My research, future outlook and personal views for Thor Mining plc LON:THR
Thor Mining is an exploration and development company based on AIM and the ASX. It has a number of advanced core assets including the flagship Tungsten/Molybdenum project, Molyhil, which is poised for development. Adding to this is Pilot Mountain, a growing Tungsten resource and Kapunda – an exciting copper development project.
Thor’s focus on Tungsten is actually a shrewd one. Tungsten is known as one of the toughest things found in nature. It is super dense and almost impossible to melt. These properties make tungsten valuable for many applications, including electrical, manufacturing, construction and chemical.
In recent times, the price of Tungsten has been a bit rosier. To put this into perspective for those that are interested in metals, the current price of Tungsten is around US$30,000 per ton – this is 4 times more valuable than copper at present. The bullishness of the metal signifies that with positive outlooks for global growth, demand for the metal is coming back with a bang and has an exciting story ahead of it.
At the recent Share Talk event, Mick Billing (Thr CEO) mentioned that although Thor’s focus was on its near production or developmental core assets, exploration was still an area of the company which he wanted to advance.
It also must be said that the company is now fully funded well into 2019 which makes it a great opportunity for investors.
As per my own research, I have looked into each project to give an overview.
Molyhil (100% owned)
Molyhil tungsten and molybdenum mine is located 220km from Alice Springs in the Northern Territory of Australia.
It has a combined resource of 3.82 million tons, grading at 0.29% tungsten (WO3) and 0.12% molybdenum (MoS2). In 2015 the updated feasibility study showed a post-tax Net present value (NPV) of A$67m over a 6-year mine life.
The Molyhil licence was originally owned by Petrocarb Exploration who extracted nearly 900,000t of ore from the mine up until 1982. Since then it has been owned but never taken back into development. Indicating that the project is production ready and whilst it needs $40 million US to take to production, there is an increased demand for quality Tungsten projects so financers will already be known and interested. This is an exciting time for the company as this has the potential to be a real game changer.
Pilot Mountain (100% Owned)
Thor Mining is the sole owner of the potential tier onem Pilot Mountain Tungsten project in Nevada. The project comprises four tungsten deposits in Desert Scheelite, Gunmetal, Good Hope and Garnet. What is significant is it is the largest Tungsten deposit in the US which makes it a prime target for a JV or partnership.
The quality of exploration and quality of the asset has been recognized by many in the industry and it has exciting potential with 11.73 million tonnes at an average grade of 0.28% tungsten trioxide. The deposit also contains 19.4 gram/tonne grade silver and 0.14% grade copper.
With further results to come this has exciting potential especially at Desert Sheelite and Good Hope regions where significant mineralization has been found. Thor is now transitioning from exploration to a focus on commercialisation of scoping, feasibility, and partner engagement.
With a rising tungsten price, both Thors Tungsten assets are a real gem.
Kapunda Copper Mine (up to 75% ownership)
The Kapunda Copper Mine is located in the northern Mount Lofty Ranges, South Australia. It was the place of Austrailias first Copper Mine in 1842. It’s said it could be ready for production within two years.
The beauty of this project is the low cost copper that can be mined, combined with a strong copper forecast it has the potential to be an excellent addition to the company. It has no real plans for exploration, keeping the costs down, so the focus will go on development.
The green in the pond is likely to be copper in solution
The work has been previously done so the company already know that the copper is economical. This is vital and will add value to the company as it develops over 2018
Three Reasons Investors should follow Thor for the next 6 months
1/ Positive Newsflow on Core Projects
2/ Potential for a Significant Deal or Two
3/ No Dilutionary Placings
Chairman & CEO of Thor Mining plc.
Near production or development assets take out a lot of the risk that exploration has, especially on AIM. Being fully funded until 2019 means little dilution of the stock and gives the company focus on building tangible value for its shareholders. One of the most exciting aspects about this company over a lot of others are that the foundations are already there. High quality assets, great Jurisdictions, excellent commercial grade and large bodies of mineralization which are ready to be developed and taken to the next stage.
The rise in Tungsten as a metal over the last year, coupled with the expected forecast to continue its bullish sentiment, highlights that both Molyhil and Pilot mountain have the potential to drive value to the company’s bottom line and there’s no secret that partners or JV’s are being looked at to progress these.
Exploration is a viable option and I look forward to seeing what comes out from the company over the short term. In a recent RNS, Thor mentioned that it was looking into the Pilbara Region in Australia which has sparked conglomerate-hosted gold fever over the nuggets found there earlier in the year.
Based on all my own research and as a share holder, I think Thor has the potential to be an extremely profitable investment at these levels. With news due on all fronts, I wouldn’t want to be out of this one now and I am delighted to be part of this.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned