Thor Energy Plc (LSE:THR) has started detailed airborne magnetic and radiometric surveys over its US uranium and vanadium projects. Within six weeks, the results will be received. It will expedite the company’s exploration programs. Also, any significant anomalies will be ground-checked and prioritized for drill testing.
In addition to this progress, the recent announcement of RWE’s plans to incorporate recyclable rotor blades1 at the Thor offshore wind farm has further steadied the company’s foot in the energy industry.
While the company is speedily progressing its operations, let’s explore the prospects of the future of the company’s stock.
Key Points
- Thor Energy started a detailed airborne magnetic and radiometric survey over its US uranium and vanadium projects.
- RWE plans to incorporate recyclable rotor blades at the Thor offshore wind farm.
- Analysts are very optimistic about the share price forecast, with a 1,354% expected increase in the next 12 months.
What does Thor Energy do?
Thor Energy Plc is an exploration company focusing on uranium and energy metals. The company’s focus on metals that are crucial for a greener economy gives the company a huge benefit over its competitors. The energy company has several highly prospective projects, which include uranium, nickel, copper, lithium, and gold. This assortment of metals increases the appeal of the company’s stock.
The bull case for the Thor Energy share price
Despite being bearish lately, the Thor Energy share price has had brief periods of bullish trend in the past two years.
The share rose from 0.6750p in September 2021 to 1.0p within one month. During this brief period, the stock appreciated by 48%.
The next bullish period commenced in February 2022. The stock rose from 0.6250p to 0.875p in a month. During this period, the stock appreciated by 40%.
The stock then rose from 0.475p to 0.625p within one month, appreciating by 31.5%.
Thor Energy’s biggest strength and growth driver is its focus on a green economy. To fulfil its mission of a greener economy, the company has been focusing on its uranium and vanadium projects in both Utah and Colorado, in the US2.
The bear case for the Thor Energy share price
The overall trend of the Thor Energy share price has been bearish in these past two years. Despite having brief periods of price appreciation, the stock has maintained its bearish stance.
The Thor Energy share price started the year 2022 at 0.625p. From here, the stock continued its bullish trend and has been declining to date. During this one-and-a-half year, the stock has declined by a whopping 64%.
The energy company has to mitigate the risks of mining these metals. Uranium mining and processing can have environmental and health consequences. Therefore, it is important to ensure that the mining and processing of these elements are done safely and responsibly to minimize the risks and threats associated with them.
Thor Energy Share price prediction
In line with the ongoing operational developments, analysts have been very optimistic about the Thor Energy share price forecast. According to analysts, the energy share price could appreciate by a whopping 1,354% during the next 12 months and go as high as 4p.
This is more than enough to grab investor attention. Especially those investors seeking growth stocks at a low price. But it’s always critical to remember that share price predictions are often wildly inaccurate. There are always assumptions embedded into every valuation. And this bullish price target appears to be based on the best-case scenario, which rarely ends up happening.
Should I buy Thor Energy shares today?
Thor Energy has excellent growth opportunities with potentially profitable projects in the future. Moreover, the confidence analysts are showing further builds my trust in the company’s stock. Although I will admit, the lofty price target does seem too good to be true.
Nevertheless, despite the numerous risks, I think the Thor Energy share price could have the potential to deliver explosive growth in the long run. And that’s why I’m considering adding a small but speculative position to my personal portfolio.
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Article sources
- Energy Live News. “Thor wind farm goes green with recyclable rotor blades“
- Pro-Active Investors. “Thor Energy aims to focus on the ‘green energy economy“
Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.
