Here’s a name most Canadian retirees haven’t heard of, but probably should: Thor Explorations (TSXV:THX).
This West Africa-focused gold producer is cheap, profitable, and offers a dividend yield of almost 4%. It carries no debt and has $137 million sitting in the bank. Moreover, it’s building a second mine that could nearly double its production without issuing a single new share to fund it.
For retirees hunting for income and capital preservation, Thor checks a lot of boxes that bigger, more expensive names simply don’t.
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Why Thor’s Segilola Mine is a cash machine
Thor’s flagship asset is the Segilola Gold Mine in Nigeria’s Osun State. The mine has now completed four full years of commercial production, and 2025 was its best financial year yet.
- The company produced 91,910 ounces of gold last year, while revenue surged to $108 million in Q4.
- It did all of this while keeping costs well under control: finishing the year with all-in sustaining costs (AISC) below US$1,000 per ounce.
- For context: with gold trading above US$4,500 per ounce today, that’s an enormous profit margin on every ounce pulled from the ground.
Those strong margins funded roughly $18 million in dividends to shareholders in 2025, including a bonus dividend paid in the fourth quarter. Management has guided for around $25 million in dividends in 2026, a meaningful step up. Comparatively, free cash flow is forecast at $332 million in 2026, indicating a payout ratio of around 7.5%.
Priced at three times forward FCF, the Canadian mining stock is very cheap and trades at a 62% discount to consensus price targets.
A focus on expansion
For 2026, Thor is guiding production of 75,000 to 85,000 ounces at an AISC of $1,000 to $1,200 per ounce. That’s a slight step back from last year’s production, but the economics remain highly attractive given current gold prices.
Near-mine exploration drilling at Segilola is already confirming mineralization below the existing pit design, which indicates that the mine life could extend further.
Here’s where the real upside lives for long-term investors.
Thor is advancing its Douta Gold Project in Senegal toward production. In January 2026, CEO Segun Lawson presented the results of a preliminary feasibility study (PFS) at an investor conference, and the numbers are striking.
The project holds a probable reserve of 1.2 million ounces of gold, grading just over one gram per tonne (1g/t). The mine would run for at least 12.5 years, with the first four years producing more than 100,000 ounces annually at an AISC of around $1,493 per ounce.
At a gold price of $3,500 per ounce, the project carries a pre-tax net present value (NPV) of $908 million. The post-tax NPV is $633 million, and management expects the final figure to fall between those two numbers once tax incentive negotiations with the Senegalese government conclude.
The initial capital requirement is $254 million, and Thor plans to contribute up to $100 million from its own cash balance, with the remainder funded through project financing. According to Lawson at the investor conference, there is already “very strong early indicative interest” from lenders, and financial close is targeted before the end of June 2026.
The best part for existing shareholders? There are zero plans to issue new equity, and shareholders simply own more production capacity as the project advances.
Is the Canadian mining stock a good buy?
No investment is without risk. Thor operates in West Africa (Nigeria and Senegal), jurisdictions that entail geopolitical and regulatory uncertainty.
Tax negotiations with the Senegalese government are still ongoing, and any project delays could push back the 2028 production target.
That said, Thor already operates successfully in Nigeria, has secured its environmental approvals in Senegal, and has been working with its engineering, procurement, and construction partner for over 18 months on detailed project costings.
Thor Explorations is not a household name. But it’s a genuinely profitable gold miner, paying real dividends, with a fortress balance sheet and a credible growth plan fully funded without shareholder dilution.
For retirees seeking a gold stock that pays them to wait while a major new mine gets built, Thor deserves a place on the watchlist.
