- K92 Mining released its Q2 results this week, reporting record throughput in the quarter, with the company set up for a stronger H2 as COVID-19 related headwinds have eased.
- Unfortunately, the softer results in Q2 led to a decline in revenue year-over-year, driven by fewer gold ounces sold in the period, offset by higher metals prices.
- While K92 Mining continues to be one of the sector's best growth stories, I don't see enough of a margin of safety here, with the stock near 1.0x NPV (5%).
- In summary, while I think K92 Mining is one of the best buy-the-dip candidates in the sector, I'm not in a rush to invest at US$6.25, with the reward only moderately outweighing the risk short term.
For further details see:
K92 Mining: Margins Dip In Q2 Due To COVID-19 Headwinds