Impact of “Shorting” on volatility of K92 Mining share priceThe relatively close trend-tracking in the Share price of KNT and the Price of Gold recently, even sometimes appearing to track on an hourly basis, raised some "cause and effect" questions for me, given the current status of KNT operations:
- Year 2023 earnings $33.2 million ($0.14 per share) at current Price in the $7.40 region the P/E ratio = X 53
- Q1, 2024 earnings in the $0.04 to $0.06 (my estimate for the Financials to be released before market opens on May 13th) the P/E ratio = X 31
- Compare these P/E ratios to (example) major Gold producer such as Barrick , using past year earnings provides Barrick P/E ratio at X 23
- Many Investors in KNT are acutely aware of credible plans to increase production rate by approx. X 2.4 annualized by Q4, 2025 which provides longer-term significant anticipation and a less direct relationship with volatility in the current Price of Gold.
“Short Trading” can be used for various reasons, which is a topic not intended to be addressed here. Rather, I suggest that the impact of “Short Sale Trading” over the past month of April, may have generated a relatively direct link to the daily and even hourly changes in the price of Gold. The following Short Sale Trading Statistic Summary has been identified in the trading in KNT shares on the TSX:
Source: IIROC (Investment Industry Regulatory Organization of Canada)
Period 20240416 to 20240430
(April16th to April 30th) Company Short Sale % Total % Total Traded Short Traded % Total Traded
Trades Trades Volume Value Value
K92 Mining 25,941 43.354 37.214 $39,284,968 37.201
Period 20240401 to 20240415
(April 1st to April 15th) 27,513 38.122 34.847 $41,247,947 35.199
Recommendation: Consider taking advantage of short-term KNT share price dips impacted by “Short Trading” to make longer-term (18 month+ horizon ) investments,
Peace,
Good Decision-making to All,
ElJ