K92 Mining Inc (KNTNF)

[ThSeeker]

Older but still applicable comment and review of K92 from
https://seekingalpha.com/article/3992703-beginning-gold-bull-run-gold-miners-buy

...My model forecasts, based on 2017 production of 50,000 ounces of gold (at a cost price of USD750/ounce and a PE of 15), a stock price of CAD2.61, or 38% upside. If the company is able to increase production to 100,000 ounces pa by 2018 or 2019, the stock price can reach CAD5.21, or 176% upside.

Conclusion:

Investors should consider owning some form of gold in their portfolios even if just to diversify and hedge against global money printing. After a severe four-year bear market for gold and even more severe for gold stocks, those that survived are now experiencing improved conditions with a strong USD gold spot price that could well get stronger going forward.

I would typically advise around 5% or maybe 10% of the total portfolio in gold-related instruments. I keep this relatively small to protect against the possibility that gold price falls, and the fact that gold pays no income. As a small percentage of your portfolio, that should not concern you. I see it as an insurance against the perils facing the global economy and the global financial system.

On the positive side, should the gold bull run of 2016 continue for the next five years (as the gold chart would suggest to me), gold investors can look forward to some very nice returns. More conservative investors should stick to the gold ETFs whilst more risk-tolerant investors should look to buy a mixture of top-quality gold miners, and a few speculative gold miners.

My message to investors is that I believe now would be a good time to enter into the gold market, especially given the current government money printing (not yet US again) and the fragile global economy. Granted six months ago, it would have been better, but that is speaking in hindsight.

I am not an employed analyst and investors should do their own due diligence.

As usual, all comments are welcome, and happy to hear if you have a great gold mining company to mention.

Disclosure: I am/we are long MUX, K92 MINING, INC. (TSXV:KNT).

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.

Matt Bohlsen
Investment advisor, portfolio strategy, growth at reasonable price

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.