LONDON (ShareCast) - (Sharecast News) - This year's huge rally in the share price of Thor Explorations has further to run, according to Canaccord Genuity, which hiked its target price for the West African focussed gold producer on Friday.
Despite a 300%+ surge in the shares over the year to date, from around the 17p level to Friday's 68.6p, the broker sees further upside, raising its target from 49p to 89p.

"Thor continues to deliver operationally. This has translated to significant free cash flow and capital returns for investors, propelling the share price +316% YTD, making THX one of the best-performing gold stocks in the world," Canaccord Genuity said in a research report.

"Beyond this, we see several compelling growth levers that investors should look towards for further value-creation."

The first growth lever is a possible extension of the life of the Segilola project, the broker said. The recent rally in gold prices - setting new records at around $4,270 an ounce on Friday - means that previously uneconomic volumes will now be "quite profitable", with the reserve was calculated at just $1,650/oz in 2021.

Then there's the prefeasibility study at the Douta project, expected by the end of 2025, which could be a "potential catalyst for the stock". Finally, the Guitry project continues to see impressive results, and the company could establish another attractive open-pit project in an attractive jurisdiction in the near term.

"We believe that there is a significant amount of value contained in the share price for 1) growth options (partially accounted for in our NAV formulation), and 2) the likelihood of mine life extensions."

Thor, rated 'buy' by Canaccord Genuity, was trading 5% lower at 65.1p on Friday morning.

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