Monday, September 15, 2025

K92 Mining: Canaccord Reiterates $12 Price Target Following Bought Deal

K92 Mining Inc. (TSX: KNT) announced a $50 million bought deal this past week, selling 5,405,000 common shares at a price of $9.25 per share. The deal has an over-allotment option for underwriters to purchase an additional 810,825 shares for an additional $7.5 million. K92 said that they intend to use the proceeds for the “continued expansion of the Kainantu Gold Mine, exploration near-mine and regionally,” as well as for general working capital purposes.

K93 currently has 9 analysts covering the stock with an average 12-month price target of C$12.28, or an upside of roughly 40%. Out of the 9 analysts covering the stock, 4 of them have strong buy ratings while the other 5 have buy ratings. The street high sits at C$14 from 2 analysts and represents an upside of 60%.

In Canaccord’s note on the news release, they reiterate their speculative buy rating and C$12 12-month price target, saying that the bought deal helps de-risk the company’s planned expansion. The company is expected to commission its Stage 2A mill which would bring its throughput from 400ktpa to 500ktpa. This expansion is expected to cost roughly US$2.5 million and is expected to start commissioning later this year.

Canaccord is currently modeling that K92 will need initial capital of US$225 million and total capital of US$363 million from 2023 to 2024 to support their build-outs. This is above the company’s own estimates within its PEA of US$125 million of growth capital and US$240 million of total capital.

The company is also contemplating a US$100 million corporate facility, “that should provide additional flexibility and allow the company to continue its aggressive exploration program during the “Stage 3″ build.”

Canaccord now believes that the company has a “sizeable cash cushion” for all its upcoming expansions. More specifically, they believe that this will also allow the company to continue its exploration program even if gold drops to $1,500 an ounce. Though they do note that this cash comes with dilution, saying that this sort of funding “highlights the potential issue created by the current inflationary environment.”

Below you can see Canaccord’s updated estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Jushi: Canaccord Reiterates Price Target Following Financials Finally Being Released

Earlier this week, Jushi Holdings Inc. (CSE: JUSH) finally reported their first quarter 2021 and...

Saturday, June 12, 2021, 04:19:00 PM

K92 Mining Preliminary Economic Assessment Values Kora Stage 3 Expansion At NPV of US$1.5 Billion

K92 Mining (TSXV: KNT) this evening released the results of a preliminary economic assessment (PEA)...

Monday, July 27, 2020, 05:01:50 PM

Air Canada: BMO Remains Bullish With $30 Price Target

During the 2022 Industrial Tour de Montreal, BMO Capital Markets sat down with Air Canada...

Monday, November 21, 2022, 12:49:24 PM

Canopy Growth Sees Canaccord Cut Price Target To Just $4.50 After Terrible Q4 Results

On May 27, Canopy Growth (TSX: WEED) reported its fiscal fourth-quarter financial results for the...

Sunday, June 5, 2022, 11:18:00 AM

BMO Lowers Take-Two Interactive’s Price Target By $75 Following Continuous Delays

Last week Take-Two Interactive (NASDAQ: TTWO) announced that they reiterated their 2022 guidance and outlook....

Wednesday, September 29, 2021, 03:48:00 PM