This article first appeared on GuruFocus.

Release Date: November 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Thor Explorations Ltd (THXPF) reported a net profit of $43.1 million for Q3 2025, supported by high gold prices and operational efficiencies.

The company is on track to meet the upper end of its production guidance, expecting to produce between 90,000 and 95,000 ounces of gold in 2025.

Thor Explorations Ltd (THXPF) has completely deleveraged its balance sheet, moving from a negative working capital deficit to a surplus of $96.6 million.

The company has increased its ownership in the Duta project in Senegal to 100%, marking a significant milestone.

Thor Explorations Ltd (THXPF) has a strong cash position of $81 million, allowing it to fund exploration and potential future projects without raising additional equity.

The company has reduced its production guidance for 2025, indicating potential challenges in meeting initial expectations.

There was an increase in the all-in sustaining cost (AISC) in Q3, which could impact future profitability if not managed.

Thor Explorations Ltd (THXPF) faces challenges with metallurgy in deeper fresh material at the Duta project, requiring ongoing work to find a viable processing solution.

The lithium exploration portfolio in Nigeria has been deprioritized due to the focus on gold, potentially missing out on opportunities in the lithium market.

There are concerns about the transition from open-pit to underground mining at Segulola, which could affect production volumes and require careful planning.

Warning! GuruFocus has detected 3 Warning Sign with THXPF.

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Q: Given the amount of cash on hand, will it be enough to cover continued exploration and the majority of the Duta phase one? What are your plans for capital allocation, particularly regarding increasing the dividend given the 30% increase in gold since the maiden announcement? A: CEO Shagan Lawson stated that they have sufficient cash to cover all objectives and maintain a buffer. The dividend policy is a minimum announcement and will be reviewed at year-end. They have aggressive exploration plans and aim to move forward aggressively if results are encouraging. The balance sheet is expected to grow, and the dividend policy will be reviewed early next year.

Q: Will the Segulola resource update in Q1 2026 include satellites or just the underground pit? A: CEO Shagan Lawson confirmed that the update will include satellites they plan to mine, but other satellite targets still being drilled will be excluded. A more refined date within Q1 cannot be provided yet.

Q: Which satellite deposit in Nigeria would be mined first, and how many years would that take? Will permits be needed? A: CEO Shagan Lawson mentioned that the southern prospect called Cojola is the first target. The permitting process has started, and they have been given a license. The remaining regulatory permits are being processed, with a timeframe set for next year.

Q: Without adding additional resources to Segulola, how long can you continue mining 20,000+ ounces per annum? A: CEO Shagan Lawson indicated that they can continue producing well above 20,000 ounces through late 2029, assuming no additional gold is found. Updated guidance and resource numbers will be provided early next year.

Q: What are your thoughts on financing for Duta, given the strong cash generation? Will investors see more favorable deals than those with AFC for Segulola? A: CEO Shagan Lawson stated they can put up a larger equity component and aim not to raise any equity for the project. Financing will be done from the balance sheet and through debt, expecting more favorable terms due to their strong cash generation and track record.

Q: The AISC appears to have increased in Q3. Is this due to holding back sales for Q4? Will this trend continue? A: CEO Shagan Lawson explained that the AISC was calculated based on gold sold, with unsold ounces moved to Q4. They aim to sell more in Q4 at higher prices, and costs have remained stable. They expect to fall below $1000 per ounce for the year.

Q: Can you provide an update on the company's relationships with the governments in the countries you're operating in? A: CEO Shagan Lawson confirmed that they have good relations with stakeholders in Nigeria, Senegal, and Cote d'Ivoire, maintaining a cordial relationship with the ministries and receiving support for their progress.

Q: What drives you, and where do you want to take the company? A: CEO Shagan Lawson expressed a strong value proposition, aiming to build three mines in the next five years and transition from a single mine junior producer to a multi-jurisdiction operator with mid-tier status, leveraging their existing portfolio and prospective ground.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.