- K92 Mining was one of the worst-performing gold stocks in Q3, sliding more than 35% vs. a 17% decline in the Gold Juniors Index.
- The selling pressure likely has to do with the fact that the company is tracking slightly behind its FY2021 guidance of ~125,000 GEOs after a challenging start to the year.
- However, after a 40% decline from its highs, K92 Mining is becoming more compelling from a valuation standpoint, trading at roughly 0.70x its ~$1.5 billion After-Tax NPV (5%) for Kainantu.
- So, if this weakness persists, I would view any pullbacks below US$4.20 as low-risk buying opportunities.
For further details see:
K92 Mining: Valuation Improving After The Drop