RE:weird THOR's communication is always very reassuring. No one saw the problem coming when the plant was started up and it can affect investor confidence.
Personally, I really enjoy analyzing all the details contained in the financial statements. At the moment, THOR's operator status is too young to have any data I can trust. Therefore, I will wait for the results of the next 2 quarters before concluding anything.
In the case of THOR, the cost of debt is essential information to know. And more generally, the cost of production per ounce is also very important. To obtain valid data, we will have to wait for the publication of the 2022-Q1 financial statements in May.
Considering the plant's production capacity and its relatively low mineral reserves, the cost of products will be greatly affected by depreciation of fixed assets. In this case, this is imposed by the IFRS accounting presentation rules. With poor net income and good EBITDA, I believe this could be a good entry point. The announcement of a major drilling campaign and the discovery of new mineralized zones could thus increase mineral reserves substantially, in proportion. This would reduce, by the same proportion, the depreciated amount for fixed assets related to operating equipment. This rarely happens because gold companies usually make sure they have very large mineral reserves before building a plant. Therefore, this smooths out amortization over many years, which is not the case with THOR at this time. Therefore, a great opportunity could arise in May 2022. To be continued ...