Thor Explorations: Q3 Financials - Guidance maintained

Thor Explorations (“Thor”) has released its Q3 financial results having previously reported quarterly production of 19.1koz from its Segilola mine in Nigeria. All-In Sustaining Costs (“AISC”) for the period were US$1,392/oz. Management has maintained revised guidance for the year of 85koz at an AISC of US$1,150/oz-US$1,350/oz (H&Pe 85koz at US$1,316/oz). Revenue was US$36.6m, EBITDA US$11.8m and NPAT US$2.3m. The results incrementally beat our expectations with lower costs. Thor finished the per

SP Angel Morning View: Metals prices rise on rising China GDP and ongoing economic electrification

FLASH: 3Q23 financials first look

Thor Explorations: Production miss on grade reconciliation

Thor Explorations (“Thor”) has released a Q3 production update from its Segilola mine in Nigeria, with output of 19.1koz of gold missing H&Pe of 22.1koz due to lower than expected grades. Management has maintained revised guidance for the year of 85koz at an AISC of US$1,150/oz-US$1,350/oz (H&Pe 85koz at US$1,328/oz).The main catalysts for the remainder of 2023 should be hitting production guidance, completion of the Douta PFS, and progress with the lithium exploration programme. We value Thor a

SP Angel Morning View: Gold prices muted as US earnings season pace picks up

FLASH: 3Q23 production

Multiple potential catalysts on the horizon

We look forward to positive news flow from Thor on several fronts over the remainder of 2023 as the group continues to deliver operational and exploration progress across its asset base. While lower-than-previously-forecast grades at Segilola are anticipated in Q3 – which has prompted Thor to slightly temper its full-year production expectations – there is scope for upside in Q4 as mining conditions improve, and with full-year AISC guidance maintained at US$1,150-1,350/oz we still expect a stron

SP Angel Morning View: Iron ore rises on low inventories as gold and copper climb ahead of US inflation data

Thor Explorations: Douta exploration update

Thor Explorations (“THX”) has released an update on the ongoing exploration programme at the company’s Douta project in Senegal. The programme, which forms part of the ongoing pre-feasibility study, was focused on upgrading inferred material to indicated, which the results of this drilling appear to confirm, as well as potentially enhancing the average grade. In addition, early stage drilling at the Sambara prospect to the north suggests a likely strike extension to the orebody. We maintain our

Thor Explorations: Guidance now at lower end of range, positive exploration from Kola prospect

Thor Explorations (“THX”) has released its interim results for Q2’23 having already reported production data from the company’s Segilola mine in Nigeria. The company mined 278.6kt of ore at an average grade of 2.43g/t Au and processed 255.2kt at a grade of 2.99g/t Au with a recovery rate of 94%, delivering gold production of 23.1koz in Q2 and exporting 20.85koz. Mining operations performed well, with waste mined stepping up to 5.36Mt, +34% QoQ. Q2 revenues were US$41m, (H&Pe US$40m) with NPAT of

2Q23 financials: solid quarter but production likely to be lower in Q3

SP Angel Morning View: China trusts miss more payments intensifying liquidity crisis

Thor Explorations: Lithium exploration update

Thor Explorations (“THX”) has released an update on the initial exploration programme at the company’s lithium exploration projects in Nigeria that were acquired in Q2. The projects host known lithium bearing pegmatites and areas that are prospective for the metal. The initial exploration programme was completed at the West Oyo target. Better results from this programme include 11m at 2.61% Li2O from 15m, 9m at 2.42% LiO2 from 35m and 11m at 1.53% LiO2 from 15m. Mineralisation is exposed at surf

Oil & Gas - Cavendish sector note

88 Energy, Falcon Oil & Gas, Trinity Exploration & Production, Plexus Holdings, Baron Oil, Harbour Energy, EnQuest, Capricorn Energy, Arrow Exploration, Southern Energy, Serinus Energy, SDX Energy, Panoro Energy, Eco (Atlantic) Oil & Gas, OKEA ASA, Equinor Source: FactSet, weekly change 27/11/23-1/12/23 Oil extended declines, closing out a sixth straight weekly drop, as the OPEC+ output cuts announced Thursday failed to dispel the market’s gloom over swelling global supplies. West Texas Intermed

Pan African Resources - Valuation up 22.2% with new gold price forecasts

On 22 November, Pan African Resources (PAF) announced that operations to date in FY24 had performed in line with, or better than, expected, with gold production for H124 anticipated to be in the range 94,000–98,000oz (cf 92,307oz in H123). As a result, it increased its production guidance for FY24 to 180,000–190,000oz, which caused us to increase our production estimate in turn by 1.9% (or 3,575oz) to 189,725oz. The change made only a modest difference to our EPS forecasts for FY24 (see Exhibit

Morning Note – 4 December 2023

Hartshead Resources - Fully Funded Solution

Hartshead has secured a funding solution with partner Rockrose Energy to fund 100% of the Phase I development costs. Under the agreement, Hartshead has the option to exchange an additional 20% licence interest for an uncapped free carry, thereby covering the total cost of the Phase I development project (financing backstop). Importantly, Hartshead maintains at its election the option not to proceed with the RockRose financing solution, and introduce other financing solutions (eg project debt, pr

New Debt Facility – Lowering TRR Cost of Capital

We have been roadshowing Trident Royalties all week during which time the company released an announcement that they have entered into a commitment letter with BMO and CIBC for a new $40m revolving credit facility (RCF), with the potential to increase the facility to $60m via an accordion feature. The proceeds from the $40m are going to be used to repay the existing secured debt facility of $40m with Macquire in Q1 next year.

Southern Energy - 3Q Results and Comprehensive Update Note

Southern Energy delivered solid 3Q results with the focus of attention now turned towards the completion of 4 drilled uncompleted wells (“DUCs”). We see our investment thesis for Southern Energy – premised on the scale, location, quality, deliverability, low-cost nature of the company's Gwinville gas field in Mississippi, USA – very much strengthening based on our structural commodity price outlook and our growing confidence in the highly prolific Gwinville gas field, sharpening our interest in

SP Angel Morning View: Gold powers through $2,100/oz on outlook for Fed rate cuts

Oil & Gas - Cavendish sector note

Jersey Oil & Gas, Serica Energy, Trinity Exploration & Production, Longboat Energy, Ithaca Energy, Neptune Energy, Pantheon Resources, Nostrum Oil & Gas, Kufpec, ORLEN.

UK-Listed Energy Sector: Review of the UK oil and gas landscape – why the country needs it, current policy and tax

The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.

Diversified Energy Company - Delivering Consistent and Reliable Results

DEC’s Q3/23 trading update was in line with expectations as the company continued to deliver despite further commodity price headwinds. The Q3/23 Adjusted EBITDA margin of 52% (H1/23: 52%) reflects the quality of DEC’s asset base and its ability to efficiently manage every aspect of its operations. Average net daily production in Q3/23 was 134Mboepd (H1/23: 142Mboepd), with exit rate production of 134.4Mboepd. DEC has maintained its dividend at US$0.04375 per share. Since its IPO in 2017, DEC ha

Thor Energy - High-Grade Uranium Intercepts at Groundhog Prospect

Thor today announces the final downhole gamma results for the reverse circulation drill programme undertaken at the Wedding Bell and Radium Mountain projects in the USA. Downhole gamma readings are a commonly used proxy for physical uranium assays.

LIBERUM: Shanta Gold: Another excellent quarter

DEC Q3 Trading Update & US Listing

DEC reported strong Q3 results with production in line while 9m EBITDA of $423m is equal to 80% of DCe FY23 $528m; it has also announced a US listing.

Strong second half trading

Jersey Oil & Gas - Delivering zero-capex barrels

Last week, JOG successfully secured its second GBA farmout, locking in a path to delivering zero-capex barrels. The surprisingly muted share price response to the farm-out leaves JOG trading at an unjustifiably large discount to our valuation. With a material fully funded development project under its belt and a clean balance sheet, JOG presents a very low-cost way to access high quality development barrels for investors and potential acquirers alike. If the threat of M&A does not narrow JOG’s v