K92 Mining (KNT) - Standout Mid-Tier High-Grade Gold Producer
Summary
- TSX: KNT.
- Shares Outstanding: 219.2M.
- Share price C$8.17 (05.01.2021).
- Market Cap: C$1.8Bn.
K92 Mining owns and operates the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea. The Kainantu Gold Mine is a high-grade, low-cost underground mine in a region known for Tier 1 deposits.
We caught up with John Lewins, CEO of K92 Mining to discuss how things have gone since we last spoke in October, a review of 2020 and what we should be looking for in 2021. Our last interview went into detail about the company business plan, strategy, the team’s success and relevant experience in the field.
Company Overview
K92 is a Gold-Copper producer, operating in Papua New Guinea with one of the highest-grade Gold mines in the world. It was the 4th highest-grade for mining in the last 12-months with over 5Moz. This year they will produce close to 100,000oz. They are also one of the lowest-cost producers in the world. K92 has been growing the business over the last 3-years since January 2018 when they declared commercial production and have increased their production every year: They are cash positive, have almost no debt and they’re looking at expansion which they would be funding from their own cash flow.
TSX Listing & Trebled Share Price
The move from TSX-V to TSX was a logical move to make for K92 Mining. They are already in the GDX and GDXJ, and the TSX opens up new institutional investment for the company. The growth in the share price equates directly to a growth in market cap which is due to the consistent high grades they are hitting at Kora.
Underground they currently have 5 diamond drill rigs primarily drilling at Kora but also now at Judd. The rigs are focused on 2 things in Kora; the first is to increase the measured and indicated resource, which is part of completing the Feasibility Study on the next phase of expansion and the second is on expanding the resource, primarily to the South but also at depth. When you look at Kora and their drilling continuity, they have almost 100% hits and they release the results from every single hole onto the market.
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