Member Info for TO73

S-i-g-h

Adw, your words "The markets valuation is its MCAP imo. The share price forms only part of that make up, hence you quoting a share price of 60p and implying it’s valued more than ours at 14p is mistaken."

Again For emphasis: Those who invested in SRB a year ago have seen gains of 163%. That is not an unloved junior miner.

I repeat: The distinction between market value and intrinsic value is crucial here. The market's judgment, which can be driven by many factors mentioned, may not always align with the intrinsic value as determined by a more detailed financial or resource-based analysis. My argument that Serabi is NOT an unloved junior miner is well-supported by its recent share price performance and market behaviour. Share price was the easier parameter to highlight my point as using MCAP made no difference to the point being made. The share price is the first parameter that hits you in the face and is a huge factor in market sentiment. People jump on skyrocketing share prices even without looking at a company's fundamentals!

And yes, it can be a problem for some investors if a company's intrinsic value is not reflected in its share price. Why? Opportunity cost. Some may have invested or are looking to invest with the hope that the company's share price would reflect its intrinsic value giving them options down the line. It is also possible some investors are sceptical about operational efficiencies and think they will get more profits per ounce at another gold company. These and other reasons are why a company's share price not reflecting its intrinsic value may be a problem.

Troajan,

You are simply buttressing my point. I do not understand how you do not see that.

You do the comparison with MTL. I will wait.

Remember that what initiated this particular discussion was this idea thrown into the mix by harchris : " It really does just seem that small cap gold miners continue to be unloved despite the ever improving gold picture - you only have to look at other small cap goldies like SRB (and many others) to see this"

For emphasis: Those who invested in SRB a year ago have seen gains of 163%. That is not an unloved junior miner.

And yes, it can be a problem for some investors if a company's intrinsic value is not reflected in its share price. Why? Opportunity cost. Some may have invested or are looking to invest with the hope that the company's share price would reflect its intrinsic value giving them options down the line. It is also possible some investors are sceptical about operational efficiencies and think they will get more profits per ounce at another gold company. These and other reasons are why a company's share price not reflecting its intrinsic value may be a problem.

Adw,

The market's valuation of a company like Serabi Gold indicates that investors see it as a more attractive investment than Thor Explorations, even if both companies have similar production profiles or resource bases. My argument that Serabi is NOT an unloved junior miner is well-supported by its recent share price performance and market behaviour. Share price was the easier parameter to highlight my point as using MCAP made no difference to the point being made. The share price is the first parameter that hits you in the face and is a huge factor in market sentiment. people jump on skyrocketing share prices even without looking at a company's fundamentals!

The distinction between market value and intrinsic value is crucial here. The market's judgment, which can be driven by many factors mentioned, may not always align with the intrinsic value as determined by a more detailed financial or resource-based analysis.

I have been exploring on this chat board since mid-July whether Operational Performance, reliable messaging etc might be a huge factor in Thor's dismal share price because even with similar Mineral Resource Estimates (MREs) and gold production, differences in operational efficiency, cost control, and growth potential can make one company more attractive than another.

Adw, why do think quoting MCAP would make better sense?

Market Capitalization (MCAP) is calculated using a straightforward formula:

MCAP = Current Share Price * Number of Outstanding Shares

Harchris,

Now, correct me if I'm wrong—SRB (Serabi Gold Plc) dug up 35,522 oz of gold in 2023, and their stock’s lounging at 68p. Meanwhile, Wesdone hauled in a whopping 130,021 oz, with their shares strutting around CAD $13. Are we sure SRB and Wesdone are feeling unloved? Thor, on the other hand, managed 84k oz and our stock’s hanging out at 14p. But hey, if I’m off the mark, feel free to whip out the red pen and set me straight! 😄

1) The audited financial statements for 2021 and 2022 have been filed with the BCSC and can be accessed at SEDARplus via the following link: https://www.sedarplus.ca/csa-party/viewInstance/view.html?id=0c11f8b7998bcd961e992d9900e73698aebecaacdcfc400b#scrollTop.

2) While no audited statements were directly filed with the LSE's RNS, an announcement was made that included a link to the financial statements on Thor Explorations' website: https://www.londonstockexchange.com/news-article/THX/thor-explorations-announces-full-year-results/15938279

It's important to note that generally, a company cannot satisfy its LSE filing requirements by merely providing a link to its website. The LSE has specific rules and procedures for the submission of audited financial statements, typically requiring direct submission through approved channels. That said, as someone who values substance over form, I am satisfied with the financial statements available on SEDAR. The decision on how to handle this matter going forward lies with the LSE, and I cannot speak on behalf of other investors. The purpose of these regulations is to ensure that the LSE has direct access to the audited financial statements for verification of their authenticity and completeness. Simply offering a link to a website does not ensure this level of control and might lead to concerns regarding document integrity or accessibility.

Furthermore, consistency in how communications are published would be beneficial. If signed audited financial statements are made available in the "News" section of the Thor website, they should be consistently provided for all years to avoid confusion. Otherwise, announcements should direct users to a single, consistent repository.

Other communications remain pertinent.

Adw

😂😂😂

I don't know where that came from, but hey, it is not any worse than what you have called me in the past 😂😂😂

I do not remember claiming to represent you? Haven’t I been labelled a short-seller countless times?

CPAB's response didn’t even touch on my actual question: I asked them to back up management’s claim that BDO’s resignation was due to a CPAB rule. They completely dodged it. Why? No idea.

Yes, I’ll sell at the first chance I get. What does that tell you? I've repeated more times than I can count that the only reason I’m holding on is the gap between my valuation of £1.03 and the current share price. My questions were meant to give management a chance to address concerns that could prevent current or potential investors from selling or avoiding the stock. It’s not rocket science. I’ve also said that how management addresses these issues will determine my actions moving forward. Whatever I decide to do, whenever I decide to do it, Sorry, I owe no explanations to anyone.

I may or may not still have Thor stock by Dec 31. I have set my parameters and I know what I am looking for. Whatever my position is then, I will still do what I have promised re: letter to management :) I am not a sore loser.

Feel free to quote me on this one though:

If we hit a steady 62.2p by December 31, 2024 (give or take 10 working days), I’ll pen the most groveling apology letter to Thor management and post it here for everyone to mock me mercilessly.

Adw,

I was having a blast. Humour always makes the rough patches a bit easier to handle 😄

Excerpt below

"CPAB is charged with overseeing the quality of audits performed by its participating audit firms. Within this context, CPAB does monitor reporting issuer auditor resignations, however we do not have authority over auditor resignations.

We encourage you to report your concerns to regulatory bodies whose mandates align more closely with the concerns that you have raised. These include the CPA British Columbia and the British Columbia Securities Commission.

Kind regards,"

I couldn't care less about the quality of BDO audits. They’ve already gotten terrible marks publicly (in the last couple of days), so what’s left to ask? I don't want to distract Thor management from their main job of producing gold—like they need any more excuses. All I can do now is wait. But hey, don’t quote me on that—who knows what might change my mind with new information down the line.

So, why would a measly $6 million debt make such a huge dent in a $100 million cash flow forecast, tanking the share price to 13.5p? And yet, when it’s $24.2 million in debt, the share price is somehow a comfy 24p? Still scratching my head over here, but hey, what do I know—I'm just here for comic relief.

- Asked by "that tiresomely negative poster who does not speak for everyone and only pretends to be an investor"

More from TCC ( The Concern Churner)

Unusual Volume with No News: A sudden surge in trading volume without any accompanying news or fundamental changes in the company's prospects is a major red flag. It implies that the activity is not driven by genuine investor interest.

Persistent High Bid-Ask Spread: A consistently wide bid-ask spread, even during high volume periods, indicates a lack of liquidity and a potential attempt to control the price. It suggests that someone may be artificially inflating the ask price or suppressing the bid price.

Pattern of Small Buys and Large Sells: Small buys followed by large sells (even if hidden) at specific price levels, is a classic manipulation tactic. It creates the illusion of buying pressure, luring in unsuspecting investors, while the manipulators unload their shares at a profit.

A sudden surge in trading volume without a corresponding price change can be a red flag. It might indicate that someone is trying to create the illusion of market interest.

My guess is that the market might respond better when word of mouth is documented in a mine plan amongst other things 🤷

ISA-Investor,

I do apologise for assuming that any investor's goal would be ensure Segilola benefits its shareholders :) Apparently, that is not the case 😏

Bobbyaxelrod,

I think that is well-known about Nigeria that the push is to diversify from oil. It is just that policy and what actually happens are many times different. I am only saying this because this is well known and anyone not saying anything about it would cause some doubt as to the objectivity of the discussion being had. I will give a recent example of wht I am talking about: that Nigeria having its own refineries will save significant amounts in forex is a well-known fact. Yet, look at the problems Dangote refineries is currently having. It is like there are two different governments 😂. The recognised government recently waded in. Time will tell whether the intervention is genuine, and if it is, whether it will work or not. I have learned how to expect the unexpected. Most people do not invest in Nigeria with a long-term outlook...simply because - you never know. Short or medium-term is the usual goal. Get the profits out as quickly as you can.

Re: Zamfara and other prospects. Anyone who knows Nigeria would not even refer to Zamfara as a prospect. Also, the tribe you are from plays a role though it is NEVER explicitly said (though tribes and tongue may differ, in brotherhood we stand et al). I will give an example: Nassarawa, just recently, chose another firm from outside the country to mine its gold, leaving Segilola an indigenous "first mover".

I talk my country up, but I also speak the truth. Investing in Nigeria is risky, but the rewards can be substantial. I encourage new and existing investors to recognise the risks. Know them. Embrace them (or not) and make a decision. I suggest declaring a special dividend would help, especially with the lovely FCF we keep bandying about. If there is plenty of money, show some love to your shareholders. If the dividends keep coming as more deposits are verified around and under, much better still.

Tackling Douta as a fresh project is an idea worth considering. If the Segilola investment pays well, more likely than not, the same investors who backed Thor for Segilola will back Douta ( even more so as they have more cash in their pockets).

Our goal is to ensure Segilola benefits its shareholders. Transparency and accountability are crucial in attracting new investors and retaining existing ones.

2/2

The notes to the financial statements provide further details on the composition of PP&E. For example, note 15 in the 2023 financial statements explains that this line item includes capitalized pre-production stripping costs, which are the costs of removing waste material to access the ore.

By analyzing the changes in the PP&E balances over time, one can see how the company's capital expenditures have evolved. For instance, a significant increase in the "Processing plant" category from 2021 to 2022 would likely reflect the completion of the plant's construction.

"By to re-center my thoughts - can you think of any other business who will produce more than their market cap in discounted cash flows (even after allowing for exploration, capex,etc ) over the next 3 years? I would also be interested in investing in them."

I'd rather not say anything about that :) I can however suggest you subscribe to some firms who specialize in such things. £30 - £50 a month and you will get decent information.

Thanks :)

PS: I am not an expert. I am a novice. I got all this information by consulting and reading widely.

1/2

Hi bobbyaxelrod :),

I will not be able to complete my answers in one tranche :)

Illiquidity is one of the reasons I am concerned. I believe many others are too. options become severely limited.

You wrote "The last shareholder breakdown was given in around 2021 and it would be interesting to see if/how much this has changed now."

You can get this yourself, as I did. All insiders and those who buy shares above a certain percentage have to file with the LSE anytime they buy or sell. The latest information I obtained are as follows:

Individual Insiders 9.4% (the include the President/CEO and NEDs)

Institutions 14.5%

VC/PE Firms 16.2%

General Public 59.9%

"...Nigeria's push of its mining sector, given crude oil market dynamics, seem wise and unlikely to change"

normally one would agree and knowing the current President's antecedents, he tries to encourage businesses - at least those not in his way. BUT as a Nigerian, you learn to expect the unexpected. Most of us have PTSD from our economic experiences. It is better not to elaborate. It does no good.

You also asked "When working out capex costs - would the original mine plan capex include sustaining capex? does the revised figure you give for mine capex include sustaining capex or have you just included non-sustaining capex? Are you able to use the balance sheet to map where the capex has been spent."

Sustaining capital is included in the All-In Sustaining Costs (AISC) . It includes all costs related to sustaining current production and includes:

Direct Mining Costs: This includes on-site mining, processing, administration, and refining costs. (Mining)

Royalties and Production Taxes: Payments made to governments and landowners based on production. (Royalty)

Sustaining Capital: Expenditures necessary to maintain current operations, such as capital expenditures on equipment and infrastructure, and maintaining mine sites. (Sustaining Capital)

We also have G& A cost, Refining Cost, Processing Costs all included in the cashflow projection on pg 172.

Yes, the balance sheet can be used to map where capital expenditures (capex) have been spent. Property, plant, and equipment (PP&E) is a line item on the balance sheet that represents the value of long-term assets used in the production process. In Thor Exploration's financial statements, this line item is broken down into several categories, including:

Mining and other equipment

Land

Decommissioning asset

Processing plant

Segilola mine assets

These categories show where the company has invested its capital to develop and maintain the Segilola Gold Mine. For example, the "Mining and other equipment" category could include the cost of mining equipment, vehicles, and other machinery. The "Processing plant" category would include the cost of constructing and equipping the processing plant.

Bobbyaxlerod,

You wrote, "Anyone who has attempted any project, even a small renovation or property project, will appreciate the level of talent required to get things to this stage."

I completely agree, which is why I began my email to management with the following:

"Let me first begin by appreciating all the hard work your team has put into building Thor Explorations. I know it could not have been easy. I grew up in Nigeria, so I understand the challenges. The debt paydown has been very reassuring, as have some of the drilling results from the Douta project. Thank you."

You also wrote, "I'm also not sure how much chat on this board really impacts the share price movement."

I completely agree, which is why I was surprised when many attributed the recent share price drop to my posts. This prompted me to ask them to explain the drop since H2 last year and the fall to 10p in February.

You mentioned, "I do not think there are any fair concerns related to the Nigeria angle."

Try telling that to someone who, in their first meeting with a leading role in a company they just joined, was the butt of jokes at a work dinner party, all based around the perception of fraud originating in Nigeria. As a Nigerian, I definitely do not appreciate my country being viewed that way. However, I understand why, as a Nigerian working internationally, I need to be exceptionally transparent and maintain integrity even more than most.

Regarding your comment on capex costs, "These being higher could be due to inflation but also 'future-proofing' for a longer life mine,"

I agree. However, do you see how someone who invested based solely on the mine plan presented in 2021 would want an explanation for the additional spending without formal communication to shareholders via an updated mine plan, an AGM, or any other method management deems fit?

Those are the points I feel need more context.

Thanks for your input.

Let’s be clear: the inventory valuation was accurate in the 2023 statements. However, the underlying concern here is about transparency and integrity. If discrepancies occurred in 2021 and 2022—and worse, if they were deliberately concealed from shareholders—it’s understandable how this erodes investor confidence. 🤔

We won’t even delve into the significant divergence of operating margins from the competent persons’ report in 2021. But let’s talk about the share price—it’s behaving oddly. Anyone who’s invested hard-earned money in this company should indeed be raising questions. 💡📈