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Bullboard - Stock Discussion Forum K92 Mining Inc T.KNT

Alternate Symbol(s):  KNTNF

K92 Mining Inc. is a Canada-based company, which is engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine, including Blue Lake, in Papua New Guinea. The Company holds the mining rights to Mining Lease 150 (ML 150... see more

TSX:KNT - Post Discussion

K92 Mining Inc > KNT 2nd Q Results/Conference Call Comments
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Post by tuesdaynightrid on Aug 21, 2024 10:38am

KNT 2nd Q Results/Conference Call Comments

Been traveling so just now able to review 2nd q results:

1.) Resource update from early 2024 drill results-
     Maybe I missed it but there were no comments or questions on
     when to expect results update? By end 2024? Early 2025?
     This could be a very positive catalyst so why not ask the question.

2.) Realized KNT gold price from 2nd q at $2246-
     I've commented before on how much lower KNT was to others
     GOLD= $2344, AEM= $2342, NEM= $2347 in 2nd q so $100 gap.
     It was mentioned by someone previously on this board that this
     differential was due to some agreement a few years back.
     According to the loan agreement with Tafigura in June, KNT has
     stated that the ore concentrate will now be thru Trafigura with better
     realized prices... a minor additional catalyst if they can reduce gap.

3.) EPS at +0.03 for 2nd q-
     This was a positive since I expected the worse case as negative.
      KNT sold only19k AU oz at a record high AISC of $1510.
      * There AISC target is well under $1000 when stage 3 running.
      This resulted in net margin (net income/revenue) at 13%...
       I think much better than should have been expected.
      So, Lewins specifically stated KNT expects "70k plus" oz in the
       2nd half 2024... or 35k per quarter. If you assume:
        a.) AISC will be reduced due to inefficiencies of 2nd q downtime
        b.) Approx 20k more gold produced in 3rd q
        c.) Gold price in 3rd q to date trending higher compared to 2nd q
Therefore, if revs come in at $75M in 3rd vs. $48M in 2nd and KNT
achieves a net margin at 25% (assumes no more netative surprises)
then I can see 3rd q eps reaching $010/share (ttm= $0.22).
If p/e=40 then P= $9 for kntnf ( now at $5.62).

Hope that's all bone is correct I my haste.
Comment by ElJ on Aug 21, 2024 1:57pm
Tuesday...id,                         A few of comments on your clearly insightful post: Item 2    "Realized KNT gold price from 2nd q at $2246"   I refer you to  KNT's Interim Financial Statement June 30, 2924... see Note 19 "Dedivative Instruments" and in particular the open commodity ...more  
Comment by tuesdaynightrid on Aug 21, 2024 2:50pm
Fair enough, i have not looked at the open commodity contracts. Also, there is a difference between gold sold vs produced which I may have intertwined.... but, as you note, the produced vs sold gold inventory will even out over a few quarters. That said, I do believe that both the gold sold or produced will both exceed 35k oz in 3rd q.
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