Thor’s journey to its current status has been quite remarkable. The company, now listed on the London Stock Exchange, operates a highly lucrative gold mine in Nigeria, in addition to several other promising projects in development.
As of now, its shares are priced at 17.5p and are expected to appreciate as Thor continues to expand and boost its production.
The company had its share of struggles during its nascent years. In 2014, Segun Lawson nearly threw in the towel when financial markets became unfavourable for junior mining firms, leading to the hibernation of Thor’s mining site in Senegal.
However, fortunes began to change when Lawson discovered Segilola, a promising gold mine situated just 75 miles away from Lagos, Nigeria’s capital. The site showed significant potential with abundant high-grade gold reserves. Despite an ongoing legal dispute among previous owners, which lengthened the sale process, Lawson acquired Segilola in 2016. This acquisition signified a turning point for Thor, which transitioned from an exploration company to a commercial business.
Yet, the path wasn’t devoid of obstacles. Concerns about corruption, security issues, and political interference – collectively referred to as the ‘Nigeria factor’ – plagued potential investors. Furthermore, Segilola was Nigeria’s first commercial mining project in years, and potential backers were wary about supporting it.
Lawson, however, didn’t lose heart. He managed to secure initial support from family and friends, followed by African financiers, a Hong Kong-based mining expert, and eventually, large-scale UK investors.
Construction of the mining facility commenced in early 2020. By June 2021, Thor got listed on the London Stock Exchange’s junior AIM market, with gold production kicking off shortly after.
In the previous year, Thor produced 98,000 ounces of gold, recording sales worth $165 million (£130 million) and a net profit surpassing $25 million.
Although the initial months of 2023 were challenging due to encounters with large boulders and low-grade ore, the remainder of the year is predicted to be considerably more stable. Annual production is projected to reach 95,000 ounces, with expected revenues of over $176 million and healthy profits.
Expectations are high for increased production next year, with analysts forecasting a nearly 20% surge in revenue to $210 million. With costs expected to decrease in 2024, significant profit growth is anticipated.
Simultaneously, Lawson is putting in significant efforts to expand the Segilola mine and investigate surrounding regions, where early indicators point to further gold reserves.
Recently, the company also added a sizable lithium site in southwest Nigeria, conveniently linked to Lagos, to its portfolio. The region has seen operations by small-scale miners for years, but Lawson’s plan is to establish a significant, high-quality commercial mine to meet the ongoing demand for lithium, an essential component of rechargeable batteries.
With Thor now in a profitable state, the development of its Senegalese mine, capable of producing over 100,000 ounces of gold annually over time, is also making headway.
Just last month, Lawson invested about £1 million of his personal funds to acquire 6.6 million shares in Thor, increasing his stake to 4.45% of the company.
His family owns an additional 15%, a strong indication of their faith in Thor’s future prospects. Their joint stake also motivates Lawson to consider dividends, with distributions expected to commence as soon as feasible.
Thor also takes its broader obligations seriously, working to reduce harmful emissions and promote local employment. The company employs individuals from various backgrounds, ranging from school graduates working as lab assistants to female truck drivers, who boast a better safety record than their male counterparts.
