K92 Mining Inc. T.KNT

NEWS

[Ahkenahmed2]

 

Globe says K92 Mining seen as a "very cheap" small cap

 

2018-03-27 07:59 ET - In the News

 

The Globe and Mail reports in its Tuesday edition that Clarus analyst Nana Sangmuah says K92 Mining (64 cents) is a "very cheap" small cap with "massive" exploration upside. The Globe's David Leeder writes that Mr. Sangmuah rates K92 "speculative buy," with a $1.60 share target "based on very conservative assumptions, [representing] a 155-per-cent potential return from current levels." Mr. Sangmuah says in a note: "The Kainantu project in Papua New Guinea has achieved commercial production, which in our view, is a significant de-risking milestone for KNT as it transitions from burning cash toward cash generation from operations. This should allow KNT to self-fund growth and further exploration on a highly prospective land package. The Kora asset has the potential to be a highly profitable mine with our estimated fully ramped-up production rate of 110,000 ounces per year at a low AISC [all-in sustain cost] of less-than $700 (U.S.) per ounce by 2020, generating an annual FCF [free cash flow] of $55-million (U.S.). Kora remains open to the south along strike and vertically, both up-dip and down-dip. In our opinion, continued exploration success could more than double the existing resource of 1.65 million ounces AuEq."

© 2018 Canjex Publishing Ltd. All rights reserved.