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Thor Explorations Ltd (TSE:THX)
:THX
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Thor Explorations (THX) AI Stock Analysis

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TSE:THX

Thor Explorations

(THX)

Rating:79Outperform
Price Target:
C$1.00
▼(-16.67% Downside)
Thor Explorations is well-positioned with strong financial performance and attractive valuation. The technical indicators show positive momentum, though caution is advised due to potential overbought signals. The absence of earnings call and corporate events data does not impact the overall positive outlook.

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

Thor Explorations Business Overview & Revenue Model

Company DescriptionThor Explorations Ltd. (THX) is a mineral exploration and development company focused on gold mining projects in West Africa. The company's flagship operation is the Segilola Gold Project in Nigeria, which is considered one of the most advanced gold projects in the region. Thor Explorations is committed to enhancing shareholder value through the development of its mining assets and exploration of its additional prospective properties in Nigeria, Senegal, and Burkina Faso.
How the Company Makes MoneyThor Explorations makes money primarily through the extraction and sale of gold from its mining operations, particularly from its Segilola Gold Project in Nigeria. The company generates revenue by producing gold, which is then sold to various buyers in the international market. In addition to direct gold sales, Thor Explorations may engage in partnerships or joint ventures to facilitate exploration and development activities, which can also contribute to its earnings. The company's financial performance is closely tied to gold prices, production efficiency, and the successful management of its mining operations.

Thor Explorations Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Dec 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 performance with robust revenue growth, high profit margins, and efficient operations. The balance sheet is solid with low leverage, and cash flow metrics indicate strong cash generation and management.
Income Statement
85
Very Positive
Thor Explorations has demonstrated strong revenue growth with a 12.92% increase in TTM, supported by high gross and net profit margins of 59.37% and 50.58% respectively. The EBIT and EBITDA margins are robust at 52.02% and 66.86%, indicating efficient operations and profitability. The company has shown consistent improvement in profitability metrics over the years, reflecting a positive growth trajectory.
Balance Sheet
78
Positive
The balance sheet is solid with a low debt-to-equity ratio of 0.025, indicating minimal leverage and financial stability. The return on equity is impressive at 59.89%, showcasing effective use of equity to generate profits. The equity ratio stands at 88.65%, reflecting a strong equity base relative to total assets. Overall, the company maintains a healthy financial position with low risk.
Cash Flow
80
Positive
Thor Explorations has shown a significant free cash flow growth of 31.84% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.63, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is high at 0.93, reflecting effective cash management. The company has improved its cash flow metrics significantly over the years, enhancing its liquidity position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue252.80M193.13M141.25M165.17M7.82M0.00
Gross Profit156.32M112.18M38.68M57.25M2.51M-112.34K
EBITDA172.43M129.38M52.22M85.06M-1.69M-3.71M
Net Income137.40M91.17M10.87M25.40M-2.51M-3.87M
Balance Sheet
Total Assets317.52M279.07M259.11M223.25M263.22M141.51M
Cash, Cash Equivalents and Short-Term Investments52.85M12.04M10.39M6.69M1.62M28.26M
Total Debt5.07M8.07M35.26M43.55M91.56M20.64M
Total Liabilities36.06M77.82M146.92M136.47M188.05M63.59M
Stockholders Equity281.46M201.25M111.39M86.78M75.17M77.91M
Cash Flow
Free Cash Flow97.41M57.66M35.41M55.71M-63.73M-12.47M
Operating Cash Flow102.35M61.76M63.84M84.39M-22.36M27.78M
Investing Cash Flow-16.91M-12.87M-38.45M-30.55M-44.75M-46.75M
Financing Cash Flow-39.97M-44.70M-25.07M-48.43M37.22M41.35M

Thor Explorations Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.20
Price Trends
50DMA
0.82
Positive
100DMA
0.73
Positive
200DMA
0.54
Positive
Market Momentum
MACD
0.09
Negative
RSI
85.77
Negative
STOCH
91.02
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 1.2 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.82, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 85.77 is Negative, neither overbought nor oversold. The STOCH value of 91.02 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$754.47M4.1365.20%2.08%77.48%262.88%
61
Neutral
$10.24B6.180.71%2.90%3.45%-36.02%
50
Neutral
C$777.72M1.29%97.41%
47
Neutral
C$550.80M-67.43%40.37%
47
Neutral
C$649.57M-17.15%25.54%53.84%
46
Neutral
C$418.09M-9.95%46.54%
25
Underperform
C$829.74M21.44%-103.33%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:THX
Thor Explorations
1.20
0.90
300.00%
TSE:PRB
Probe Metals
2.78
1.51
118.90%
TSE:RBX
Robex Resources
3.57
0.83
30.29%
TSE:RML
Rusoro Mining
1.25
-0.11
-8.09%
TSE:RIO
Rio2
1.83
1.31
251.92%
TSE:FDR
Founders Metals
4.12
1.66
67.48%
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.Date of analysis: Aug 20, 2025