Hi there,
Sorry about the delay in answering. K92 is a junior gold mining producer with a single producing mine - the Kainantu flagship property located in a highly quality mine jurisdiction in Papua New Guinea. Given this, there is an added geopolitical risk.
The company is seeing strong production growth. In 2019, it exceeded guidance and produced 82,000 ounces, up from 47,000 in 2018. It expects to reach 120,000 ounces once Stage 2 expansion is complete. It is unclear as to when Stage 2 will be fully commissioned as it pulled guidance due to COVID-19. It has completed CAPEX requirements, so it is likely to be this year.
It is also a low cost mine with AISC of $680/oz - at today's gold prices, it is generating considerable cash flow. AISCs are well below the industry average.
It also seems to have considerable discovery potential, which makes it attractive from a growth perspective.
Outside of geopolitical risks - this is a one-mine show. As such, any operational setbacks can significantly impact the company's financials.
Overall, it is nice little gold stock that is trading at decent valuations for those with a higher risk tolerance.
Mat