Aim-listed Thor Explorations achieved commercial production at its flagship Segilola gold project, in Nigeria, during the first quarter of the year.

Along with the 23 785 oz produced in the second quarter, production for the first half of the year reached 45 128 oz.

The project is expected to produce about 100 000 oz/y at full production.

Overall, gold sales in the second quarter generated revenues of about $41.3-million out of about $66.2-million for the half-year.

Average mill feed grade during the second quarter was 3.66 g/t gold at a recovery rate of 95.5%.

Thor exported the gold regularly throughout the second quarter, selling 22 172 oz out of 38 830 oz of gold for the first half of the year, and 1 351 oz silver for the quarter out of 2 273 oz for the six months to June 30.

Gold doré inventory at the end of the second quarter amounted to 2 065 oz on hand, with 6 069 oz in transit.

Moreover, no lost-time incidents were recorded during the second quarter.

"This has been a milestone quarter for the company, generating a net profit of over $6-million for the period. We are pleased to have completed another strong quarter at the upper end of our guidance, improving on our performance in the first quarter of the year,”  Thor president and CEO Segun Lawson said on August 30.

Significantly, the company repaid its largest scheduled debt repayment in the period reducing its facility by 29% in the first six months of commercial production. In the second quarter, Thor repaid about $14.4-million, principal and interest, of its senior secured debt facility with Africa Finance Corporation (AFC).

As at June 30, Thor still had net debt of $37.3-million, down from about $50.4-million in the first quarter.

A further payment for AFC of about $9.7-million is due by December 31.

“We have also continued to prioritise our environmental, social and governance efforts in and around the local communities and have funded a range of projects as agreed in our community development agreements. This has been a very encouraging first six months of the year," Lawson said.

Owing to Thor’s results, the company has adjusted its full-year production guidance for the second time to 90 000 oz to 100 000 oz with a cost guidance of $850/oz to $950/oz.