Gold leverage, almost through $1700... options? Given the near $1700 gold price, I wonder if K92 will look to acquire some development or even some production assets to increase leverage to this emerging bull market in gold. Lots of headwinds for the gold price, and with companies near 800mm market capitalization... I wonder if they look to increase leverage via M&A. There are many assets in production, and also in development, the company could easily take out...
One, in particular, is something like Superior Gold (TSX-V: SGI) has a 70 million market capitalization located in Australia and is set to produce 90,000 ounces in 2020 with an AISC of $1,175. Showcasing significant free cash flow in this gold environment at an insanely cheap valuation.
It will be interesting to watch to see if they pull the trigger on something soon to make it a multi-asset gold global gold producer!
Go K92!