- K92 Mining released its preliminary Q1 results last week and reported a sharp decrease in production sequentially in a quarter affected by multiple short-term issues.
- Fortunately, all of the issues should be mitigated by the end of May, and K92 Mining has stuck to its ~125,000-ounce production guidance despite the tough start to the year.
- However, while K92 Mining has arguably the best organic growth profile in the sector when factoring its Stage III Expansion potential, the stock continues to look fairly valued.
- Therefore, while a rising gold price could lift all boats, I don't see any way to justify paying more than US$6.60 for the stock.
For further details see:
K92 Mining: A Tough Start To FY2021