Thor Explorations Limited (LON:THX) was the topic of conversation when DirectorsTalk interviewed Gervais Williams, Co-Fund Manager of The Diverse Income Trust plc (LON:DIVI) on what’s driven the Trust’s strong performance and the outlook for a number of its portfolio holdings.
DirectorsTalk asked: Thor Explorations has made solid progress with their Segilola gold mine in Nigeria. What do you see as the key drivers of the company’s growth and expansion over the coming years?
Gervais noted: The Nigerian asset looks pretty exciting; the core operation actually operates out of Côte d’Ivoire. What’s been interesting about this is it’s a gold mining company, and the valuation was just so bizarrely low in the last year or two. It’s beginning to come up. The company is generating huge amounts of cash, it’s grown its profits enormously and the share price has moved beautifully as well.
With gold prices continuing to go up almost daily at the moment, these kinds of companies, which were very small, become more significant as they attract a wider range of investors. The valuation, which as I say was really embarrassing, to be honest, a couple of years ago, has now come up. It’s still not expensive but it’s lovely to see these kinds of companies.
Yes, there’s risk, it’s operating in Côte d’Ivoire, it’s operating in Nigeria, but what a great job they’ve done, I’m so impressed by the management team of this company.
