TSXV:KNT

Stock Analysis Report

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Executive Summary

K92 Mining Inc. engages in the exploration, development, and mining of mineral deposits in Papua New Guinea.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has K92 Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

KNT

0.06%

CA Metals and Mining

2.5%

CA Market


1 Year Return

181.0%

KNT

50.0%

CA Metals and Mining

-3.5%

CA Market

Return vs Industry: KNT exceeded the Canadian Metals and Mining industry which returned 49.7% over the past year.

Return vs Market: KNT exceeded the Canadian Market which returned -3.9% over the past year.


Shareholder returns

KNTIndustryMarket
7 Day12.0%0.06%2.5%
30 Day45.3%8.7%6.2%
90 Day90.5%25.2%11.7%
1 Year181.0%181.0%51.1%50.0%-0.1%-3.5%
3 Year979.4%979.4%62.7%59.5%12.3%1.6%
5 Yearn/a152.8%145.4%34.2%13.7%

Price Volatility Vs. Market

How volatile is K92 Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K92 Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KNT (CA$6.8) is trading below our estimate of fair value (CA$15.57)

Significantly Below Fair Value: KNT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KNT is poor value based on its PE Ratio (32.8x) compared to the CA Metals and Mining industry average (25x).

PE vs Market: KNT is poor value based on its PE Ratio (32.8x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: KNT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: KNT is overvalued based on its PB Ratio (8.2x) compared to the CA Metals and Mining industry average (2.9x).


Next Steps

Future Growth

How is K92 Mining forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNT's forecast earnings growth (23.8% per year) is above the savings rate (1.7%).

Earnings vs Market: KNT's earnings (23.8% per year) are forecast to grow slower than the Canadian market (26.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KNT's revenue (18.1% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: KNT's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNT's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has K92 Mining performed over the past 5 years?

64.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNT has a high level of non-cash earnings.

Growing Profit Margin: KNT's current net profit margins (30.6%) are lower than last year (59.4%).


Past Earnings Growth Analysis

Earnings Trend: KNT has become profitable over the past 5 years, growing earnings by 64.5% per year.

Accelerating Growth: KNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KNT had negative earnings growth (-21%) over the past year, making it difficult to compare to the Metals and Mining industry average (-15.9%).


Return on Equity

High ROE: KNT's Return on Equity (24.4%) is considered high.


Next Steps

Financial Health

How is K92 Mining's financial position?


Financial Position Analysis

Short Term Liabilities: KNT's short term assets ($53.1M) exceed its short term liabilities ($22.7M).

Long Term Liabilities: KNT's short term assets ($53.1M) exceed its long term liabilities ($6.1M).


Debt to Equity History and Analysis

Debt Level: KNT's debt to equity ratio (8.4%) is considered satisfactory.

Reducing Debt: KNT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: KNT's debt is well covered by operating cash flow (256%).

Interest Coverage: KNT's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet


Next Steps

Dividend

What is K92 Mining current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KNT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KNT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KNT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

John Lewins (62 yo)

3yrs

Tenure

US$606,518

Compensation

Mr. John Derek Lewins, B.Sc. (Mineral Eng), Grad Dip Management, has been the Chief Executive Officer of K92 Mining Inc. since August 2017 and served as its Chief Operating Officer since May 20, 2016 until ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD606.52K) is below average for companies of similar size in the Canadian market ($USD1.57M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Lewins
CEO & Director3yrsUS$606.52k0.50%
$ 7.3m
Justin Blanchet
Chief Financial Officer4.25yrsUS$205.68k0.012%
$ 170.0k
Warren Uyen
Senior Vice President of Operations1.17yrsUS$325.63kno data
Christopher Muller
Vice President of Exploration2.83yrsUS$210.60kno data
David Medilek
Vice President Business Development & Investor Relations.no datano datano data
Nancy Couvee
Corporate Secretary2.17yrsno datano data
Peter du Plessis
Executive Director of External Affairs4.08yrsno datano data

2.9yrs

Average Tenure

45yo

Average Age

Experienced Management: KNT's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Lewins
CEO & Director3yrsUS$606.52k0.50%
$ 7.3m
Robert Angus
Independent Chairman of the Board4.25yrsUS$60.25k0.63%
$ 9.2m
Cyndi Laval
Non-Independent Director0.75yrUS$3.42kno data
John Stalker
Non-Independent Director4.25yrsUS$60.95k0.34%
$ 5.0m
Anne Giardini
Director0.083yrno datano data
Graham Wheelock
Independent Director4.25yrsUS$22.50kno data
Mark Eaton
Independent Director4.25yrsUS$22.50k0.023%
$ 340.0k
Saurabh Handa
Independent Director4.25yrsUS$29.50k0.079%
$ 1.2m

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: KNT's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KNT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

K92 Mining Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K92 Mining Inc.
  • Ticker: KNT
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$1.460b
  • Shares outstanding: 214.65m
  • Website: https://www.k92mining.com

Location

  • K92 Mining Inc.
  • 1090 West Georgia Street
  • Suite 488
  • Vancouver
  • British Columbia
  • V6E 3V7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNTTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2016
92KDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2016
KNTN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2016

Biography

K92 Mining Inc. engages in the exploration, development, and mining of mineral deposits in Papua New Guinea. The company produces gold, copper, and silver concentrates. Its principal property is the Kainan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:58
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.