Q2 2026 Thor Explorations Ltd. Earnings Call Transcript
Key Points
- Record financial performance in H1 2026 with revenue of $151 million, EBITDA of $108.4 million, and net profit of $95.5 million.
- Strong balance sheet with net cash position of $218.6 million and working capital of $230.8 million, providing ample liquidity for growth.
- Significant gold stockpile of 58,400 ounces (valued at ~$260 million) with sunk costs, offering low-cost production for about two years.
- Exploration success at Segilola with high-grade intercepts (5-11 g/t) at depth, supporting potential mine life extension and underground development.
- Douta project advancing towards final investment decision with robust economics (NPV of $908 million at $3,500 gold price) and no shareholder dilution expected.
- Continued dividend payments, returning USD38 million to shareholders since April 2025, demonstrating commitment to shareholder returns.
- Exploration upside in Cote d'Ivoire with multiple targets and promising results, offering blue-sky growth potential.
- Share price remains undervalued despite strong financials, trading at a material discount to peers on PE, EV/EBITDA, and P/NAV metrics.
- Douta final investment decision delayed due to mining convention negotiations with the Senegalese government, with a change in minister causing further delays.
- Production guidance for 2026 (75,000-85,000 ounces) is lower than 2025's 92,000 ounces, reflecting the transition to lower-grade stockpile processing.
- Uncertainty around future production profile beyond 2026, with a base case of only 30,000 ounces per year from stockpile unless underground resources are defined.
- Potential risks from global geopolitical issues, oil price escalation, and execution risks at Douta, which could impact costs and project timeline.
- No share buyback program in place despite undervaluation, as management has not made a decision, limiting immediate shareholder value enhancement.
- Exploration results in Cote d'Ivoire are still early-stage, with no guarantees of commercial discoveries, and drilling has been delayed by rainy season.
Good afternoon, ladies and gentlemen, and welcome to the Thor Explorations Limited investor presentation. (Operator Instructions) Before we begin, as usual, we will decide to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful.
And I'd now like to hand you over to CEO, Segun Lawson. Segun, good afternoon, sir.
Good afternoon. Welcome and thank you. I'm pleased to be here again presenting our Q2 2026 financial and operating results. For the benefit of those who are new here, I will start with an overview. Thor Explorations is a West Africa focused gold producer with the presence of three countries in Nigeria, where we have what I would describe as our flagship project, the Segilola Gold Mine, which is now in its fifth calendar year of gold production.
Forecast to produce between 75,000 and 85,000 ounces of gold this year. Our second project is the Duta project in Segilola, where we are at
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