Thor Explorations Ltd. TSXV: THX / AIM: THX / OTC: THXPF / FRA: T2X

Introduction

Thor Explorations Ltd. is a West African gold producer, developer, and explorer operating in Nigeria, Senegal, and Côte d’Ivoire. Its flagship asset is the 100%-owned Segilola Gold Mine in Osun State, Nigeria, the country’s first large-scale commercial gold mine. Thor is also advancing the Douta Gold Project in Senegal and building an earlier-stage exploration portfolio in Côte d’Ivoire.

The investment case is unusual because Thor is not simply an exploration company hoping to build its first mine. Management has already acquired, financed, constructed, commissioned, and operated Segilola. The company is now using Segilola cash flow to fund exploration, pay dividends, strengthen its balance sheet, and advance Douta toward construction.

Segilola produced 91,910 oz of gold in 2025. For 2026, Thor maintained guidance of 75,000–85,000 oz at AISC of US$1,000–US$1,200/oz. During H1 2026, the company sold 32,467 oz at an average realized gold price of US$4,681/oz, generated US$152.0M of revenue, US$108.4M of EBITDA, and US$95.5M of net profit. At June 30, 2026, Thor reported US$193.1M of cash and US$218.6M of adjusted net cash.

The growth asset is Douta. Its 2026 PFS outlined a 12.6-year operation producing approximately 1.0Moz of gold. At US$3,500/oz gold, the PFS reported pre-tax NPV5% of US$908M, post-tax NPV5% of US$633M, post-tax IRR of 61%, initial capital of US$254M, and payback of approximately 11 months.

The bull case is straightforward: Thor already generates strong cash flow, carries substantial net cash, pays dividends, has demonstrated mine-building capability, and owns a development project with economic value that could exceed the company’s present market capitalization.

The main risk is the transition between assets. Segilola’s original open-pit reserve is approaching its final stages, while the underground extension has not yet been converted into a formal mine plan. Douta still needs its mining permit, final investment decision, financing package, detailed engineering, construction, commissioning, and operating proof.

Projects / Location / MRE / Grades

Project 1: Segilola Gold Mine, Nigeria (Flagship Producing Asset)

Segilola is located in Osun State, approximately 120 km northeast of Lagos. Thor holds a 100% interest in the operation. Thor acquired Segilola in 2016, secured financing in 2019, began construction in 2020, poured first gold in July 2021, and completed its fourth full year of production in 2025.

Year	Gold production
2022	98,006 oz
2023	84,609 oz
2024	85,057 oz
2025	91,910 oz
2026 guidance	75,000–85,000 oz

The original mine was developed from a probable reserve of approximately 4.007Mt grading 4.02 g/t gold for 518,000 oz. This is a high-grade open-pit deposit by global standards.

Segilola Mineral Resource Estimate

Mining method	Category	Tonnes	Grade	Contained gold
Open pit	Indicated	3.700Mt	4.50 g/t	532,000 oz
Open pit	Inferred	0.032Mt	2.50 g/t	3,000 oz
Potential underground	Indicated	0.386Mt	6.10 g/t	76,000 oz
Potential underground	Inferred	0.411Mt	5.00 g/t	65,000 oz

These figures are historical resource figures and should not be treated as remaining mine inventory after several years of production. A new resource estimate is required to define the current remaining open-pit and underground opportunity.

Segilola Operational Performance

For Q2 2026, Segilola poured 19,153 oz and sold 17,050 oz. The quarterly cash operating cost was US$760/oz and AISC was US$1,262/oz. For H1 2026, AISC averaged US$1,107/oz. Processing performance remained solid:

• Q2 ore processed: 240,769 tonnes

• Average mill-feed grade: 2.57 g/t gold

• Recovery: 93.3%

• Throughput: approximately 2,675 tonnes per day

• Q2 gold poured: 19,153 oz

• Run-of-mine stockpile at June 30, 2026: approximately 58,431 oz, or roughly two years of plant supply, although much of it is low-grade material.

Segilola Underground and Mine-Life Extension

The most important question for Segilola is whether it can transition from the open pit and stockpile-processing phase into an underground operation. Thor completed 10,614 metres of underground-extension drilling during Q2 2026, with mineralization intersected as deep as approximately 400 metres below the open pit.

• 19.4m at 3.01 g/t gold

• 5.3m at 5.66 g/t gold

• 2.0m at 9.27 g/t gold

• 3.4m at 7.58 g/t gold

• 1.2m at 11.31 g/t gold

• 3.3m at 10.19 g/t gold

These results confirm that high-grade mineralization continues below the pit. However, the system contains narrow and variable zones, so underground mining widths, dilution, continuity, development costs, recovery, and mining method will be critical. Thor expects drilling to continue through the end of 2026 and is targeting an updated Segilola MRE by year-end.

Segilola Grade Feel

Segilola is genuinely high grade. The original reserve grade of 4.02 g/t and historical underground resource grades of 5.0–6.1 g/t are strong. The risk is that historical headline grades do not automatically translate into a profitable underground mine; Thor still needs to demonstrate true widths, continuity, resource scale, manageable dilution, practical underground access, and economic production rates.

Segilola Cost Structure

Metric	2026 guidance
Gold production	75,000–85,000 oz
AISC	US$1,000–US$1,200/oz
Capital expenditure	US$5M–US$7M
Nigeria exploration expenditure	US$9M–US$11M

At high gold prices, this cost structure creates substantial operating leverage and cash generation. Costs may increase during the lower-grade stockpile phase or if an underground operation requires additional sustaining and development capital.

Project 2: Douta Gold Project, Senegal (Flagship Development Asset)

Douta is located within the Kéniéba Inlier in eastern Senegal, a major Birimian gold province. The project consists primarily of the Douta and Douta-West permits. Thor acquired the remaining minority interests during 2025 and early 2026 and now holds a 100% economic interest, subject to an expected 10% Senegalese government free-carried interest when the project enters production.

The project covers approximately 541 square kilometres and includes Makosa, Makosa North, Makosa East, Makosa Tail, Baraka 3, and additional exploration targets.

Douta Mineral Resource Estimate

Category	Tonnes	Grade	Contained gold
Indicated	50.6Mt	1.04 g/t	1.700Moz
Inferred	9.3Mt	0.92 g/t	273,000 oz
Global resource	59.9Mt	Approximately 1.02 g/t	1.973Moz

The resource was constrained within optimized pit shells using a long-term gold price of US$4,000/oz.

Douta Mineral Reserve Estimate

Deposit	Category	Tonnes	Grade	Contained gold
Makosa Main	Probable	28.4Mt	1.01 g/t	922,000 oz
Makosa Tail	Probable	7.3Mt	1.09 g/t	256,000 oz
Baraka 3	Probable	1.0Mt	1.11 g/t	36,000 oz
Total	Probable	36.6Mt	1.03 g/t	1.212Moz

The reserve was estimated using a long-term gold price of US$3,000/oz.

Douta PFS Economics

PFS metric	Value
Mine life	12.6 years
Mill feed	Approximately 37Mt
Average mill-feed grade	1.03 g/t
Total gold production	Approximately 1.0Moz
Initial capital	US$254M
First four years production	Approximately 411,000 oz
Oxide-phase AISC	Approximately US$1,493/oz
Life-of-mine AISC	Approximately US$1,890/oz
Pre-tax NPV5 at US$3,500 gold	US$908M
Post-tax NPV5 at US$3,500 gold	US$633M
Post-tax IRR at US$3,500 gold	61%
Payback	Approximately 11 months
Pre-tax NPV5 at US$4,250 gold	US$1.43B
Pre-tax IRR at US$4,250 gold	102%

The mine plan has two phases: a four-year oxide and transitional-ore phase using a conventional CIL plant, followed by a fresh primary-ore phase that requires a suspension-roasting circuit and is expected to produce roughly 61,000 oz annually.

Douta Grade Feel

At approximately 1.03–1.04 g/t, Douta is not a high-grade project. It is a large, lower-grade, open-pit development project. Its attractiveness comes from scale, near-surface oxide material, a relatively short payback, exploration potential, and Thor’s financial ability to contribute toward development.

Douta Ownership, Royalties and Exploration Upside

Thor owns a 100% economic interest before the expected Senegalese government free carry. The final 30% interest acquisition in the main Douta permit included a capped 1.25% NSR, and the Douta-West minority acquisition also included a capped 1.25% NSR. These are real project obligations.

Douta remains open along strike and at depth. Thor’s 2026 drilling is intended to increase the oxide component before construction and extend the more profitable early phase. At Baraka 3, Q2 results included 5.5m at 2.91 g/t gold, 7.0m at 4.28 g/t gold, 18m at 1.31 g/t gold, and 9m at 1.62 g/t gold. Bousankhoba is not currently included in Douta’s official reserve.

Project 3: Côte d’Ivoire Exploration Portfolio

Thor entered Côte d’Ivoire during 2024 and has assembled a portfolio including the 100%-owned Guitry Gold Project, options to earn up to 80% of the Marahui and Boundiali licences, and Laoudiba exploration interests.

Guitry is located approximately 220 km west of Abidjan within the prospective Tehini Birimian Greenstone Belt. Thor acquired the project from Endeavour Mining for US$100,000 and a 2% NSR. Historical exploration included more than 11,000 metres of drilling, while Thor completed approximately 4,400–4,600 metres during 2025.

Marahui is located in northeastern Côte d’Ivoire. Thor has completed mapping, soil sampling, rock-chip sampling, and target-generation work. Ground geophysics and initial drilling were underway during Q2 2026.

These properties do not yet have formal mineral resources. They should therefore be treated as exploration optionality rather than core valuation assets.

Share Structure / Ownership / Insiders

Capital Structure

As of January 7, 2026:

Capital structure metric	Value
Basic shares outstanding	666,573,136
Options outstanding	0
Fully diluted shares	666,573,136
Shares not in public hands	38.19%
Illustrative share price, Sept. 10, 2026	C$1.30
Illustrative fully diluted market capitalization	Approximately C$866.5M
Cash, June 30, 2026	US$193.1M
Adjusted net cash, June 30, 2026	US$218.6M
Working-capital surplus, June 30, 2026	US$230.8M

The dated C$1.30 share-price reference implies a market capitalization of approximately C$866.5M based on Thor’s official share count.

Ownership / Insiders

Shareholder	Shares	Ownership
AFC Equity Investments	99,858,480	15.0%
Computershare Company Nominees	79,453,343	12.0%
Hong Kong Tiande Baorun Trade	34,750,000	5.2%
Segun Lawson	32,618,905	4.9%
Nigerian Mining Corporation	20,771,478	3.1%
Adbro Ltd.	19,349,721	2.9%
Sparkrod Ltd.	19,203,007	2.9%
Alhaji S O Babalola Investments	13,844,190	2.1%

People / Management

Person	Role	Details / Management Feel
Segun Lawson	CEO, President & Director	Led Thor since 2011. Identified and led major acquisitions and financings, including Segilola. Oversaw Thor’s progression from grassroots explorer into Nigeria’s first large-scale commercial gold producer.
James Philip	Chief Operating Officer	Approximately 15 years of mining-finance experience. Former executive director in Standard Chartered Bank’s mining and metals division; participated in more than 30 mining and metals transactions exceeding US$20B.
Chris Omo-Osagie	Chief Financial Officer	Held senior roles across North America, Europe, the Caribbean, and Africa with PwC, Deloitte, Centrica, Molson Coors, and Dangote Cement. Experience includes reporting, controls, treasury, M&A, listings, assurance, and corporate finance.
Alfred Gillman	Group Exploration Manager	Fellow of the AusIMM and Chartered Professional in geology. Held senior management and board roles across gold, base metals, uranium, and industrial-mineral exploration.
Ettienne Du Plessis	General Manager	Held senior management positions in gold mining and brownfields exploration.
Louise Porteus	Environmental and Social Manager	More than 30 years of experience across mining, infrastructure, energy, oil and gas, development finance, and environmental and social management.
Adrian Coates	Non-Executive Chairman	More than 25 years of mining and financial-market experience. Former Global Sector Head of Resources and Energy at HSBC Global Banking and Markets.
Franklin Edochie	Non-Executive Director	Senior executive within Africa Finance Corporation with more than 18 years of resource-finance experience. Participated in transactions exceeding US$3B.

Risks / Catalysts / Timeline

Key Risks

Key risk	Why it matters
Segilola mine-life risk	The original open pit is in its final stages. Long-term production depends on lower-grade stockpile processing, near-mine discoveries, or a viable underground mine.
Underground-resource risk	High-grade intercepts are encouraging, but Thor still needs a formal updated MRE, mineable widths, resource continuity, metallurgy, development design, capex, and an economic study.
Douta permitting risk	The Phase 1 ESIA has been approved, but the mining permit remained an outstanding milestone in the Q2 2026 outlook.
Douta construction risk	Douta requires approximately US$254M of initial capital. Delays, cost inflation, engineering changes, or commissioning problems could reduce returns.
Metallurgical and roasting risk	Douta’s later primary-ore phase requires a suspension-roasting circuit, which is more complex than the initial oxide CIL phase.
Financing risk	Thor has substantial cash, but a complete Douta financing package could still include debt, hedging, royalties, streams, or equity.
Gold-price risk	Thor is highly leveraged to gold. Lower prices would reduce Segilola cash flow, Douta NPV, dividend capacity, and financing flexibility.
Grade-reconciliation risk	Segilola production depends on reliable grade control. Underground narrow zones may be especially sensitive to dilution.
Political and regulatory risk	Operations are concentrated in West Africa. Changes to mining laws, taxes, royalties, FX controls, permitting, export rules, or government policy could affect returns.
Community and social risk	Mining operations require continuing community support, compensation management, local employment, land access, and environmental compliance.
Royalty and government-interest risk	Douta is subject to capped NSRs and an expected 10% government free-carried interest. Final attributable economics will be lower than 100% project economics.
Exploration risk	Côte d’Ivoire, Bousankhoba, Nigerian regional targets, and Segilola underground drilling may not result in economic resources.
Dividend sustainability risk	Thor is paying dividends while preparing to finance Douta. Construction demands could require the board to reduce or suspend dividends.
Currency risk	Thor reports in US dollars but operates in Nigeria and Senegal and trades primarily in Canadian dollars and British pounds.

Catalysts

Timeline	Key milestone
H2 2026	Continued Segilola underground drilling and additional underground assay results
End of 2026 target	Updated Segilola mineral resource estimate
H2 2026	High-level underground mining review and preparation for mine-plan work
H2 2026	Continued Douta and Douta-West oxide-resource drilling
H2 2026	Further Baraka 3 and Bousankhoba results
2026	Douta mining-permit decision
2026	Updated Douta feasibility work incorporating additional oxide drilling
2026	Douta final investment decision
2026–2027	Finalization of Douta project financing, detailed engineering, procurement, and construction
H1 2028 company target	First gold at Douta
2026	Continued drilling at Guitry and Marahui; possible maiden resource from Côte d’Ivoire portfolio
Quarterly	Continued dividend decisions
Medium term	Definition of a viable underground production plan at Segilola
Longer term	Transition into a multi-mine West African gold producer

Expected Timeline to Full Production

Year / period	Focus	What it means
2026	Segilola production and cash generation	Segilola is already producing. Thor is guiding for 75,000–85,000 oz at US$1,000–US$1,200/oz AISC.
2026	Segilola underground definition	Drilling and the updated MRE should determine whether Segilola can support an economic underground mine.
2026	Douta permitting and FID	Thor must obtain the mining permit, complete updated technical work, structure financing, and approve construction.
2026–2027	Douta construction	Main activities should include detailed engineering, long-lead equipment, earthworks, plant construction, infrastructure, and pre-stripping.
H1 2028 target	Douta first gold	If schedule is maintained, Thor would begin its transition into a two-mine producer.
2028–2031	Douta oxide phase	This should be Douta’s strongest early production period, with approximately 411,000 oz planned during the first four years.
Later mine life	Douta primary-ore phase	Operations transition toward fresh ore and the suspension-roasting circuit, with approximately 61,000 oz average annual production indicated for this phase.
Longer term	Multi-asset growth	Potential upside could come from Segilola underground production, Douta reserve growth, Bousankhoba, and Côte d’Ivoire discoveries.

Valuation

Important Valuation Note

The model uses Douta’s official pre-tax NPV5 values at US$3,500 and US$4,250 gold, the official post-tax-to-pre-tax relationship at US$3,500 gold, a 90% attributable interest after the expected Senegalese government free carry, Segilola production midpoint of 80,000 oz, Segilola AISC midpoint of US$1,100/oz, illustrative 30% tax on mine-level margin, adjusted net cash of US$218.6M, and 666.573M fully diluted shares.

The valuation does not assume a formal Segilola underground reserve because one has not yet been published. Underground and regional exploration are included only in optionality value.

Project Valuation Treatment

Project or asset	Valuation treatment
Segilola	Short-duration after-tax margin model
Douta	Risk-adjusted attributable NPV model
Segilola underground	Included in optionality
Bousankhoba and Douta regional targets	Included in optionality
Guitry, Marahui, Boundiali, and Laoudiba	Included in optionality
Adjusted net cash	Added separately

Optionality Value Assumptions

Optionality assets	Conservative	Base	Aggressive
Segilola underground and near-mine potential	US$10M	US$20M	US$40M
Senegal regional and oxide-extension potential	US$10M	US$20M	US$35M
Côte d’Ivoire exploration portfolio	US$5M	US$10M	US$25M
Total optionality	US$25M	US$50M	US$100M

These figures are analytical assumptions, not company valuations.

Douta NPV Sensitivity Model

Official pre-tax NPV5 is US$908M at US$3,500/oz and US$1.43B at US$4,250/oz. The estimated pre-tax NPV sensitivity is therefore approximately US$0.696M per US$1/oz gold.

Under a US$6,000/oz scenario, estimated post-tax NPV5 is approximately US$1.846B, or approximately US$1.661B attributable after the expected 10% government free carry. Under a US$7,000/oz scenario, estimated post-tax NPV5 is approximately US$2.331B, or approximately US$2.098B attributable.

Segilola High-Gold Margin Model

At US$6,000/oz gold, an illustrative 80,000 oz annual production midpoint at US$1,100/oz AISC produces approximately US$392.0M of mine-level margin and US$274.4M after an illustrative 30% tax. At US$7,000/oz gold, the same approach produces approximately US$472.0M of mine-level margin and US$330.4M after tax.

Because Segilola’s open-pit mine life is short and its underground plan is not yet defined, this model uses only 1.5x, 2.0x, and 2.5x annual after-tax margin rather than the 10x–20x multiples that might be applied to a long-life producer.

All Projects Valuation Table

Gold price	Scenario	Douta applied NAV	Segilola multiple	Optionality	Net cash	Total implied value	US$/share	Approx. C$/share
US$6,000	Conservative	50%	1.5x	US$25M	US$218.6M	US$1.486B	US$2.23	C$3.08
US$6,000	Base	70%	2.0x	US$50M	US$218.6M	US$1.980B	US$2.97	C$4.10
US$6,000	Aggressive	90%	2.5x	US$100M	US$218.6M	US$2.500B	US$3.75	C$5.18
US$7,000	Conservative	50%	1.5x	US$25M	US$218.6M	US$1.788B	US$2.68	C$3.70
US$7,000	Base	70%	2.0x	US$50M	US$218.6M	US$2.398B	US$3.60	C$4.96
US$7,000	Aggressive	90%	2.5x	US$100M	US$218.6M	US$3.033B	US$4.55	C$6.28

Summary & Quick Scorecard

Category	Assessment	Overall
Company overview	Tickers: TSXV THX / AIM THX / OTC THXPF / FRA T2X. Main metal: gold. Phase: producer plus advanced developer. Countries: Nigeria, Senegal, and Côte d’Ivoire.	—
1. Management	Successful mine build: Yes. Exploration-to-development experience: Yes. Big-company or institutional experience: Yes. Capital market experience: Yes	Strong
2. Projects	High grade: Yes at Segilola. MRE above 1.5Moz: Yes at Douta. Optionality: Yes.	Strong
3. Cost Structure	Segilola 2026 AISC guidance of US$1,000–US$1,200/oz qualifies as low cost. Douta’s LOM AISC is higher. Existing infra: Yes	Strong
4. Share Structure Discipline	Fully diluted shares: 666.573M. No options, but the absolute share count is not low.	Good
5. Insider Ownership	Confirmed CEO ownership: approximately 4.9%. Strategic holdings are strong at 48%.	Strong
6. Location	Nigeria is treated as higher risk, while Senegal and Côte d’Ivoire are established but non-Tier-1 mining jurisdictions.	Weak

RT Rating, Commentary

Thor Explorations Ltd. is on our watchlist.

We would give Thor a rating of 4 out of 5 stars.

Thor ticks several important boxes. Management has already delivered a successful exploration-to-production transition at Segilola. The company is profitable, low cost, debt-light, cash rich, dividend paying, and advancing a second project with a published reserve and attractive PFS economics.

The strongest positive is execution history. Many junior miners publish studies but never construct a mine. Thor acquired Segilola, financed it, built it during the COVID period, commissioned it, and turned it into a profitable commercial operation. That achievement gives management more credibility when it says it intends to build Douta.

The second major positive is financial strength. At June 30, 2026, Thor had US$193.1M in cash and US$218.6M of adjusted net cash. This is a powerful position for a company with a US$254M development project and could limit equity dilution if managed carefully.

Douta provides the next growth leg. A 1.212Moz reserve, 12.6-year mine life, post-tax NPV5 of US$633M at US$3,500 gold, and post-tax IRR of 61% create a credible development case. Continued drilling could also increase the higher-margin oxide phase before construction.

The major issue is timing. Segilola’s open pit is approaching the end of its original reserve life, while Douta is targeting first gold in 2028. Thor must bridge this gap using stockpiles, remaining open-pit material, and potentially an underground operation.

The underground opportunity could materially improve the story, but it is not yet sufficiently defined. Strong drill intercepts are encouraging, but investors still need an updated resource, mine design, capex estimate, production schedule, dilution assumptions, and economic study.

Douta also has risks. The later fresh-ore phase requires a suspension roaster, LOM AISC is approximately US$1,890/oz, and the project still needs final permitting, financing, construction, and commissioning. The market should not give Thor full credit for Douta’s high-gold-price NPV until these milestones are delivered.

The share structure is another weakness. Approximately 666.6M fully diluted shares is not a tight structure. Lastly, Africa will be the last place we want our portfolio to be.

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