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K92 Mining Inc. T.KNT

Alternate Symbol(s):  KNTNF

K92 Mining Inc owns and operates the high-grade Kainantu Gold Mine in Papua New Guinea which is currently operating at a design annualized production rate of approximately 120,000 oz AuEq per annum and is expected to produce at a run-rate of +300,000 oz AuEq per annum following its Stage 3 Expansion.


TSX:KNT - Post by User

Bullboard Posts
Post by standfiron Feb 04, 2020 6:15am
149 Views
Post# 30638115

Another plus, re the stock options announcement - Timing

Another plus, re the stock options announcement - TimingTiming - usually these stock options as well as insider buy/sell announcements are done during a blackout period, between news issuances.  So after this, news will probably be coming again, especially with PDAC coming at the beginning of March.  KNT is getting to an $800 million market cap, so it becomes necessary to see a fairly increased size of mine to get to $1bn, $1.5bn and $2bn in market value.  Tookie Angus has shepherded a flock of billion-dollar companies, so I wouldn't be surprised to see another one made here.

Some expected news - although we don't know when each will be given out:

- Drill results - KNT has drilled a lot, and there is lots of good ground to drill in.  As a good friend  put it to me today, best place to find gold is at a gold mine.  The resources are open in a number of directions.

- Resource update - based on drilling and geological analysis.  We don't know by how much of an increase, but given the very active drilling and the excellent grades, I wouldn't be surprised by a 50% or better jump, perhaps even heading towards 100%, but who knows until then.  With so many drills turning, there will be further updates likely during the year.

- PEA and mine plan update.  The 2 million ton/year incline (1% incline up into bottom of mine) indicates that a much more substantial mine is planned than the 400,000 ton/year last written up for 2020.  Ounces, likely production, and years of production likely to increase.  With an eventual e.g. 600,000 ounces/year gold production, KNT would achieve roughly $450mm per year net cash, Tier 1 status, and certainly jump up to the "big board" on the stock exchange.  That would also mean many funds would have to, or feel the need to pick it up, as being representative of producers.

- Q4 2019 financials - following on the production report already issued.  KNT's most recent estimates were based on $1350 gold, and certainly they sold for higher prices than that in Q4 - perhaps an average of $1550.  KNT, with a cost of production AISC just over $700, is spewing cash.  No wonder analysts are giving big bumps to their earnings estimates.

- Analyst reports - critical mass is being achieved in analyst coverage, and more coverage begets more analysts and more coverage.

The new stock options of today - clearly unlikely that anybody in management would be interested now in options that exercise at $3.85, unless they saw a clear path to $4.85 and $6.85 stock prices.

Lots of spam on this board - but quality posts will push the spam away.
Bullboard Posts