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Thor Explorations Ltd (TSE:THX)
:THX
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Thor Explorations
(THX)
75Outperform
Thor Explorations (THX) vs. S&P 500 (SPY)
Market Cap
C$242.48M
Dividend YieldN/A
Average Volume (3M)218.61K
Price to Earnings (P/E)3.3
Beta (1Y)0.95
Revenue Growth-5.98%
EPS Growth81.04%
CountryCA
EmployeesN/A
SectorEnergy
Sector Strength73
IndustryMining
Share Statistics
EPS (TTM)0.11
Shares Outstanding664,334,700
10 Day Avg. Volume170,108
30 Day Avg. Volume218,613
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)3.60
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.51Price Target Upside34.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Thor Explorations Business Overview & Revenue Model
Company DescriptionThor Explorations Ltd. (THX) is a mineral exploration and development company focused on acquiring, exploring, and developing gold and other mineral resource properties. The company's primary asset is the Segilola Gold Project located in Nigeria, which is considered one of the most advanced gold projects in West Africa. Thor Explorations is engaged in the exploration and development of mineral properties, with an emphasis on gold production and exploration in West Africa.
How the Company Makes MoneyThor Explorations earns revenue principally through the exploration and development of mineral resources, with a strong focus on gold. The company generates income by mining and selling gold extracted from its flagship Segilola Gold Project. As a mining company, Thor Explorations invests in the exploration and development phases to bring mineral deposits into production, subsequently selling the mined gold in global markets. Significant partnerships with local governments and mining service providers, as well as adherence to regulatory and environmental standards, play a crucial role in its operations and revenue generation. Additionally, the company may partake in joint ventures or strategic partnerships to enhance its exploration capabilities and financial performance.
Thor Explorations Financial Statement Overview
Summary
Thor Explorations shows strong financial performance with impressive profit margins and cash flow generation. However, volatility in revenue growth and stable asset levels pose challenges for sustained growth.Income Statement
Thor Explorations has shown impressive revenue growth, with Total Revenue increasing from $141.2M in 2023 to $150.4M in the TTM period, a growth rate of 6.5%. The company also boasts strong margins, with a Gross Profit Margin of 52.2% and a Net Profit Margin of 35.8% for the TTM. Both EBIT and EBITDA margins are robust at 42.9% and 63.5%, respectively, indicating efficient operations and cost management. However, the decline in revenue from 2022 to 2023 suggests potential volatility.75
Positive
Balance Sheet
The balance sheet shows a healthy equity position, with Stockholders' Equity accounting for 61.3% of Total Assets. The Debt-to-Equity Ratio is low at 0.08, indicating prudent leverage use. Return on Equity is strong at 32.1% for the TTM, showing effective use of equity capital. However, the company’s Total Assets have been relatively stable, suggesting limited asset growth which could be a concern for future expansion.65
Positive
Cash Flow
Thor Explorations has demonstrated significant free cash flow growth, with Free Cash Flow increasing from $35.4M in 2023 to $49.2M in the TTM period. The Operating Cash Flow to Net Income Ratio stands at 1.03, indicating strong cash conversion from profits. However, the Free Cash Flow to Net Income Ratio is lower at 0.91, suggesting some capital expenditure absorption of cash flows.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 150.41M | 141.25M | 165.17M | 7.82M | 0.00 | 0.00 | Gross Profit |
| 78.45M | 38.68M | 57.25M | 2.51M | -112.34K | -126.73K | EBIT |
| 64.57M | 23.94M | 40.02M | -1.51M | -3.70M | -4.84M | EBITDA |
| 95.43M | 52.22M | 85.06M | -1.69M | -3.71M | -4.76M | Net Income Common Stockholders |
| 53.80M | 10.87M | 25.40M | -2.51M | -3.87M | -4.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 304.07K | 10.39M | 6.69M | 1.62M | 28.26M | 5.40M | Total Assets |
| 45.23M | 259.11M | 223.25M | 263.22M | 141.51M | 53.71M | Total Debt |
| 0.00 | 14.90M | 43.55M | 91.56M | 20.64M | 96.67K | Net Debt |
| -304.07K | 7.06M | 36.86M | 89.94M | -7.62M | -5.31M | Total Liabilities |
| 2.40M | 146.92M | 136.47M | 188.05M | 63.59M | 1.13M | Stockholders Equity |
| 42.83M | 111.39M | 86.78M | 75.17M | 77.91M | 52.58M |
| Cash Flow | Free Cash Flow | ||||
| 49.19M | 35.41M | 55.71M | -63.73M | -12.47M | -2.62M | Operating Cash Flow |
| 55.63M | 63.84M | 84.39M | -22.36M | 27.78M | -2.60M | Investing Cash Flow |
| -13.96M | -38.45M | -30.55M | -44.75M | -46.75M | -6.01M | Financing Cash Flow |
| -45.00M | -25.07M | -48.43M | 37.22M | 41.35M | 13.69M |
Thor Explorations Technical Analysis
Positive
0.38
Price Trends
0.36
Positive
0.32
Positive
0.30
Positive
Market Momentum
<0.01
Positive
55.15
Neutral
35.56
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 0.38 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.36, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 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
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$2.24B | 27.55 | 17.33% | ― | 56.15% | ― | |
75 Outperform | C$242.48M | 3.27 | 40.38% | ― | -5.98% | 81.04% | |
73 Outperform | C$7.34B | ― | -9.94% | 3.67% | 22.47% | -791.36% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% | |
54 Neutral | $4.96B | ― | -18.54% | 6.17% | -4.17% | -318.18% |
* Energy Sector Average
Performance Comparison
TSE:THX
Thor Explorations
0.38
0.17
80.95%
TSE:BTO
B2Gold
3.90
0.60
18.33%
TSE:EDV
Endeavour Mining
30.85
6.07
24.50%
TSE:WDO
Wesdome Gold Mines
14.97
5.20
53.22%
Thor Explorations Earnings Call Summary
Earnings Call Date: Nov 11, 2024 | % Change Since: 35.71% | Next Earnings Date: May 6, 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.Highlights
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.
Lowlights
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.