Thor Explorations (THX) AI Stock Analysis

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Thor Explorations

(THX)

Rating:83Outperform

Price Target:

C$1.00

▲(23.46%Upside)

Thor Explorations scores highly due to its strong financial performance and attractive valuation. The positive technical indicators support the stock's upward trend, although the overbought signals suggest caution in the short term. The absence of recent earnings call insights and corporate events reduces the scope of the analysis, but the stock remains appealing based on existing data.

Thor Explorations (THX) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$491.61M

Dividend Yield6.17%

Average Volume (3M)374.48K

Price to Earnings (P/E)3.4

Beta (1Y)1.24

Revenue Growth72.71%

EPS Growth514.32%

CountryCA

EmployeesN/A

SectorEnergy

Sector Strength67

IndustryGold

Share Statistics

EPS (TTM)N/A

Shares Outstanding664,334,700

10 Day Avg. Volume435,022

30 Day Avg. Volume374,480

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)1.36

Price to Sales (P/S)0.00

P/FCF Ratio2.13

Enterprise Value/Market Cap0.32

Enterprise Value/Revenue0.25

Enterprise Value/Gross Profit1.38

Enterprise Value/Ebitda0.41

Forecast

1Y Price Target

C$0.64

Price Target Upside-20.99% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Thor Explorations Business Overview & Revenue Model

Company DescriptionThor Explorations Ltd. (THX) is a mineral exploration company primarily focused on the development and production of gold deposits in West Africa. The company operates the Segilola Gold Project in Nigeria, which is considered one of the most advanced gold projects in the region. Thor Explorations is committed to responsible mining practices and aims to contribute to the economic growth of the communities in which it operates.

How the Company Makes MoneyThor Explorations generates revenue primarily through the extraction and sale of gold from its Segilola Gold Project. The company benefits from the relatively low-cost production environment in Nigeria, which enhances its profitability margins. Thor Explorations sells the extracted gold on the global commodities market, where prices are influenced by factors such as international demand, currency fluctuations, and geopolitical stability. Additionally, the company may form strategic partnerships or joint ventures to expand its mining operations and improve its financial performance. However, the primary source of income remains the sale of gold extracted from its mining operations.

Thor Explorations Earnings Call Summary

Earnings Call Date:May 28, 2025

(Q3-2024)

% Change Since: 15.71%|

Next Earnings Date:Sep 01, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with significant profitability and cash flow achievements despite facing operational and legal challenges. The company's strategic expansion and exploration activities show promise for future growth.

Q3-2024 Updates

Positive Updates

Record Profitability and Cash Position

Despite operational challenges, the company generated revenues of over $40 million, an EBITDA of over $27 million, and a net profit of $17.5 million in Q3. The company transitioned from a net debt position of $2.7 million at the end of June to a net cash position of $2.7 million at the end of September.

Significant Exploration and Expansion

Advancements in the Douta project in Senegal and the acquisition of the Guitry project in Cote d'Ivoire indicate robust exploration efforts. The company aims for a maiden inferred resource of 0.5 million to 1 million ounces by the end of next year in Cote d'Ivoire.

Operational Efficiency and Cost Control

The company maintained an all-in sustaining cost between $800 and $900 per ounce, attributing this to lower-than-budgeted diesel prices and the use of compressed natural gas.

Deleveraging and Dividend Potential

The company is expected to be completely deleveraged from its senior debt by the end of the year, and discussions are ongoing about initiating a dividend policy or share buybacks in early 2025.

Negative Updates

Operational Challenges at Segilola Mine

Q3 faced several operational challenges including a fly-rock incident, late delivery of a liner, and excessive rainfall, leading to reduced production and a lowering of annual guidance to 85,000 ounces.

Tax Allegations in Nigeria

The company is facing tax allegations from the Osun State government in Nigeria, with an alleged liability of approximately $1.9 million. A fact-finding committee has been commissioned to investigate these claims.

Company Guidance

In the Q3 2024 earnings call for Thor Explorations Limited, CEO Olusegun Lawson provided detailed guidance on the company's operations and financial performance. The Segilola Gold Mine in Nigeria faced several operational challenges, including a fly-rock incident, delays in liner delivery affecting mill efficiency, and adverse weather conditions, leading to a revision of the annual gold production guidance to 85,000 ounces. Despite these hurdles, the company reported a profitable quarter with revenues exceeding $40 million, EBITDA of over $27 million, and a net profit of $17.5 million. The company successfully transitioned from a net debt position of $2.7 million at the end of June to a net cash position of $2.7 million by the end of September. Lawson highlighted the company's focus on expanding exploration efforts, notably in Senegal and Cote d'Ivoire, with an exploration budget of approximately $7 million for projects outside Nigeria. The company anticipates maintaining all-in sustaining costs between $800 and $900 per ounce and expects to eliminate its senior debt by the end of the year, enhancing its financial flexibility for future growth initiatives.

Thor Explorations Financial Statement Overview

Summary

Thor Explorations exhibits strong financial health with impressive growth in revenue and profitability. The company has effectively managed its debt and equity, maintaining a stable financial position. Despite some volatility in cash flow management and revenue growth, Thor Explorations is well-positioned in the gold industry, supported by strong operational performance and strategic financial management.

Income Statement

Very Positive

Thor Explorations has shown impressive revenue growth, transitioning from minimal revenue in 2021 to strong performance in 2024. The gross profit margin increased significantly, alongside healthy EBIT and EBITDA margins. The company has demonstrated solid profitability with a noticeable net profit margin improvement. However, revenue growth has been volatile, posing a potential risk to sustained expansion.

Balance Sheet

Positive

The balance sheet reflects a strong equity position with an increasing stockholders' equity over the years. The debt-to-equity ratio has improved significantly, indicating effective debt management. However, the equity ratio has fluctuated, suggesting some instability in asset management. Overall, the company maintains a robust financial position but should continue to monitor asset and liability alignment.

Cash Flow

Very Positive

Thor Explorations has successfully increased its free cash flow, indicating effective cash management and operational efficiency. The company has maintained a strong operating cash flow to net income ratio, showcasing its ability to convert profits into cash. However, fluctuations in investing and financing cash flows suggest a need for careful capital allocation strategies moving forward.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
193.13M	141.25M	165.17M	7.82M	0.00
	Gross Profit
112.18M	38.68M	57.25M	2.51M	-112.34K
	EBIT
100.64M	23.94M	40.02M	-1.51M	-3.70M
	EBITDA
129.38M	52.22M	85.06M	-1.69M	-3.71M
	Net Income Common Stockholders
91.17M	10.87M	25.40M	-2.51M	-3.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.04M	10.39M	6.69M	1.62M	28.26M
	Total Assets
279.07M	259.11M	223.25M	263.22M	141.51M
	Total Debt
8.07M	35.26M	43.55M	91.56M	20.64M
	Net Debt
-3.97M	27.42M	36.86M	89.94M	-7.62M
	Total Liabilities
77.82M	146.92M	136.47M	188.05M	63.59M
	Stockholders Equity
201.25M	111.39M	86.78M	75.17M	77.91M
Cash Flow		Free Cash Flow
57.66M	35.41M	55.71M	-63.73M	-12.47M
	Operating Cash Flow
61.76M	63.84M	84.39M	-22.36M	27.78M
	Investing Cash Flow
-12.87M	-38.45M	-30.55M	-44.75M	-46.75M
	Financing Cash Flow
-44.70M	-25.07M	-48.43M	37.22M	41.35M

Thor Explorations Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.81

Price Trends

50DMA

0.63

Positive

100DMA

0.51

Positive

200DMA

0.41

Positive

Market Momentum

MACD

0.04

Negative

RSI

70.02

Negative

STOCH

86.11

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THX, the sentiment is Positive. The current price of 0.81 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.63, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.02 is Negative, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:THX.

Thor Explorations Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THX	83 Outperform	C$491.61M	3.37	62.25%	6.17%	72.71%	514.32%
RBX	60 Neutral	C$646.44M	―	-5.78%	―	19.84%	84.50%
Sector *	58 Neutral	$7.57B	3.50	-4.45%	10.15%	0.79%	-49.51%
RIO	50 Neutral	C$560.98M	―	-0.28%	―	―	83.41%
PRB	47 Neutral	C$505.92M	―	-177.01%	―	―	10.27%
FDR	46 Neutral	C$386.57M	―	-14.97%	―	―	-83.38%
RML	25 Underperform	C$523.80M	―	21.44%	―	―	-49.49%

* Energy Sector Average

Performance Comparison

TSE:THX

Thor Explorations

0.81

0.55

211.54%

TSE:PRB

Probe Metals

2.47

1.17

90.00%

TSE:RBX

Robex Resources

3.33

1.24

59.33%

TSE:RIO

Rio2

1.32

0.82

164.00%

TSE:RML

Rusoro Mining

0.81

-0.52

-39.10%

TSE:FDR

Founders Metals

4.06

1.96

93.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.