Member Info for TO73

Hopefully, a positive Douta PFS will break the cycle. Fingers crossed.

Ben18, to meet lower-end guidance of 95koz, Thor needs to produce an average of 26koz of gold going forward. This drops to about 23koz if they can successfully release an average of 3.5koz from GIL. It seems too ambitious. If management believes there are higher-yielding areas, why were these not prioritised in Q1 and Q2 to make up for reduced production as a result of upgrades and testing? If higher quality areas are expected, surely they should have given a heads up the way they did in Q1 when they announced good quality ore in stockpile? It all boils down to messaging and managing expectations. If there is reason for optimism, management should detail the basis for that optimism very clearly. I have written management to ask for the basis for a reiterated 95koz to 100koz guidance. I have yet to hear from them. Exceeding expectations is always better than dashing them in my view.

Ben18, messaging has not been reliable in the past. I do not expect it will be going forward unless there is a deliberate decision to review the process of announcing previous guidance.

I am keeping faith at 80koz to 87koz. I would still be content with that. What I am concerned about is the message another miss would send to the market.

Examples of what management can do:

1) Negotiate better prices with suppliers for consumables (e.g., reagents, fuel) and services (e.g., maintenance, transportation). Explore bulk purchasing options or forming purchasing partnerships with other miners.

2) Eliminate unnecessary spending.

3) Perform an energy audit. I acknowledge I see attempts at using CNG as an alternative to diesel. Can things be better though?

4) Is there a proactive maintenance program to prevent equipment breakdowns and costly repairs?

5) Choose equipment that is appropriate for the scale of the operation and the specific mining conditions.

Consider purchasing used or refurbished equipment when feasible.

Explore leasing or rental options for equipment that is not needed on a long-term basis.

There are many others I can suggest but won't because I believe management knows these things.

I hope for better going forward.

You may predict that as gold prices increase, profit margins increase. You cannot predict increased gold prices will lead to less spending. it is illogical. Efficiency is a principle. If spending was somewhat reckless when gold prices were not this high, I only expect spending to get even more reckless when more cash is coming in. If, for instance, the company justifies replacing company cars every single year when gold prices were lower, will the policy become more frugal if old prices are higher? Not at all likely. Being prudent is a principle that should be consistent all through - through various cycles of gold price peaks and troughs.

Except management makes a decision to effect changes, I am afraid my faith in management remains badly eroded. Cost-cutting measures need to be announced and implemented.

Here is a copy of the email I have sent to CPAB. I have sent a similar email to BDO to get independent confirmation of the reasons behind BDO's resignation. I am hoping to get a confirmation of what Thor explorations announced. As soon as I hear from them, I will post their replies here.

Dear CPAB,

I am writing to you as a concerned shareholder of Thor Explorations, a British Columbia registered issuer. I have recently been informed that BDO, the company's auditor since 2017, has resigned unexpectedly, citing non-compliance with provincial laws.

I am deeply concerned about this development and its potential impact on the accuracy and reliability of Thor Exploration's financial reporting. Given the sudden nature of this resignation and the lack of specific information provided by the auditor, I am seeking clarification and guidance from the CPAB on the following matters:

Confirmation of Regulatory Compliance: Has CPAB been notified of BDO's resignation and the reasons behind it? If so, could you please confirm whether the auditor's claims of non-compliance with provincial laws have been substantiated?

Potential Impact on Financial Reporting: What are the potential implications of this resignation for Thor Exploration's financial statements and ongoing disclosure obligations? Will any restatement or additional disclosures be required as a result?

Oversight and Enforcement: What steps is CPAB taking to ensure the integrity of Thor Exploration's financial reporting and to protect the interests of shareholders and stakeholders in light of this situation?

Guidance for Investors: What recommendations does CPAB have for investors who may be concerned about the implications of this auditor resignation?

I would be grateful for your prompt attention to this matter and any information or guidance you can provide. Please feel free to contact me via eMail if you require any further information.

Thank you for your time and consideration.

The higher gold prices get, the more out-of-control Accounts payable will get.

Efficiency and optimisation are principles.

1.78g/tonne is not from the stockpile. It is from average mine production. Q1 avg production was 2.07g/tonne. The quality degraded in Q2. This indicates to me that we will likely have lower quality grades in Q3 and Q4 as the best intercepts have already been prioritised. This is what I would have done when planning production for the year to make up for the down time in H1. This is why I believe the prudent thing is to estimate lower grade ore will be obtained in H2.

I hope you understand the logic. I just cannot see H2 yielding quality as high as H1.

No. It is 35, 470 oz plus 7103 from gold in circuit = 42,573oz

Add 41koz from H1 and we are likely to have a maximum of about 83.5koz.

Again, check. I am really tired right now.

As I said earlier, I'd be ecstatic if we fell within guidance. I just do not have any faith we will do so based on the information we have.

Average mine production in Q2 was 1.78g/tonne. ore stockpile average at end of H1 was 1.01g/tonne.

the prudent calculation would be:

529,920tonnes of gold ore milled of a grade of 1.78g/tonne with a recovery rate of 94% = 28,546.05 ounces

please check the arithmetic. My brain is tired.

if that is right, we are more likely to get a year's total of about 70koz

Good information. I was informed they meant different things.

So assuming there is 8,603oz left in circuit, let us calculate the maximum amount that may be produced in H2.

We make the following assumptions

There are 184 days between July 1, 2024, and December 31, 2024. To calculate the total hours:

Total hours = 184days × 24hours/day = 4416 hours

Milling at 120tonnes /hour will give a total milled of 120tonnes/hr x 4416hrs = 529,920tonnes.

529,920tonnes of gold ore milled of a grade of 3.14g/tonne with a recovery rate of 94% gives how many ounces of gold? 55,172.48 ounces.

Add 8, 603 less 1500oz CIL at the end of H2

We get an absolute maximum of 62,265oz of gold. A maximum total for the year is circa 103koz

This is an optimistic scenario. I wouldn't give 95koz to 100koz to the public. I just wouldn't. Especially when I have already tackled the best intercepts.

On what page? I only see GIL. No GIC.

"From Q2 onwards we expect this (accounts payables) to start coming down rapidly, particularly at this increased gold price."

That statement is illogical. Accounts payable do not come down because the price of gold has come up. Payables come down because you spend less money.

BBN, please show me where in the Q1 update it states the amount of gold in circuit. I see nothing of that there.

Again. No, I do not have a negative leaning. I am stating facts. I am pointing out the likely reasons the share price is in the doldrums and what can be done to remedy the situation. I can understand why you would call it negativity. You do not know my background. I was trained that way. it is called being prudent and identifying all your risks and managing them.

"Unless you really have a much better investment"

Those are the key words. I am not as downhearted as you think. I am not crazy about money. I am enjoying this. However, I have principles I will not compromise.

Not really. More must have been released in Q2 as the CEO said in a recent interview they were maintaining GIC at 1,500oz. This would be the right figure to use as this was given at a more recent interview.

BBN

You said "In essence, he has mentioned it by restating the existing guidance at a minimum of 95,000 oz in mid-July. The point at which they will know which area of the mine and therefore resource they will be extracting from in H2. Given the expected grade of 5.4g/t vs 3g/t required, there is every chance they could deliver a higher average grade in H2 because somewhere in the mine plan that higher grade exists."

First, there is a logic to be employed here. There was some downtime in Q1 due to upgrades, well planned production would have chosen the intercepts likely to yield the most gold to make up for that downtime. I have no doubt this is what Thor would have done. This leads me to believe that Thor has already taken its best stab at the highest yielding area based on the mine plan for this year.

Secondly, the highest grade obtained in H1 was nowhere near 5.40g/tonne. I doubt they will get better than the average 3.4g/tonne going forward. I may be pleasantly surprised. Time will tell.

You wrote "My understanding was that the guidance was 120 tons per hour and they planned to work 24/7 in H2. This ties into c. 260,000 tons of milled ore which has been achieved as recently as Q2, Q3 and Q4 2023. So I don't understand this whole maximum of 662,500 tons milled argument."

There are 184 days between July 1, 2024, and December 31, 2024. To calculate the total hours:

Total hours

=

184

 days

×

24

 hours/day

=

4416

 hours

Total hours=184 days×24 hours/day=4416 hours

Milling at 120tonnes /hour will give a total milled of 120tonnes/hr x 4416hrs = 529,920tonnes. I was generous with the capacity so I could get the very best possible scenario.

You wrote "I demonstrated earlier that c. 250,000 tons milled at 3g/t would deliver enough production (when added to c. 7,000 tons of Gold in circuit) to meet the bottom end of guidance."

And I told you at Q1 update, the CEO said GIC is being maintained at 1,500koz. therefore, we have to assume there is 1,500koz of GIC unless we are informed otherwise. you will need to show me how you arrived at your workings as I did mine so I can follow your arithmetic.

You wrote "If they end up being 5,000 oz short I really don't care because they will be generating a lot of cashflow. But the numbers say 95,000 is plausible and the decision to maintain guidance is justified."

This is fine. It is a possibility although I think unlikely. I think it will be worse than that and I do not like that because it will have an adverse effect on share prices. It is much better for the share price to exceed guidance than not meet it.

You wrote "Lastly, according to the Q1 MDA THX had 12,255 oz of Gold in CIL and 3,652oz was reported to have been released in Q2."

This leaves around 8,600 oz of which 1,500 oz remains steady state although some more will have been added back in during Q2."

Not really. More must have been released in Q2 as the CEO said in a recent interview they were ma

Yes adw198, I like my peace of mind. I do not appreciate all your snide remarks and condescending tones and attittude..."whine", "moan" "sheer negativity" "apologise" etc. Who do you think you are talking to? Your offspring?

Adw198, exactly right. I said I had dumb money here and said clearly I had learnt my lesson :) Go back and read.

Smart money? I wish. I am here, aren't I? No, I have dumb money here. Smart money would have waited until Douta's PFS was published and/or an updated technical report on segilola. Thanks for rubbing it in.

Yesrobfog67. it was a dumb decision in hindsight. I have already said that. I should have waited. I thought I was buying the dip. I averaged out at 17.6p. It was sentimental. it was the first Nigerian company I came across listed on the AIM .

I am not moaning at the company . I am pointing out the likely reasons the shares are in the doldrums and the things the company can do to remedy it. These are cutting out unnecessary expenses and optimising expenditure; more reliable messaging; and maximising profit in general. In the past week, I dived a lot deeper than I ever did. I relied a little too much on the forward-looking statements being given. Totally my fault. I own it. It was my dumb decision. I based my decision on the idea Segilola would be in full production until 2028. I only realised this week that what is on paper is 2025. I attempted to salvage it by questioning certain things and pushing for change. Now I am fairly certain management does not intend to make any changes, I will dump the shares at the first opportunity.

Thanks for your inout ;) ...or not