why should they backtrack now? Unlike Mali, Nigeria only has one small gold mine... Would it now make sense to steal foreign companies through such an action? What did they gain from this...? Everyone has to decide for themselves, but I see the risk as very low and I certainly won't let that influence my investment in THX... I'm actually more worried that the mine will collapse or something like that....but then it's best not to invest in mining companies at all.... I don't want to say anything about the fundamental data here; these have been discussed sufficiently and are crucial for me. Best regards

What I would be interested for today is the low recovery of under 90% for Q4...normally 95% was announced for H2. Otherwise there's really nothing to complain about here :-)

Best regards

On the TSX the volume was 2,8 Million.

https://www.stockwatch.com/Quote/DetailM.aspx?C:THX