Segun Lawson, a Nigerian native who was educated in the UK and holds a degree in geology from Imperial College London, has always been intrigued by the lack of large-scale mining projects in Nigeria. Despite the country’s history as a major tin producer and home to several London-listed gold companies, metals mining has declined significantly in recent decades due to the dominance of the oil and gas industries.
With his geological background and additional experience in finance and business administration, Lawson saw the untapped potential of mining in Nigeria. After researching various opportunities, he stumbled upon a project in Senegal near major gold-producing mines. In 2011, Lawson acquired a Toronto-listed shell firm from a Canadian entrepreneur, taking on the role of CEO of Thor Explorations at just 32 years old. At the time, the company consisted primarily of a mine site in Senegal.
Since then, Thor Explorations has made significant strides. The company is now listed on the London Stock Exchange and operates a highly profitable gold mine in Nigeria, with several other promising projects in the pipeline. The current share price is 17.5p, and as the company expands and production increases, it is expected to rise further.
However, Thor’s early years were challenging. In 2014, when financial markets closed their doors to junior mining firms, Lawson almost gave up hope. Additionally, Thor’s Senegalese site faced significant setbacks. It was during this time that Lawson discovered Segilola, an early-stage gold mine located just 75 miles from Lagos, the Nigerian capital.
Segilola showed promising results, with abundant high-grade gold deposits on-site. However, the project was embroiled in a legal dispute between previous owners, leading to protracted sale negotiations. Despite concerns about bribery, corruption, security, and political interference, Lawson remained determined to support the project. He initially secured funding from family and friends, followed by African financiers, a Hong Kong-based mine specialist, and eventually large UK investors.
Construction of the Segilola mine began in early 2020, and the gold production commenced a few weeks after Thor was listed on the London Stock Exchange’s junior AIM market in June 2021. In the previous year, Thor delivered 98,000 ounces of gold, generating $165 million in sales and over $25 million in net profit.
While Thor faced challenges in the first half of 2023 due to large boulders and lower-grade ore, the second half of the year is expected to be smoother. Annual production is projected to reach 95,000 ounces, with a turnover exceeding $176 million and robust profits. Brokers predict a nearly 20% increase in turnover to $210 million in the following year, accompanied by a decrease in costs and a rise in profitability.
In addition to expanding the Segilola mine, Lawson is also focused on exploring neighboring areas that show potential for additional gold deposits. Furthermore, Thor recently acquired a large lithium site in southwest Nigeria, strategically positioned near Lagos. The company plans to develop a significant, high-grade commercial mine to meet the persistent demand for lithium, a crucial component in rechargeable batteries.
Despite Nigeria’s reputation for uncertainty, bribery, and corruption, Lawson has demonstrated a commitment to maintaining high ethical standards and has garnered support from local communities and the government. In fact, Thor’s success has led to progress in the company’s Senegalese mine as well, which has the potential to produce over 100,000 ounces of gold annually.
Lawson’s confidence in Thor’s future is evident as he personally invested £1 million to acquire 6.6 million shares, bringing his stake to 4.45% of the company. Furthermore, his family owns an additional 15%. Thor also prioritizes its responsibilities by minimizing harmful emissions and promoting local employment, including providing opportunities to school leavers and female lorry drivers.
In conclusion, Thor Explorations presents an exciting opportunity for adventurous investors. With a safe and profitable gold mine near Lagos, backed by local support and government backing, the company is poised for growth. As the economic climate remains uncertain, gold prices are expected to remain firm, currently exceeding $1,900 an ounce. With the current share price at 17.5p, Thor is an enticing prospect for those seeking potential returns.
Stock Name: Thor Explorations
Ticker: THX
Contact: thorexpl.com or 001 778 658 6391
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