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Thor Explorations Ltd (TSE:THX)
:THX
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Thor Explorations
(THX)
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Rating:81Outperform
Price Target:
C$1.50
▲(13.64% Upside)
Thor Explorations receives a strong overall stock score driven by its robust financial performance and attractive valuation. The company's efficient cost management and high profitability, combined with a low P/E ratio and solid dividend yield, make it a compelling investment in the gold industry. Positive technical indicators further support the stock's potential, although the absence of recent earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.
Profitability
High profit margins reflect efficient cost management and strong pricing power, ensuring sustainable profitability over time.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.
Negative Factors
Industry Volatility
The gold industry is subject to price fluctuations, which can impact revenue and profitability, posing a risk to financial stability.
Concentration Risk
Reliance on a single project increases exposure to operational and geopolitical risks, potentially affecting overall business performance.
Market Dependency
Heavy dependence on gold sales ties company performance to market conditions, limiting diversification and increasing risk exposure.
Thor Explorations (THX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$879.88M
Dividend Yield2.78%
Average Volume (3M)702.85K
Price to Earnings (P/E)3.8
Beta (1Y)1.32
Revenue Growth92.67%
EPS Growth207.16%
CountryCA
EmployeesN/A
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.09
Shares Outstanding666,573,100
10 Day Avg. Volume731,645
30 Day Avg. Volume702,847
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.73
Price to Sales (P/S)0.76
P/FCF Ratio2.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.66Price Target Upside25.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Thor Explorations Business Overview & Revenue Model
Company DescriptionThor Explorations Ltd., a natural resources company, engages in the acquisition, exploration, development, and production of mineral properties in Senegal, Burkina Faso, Nigeria, and Canada. The company primarily explores for gold and silver deposits. Its flagship property is the Segilola gold project located in Osun State, Nigeria. The company was incorporated in 1968 and is based in Vancouver, Canada.
How the Company Makes MoneyThor Explorations generates revenue primarily through the production and sale of gold. The company operates the Segilola Gold Project, which is expected to produce gold at a competitive cost. Revenue is primarily derived from the sale of gold bullion on the open market. Additionally, the company may benefit from strategic partnerships with local and international mining firms, which can provide operational support and enhance its exploration efforts. Factors contributing to its earnings include gold market prices, production efficiency, and the company's ability to expand its resource base through exploration.
Thor Explorations Earnings Call Summary
Earnings Call Date:Nov 11, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 04, 2026
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 growth and profitability. The income statement shows a 12.92% revenue increase and high profit margins, while the balance sheet indicates financial stability with low leverage. Cash flow metrics reflect strong cash generation and management.Income Statement
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
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
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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.45M | 193.13M | 141.25M | 165.17M | 7.82M | 0.00 |
| Gross Profit | 179.95M | 112.18M | 38.68M | 57.25M | 2.51M | -112.34K |
| EBITDA | 197.05M | 129.38M | 46.94M | 85.06M | -1.69M | -3.71M |
| Net Income | 163.00M | 91.17M | 10.87M | 25.40M | -2.51M | -3.87M |
Balance Sheet | ||||||
| Total Assets | 346.41M | 279.07M | 259.11M | 223.25M | 263.22M | 141.51M |
| Cash, Cash Equivalents and Short-Term Investments | 80.58M | 12.04M | 10.39M | 6.69M | 1.62M | 28.26M |
| Total Debt | 3.93M | 8.07M | 14.35M | 43.20M | 91.56M | 20.64M |
| Total Liabilities | 30.85M | 77.82M | 146.92M | 136.47M | 188.05M | 63.59M |
| Stockholders Equity | 315.57M | 201.25M | 111.39M | 86.78M | 75.17M | 77.91M |
Cash Flow | ||||||
| Free Cash Flow | 132.46M | 57.66M | 35.41M | 55.71M | -63.73M | -12.47M |
| Operating Cash Flow | 138.37M | 61.76M | 63.84M | 84.39M | -22.36M | 27.78M |
| Investing Cash Flow | -19.90M | -12.87M | -38.45M | -30.55M | -44.75M | -46.75M |
| Financing Cash Flow | -42.84M | -44.70M | -25.07M | -48.43M | 37.22M | 41.35M |
Thor Explorations Technical Analysis
Positive
1.32
Price Trends
1.21
Positive
1.19
Positive
0.92
Positive
Market Momentum
0.03
Positive
54.74
Neutral
64.29
Neutral
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 1.32 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.21, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:THX.
Thor Explorations Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$879.88M | 3.85 | 68.37% | 2.78% | 92.67% | 207.16% | |
77 Outperform | C$1.21B | 10.51 | 22.92% | ― | 34.05% | 80.47% | |
76 Outperform | C$740.45M | 19.93 | 29.30% | ― | 45.36% | -14.35% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | C$657.36M | -28.61 | -5.98% | ― | -5.94% | -153.35% | |
50 Neutral | C$1.07B | -44.40 | -10.64% | ― | ― | 54.00% | |
48 Neutral | C$935.39M | -55.81 | -76.61% | ― | ― | -111.48% |
* Basic Materials Sector Average
TSE:THX
Thor Explorations
1.32
1.01
320.38%
TSE:OMG
Omai Gold Mines
1.44
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476.00%
TSE:MKO
Mako Mining Corp
8.51
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153.27%
TSE:ORE
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202.99%
TSE:JAG
Jaguar Mining
7.71
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238.16%
TSE:AMRQ
AEX Gold
2.30
0.22
10.58%
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.