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  5. THX: Is there anything I am missing here? [Thor Explorations Ltd.]
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Investment Q&A

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Q: Is there anything I am missing here? Seems like an incredibly cheap stock with a good yield and little to no debt. Of course there is some risk of operating a mine in Nigeria, but that alone doesn't really explain why the stock is this cheap.

Are there any other gold producers you know of with such a low valuation given their production?

How does the company's market cap given their production compare with other companies of the same size production in the industry (even if from other geopolitical arenas)?
Asked by Marco on September 04, 2025
5i Research Answer:

The sector doesn't really get any cheaper, with THX at 3X earnings now. A group of peers trade in the 15X to 20X range and most pay no dividend. THX has $47M net cash and good cash flow. Analysts do expect lower earnings next year. Even with this year's massive gain, investors are still giving it a giant discount. Analyst forecasts project that Thor Explorations’ earnings may decline around 15% per year over the next three years, contrary to overall market expectations of 10% annual growth. This negative outlook is a major factor why its shares remain discounted. In addition, there is country risk as noted, but also THX is a single mine company. Any issues at its mine of course would be devasting to future prospects. Still, we think all of these risks are reflected in the valuation.