Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) could be on the verge of a rerating as it moves toward becoming a multi-asset producer, according to Shore Capital.
In a 20-page note, the broker initiated coverage with a “buy” rating and a 125p price target, implying an upside of around 55% from the close late last week, citing progress on the Douta gold project in Senegal and strong cash generation from its Segilola mine in Nigeria.
A recently released pre-feasibility study confirms a clear path for growth, with Douta expected to enter production in fiscal 2028 and offset declining production at Segilola.
The project is expected to generate strong returns, with an after-tax net present value of $633 million and an internal rate of return of 61%. Initial production of 411,000 ounces over the first four years is expected to pay off capital costs of $254 million in 11 months.
Segilola remains fundamental to the strategy. The mine is expected to generate $357 million of free cash flow over the next three years, supporting development largely through internal financing.
Management’s track record was highlighted as the team brought Nigeria’s first large-scale gold mine into production on time and repaid the project’s debt within 3.5 years.
Shore Cap added that further benefits could arise from exploration in Nigeria, Senegal and Ivory Coast, with the potential for three operational mines in West Africa within five years.