K92 Mining (KNT) AI Stock Analysis

• Market Cap: C$5.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.28
• Revenue Growth: 81.13%
• EPS Growth: 234.33%
• Country: CA
• Employees: 1,650
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.48
• Shares Outstanding: 243,373,110
• 10 Day Avg. Volume: 1,172,881
• 30 Day Avg. Volume: 1,298,065
• PEG Ratio: 0.05
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 4.06
• P/FCF Ratio: 56.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$25.21
• Price Target Upside: 11.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$24.00 ▲(6.15% Upside)

K92 Mining's overall score reflects its strong financial performance and positive technical indicators. The company's successful expansion and exploration efforts, coupled with reasonable valuation, contribute to a favorable outlook. Minor concerns include increased costs and legal proceedings, but these are outweighed by the company's robust growth trajectory and strategic initiatives.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong market demand and effective operational strategies, positioning K92 Mining for sustained expansion in the gold industry.

Operational Efficiency

Achieving record material mined indicates enhanced operational capabilities, supporting increased production and long-term scalability of mining operations.

Exploration Success

Successful exploration and resource expansion enhance future production potential, strengthening K92 Mining's competitive position in the gold market.

Negative Factors

Higher All-In Sustaining Costs

Increased sustaining costs may pressure margins, potentially impacting profitability until the benefits of expansion are fully realized.

Increased Costs of Sales

Rising costs of sales could erode profit margins, necessitating effective cost management to maintain financial performance.

Free Cash Flow Conversion

Limited free cash flow conversion may constrain investment flexibility, requiring strategic improvements to enhance cash flow efficiency.

K92 Mining Business Overview & Revenue Model

Company Description

K92 Mining Inc. engages in the mining, exploration, and development of mineral deposits in Papua New Guinea. The company produces gold, copper, and silver. Its principal property is the Kainantu property that covers an area of 862 square kilometers located in the Eastern Highlands province of Papua New Guinea. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

K92 Mining generates revenue primarily through the sale of gold and silver produced at its Kainantu Gold Mine. The company's revenue model is based on mining operations, where it extracts ore containing gold and silver, processes it to recover the precious metals, and then sells these metals on the global market. Key revenue streams include the sale of concentrate and dore bars, which contain gold and silver. Additionally, K92 Mining may benefit from any price appreciation in gold and silver, as well as potential partnerships with other mining companies or stakeholders that could enhance its operational efficiencies or expand its market reach. Factors contributing to its earnings include the mine's production capacity, operational costs, and fluctuating commodity prices.

K92 Mining Financial Statement Overview

Summary

K92 Mining exhibits strong financial health with robust revenue growth and high profitability margins. The balance sheet shows low leverage and high return on equity, while cash flow generation is solid, though there is room for improvement in free cash flow conversion.

Income Statement

K92 Mining has demonstrated strong revenue growth with an 11.15% increase in TTM, supported by impressive gross and net profit margins of 71.03% and 43.69%, respectively. The EBIT and EBITDA margins are also robust at 62.85% and 68.76%, indicating efficient operational management. The consistent growth trajectory and high profitability metrics highlight the company's strong financial performance in the gold industry.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.075, indicating minimal leverage risk. The return on equity is notably high at 41.55%, showcasing effective use of equity to generate profits. The equity ratio stands at 78.34%, suggesting a strong equity base relative to total assets. Overall, the balance sheet is stable, with a favorable risk profile.

Cash Flow

K92 Mining's cash flow statement reveals a healthy operating cash flow to net income ratio of 2.75, indicating strong cash generation relative to earnings. The free cash flow growth rate of 38.36% is impressive, although the free cash flow to net income ratio of 0.25 suggests room for improvement in converting earnings to free cash flow. The cash flow metrics reflect a solid cash management strategy, supporting future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	483.98M	350.62M	200.25M	188.19M	154.33M	159.13M
Gross Profit	343.79M	208.21M	88.87M	91.91M	71.03M	85.70M
EBITDA	332.77M	198.40M	86.45M	83.33M	62.18M	79.41M
Net Income	211.46M	111.22M	33.16M	35.52M	27.24M	42.03M
Balance Sheet
Total Assets	760.56M	628.27M	412.83M	370.71M	273.02M	215.51M
Cash, Cash Equivalents and Short-Term Investments	182.94M	141.29M	79.11M	109.94M	71.27M	51.49M
Total Debt	45.02M	39.53M	4.76M	10.10M	14.10M	7.44M
Total Liabilities	164.79M	153.53M	61.94M	61.41M	47.89M	34.00M
Stockholders Equity	595.77M	474.74M	350.89M	309.31M	225.14M	181.51M
Cash Flow
Free Cash Flow	62.74M	25.27M	-27.84M	1.40M	21.40M	34.91M
Operating Cash Flow	253.21M	185.09M	74.43M	73.13M	61.22M	64.82M
Investing Cash Flow	-168.86M	-174.47M	-108.67M	-71.73M	-39.81M	-29.91M
Financing Cash Flow	29.04M	60.65M	-3.50M	39.41M	-1.71M	-5.09M

K92 Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KNT, the sentiment is Positive. The current price of 22.61 is above the 20-day moving average (MA) of 21.00, above the 50-day MA of 19.65, and above the 200-day MA of 15.64, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 74.36 is Negative, neither overbought nor oversold. The STOCH value of 89.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KNT.

K92 Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	78 Outperform	C$5.50B	15.84	46.21%	―	81.13%	234.33%
TXG	74 Outperform	C$6.23B	13.50	17.29%	―	5.33%	143.67%
SSRM	69 Neutral	$6.19B	21.85	6.84%	―	33.74%	―
OLA	69 Neutral	C$6.40B	90.40	9.79%	―	151.45%	1224.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SEA	46 Neutral	C$4.20B	-73.56	-5.19%	―	―	-267.06%
NG	40 Underperform	C$5.50B	-37.42	-129.07%	―	―	-92.71%

K92 Mining Corporate Events

K92 Mining Achieves Milestone with Stage 3 Expansion Inauguration

K92 Mining Inc. has achieved a significant operational milestone with the first production and inauguration of its Stage 3 Expansion process plant at the Kainantu Gold Mine in Papua New Guinea. This development, witnessed by the Prime Minister and other key stakeholders, marks a pivotal step towards the company’s goal of becoming a mid-tier producer. The plant was delivered under budget, and its commissioning is on track, promising long-term benefits for employees, communities, and stakeholders.

K92 Mining to Release Q3 2025 Financial Results

K92 Mining Inc. announced it will release its third quarter financial results for 2025 on November 10, followed by a conference call and webcast to discuss the results. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and could impact its market positioning as it continues to expand its operations at the Kainantu Gold Mine.

K92 Mining Reports Robust Q3 Production and Advances Stage 3 Expansion

K92 Mining Inc. reported strong production results for Q3 2025, with 44,323 ounces of gold equivalent produced and significant progress in its Stage 3 Expansion at the Kainantu Gold Mine. The company remains on track to meet its annual production guidance and has completed the construction of the new Stage 3 Process Plant under budget, with commissioning well-advanced and first gold pour expected in early Q4 2025. The expansion is set to enhance the company’s operational capacity and solidify its market position.

K92 Mining Addresses Legal Claims and Misleading Article

K92 Mining Inc. has responded to legal claims made by South Pacific Metals Corp. and its subsidiary, Kainantu Resources Limited, regarding Exploration Licence 2558 in Papua New Guinea. K92 rejects the allegations and asserts that its activities have been compliant with local mining laws. The company has selected a site for its Tailings Storage Facility within its own exploration licenses, indicating no strategic interest in EL2558. The legal proceedings are not expected to impact K92’s operations or growth strategies. Additionally, K92 is addressing a potentially defamatory article that misrepresents its activities, with plans to pursue legal action to protect its reputation.

K92 Mining Reports Major Exploration Successes at Arakompa and Wera

K92 Mining Inc. has announced significant developments in its exploration activities, including a major expansion of the Arakompa deposit and the discovery of a new mineralized system at the Wera prospect. The latest drilling results have extended the Arakompa bulk tonnage zone, revealing strong near-surface bulk mining potential and enhancing the continuity of the mineralized zones. These findings are expected to bolster K92’s operations and strengthen its position in the mining industry, potentially leading to increased value for stakeholders.