Conservative M&A may be on the wane with the Kinross takeout of Great Bear, potentially on a scarcity of large assets mindset, observes Ralph Aldis, portfolio manager, at U.S. Global Investors.
Our top pick for more conservative investors in 2022 is K92 Mining Inc. (Toronto: KNT). There are only a handful of Tier 1 assets that could produce more than 300k ounces per year for more than 10 years that are still in the hands of single asset companies.
Michael Gray, Agentis Capital, picked up coverage in November and expects explosive resource growth through the drill bit for the resource base, with the company poised for +10 years of production growth — with an unparalleled six-year 24% production growth to 2027.
A strong relationship with the Papua New Guinea government is in place with K92 becoming a taxpayer after only two years upon declaring commercial production.
The company’s relationship with the local indigenous people in the Kaintanu region has been excellent as John Lewins, CEO, brought in an anthropologist to develop a deep understanding of the Kainantu region, clan structure and community values, so cultural awareness is a key value of the company.
K92’s management team, led by John Lewins, is one that you can trust to do the right work and he is one of the few CEOs that spends considerable time on site every month and has a significant amount of personal stock ownership in the company.
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