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Thor Mining says the sector is in a ‘boom phase’ and investment high

By Jenny McCall

08:23, 2 July 2021

Mining

Mining is one of the few industries that emerged from the COVID-19 pandemic economic crisis unscathed, according to research conducted by PricewaterhouseCoopers (PwC).

Thor Mining PLC, the exploration and development business, is no exception to this. In fact, the organisation, which has a growing tungsten resource, as well as copper development and gold, nickel, uranium and vanadium exploration projects, has described the investment into the sector as ‘booming’.

Capital.com caught up with the company’s chairman, Mick Billing, and managing director, Nicole Galloway Warland, to talk about the changes and investment they have seen take place in the sector.

“The biggest trend we are seeing is construction, there’s been a big economic stimulus post-COVID and we are seeing the mining sector going into a boom phase,” Nicole said.

“The price of commodities is being reflected as a result of that. This means development costs of some projects will go up because the workforce and engineering companies will be more expensive and some components will take longer to come because of demand,” Mick added.

Positive changes

Thor Mining has also experienced positive changes to shareholder interest.

“One thing that has been interesting is shareholders; with people in lockdown there’s been a lot of investing in different commodities and companies, so we’ve certainly seen a lot of change in our shareholders,” Nicole said.

Access to capital markets has been a highlight for Thor Mining, as well as low interest rates. But the company knows this may change.

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“There is starting to emerge a concern that this won’t last forever, but right now, money is cheap and there is a reasonable amount around. Whether that stays, time will tell,” Mick explained.

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Market expansion 

Thor Mining, whose headquarters are in the UK, operates in two key markets – the US and Australia. The company has recently been awarded $152,000 for its Molyhil tungsten-molybdenum project in the Northern Territory, Australia. Thor also confirmed that it has had promising gold results at its Ragged Range project in Eastern Pilbara, Australia. Its uranium and vanadium exploration assets in Colorado and Utah have also been pivotal for the business. However, the opportunities for growth don’t just end there.

“I personally believe we will embark on one of those golden periods. We all remember when China started to take on many commodities of all sorts and that created a mining boom, spike in prices – that didn’t last forever. But South America is growing, as is India,” Mick said.

There is a market that Thor sees as a 'one to watch' and that's Africa. Research conducted by the consulting firm Deloitte said Africa’s share of global mineral exploration and development has climbed steadily over the last two decades and exceeded 13% in 2010.

“Africa is growing and there are a lot of people in Africa who have more discretionary spending capacity than they had five or 10 years ago. Those people will want access to roads and various infrastructure. But it may not happen in the way that China made it happen,” Mick said.

Sustainable mining

Thor is also working on a sustainable project in South Australia, on the north peninsula, with an objective to access large and low-grade copper oxide resources, using in situ recovery, which is seen as a more sustainable way to extract minerals from the ground. The company also embarked on its maiden diamond drilling programme last month.

Read more: Rio Tinto halts South African mining and smelting operations

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Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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