Topic: How To Invest

Q: Can I get TSI’s take on K92 Mining as a stock to consider adding to my holdings? Thanks.

Article Excerpt

A: K92 Mining Inc., $7.67, symbol KNT on Toronto (Shares outstanding: 236.7 million; Market cap: $1.8 billion; www.k92mining.com), produces gold, copper and silver at its Kainantu gold mine in the Eastern Highlands province of Papua New Guinea. The company is also engaged in the exploration and development of mineral deposits in the immediate vicinity of the mine. K92 acquired the Kainantu Gold Mine from Barrick Gold Corp. in 2014, five years after Barrick closed the mine due to high costs. K92 restarted the mine in 2016, turning it into a rapidly growing producer. Over the past five years, production has grown 20% annually. K92 reported revenue of $101.7 U.S. million in 2019. Revenue then soared in 2020, up 56.5% on higher gold production, which increased 19.1% to 95,109 ounces from 79,838 ounces. In 2021, however, revenue reversed course, falling 3.0% to $154.3 million, as gold production declined 0.1%, to 95,055 ounces. That fall was due to equipment breakdowns and other problems. Revenue…