Las tweek, Haywood Capital Markets put out a quarterly preview and upcoming catalysts for K92 Mining (TSX: KNT). Their analyst says “we view KNT to be poised for further share price strength as the company shifts into a stronger operations period.”
Haywood reiterated their C$11.00 price target and buy rating. They add that K92 “offers Tier-1 asset exposure,” and “should garner further interest from investors given its re-rating potential supported by a growing production base.”
K92 Mining has 12 analysts covering the company with a weighted average 12-month price target of C$11.29, or a 25% upside. Out of the 12 analysts, four have strong buy ratings and the other eight have buy ratings. Stifel-GMP has the street high at C$13.00, while Scotiabank has the lowest at C$8.75.
Haywood believes the second quarter operations data to come in strong with their estimate being 30.7K ounce gold equivalent (AuEq) at a TCC of U$495/oz AuEq and AISC of U$906/oz AuEq, which will be “materially stronger than Q1.” This is a function of the company mitigating any impacts to the business around deferring production of the higher grade intercepts. They now expect a “more normal level of stoping operations complemented by higher anticipated plant treatment rates.”
Haywood says that they remain focused on the longer-term value held within the company as well as expected drilling. They say, “We expect exploration-related news flows to emerge shortly,” and they believe that the Kora, Karempe, and Blue Lake veins will help with the news flow.
Haywood calls the Stage 3 DFS a key milestone, which additionally could outline a larger 1.5Mtpa scenario versus their PEA outlining a ~1 Mpta nameplate rate.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
