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Thor Explorations Ltd V.THX

Alternate Symbol(s):  THXPF

Thor Explorations Ltd. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, development and production of mineral properties located in Nigeria, Senegal and Burkina Faso. It holds a 100% interest in the Segilola Gold Project located in Osun State, Nigeria and has a 70% economic interest in the Douta Gold Project located in south-eastern Senegal. The Company’s flagship project is the gold producing Segilola Gold Project located in Osun State, Nigeria, approximately 120 kilometers (km) northeast of Lagos. The Douta Gold Project is a gold exploration permit, E02038, which covers an area of approximately 58 square kilometers (km2) and is located within the Kenieba inlier, eastern Senegal. The Company also owns approximately 85% interest in the Douta-West Licence which lies contiguous to the Douta Gold Project and over 80% interest in the Sofita Licence located approximately 20 kilometers (kms) south of the Douta Gold Project.


TSXV:THX - Post by User

Comment by Tree2treeon Jun 13, 2021 6:41pm
74 Views
Post# 33379814

RE:RE:NR or... information ?

RE:RE:NR or... information ? stockpunter, thanks for your post, which has prompted me to review the situation for my own purposes.  Like you, I got in at a lower price, so there would be nothing wrong with taking some profits.  However, I do see way more upside for the following reasons:

1. "the current market cap is not too far off the NPV for the worstcase price-of-gold" - The worst-case price scenario of $1400 gold is way out of the picture now, but it does gives an NPV of US$220M or CAN$268M (looking at the April presentation).  The mid-case gold price scenario of $1600 is also way too low if you are trying to come up with a CURRENT valuation of THX.  Even the high gold price scenario of $1800 is now too low.  But at $1800, the NPV is $US$400M or CAN$488M.  Compare that to the current market cap of CAN$242M - MORE THAN DOUBLE THE MARKET CAP.  I am not a gold bug who buys random gold stocks by repeating daily that gold has to go up.  I am looking at a fair valuation of a substantially de-risked project today.

2. "Sure, they might find more gold locally" - They already have, with a 28% reserve increase announced in March.  With the deposit being open in a number of areas, they are pretty much certain of increasing resources and reserves whenever they choose to drill.  Not to mention the extensive land package in an almost unexpored area. 

3. Not to mention the rapidly advancing Senegal project, and another substantial project in Burkina.

They are building the mine as planned, and going into production very soon.  What more can you ask for to provide near-term gains with low risk?  In my opinion, THX is still under the radar, and also maybe passed over because it is in a country not known as a gold-mining country.

Conclusion, way more upside, ie very good chance of doubling from here in the coming months.
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