Segun Lawson was born and raised in Nigeria, attended boarding school in the UK and graduated in geology from Imperial College London. Along the way, he wondered why there were no large-scale mining projects in Nigeria.
The country was once the world’s largest producer of tin and also had several gold companies listed in London. But that was before World War II, and in recent decades metal mining has dwindled to virtually nothing as oil and gas became the dominant local industries.
With his geology background, bolstered by a stint in the city and a master’s degree in business administration, Lawson became convinced that mining in Nigeria was an opportunity not to be missed.
Spending some time researching possible ideas, he landed on a project in Senegal near several major gold-producing mines, and in 2011 came across a Canadian entrepreneur with a Toronto-listed shell company.
Lawson took over the company and became CEO of at the age of 32 Thor explorationsa company with a Senegalese mining site and not much else.
Courage: Segun Lawson has overcome obstacles to make his Nigerian mine work
Thor has come a long way since then. Today it is listed in London, with a highly profitable gold mine in Nigeria and several exciting projects in the pipeline. The share price is 17.5p and should rise as the company expands and production increases.
The early years were tough. In 2014, Lawson almost gave up completely after financial markets closed their doors to fledgling mining companies and the Senegal site of Thor was forced into hibernation.
It was then that he discovered Segilola, an early-stage gold mine just 120 kilometers from the Nigerian capital, Lagos.
Segilola’s results were promising. There was a lot of gold on site and it was also of high quality. But a legal row had broken out between previous owners and the sales negotiations took a long time. When Lawson finally acquired the plan in 2016, he assumed that Thor’s fortunes were about to change and rapidly evolve from an exploration company to a commercial venture.
He calculated without the Nigeria factor. Investors were concerned about bribery, corruption, security and political interference.
Segilola was also the first commercial mining project in the country in decades and no one wanted to take the plunge and support it. However, Lawson persevered and eventually succeeded, supported initially by family and friends, then African financiers and a Hong Kong-based mining specialist, and finally some major British investors.
Construction began in early 2020, Thor was listed on the London Stock Exchange’s junior AIM market in June 2021, and gold production began just a few weeks later.
Last year, the group delivered 98,000 ounces of gold, total sales of $165 million (£130 million) and net profit of more than $25 million.
The first few months of 2023 were tricky, as Thor encountered an area of large boulders and lower quality ore. But the second half of the year is likely to be much smoother, with annual production expected to hit 95,000 ounces and sales expected to exceed $176 million, along with solid profits.
Production should pick up next year, with brokers predicting sales up nearly 20 percent to $210 million. Costs are also likely to fall in 2024, which is expected to significantly increase profits.
At the same time, Lawson is hard at work expanding the Segilola mine and exploring neighboring areas, where early signs suggest more gold can be unearthed.
The group also recently acquired a large lithium site in southwestern Nigeria, well connected to Lagos. Small-scale miners have been operating in the area for years, but Lawson plans to develop a substantial, high-value commercial mine, taking advantage of continued demand for the metal, which is a critical component of rechargeable batteries.
Now that Thor is profitable, the company is also making headway with its Senegalese mine, a site that over time could produce more than 100,000 ounces of gold per year.
Lawson spent around £1 million of his own money last month acquiring 6.6 million shares of Thor, bringing his stake to 4.45 per cent of the company.
His family owns another 15 percent, a sure sign of confidence in Thor’s future. Their combined interest also prompts Lawson to think carefully about dividends, so payouts should be on the card as soon as possible.
Thor also takes its wider responsibilities seriously, minimizing harmful emissions and strengthening local employment, from school leavers turned lab assistants to female truck drivers whose safety record far exceeds that of their male counterparts. counterparts.
Midas verdict: Nigeria fills many investors with doubt, but Lawson has developed a safe and profitable gold mine just hours from Lagos, staffed by locals and backed by the government. The outlook is good, as Thor is working on his main gold mine and expanding into new areas. And at a time of economic uncertainty and continued inflation, gold prices, currently over $1,900 an ounce, should remain firm. At 17.5 pence, Thor is a find for the adventurous investor.
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