K92 Mining: Scotiabank, PI Financial Raise Price Target Following Kora PEA

Yesterday evening K92 Mining (TSXV: KNT) released a positive preliminary economic assessment on their phase three expansion for the Kora Deposit, located in Papau New Guinea. The economic assessment shows an average annual expansion run-rate production of 318,000 ounces gold equivalent per annum at 1.0 million tonnes per annum or a 165% increase from stage two. Stage three is starting in late 2023 and has an all-in sustaining cost of US$362 per ounce net of credits and cash costs of US$202 per gold ounce.

With this news release, two analysts so far have upgraded their price targets.

  • ScotiaBank raises price target to C$7.75 from C$6.50.
  • PI Financial raises price target to C$8.25 from C$6.70.

In a note to their investors this morning, Canaccord Analyst Tom Gallo says, “We believe that the Phase 3 PEA could act as a catalyst as it demonstrates the robust nature of the production growth.” They previously modeled costs much higher than the numbers that the preliminary economic assessment provided, with a US$619 per ounce cash costs vs. the assessments cash costs of US$202 per ounce. Furthermore, Gallo’s all-in sustaining cost was US$843 per ounce, which is over double what the preliminary assessment estimated, with a figure of US$362 per ounce. Canaccord currently has a C$6.75 price target for K92 Mining, which represents a ~20% upside and reiterates its buy rating this morning.

In PI Financials note today to investors they ask the question “Kora Resource = Just the Beginning?” saying that there is additional upside in Kora as it remains open in-depth. Chris Thompson, PI’s metals analyst, says to expect steady news flow from expansion and infill drilling at Kora. PI Financial upgraded its 12-month price target from C$6.70 to C$8.25 and reiterating its buy rating on the stock.

Currently, there are ten analysts covering the stock. Four have a strong buy rating, and the other six have a buy rating on the stock. The current mean price target is C$7.10, which represents a ~26% upside, and the highest upside is from Varun Arora from Clarus Securities with a C$9.25 price target or 64% upside. The lowest comes from Nicolas Dion from Cormark Securities, he has a C$6.00 price target, representing ~6% upside.


Information for this briefing was found via Sedar, Refinitiv and K92 Mining. The author has no securities or affiliations related to these organizations. 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

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Restarting Madsen: West Red Lake’s 2025 Production Plan with Shane Williams

In this interview at the Precious Metals Summit 2024, Shane Williams, President & CEO of...

Thursday, September 12, 2024, 04:15:00 PM

SKRR Exploration Details 2020 Work Program At Saskatchewan Leland Property

This morning, SKRR Exploration Inc (TSXV: SKRR) announced that it will be conducting a 2020...

Monday, June 8, 2020, 02:18:00 PM

Trillium Gold Looks To Raise $4.0 Million In Brokered Financing

Trillium Gold Mines (TSXV: TGM) last night announced that the company is looking to raise...

Friday, June 4, 2021, 07:29:13 AM

Low Gold Prices Lead to Increased Demand for the Precious Metal in India

As gold prices suffered some of the largest weekly losses since the end of September,...

Monday, November 30, 2020, 11:16:41 AM

Lundin Mining Downgraded By Canaccord Due To Candelaria Mine Concerns

Lundin Mining Corporation (TSX: LUN) reported its second quarter financials on July 28. The company...

Friday, August 6, 2021, 11:54:00 AM