KNTNF - K92 Mining: Industry-Leading Growth At An Attractive Price

2024-01-22 10:55:07 ET

Summary

• K92 Mining Inc. has the potential to become a ~450,000 ounce per annum producer in H2-2026, tripling annualized production relative to its most recent quarter.
• The company reported record quarterly production in Q4, reaching ~39,100 GEOs, and achieved significant records in mine development, and ore mined, and its plant continues to shatter throughput records.
• With a track record of turning forward-looking statements into reality and "high potential areas" into new high-grade ounces & an attractive valuation, I see material upside from current levels.

While the S&P 500 (SP500) has built on its Q4 gains with a new all-time high set last week, the Gold Miners Index ( GDX ) has given up the bulk of them, down ~10% year-to-date in what's typically its best month of the year from a seasonality standpoint for the precious metals sector. This can be attributed to underwhelming guidance from some mid-tier producers, production misses among a couple of larger producers like Barrick Gold Corporation ( GOLD ), and pervasive negative sentiment that has led to many investors throwing in the towel on the sector as a whole.

Unfortunately, K92 Mining Inc. ( KNTNF ) didn't fare much better in FY2023, with production falling short of its initial guidance, but the company put together a monster Q4 with record quarterly production, saving face and delivering above its revised guidance midpoint after a tough year....

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