- K92 Mining released its preliminary Q2 results last week, reporting quarterly production of ~25,000 GEOs, a 7% decline from the year-ago period.
- The lower production was driven by lower grades and lower recovery rates, with elevated COVID-19 levels among staff and the temporary suspension of air travel for expatriate workers affecting operations.
- While meeting FY2021 guidance midpoint won't be easy, H2 should be much better, and the big picture for Kainantu remains promising, with the operation nowhere near reaching its full potential.
- However, at more than 1.0x NPV (5%) at a share price of US$6.85, I don't see enough of a margin of safety to justify new purchases from an investment standpoint.
For further details see:
K92 Mining: A Better H2 Ahead