By: AInvest

Let me tell ya, when a mining company with African gold projects starts dishing out dividends, it’s a headline worth unpacking. thor Explorations’ recent dividend update isn’t just about cash in hand—it’s a tale of currency chaos, administrative hiccups, and the ever-present risk of geopolitical headwinds. Here’s why investors need to pay attention.

First, the basics: Thor announced its maiden dividend payment for 2025, set to hit accounts on May 16. But here’s the twist—shareholders lost their ability to choose their payout currency. Originally, investors could elect CAD, GBP, or USD, but last-minute administrative snafus forced the company to auto-assign currencies based on registration details. Depository holders in London get GBP via CREST, Canadian nominees get CAD by cheque, and others? Well, they’re at the mercy of the company’s direct deposit or cheque system.

Ask Aime: Should I invest in Thor Explorations given the currency confusion? This isn’t just a logistical stumble—it’s a red flag. Currency flexibility is a lifeline for global investors, especially in a company with operations spanning Nigeria, Senegal, and Burkina Faso. Without that option, shareholders are now hostages to exchange rates set by Thor on May 15. Let’s not mince words: that’s a risk. If the pound or dollar weakens against your home currency between now and then, your dividend could take a haircut.

But here’s the flip side: Thor is a pure-play gold explorer. Its Segilola Gold Project in Nigeria and Douta Gold Project in Senegal are the crown jewels. With gold prices hovering near $2,000/oz and inflationary pressures keeping the metal in demand, this dividend could be the first of many. The company’s 100% control over Segilola and 70% stake in Douta give it leverage in a sector where resource nationalism is on the rise.

Take a look at the chart above. Thor’s shares have been on a rollercoaster—up 25% in Q1 2024, then dropping 15% by early 2025 amid macroeconomic uncertainty. The dividend announcement, while imperfect, could stabilize investor sentiment. A dividend yield of around 2.5% (assuming a CAD 0.10/share payout and current share price of $4.00) isn’t flashy, but it’s a sign of confidence in cash flow. For income investors, that’s a kicker.

But let’s not ignore the administrative fiasco. The company first announced the dividend with a May 14 currency election deadline, then yanked it just days later. That’s not just bad planning—it’s a governance misstep that could spook institutional investors. If Canaccord Genuity, their nominated adviser, couldn’t coordinate a simple currency election, what does that say about their operational rigor in West Africa?

Now, the bottom line: Thor’s dividend is a mixed bag. On one hand, it’s a rare payout in a sector where exploration firms often reinvest everything. Gold investors chasing yield could find this appealing. On the other, the currency fiasco and lack of transparency on dividend size (the press release never states the amount!) leave room for skepticism.

Conclusion: Thor Explorations is a speculative play, but the dividend adds a layer of stability. If you’re a contrarian investor willing to stomach currency risk and governance quirks, this could be a gold mine. Here’s why:

1. Geopolitical Tailwind: With Western companies scrambling to secure African resources, Thor’s existing projects give it a leg up.
2. Valuation: At a market cap of roughly $200 million and a price-to-cash-flow ratio of 12x (assuming $16 million in annual free cash flow post-dividend), it’s cheaper than peers like Semafo or Avion Gold.
3. Dividend Catalyst: The payout could attract income-focused funds, boosting liquidity and share price.

But here’s the catch: If the Nigerian or Senegalese governments impose new mining taxes, or if gold prices tumble, this dividend could be a one-hit wonder. For now, though, it’s a “buy with a limit order”—jump in, but set a stop-loss. After all, in the stock market, even gold isn’t foolproof.