Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) could be on the cusp of a re-rating as it moves towards 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 around 55% upside from the close at the end of last week, citing progress at the Douta gold project in Senegal and strong cash generation from its Segilola mine in Nigeria.
A recently published pre-feasibility study confirms a clear pathway for growth, with Douta expected to enter production in the 2028 financial year and offset declining output at Segilola.
The project is forecast to deliver robust returns, with a post-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 repay capital costs of $254 million within 11 months.
Segilola remains central 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 funding.
Management’s track record was highlighted, as the team brought Nigeria’s first large-scale gold mine into production on time and repaid project debt within 3.5 years.
Shore Cap added that further upside could come from exploration across Nigeria, Senegal and Côte d’Ivoire, with potential for three operating mines in West Africa within five years.