Thor Explorations Announces Audited Financial and Operating Results for the Full Year and Three Months Ending December 31, 2023
Thor Explorations Announces Audited Financial and Operating Results for the Full Year and Three Months Ending December 31, 2023
This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.
Vancouver, British Columbia--(Newsfile Corp. - April 29, 2024) - Thor Explorations Ltd. (TSXV: THX) (AIM: THX) ("Thor Explorations", "Thor" or the "Company") is pleased to provide an operational and financial review for its Segilola Gold Mine, located in Nigeria ("Segilola"), and for the Company's mineral exploration properties located in Nigeria, Senegal and Burkina Faso for the three months ending December 31, 2023 ("Q4 2023") and the audited financial results for the year ending December 31, 2023 (the "Year" or "FY 2023").
The Company's Consolidated Audited Financial Statements together with the notes related thereto, as well as the Management's Discussion and Analysis for the year ending December 31, 2023, are available on Thor Explorations' website at https://thorexpl.com/investors/financials/.
All figures are in US dollars ("US$") unless otherwise stated.
FY 2023 Financial Highlights
73,356 ounces ("oz") of gold sold with an average realised price of US$1,907 per oz Cash operating cost of US$1,006 per oz sold and all-in sustaining cost ("AISC") of US$1,313 per oz sold FY 2023 revenue of US$141.2 million ("m") (FY 2022: US$165.2m)
FY 2023 EBITDA of US$55.3m (FY 2022:US$84.2m - restated)
FY 2023 net profit of US$10.8m (FY 2022: US$37.9m - restated)
Cash and cash equivalents of US$7.8m (FY 2022: US$6.7m)
Senior debt facility significantly reduced from US$54.0m to US$22.6m as at December 31, 2023 Payment of US$8.2 m towards the outstanding senior debt facility paid in the post period Net debt of US$15.9m (FY 2022: US$31.6m)
FY 2023 Operational Highlights
Segilola Production
Gold production for the Year totaled 84,609 oz Gold recovered during the Year includes approximately 11,210 oz of Gold In-Circuit ("GIC") Successfully completed push back of the Segilola Western Wall Successfully upgraded the process plant elution and electrowinning system
Segilola Near-Mine Exploration
Expansion of exploration tenure to a total area of 1,542 square kilometres ("km2"). This tenure comprises 16 granted permits that are 100% owned by Thor, together with nine granted permits held under options agreements with seven third parties In addition to near-mine exploration, activities on the ground have focused on these main areas: Western Prospects - Igila, Aye-Ile and Central Prospects - Kajola
Western Prospects
The Western Prospects are located approximately 15 kilometres ("km") directly west from the Segilola Gold Mine and comprises several exploration permits that are held under exercised option agreements Initial results from the soil geochemistry programme returned values of 6.50 grammes per tonne gold ("g/tAu") and 10g/tAu towards the southeast portion of this area. Rock chip sampling returned high grade values including 65.1g/tAu in the central part of the area and several samples in excess of 30g/tAu located towards the northwest Based on these results, an initial drill testing programme comprising both diamond core and reverse circulation ("RC") drilling was completed in 2023
Southern Prospects
The Southern prospects cover an area that is located to the south of the Segilola Gold Mine. Regional stream sediment sampling located an area of interest at what is now referred to as the Kajola target located approximately 20km from the Segilola Mine Drill testing of this greenfield target intersected several zones of interest including 11 metres grading 22g/tAu Ongoing exploration is focused on generating additional targets in the general area
Douta
During the Year an updated mineral resource estimate ("MRE") was announced. The 2023 MRE encompasses the Makosa, Makosa Tail and Sambara zones, which are collectively named the Douta Resource An initial Indicated Mineral Resource of 20.2 million tonnes ("Mt") grading 1.3 g/t Au for 874,900 oz Au; and Inferred Mineral Resource of 24.1 Mt grading 1.2 g/t Au for 909,400 oz Au The Douta Resource is supported by a total of 64,567 metres of drilling Workstreams designed to advance the project to the prefeasibility stage ("PFS") have commenced and are expected to be completed by H2 2024. This included a diamond drilling programme that was designed to obtain sufficient core samples for comprehensive metallurgical test work and mineralogical studies
Lithium Exploration
Thor, through its wholly owned subsidiary Newstar Minerals Limited ("Newstar"), secured over 600km2 of granted tenure in Nigeria that form Oyo State, Kwara State and Ekiti State Lithium Project Areas The Oyo State Lithium Project comprises approximately 38km2 of exploration tenure that is located towards the westernmost border of Nigeria and within 200km of the commercial capital of Lagos In the Oyo Prospect, a programme of RC drilling targeted an identified pegmatite trend that is developed within northerly trending mafic sequence that is surrounded by granitoid-gneiss terrain. In the Ekiti Prospect, nine RC holes were completed Significant intersections previously reported include 11 metres grading 1.53% lithium oxide ("Li2O"), 9 meters grading 2.42% Li2O and 11 metres grading 2.61% Li2O Following the drilling campaigns, follow up soil sampling and mapping continued to generate anomalous targets which have been identified for drilling in Q2 2024
Environment, Social and Governance
Completed significant community and Livelihood Restoration projects in the three host communities around the Segilola Gold Mine, including school refurbishment, a 33kV transformer installation, and the launch of commercial fish and vegetable farms, directly benefiting over 11,000 residents Enhanced local workforce capacity and diversity, achieving a 98% Nigerian staffing level, a 50% increase in local hires, and promoting gender diversity by integrating women into traditionally male roles Environmental standards compliance was maintained across air, dust, noise, and water quality, with biodiversity improvements noted in annual surveys Successfully renewed two Community Development Agreements, facilitating 26 impactful community projects, including educational scholarships and youth training programmes Conducted a Biodiversity Survey for the Douta Exploration License area, identifying environmental sensitivities, and continued quarterly water quality monitoring to manage elevated chromium and cadmium levels Supported local community and economic development through initiatives such as a vegetable garden and academic excellence awards at local schools Baseline data collection is underway for the Douta Gold Project's economic assessment
Post FY 2023 Highlights
Segilola gold production of 19,589 oz during Q1 2024 Successfully upgraded and commissioned three additional CIL tanks in the process plant with drawdown of excess gold in circuit successfully commenced in March 2024 Additional near Segilola mine drilling targets delineated with drilling having commenced in April 2024 The Company acquired additional licences in Senegal, which included the contiguous Douta-West licence and commenced exploration activities. Initial results have delineated anomalies which will be drilled in Q2 2024 as part of the Company's Douta exploration plan Exploration on the Company's lithium licences in Nigeria continued during Q1 2024 and was successful in generating a number of drill targets. The Company will commence a 4,000 metre drilling programme in May 2024 Payment of US$8.2m towards outstanding senior debt facility, leaving a balance of US$15.2m to be paid in 2024 Cash balance (unaudited) as at 31 March 2024 of US$3.1m
Outlook
Production guidance set at 95,000-100,000 oz for 2024 with an AISC guidance of US$1,100 to US$1,200 per oz Advance exploration programmes across the portfolio, including near mine and underground projects at Segilola, the regional Segilola exploration programme, extension and infill programmes at Douta and the assessment of potential regional targets in Nigeria Continue to advance the Douta Gold Project towards PFS for publication in H2 2024
Segun Lawson, President & CEO, stated:
"The end of 2023 marks two calendar years of commercial gold production at our flagship asset, the Segilola Gold Mine. Thinking back to the original mine plan in the Definitive Feasibility Study, we knew as a management team that the second year of production was going to be an operationally challenging year, requiring the pushback of the western wall of the pit and mining of waste material in order to access the orebody efficiently in the subsequent years.
"Despite the operational challenges, we are pleased to have produced approximately 85,000 ounces of gold in 2023 versus the original mine plan projection of 72,000 ounces. This was achieved whilst carrying out certain plant upgrades which would also optimize gold production for the remainder of the Segilola mine life. In addition to this, we were able to deliver our operations in a safe and responsible manner, with an improved safety performance in 2023. We continue to prioritize safety and best practice standards and aim to continuously improve.
"Personally, I am pleased we managed to achieve our operational objectives. We refreshed the leadership at the mine site with the appointment of a new General Manager in October 2023 and executed necessary upgrades to the process plant whilst ending the year having achieved an all-in sustaining cost for the Segilola Gold Mine of $1,313 per ounce.
"The Company is now strongly positioned for repayment of its long-term debt during 2024, and growth, primarily coming from strong cash flow at Segilola, and also through exploration and the development of the Douta Gold Project in Senegal.
"We are also continuing to prioritize our Environmental, Social and Governance standards, particularly as we are in a country where we must set an example as pioneers in the industry.
"Furthermore, in 2023, we began to capitalise on our first mover advantage in Nigeria through the acquisition of over 600 square kilometres of lithium-bearing ground. We believe our first mover advantage allows us to quickly and professionally assess value accretive opportunities for our shareholders. Having successfully carried out early-stage exploration on our lithium portfolio, we are able to provide our shareholders with significant value optionality that can be funded by the Company's existing cash flow and human resources in Nigeria.
"In 2024, the Company's strategy will be focused on growth. The first priority is to extend the Segilola Mine life where there is currently an underground resource of over 100,000 ounces that has not been incorporated into the existing mine plan. At the current prevailing high gold prices, we aim to assess our options in re-optimising the Segilola Pit to produce gold from this resource prior to transitioning into an underground mine. We also aim to carry out further exploration at depth aimed at increasing the existing underground resource which has not been closed out.
"In Senegal, the Douta Gold Project continues to provide blue sky exploration upside potential. The Douta Gold Project is undergoing a PFS and subsequent to the year, we acquired additional contiguous ground with potential to scale the Douta Gold Project.
"Our strategy in Senegal in 2024 is to focus on increasing the oxide component of the existing Douta resource in parallel with the PFS workstreams. We will be carrying out drilling programmes across various geochemical targets on both the Douta and Douta-West licences. The aim is to increase the oxide resource, where high recoveries are metallurgically straightforward, to a target of 500,000 ounces.
"We ended 2023 with our Segilola gold mine well positioned to produce approximately 100,000 ounces per year for the next three years. The Company will also be deleveraged in 2024 and will continue to strengthen its balance sheet in the historically high gold price environment.
"Looking further ahead, our ambition to continue to grow through mine life extension at Segilola and exploration across our entire portfolio remains unchanged, and we will also be well-positioned for future opportunities that may accelerate our growth into a more mature gold producer.
"I am proud of what we achieved in 2023, which is all the result of the hard work and commitment of our people. I am equally excited about the opportunities we have in front of us as we continue to build a uniquely positioned African-focused gold producer."
About Thor Explorations
Thor Explorations Ltd. is a mineral exploration company engaged in the acquisition, exploration, development and production of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor Explorations holds a 100% interest in the Segilola Gold Project located in Osun State, Nigeria and has a 70% economic interest in the Douta Gold Project located in south-eastern Senegal. Thor Explorations trades on AIM and the TSX Venture Exchange under the symbol "THX".
THOR EXPLORATIONS LTD.
Segun Lawson President & CEO
For further information please contact:
Thor Explorations Ltd Email: [email protected]
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Harry Rees
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou
Tel: +44 (0) 20 7907 8500
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah / Zara McKinlay
Tel: +44 (0) 20 3004 9512
Management Discussion & Analysis for Q4 2023 and Full Year 2023
CHAIRMAN'S STATEMENT
Dear fellow shareholders, I am pleased to report that 2023 was a year in which Thor Explorations successfully navigated through a technically challenging year and delivered its target gold production of approximately 85,000 ounces. I would like to thank all our employees, Leadership team and Board for their continued hard work and dedication in the year, and our investors for their continued support.
In Nigeria, where we are a pioneer in the mining sector, we have also recognised that we need to take a long-term view of building a local mining skill-base, and as a result, we have invested in youth, undergraduate and graduate programmes as well as post-secondary school apprenticeship schemes in our host communities and regions. We remain committed to labour excellence through managing employee job satisfaction in the local community.
We have also continued to enjoy a healthy and cooperative relationship with our host communities. In 2023, we completed our first two livelihood restoration programmes which had 135 direct beneficiaries. In total, 4,479 community members have benefited from our Community Development Agreement programs and an impressive 11,122 people have directly benefited from our Corporate Social Responsibility programmes.
Following the regrettable loss of life of an individual as a result of our operations in 2022, we are reassured that the measures put in place to guarantee the safety of all our employees and stakeholders we interact with during our operations, continue strictly prioritised and effected. This resulted in a fatality free year with our employment practices being recognised and rewarded with the Labour Award at the 2024 Mining Indaba, selected by the Mining Indaba Sustainability Committee.
Operationally, we continue to be strategically driven. The addition of our early-stage lithium licences to our portfolio demonstrates our ability to move quickly and with flexibility in-country to capitalise on value accretive opportunities in Nigeria.
Looking ahead, 2024 promises to be a year of delivery. With upgrades to the Segilola processing plant complete and completion of the pushback of the west wall of the Segilola pit, we are confident that the Company is well positioned to grow through gold production and value creation through exploration success in Nigeria.
We are confident of our strategy in Nigeria and West Africa in 2024 and thank you for your support for Thor Explorations in 2023. Please be assured that the Board and Leadership Team are resolutely focused on delivering our strategy and creating value for our shareholders and all of our stakeholders.
Adrian Coates
Chairman
CEO'S STATEMENT
The end of 2023 marks two calendar years of commercial gold production at our flagship asset, the Segilola Gold Mine. Thinking back to the original mine plan in the Definitive Feasibility Study, we knew as a management team that the second year of production was going to be an operationally challenging year, requiring the pushback of the western wall of the pit and mining of waste material in order to access the orebody efficiently in the subsequent years.
Despite the operational challenges, we are pleased to have produced approximately 85,000 ounces of gold in 2023 versus the original mine plan projection of 72,000 ounces. This was achieved whilst carrying out certain plant upgrades which would also optimise gold production for the remainder of the Segilola mine life. In addition to this, we were able to deliver our operations in a safe and responsible manner, with an improved safety performance in 2023. We continue to prioritise safety and best practise standards and aim to continuously improve.
Personally, I am pleased we managed to achieve our operational objectives. We refreshed the leadership at the mine site with the appointment of a new General Manager in October 2023 and executed necessary upgrades to the process plant whilst ending the year having achieved an all-in sustaining cost ("AISC") for the Segilola Gold Mine of $1,313 per ounce.
The Company is now strongly positioned for repayment of the Company's long term debt during 2024 and growth, primarily coming from strong cash flow at Segilola, and also through exploration and the development of the Douta Gold Project in Senegal.
We are also continuing to prioritise our Environmental, Social and Governance ("ESG") standards, particularly as we are in a country where we must set an example as pioneers in the industry.
Furthermore, in 2023, we began to capitalise on our first mover advantage in Nigeria through the acquisition of over 600 square kilometres of lithium-bearing ground. We believe our first mover advantage allows us to quickly and professionally assess value accretive opportunities for our shareholders. Having successfully carried out early-stage exploration on our lithium portfolio, we are able to provide our shareholders with significant value optionality that can be funded by the Company's existing cash flow and human resources in Nigeria.
In 2024, the Company's strategy will be focussed on growth. The first priority is to extend the Segilola Mine life, where there is currently an underground resource of over 100,000 ounces, that has not been incorporated into the existing mine plan. At the current prevailing high gold prices, we aim to assess our options in re-optimising the Segilola Pit to produce gold from this resource prior to transitioning into an underground mine. We also aim to carry out further exploration at depth, aimed at increasing the existing underground resource which has not been closed out.
In Senegal, the Douta Gold Project continues to provide blue sky exploration upside potential. The Douta Gold Project is undergoing a preliminary feasibility study ("PFS") and subsequent to the year, we acquired additional contiguous ground with potential to scale the Douta Gold Project.
Our strategy in Senegal in 2024 is to focus on increasing the oxide component of the existing Douta resource in parallel with the PFS workstreams. We will be carrying out drilling programs across various geochemical targets on both the Douta and Douta-West licences. The aim is to increase the oxide resource, where high recoveries are metallurgically straightforward, to a target of 500,000 ounces.
We ended 2023 with our Segilola Gold mine well positioned to produce approximately 100,000 ounces per year for the next three years. The Company will also be completely deleveraged in 2024 and will continue to strengthen its balance sheet in the historically high gold price environment.
Looking further ahead, our ambition to continue to grow through mine life extension at Segilola and exploration across our entire portfolio remains unchanged, and we will also be well-positioned for future opportunities that may accelerate our growth into a more mature gold producer.
I am proud of what we achieved in 2023, which is all the result of the hard work and commitment of our people. I am equally excited about the opportunities we have in front of us as we continue to build a uniquely positioned African-focussed gold producer.
Segun Lawson
Chief Executive Officer
OVERVIEW
Thor Explorations Ltd. (the "Company"), together with its subsidiaries (collectively, "Thor" or the "Group") is a gold production, development and mineral exploration company focussed on West Africa and duallisted on the TSX Venture Exchange TSX-V (TSXV: THX) and the AIM market of the London Stock Exchange (AIM: THX). The Group's main assets include its flagship producing Segilola Gold mine in Nigeria and the advanced exploration project, Douta, in Senegal. The Group has a growing portfolio of prospective exploration licences on the unexplored Ilesha schist belt in near proximity to the Segilola gold mine and further exploration licences in Nigeria and Burkina Faso.
As part of the Group's strategy in identifying high-value mineral resource opportunities, Thor, through its wholly owned subsidiary Newstar Minerals Ltd ("Newstar"), completed the acquisition of significant tenure in south-west Nigeria that covers both known lithium-bearing pegmatite deposits and a large unexplored prospective pegmatite-rich belt.
Our strategy is to operate, develop and explore mineral properties where our expertise can substantially increase shareholder value. The Group operates with transparency and in accordance with international best practices and is committed to delivering value to its shareholders through responsible development, providing economic and social benefit to our host communities and operating in a manner where health and safety and the environment are integral to our operations and development approach.
Figure 1.1: Thor's Properties in West Africa
HIGHLIGHTS AND ACTIVITIES - FOURTH QUARTER 2023 AND YEAR ENDED DECEMBER 31, 2023
Operating results for the year were highlighted by the selling of 73,356 ounces ("oz") of gold during the period at a cash operating cost of $1,006 per oz sold, with an all-in sustaining cost ("AISC") of $1,313 per oz sold.
Gold recovered for the quarter was 21,798 ounces. The Group has set its production guidance for 2024 to 95,000 to 100,000 oz, while AISC guidance for 2024 is set at US$1,100 per ounce to US$1,200 per ounce.
Table 2.1 Key Operating and Financial Statistics
Three months period ended Year ended September June March December December December December 31, 2023 30, 20231 30, 20231 31, 20231 31, 20221 31, 2023 31, 20221 Operating
| Gold sold | Au | 11,930 | 19,021 | 20,852 | 21,553 | 24,918 | 73,356 | 92,489 |
| Gold recovered | Au | 21,798 | 19,104 | 23,078 | 20,629 | 26,523 | 84,609 | 98,006 |
| Average realised gold price2 | $/oz | 1,927 | 1,910 | 1,971 | 1,832 | 1,657 | 1,907 | 1,767 |
| Cash operating cost2 | $/oz | 1,451 | 1,193 | 628 | 961 | 342 | 1,006 | 685 |
| AISC (all-in sustaining cost)2 | $/oz | 1,706 | 1,392 | 916 | 1,408 | 610 | 1,313 | 954 |
| EBITDA2 | $/oz | 266 | 624 | 1,227 | 683 | 1,035 | 755 | 911 |
Financial
| Revenue | $ 22,998,429 | 36,594,900 | 41,364,169 | 40,287,830 | 43,251,204 | 141,245,328 | 165,174,531 |
| Net (Loss)/Profit | $ (8,847,842) | 2,270,508 | 14,458,095 | 2,988,685 | 10,715,034 | 10,869,446 | 37,996,903 |
| EBITDA2 | $ 3,175,024 | 11,862,271 | 25,589,910 | 14,722,672 | 25,800,397 | 55,349,877 | 84,277,983 |
| December | September | June | March | December | |
|---|---|---|---|---|---|
| 31, 2023 | 30, 2023 | 30, 2023 | 31, 2023 | 31, 2022 | |
| Cash and cash equivalents | $ 7,839,757 | 8,264,796 | 11,149,491 | 4,505,071 | 6,688,037 |
| Deferred Income | $ 11,838,898 | - 865,173 | - 6,581,743 | ||
| Net Debt2 | $ 15,926,289 | 19,374,507 | 16,807,972 | 24,940,762 | 31,650,722 |
1 The figures for the production costs and net profit have been restated in connection with the restatement of the financial statements. Refer to note 25 of the financial statements for further details.
2 This is a non-IFRS measure. Refer to the non-IFRS measures section.
Segilola Gold Mine, Nigeria
Mining
During the three months ended December 31, 2023, 5,483,291 tonnes of material were mined, equivalent to a mining rate of 59,601 tonnes of material per day. This was higher than the mine plan due to some resequencing of mining areas and demonstrated a maintained increase in material mined since the end of Q1 2023 in order to efficiently mine the required waste material in the west wall of the southern end of the pit.
In this period, 451,360 tonnes of ore were mined, equivalent to a mining rate of 4,906 tonnes of ore per day, at an average grade of 1.93g/t. Completion of the west wall pushback has meant production areas are increasing, which allows maintaining higher production rates than was in the annual plan. Grade was lower than Q3 2024 due to increased low grade material identified during grade control drilling increasing the stockpiles for processing at the end of the mine's life.
The stockpile balance at the end of the period increased by 59.8% to 541,151 tonnes of ore at an average grade of 1.04g/t. This comprised 1,003 tonnes (8.47g/t) at high grade, 18,648 tonnes (2.15g/t) at medium grade, 521,501 tonnes (0.99g/t) at low grade and 4,563 tonnes (3.34g/t) on the coarse ore stockpile between the crusher and mill.
The Group ended the year with a gold recovery of 84,609 oz vs the year end guidance of 85,000 oz. Gold recovered during the year includes approximately 11,250 oz of Gold In-Circuit ("GIC").
Processing
During the three months ended December 31, 2023, a total of 262,439 tonnes of ore, equivalent to a throughput rate of 2,852 tonnes per day, were processed with no significant downtime periods. The process plant maintained the Q3, higher than design, throughput rates with all the main operating units continuing to perform better than expected.
The Q3 2024 mill feed ore tonnes were maintained and recovered ounces of 21,798 were achieved at an average grade of 2.77g/t gold and at an improved recovery of 93.4%.
A leach circuit tank upgrade was ongoing during the period with a projected full commissioning during Q2 2024, to improve processing recovery and efficiency which will reduce the gold in circuit through 2024.
Table 2.2: Production Metrics
Units Q4 - 2023 Q3 - 2023 Q2 -2023 Q1 - 2023 Q4 - 2022 Q3 - 2022 Q2 - 2022 Q1 - 2022 Mining
| Total Mined | Tonnes | 5,483,291 | 5,673,193 | 5,633,688 | 4,194,689 | 4,296,494 | 4,018,431 | 4,031,584 | 3,759,524 |
| Waste Mined | Tonnes | 5,031,932 | 5,370,279 | 5,355,105 | 3,996,264 | 3,974,073 | 3,793,249 | 3,747,504 | 3,533,610 |
| Ore Mined | Tonnes | 451,360 | 302,915 | 278,583 | 198,425 | 322,421 | 225,182 | 284,079 | 226,314 |
| Grade | g/t Au | 1.93 | 2.44 | 2.43 | 2.85 | 3.51 | 4.43 | 3.63 | 2.68 |
Daily Total Mining Rate Tonnes/Day 59,601 61,665 61,909 46,608 46,701 43,679 44,303 41,772 Daily Ore Mining Rate Tonnes/Day 4,906 3,292 3,061 2,205 3,505 2,448 3,122 2,515
Stockpile
| Ore Stockpiled | Tonnes | 541,151 | 338,558 | 297,060 | 270,215 | 300,531 | 229,909 | 249,281 | 179,758 |
| Ore Stockpiled | g/t Au | 1.04 | 0.99 | 1.06 | 1.14 | 1.48 | 1.19 | 1.46 | 1.23 |
| Ore Stockpiled | Oz | 18,141 | 10,756 | 10,124 | 9,904 | 14,300 | 8,796 | 11,701 | 7,109 |
Processing
| Ore Processed | Tonnes | 262,439 | 261,671 | 255,231 | 231,001 | 254,824 | 241,434 | 211,582 | 221,900 |
| Grade | g/t Au | 2.77 | 2.46 | 2.99 | 2.95 | 3.38 | 3.58 | 3.66 | 3.18 |
| Recovery | % | 93.4 | 92.3 | 94 | 94.1 | 95 | 95.5 | 95.5 | 94.1 |
| Gold Recovered | Oz | 21,798 | 19,104 | 23,078 | 20,629 | 26,331 | 26,523 | 23,785 | 21,343 |
| Milling Throughput | Tonnes/Day | 2,852 | 2,844 | 2,805 | 2,567 | 2,770 | 2,624 | 2,325 | 2,466 |
NON-IFRS MEASURES
This MD&A refers to certain financial measures which are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies. These measures have been derived from the Group's financial statements because the Group believes that, with the achievement of gold production, they are of assistance in the understanding of the results of operations and its financial position.
Average realised gold price per ounce sold
The Group believes that, in addition to conventional measures prepared in accordance with GAAP, the average realised gold price, which takes into account the impact of gain/losses on forward sale of commodity contracts, is a metric used to better understand the gold price realised during a period. Management believes that reflecting the impact of these contracts on the Group's realised gold price is a relevant measure and increases the consistency of this calculation with our peer companies.
In addition to the above, in calculating the realised gold price, management has adjusted the revenues as disclosed in the consolidated financial statements to exclude by product revenue, relating to silver revenue, and has reflected the by product revenue as a credit to cash operating costs. The revenues as disclosed in the consolidated financial statements have been reconciled to the gold revenue for all periods presented.
Table 3.1: Average annual realised price per ounce sold
Three Months period ended Year ended December September June March 31, December December December Units
| 31, 2023 | 30, 2023 | 30, 2023 | 2023 | 31, 2022 | 31, 2023 | 31, 2022 | |||||
| Revenues | $ | 22,998,429 | 36,594,900 | 41,364,169 | 40,287,830 | 43,251,204 | 141,245,328 | 165,174,531 | |||
| By product revenue | $ | (40,063) | (56,244) | (68,587) | (43,773) | (32,845) | (208,667) | (114,211) | |||
| Gold revenue | $ | 22,958,366 | 36,538,656 | 41,295,582 | 40,244,057 | 43,218,359 | 141,036,661 | 165,060,320 |
Gain/(Loss) on forward sale of commodity contracts $ 26,261 (205,323) (200,534) (750,482) (1,925,754) (1,130,078) (1,587,524) Adjusted gold revenue $ 22,984,627 36,333,333 41,095,048 39,493,575 41,292,605 139,906,583 163,472,796 Oz Gold ounces sold Au 11,930 19,021 20,852 21,553 24,918 73,356 92,489 Average realized price per ounce sold $ 1,927 1,910 1,971 1,832 1,657 1,907 1,767
Cash operating cost per ounce
Cash operating cost per oz sold, combined with revenues, can be used to evaluate the Group's performance and ability to generate operating income and cash flow from operating activities. The Group believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors may find this information useful to evaluate the costs of production per ounce.
By product revenues are included as a credit to cash operating costs.
Table 3.2: Average annual cash operating cost per ounce of gold
Three Months period ended Year ended December September June March December December December Units
| 31, 2023 | 30, 20231 | 30, 20231 | 31, 20231 | 31, 20221 | 31, 2023 | 31, 20221 | ||
|---|---|---|---|---|---|---|---|---|
| Production costs | $ | 16,743,415 | 22,032,471 | 11,249,777 | 19,649,164 | 6,272,403 | 69,674,827 | 56,309,287 |
| Transportation and refining | $ | 613,813 | 712,258 | 810,080 | 342,291 | 971,849 | 2,478,442 | 3,419,334 |
| Royalties | $ | (4,835) | - 1,102,308 | 768,282 | 1,317,417 | 1,865,755 | 3,696,527 | |
| By product revenue | $ | (40,063) | (56,244) | (68,587) | (43,773) | (32,845) | (208,667) | (114,211) |
| Cash Operating costs | $ | 17,312,330 | 22,688,485 | 13,093,578 | 20,715,964 | 8,528,824 | 73,810,357 | 63,310,937 |
Oz Gold ounces sold Au 11,930 19,021 20,852 21,553 24,918 73,356 92,489 Cash operating cost per ounce sold $/oz 1,451 1,193 628 961 342 1,006 685
1 The figures for the production costs have been restated in connection with the restatement of the financial statements. Refer to note 25 of the financial statements for further details
All-in sustaining cost per ounce
AISC provides information on the total cost associated with producing gold.
The Group calculates AISC as the sum of total cash operating costs (as described above), other administration expenses and sustaining capital, all divided by the gold ounces sold to arrive at a per oz amount.
Other administration expenses include administration expenses directly attributable to the Segilola Gold Mine plus a percentage of corporate administration costs allocated to supporting the operations of the Segilola Gold Mine. From June 30, 2023, this was deemed to be 33%, for prior periods, including 2022, it was considered to be 50%. The change is reflective of the increase in the Group`s exploration activities.
Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied.
Table 3.3: Average annual all-in sustaining cost per ounce of gold
Three Months period ended Year ended September June March December December December
Units December
31, 2023 30, 20231 30, 20231 31, 20231 31, 20221 31, 2023 31, 20221 Cash operating costs2 $ 17,312,330 22,688,485 13,093,578 20,715,964 8,528,824 73,810,357 63,310,937 Segilola mine - other
| administration expenses | $ | 2,323,963 | 806,394 | 1,093,344 | 3,775,777 | 6,171,107 | 7,999,478 | 14,042,505 |
| Sustaining capital3 | $ | 714,793 | 2,979,303 | 4,914,550 | 5,864,894 | 500,040 | 14,473,540 | 10,917,636 |
| Total all-in sustaining cost | $ 20,351,086 | 26,474,182 | 19,101,472 | 30,356,635 | 15,199,971 | 96,283,375 | 88,271,078 |
oz Gold ounces sold Au 11,930 19,021 20,852 21,553 24,918 73,356 92,489 All-in sustaining cost per ounce sold$/oz 1,706 1,392 916 1,408 610 1,313 954
1 The figures for the cash operating costs have been restated in connection with the restatement of the financial statements. Refer to note 25 of the financial statements for further details.
2 Refer to Table - 3.2 Cash operating costs.
3 Refer to Table - 3.3a Sustaining and Non-Sustaining Capital The Group's all-in sustaining costs include sustaining capital expenditures which management has defined as those capital expenditures related to producing and selling gold from its on-going mine operations. Non-sustaining capital is capital expenditure related to major projects or expansions at existing operations where management believes that these projects will materially benefit the operations. The distinction between sustaining and non-sustaining capital is based on the Group's policies and refers to the definitions set out by the World Gold Council.
This non-GAAP measure provides investors with transparency regarding the capital costs required to support the on-going operations at its operating mine, relative to its total capital expenditures. Readers should be aware that these measures do not have a standardized meaning. It is intended to provide additional information and should not be considered in isolation, or as a substitute for measures of performance prepared in accordance with IFRS.
Table 3.3a: Sustaining and Non-Sustaining Capital
Three months period ended Year ended September June March December December December Units December
31, 2023 30, 2023 30, 2023 31, 2023 31, 2022 31, 2023 31, 2022 Property, plant and equipment
| additions | $ | 220,954 | 2,020,081 | 10,132,049 | 5,719,158 | 8,663,986 | 18,092,242 | 24,757,723 |
| Non-sustaining capital expenditures1 $ | (762,818) | (298,248) | (6,474,490) | (1,109,993) | (9,096,788) | (8,645,549) | (18,722,873) | |
| Payment for sustaining leases | $ | 1,256,657 | 1,257,470 | 1,256,991 | 1,255,729 | 932,842 | 5,026,847 | 4,882,786 |
| Sustaining Capital2 | $ | 714,793 | 2,979,303 | 4,914,550 | 5,864,894 | 500,040 | 14,473,540 | 10,917,636 |
1 Includes EPC and other construction costs for the Segilola mine 2 Includes capitalized production stripping costs of $9,446,693 (2022: $6,034,850)
Net Debt
Net debt is calculated as total debt adjusted for unamortized, deferred, financing charges less cash and cash equivalents and short-term investments at the end of the reporting period. This metric is used by management to measure the Group's debt leverage. The Group considers that in addition to conventional measures prepared in accordance with IFRS, net debt is useful to evaluate the Group's performance.
Table 3.4: Net Debt
| December | September | June | March | December | |
|---|---|---|---|---|---|
| 31, 2023 | 30, 2023 | 30, 2023 | 31, 2023 | 31, 2022 | |
| Project Loan | 20,360,657 | 23,853,406 | 24,187,306 | 24,257,746 | 24,459,939 |
| EPC Payments | - | - | - 1,463,353 | 10,196,105 | |
| Deferred EPC Facility | 3,405,389 | 3,785,897 | 3,770,157 | 3,724,734 | 3,682,715 |
| Less: Cash and cash equivalents | (7,839,757) | (8,264,796) | (11,149,491) | (4,505,071) | (6,688,037) |
| Net Debt | 15,926,289 | 19,374,507 | 16,807,972 | 24,940,762 | 31,650,722 |
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA)
EBITDA is calculated as the total earnings before interest, taxes, depreciation and amortisation. This measure helps management assess the operating performance of each operating unit.
Table 3.5: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Three months period ended Year ended September June March December December December December
Unit 31, 2023 30, 20231 30, 20231 31, 20231 31, 20221 31, 2023 31, 20221 Net profit for the period $ (8,847,842) 2,270,508 14,458,095 2,988,685 10,715,034 10,869,446 37,996,903