Thor Explorations Q2 production beats expectations, Douta PFS seen as major re-rating catalyst
Mon July 14 2025
Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) delivered a solid second quarter of production at its Segilola gold mine in Nigeria and remains on track to meet full-year guidance, with analysts at Hannam & Partners seeing clear near-term upside and a “material re-rating” potential once the company publishes a Pre-Feasibility Study (PFS) for its Douta project in Senegal. “This is a good set of results and demonstrates a solid operational performance at Segilola,” the analysts wrote in a note following Thor’s release of Q2 production figures.
The company reported gold production of 22,700 ounces, slightly ahead of H&P’s forecast of 22,000 ounces, with sales of 25,900 ounces generating revenue of US$82.5 million, compared to the broker’s estimate of US$71.9 million. Guidance for 2025 remains unchanged at 85,000 to 90,000 ounces at an all-in sustaining cost (AISC) of US$800 to US$1,000 per ounce.
For the quarter, H&P expects an AISC of US$858 per ounce and estimates EBITDA of US$51.5 million and net profit after tax of US$46.7 million. Operationally, the Segilola mine continues to perform well, the analysts noted. “Both ore mined and grade were incrementally above our expectations,” they wrote.
Thor mined 2.75 million tons, including 242,000 tons of ore at 3.02 grams per ton, and processed 238,000 tons at a head grade of 3.12 grams per ton with recoveries of 93.1%. The result was a 3% production beat versus the firm’s expectations, helped by higher grades and a 555-ounce reduction in gold-in-circuit inventory.
Exploration drilling at Segilola also returned encouraging signs. A 12-hole, 4,418-metre program targeted high-grade ore shoots and shallow plunging mineralization to the south. According to H&P, “this programme has confirmed the presence of mineralisation with potential to extend the resource beyond the current open pit.”
The most significant near-term catalyst lies in Senegal at the Douta project, the analysts believe, noting that with a current resource of 1.8 million ounces, it has the potential to double Thor’s production.
The PFS for Douta is ongoing, and material from the Baraka 3 zone is being added to the resource estimate.
Drilling at Baraka was extended from 8,000 metres to 11,000 metres, and metallurgical work is underway. The analysts highlighted that the Environmental Impact Assessment has already been pre-validated by Senegal’s mining ministry, with additional work planned to meet full permitting requirements.
The broker sees a “material re-rating” for Thor’s shares once the Douta PFS and updated resource estimate are published. “We currently value Douta at C$120 million, US$50 per ounce of Resource, and would expect THX shares to materially re-rate once the PFS and updated Resource Estimate are published,” they wrote, noting that peer valuations for smaller miners range from US$216 per ounce of resources to US$4,216 per ounce of production.
These multiples imply a potential valuation of up to US$358 million for Douta if developed. The analysts value Thor at C$0.88 per share, representing 14% upside from current levels.
“The main near-term catalysts should be to hit production and cost guidance, exploration results from Segilola, and publication of the Pre-Feasibility Study at the Douta project,” the broker concluded.
Source: https://www.proactiveinvestors.co.uk/