Member Info for TO73

Repost of Questions 1/3

1) Low AISC in Q1, 2024

I will start by repeating a question a person with handle Schmidt1 asked - how is it that you could manage an AISC of "US$632 per oz sold" in Q1 of 2024 based on an average of 2.8g/tonne Au milled? When I came across that, I thought I did not understand it due to my inexperience in the gold mining business. I was therefore intrigued when it was brought up by someone else with a lot more experience. In 2022, it was US$1,091 and in 2023, it was US$1,313, yet the average g/tonne Au for FY2022 was 3.45 g/t Au, and FY2023 was 2.77 g/tonne. Could you please help me understand why there is such a large disparity in the AISCs. I understand it is a positive disparity but I would love to learn.

Question: Given the reported average milled grade of 2.85 g/t Au and the historical AISC figures, the Q1 2024 AISC of US$632 per oz sold appears exceptionally low. Could you please clarify the methodology used to calculate this AISC and provide a detailed breakdown?

2) Mine Plan

Is there an updated mine plan? I ask because the next few statements are based on what I gleaned from the CPR of 2021 and the DFS of 2019.

In the cashflow projections in the CPR, 2024 was supposed to give us milled gold grade of 5.40.

2023: 3.45

2022: 4.88

In 2022, 98,006 ounces of gold were recovered (the milled gold grade in 2022 was 3.45 g/t Au). In 2023, 84,609 ounces of gold were recovered (the milled gold grade in 2023 was 2.77 g/t Au.)

2023 gave me some concern as the operation guidance for gold recovered given for the year was 85koz to 95koz. I acknowledge the upper-end guidance was dropped later in the year. However, it was still disappointing that even the lower guidance was not fully met.

My question is what gave management the confidence that we could get up to 95koz even though the mine plan stated we were likely going to recover 77koz? I ask because the statement led me to believe that maybe some gold deposits were underestimated so it was rather surprising to see the average milled grade drop drastically in 2024 in contrast to what is in the mine plan. It should be noted that to date, we have not met any of the gold recovered figures stated in the mine plan.

Question: The actual milled grades and gold recovery for 2022 and 2023 have significantly deviated from the projections in the 2021 CPR. Could you provide an updated mine plan or resource model and a comprehensive explanation for these variances, including any changes in mining operations or geological models?

HarCHris,

Are you suggesting that investors are so foolish they’d ignore all your ‘insightful’, ‘knowledgeable’ and "expert" advice and instead make decisions based on my ‘illegitimate,’ ‘ridiculous,’ and ‘arrogant’ concerns? Yeah, that makes sense.

Loudspeaker, that means you don't get out much :)

***not***

No idea.

However, people who invested on account of me will be directed here so they have evidence of what I tell them. I have to make sure my thoughts are twisted and misrepresented as many of you have tried to do.

One also has to wonder why the "compelling", "intelligent" comments made by the various "experts" in the forum have not swayed more people into buying than selling.

Why would anyone be convinced to sell on the basis of my "illegitimate" and "ridiculous" comments?

Please sell the company and hype up the gold price. It benefits me. But don't you dare refer to me to in any shape or form, else I will reply and demonstrate why you are full of it.

Do not talk to or about me and I will not look in your direction. Start new posts. Do not refer to me.

Before I made a single post on this forum, share price went down to about 10p. That was me?

Deluded.

…And being told repeatedly that my concerns are ridiculous. If I were a fool, I might take that seriously. But for those quick to call others arrogant, I wonder if they ever look in the mirror. Who’s the arrogant one? The person seeking clarification or those who think they already know everything? Someone called my questions illegitimate. I asked them to point out a single one that was, and they couldn’t. My concerns are my concerns. You may not share them, but they exist, and they exist in the minds of many others, hence the share price. If you can’t see that, good luck.

Someone wrote "AISC costs. $1500 an oz.....that is considered high, for a gold producer"

They don't specify which gold producer it is. It doesn't fit into context on what has been discussed previously by them, and yet it gets three recommendations. I mean, come on. It is obvious what is going on here.

I am used to impunity in Nigeria. After all, "Nothing will happen" "You will just die for nothing". But for a UK-listed company, I expected a lot better.

You wrote "You also complained / predicted that high gold prices would lead to an increase in the accounts payable figure"

It’s a strong possibility and typical human behavior. When people expect a lot of money to come in, they tend to spend more freely or even recklessly, depending on their usual style.

I want to preempt this. Instead of waiting until the money is spent to complain, I’d prefer management to know upfront that we want them to be frugal. As the money rolls in, they should be prepared to say no to unnecessary requests. Additionally, implementing a clear cost-cutting strategy would make the company more attractive to potential investors.

Is it really too much to ask management to rein in costs, especially since they’ve been spiraling out of control compared to the mine plan?

Investors can’t be expected to throw good money at the mere hope of higher gold prices. Any potential investor doing that must be uninformed. We already bet on gold being $1600. Sure, inflation is a known risk and it hit us, but seriously? Why should I have to cross my fingers for higher gold prices just to see decent returns?

And I assure you, based on that 5-year mine plan alone, Thor’s shares are worth far more than what we’re seeing. The short mine life issue, while a factor, doesn’t fully explain the situation.

If the fear of a plummeting gold price was the issue, why has Thor’s share price dropped as gold prices have risen? Isn’t that illogical?

Clearly, we need to dig deeper to uncover the real reasons behind this phenomenon.

Harchris: That is one possibility. Have you seen Endeavour's share price though? They are pertinent to refer to because they have a mine right next to the Douta project. Why are other gold mining shares not suffering half as much as Thor's :) ?

Thor's quarterly recovery rates for 2022 and 2023 are as follows:

2022:

Q1: 94.1%

Q2: 95.5%

Q3: 95.5%

Q4: 95.12%

2023:

Q1: 94.1%

Q2: 94.0%

Q3: 92.3%

Q4: 93.4%

I am not even sure anymore where I got 91% from anymore? Please correct any of those figures there. I am sure one or two are wrong. if we were already getting these recoveries, why spend $18.1m (please cross-check) to get 94%?

"Yes, let’s dive into the nitty-gritty. The numbers look good (ignoring departures from the mine plan), but 2023 was a tough year. We found some relief in Q1, but Q2 was a real head-scratcher. I kept thinking, ‘Surely, management knows why Q2 has to shine.’ The whole ‘testing the upgrade’ excuse sounded fishy to me. Why? Because our recovery rate was already at 91% before the upgrade.

Now, I’m no expert, but the businessperson in me keeps asking, ‘Why on earth would we spend $18.1 million on an upgrade that doesn’t yield significantly more gold?’ If we exceed this year’s guidance, it makes perfect sense. If not, I dread to think what will happen to the share price.

I am well aware of Thor's valuation :). My favourite analysis (the company I use) valued Thor at £1.03/share. Guess what, we are not seeing anything close to that. Should we not ask ourselves why? Where the company is located is not a valid excuse as there are other miners in West Africa.

"if Thor meets its forecast".

Magic words right there.

I am praying they do, but I have to moderate my expectations.

Thanks. I like this article from spglobal a bit better

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/large-gold-miners-all-in-sustaining-costs-rose-3-3-in-q4-2023-80794554

I am not sure how this translates to "Many mines are significantly more expensive.". I have not come across many. And so far, the examples I have seen fly against the "How is AISC kept so low?" AISC is not low and for the place where the mine is, I think it can be improved. I am confident AISC can be improved upon and some unnecessary expenses cut out.

I am hoping Thor's share price hits 30p soon. I really hope so. I am praying so.

I think we are discussing AISC because we are trying to demonstrate that Thor Explorations has an excellent track message of reliable messaging. Hopefully, my table maintains its integrity and the figures do not go all over the place.

Company Mining Operations AISC 2022 (USD/oz) AISC 2023 (USD/oz)

Equinox Gold Canada, USA, Mexico, Brazil $1,622 $1,612

Jaguar Mining Brazil $1,366 $1,275-$1,375 (2023 results not yet out)

Mandalay Australia, Sweden $1,386 Not explicitly reported, higher than 2022

Aris Mining Colombia $922 $1,016

Resolute Mali, Senegal $1,258 $1,456

Barrick Gold Canada etc $1,225 $1,242

Newmont USA etc $1,084 $1,111