Krr may have reported recently? What is your take on their progress? It seems that share count has gone up and margins worsened over the period. Revenue seems to be growing but earnings seem to be getting worse. Or is the company's more positive spin a better reflection of KRR's prospects? What are their all in costs of production. Is this improving? Is the management inexperienced? Hold or Sell?
TIA
KRR has missed most of its earnings estimates over the past several quarters, although the markets reaction to its report has not been that bad. KRR reported EPS of $0.076, missing estimates of $0.086 and revenues of $108.609M matched estimates. Profit margins have been declining over the past few years, although 2023 has shown improvement against 2022. The company is profitable and mostly generates positive free cash flow, however, it is a net issuer of shares. It generated positive free cash flow in the quarter, and its AISC averaged U$1,160, in line with full-year guidance of U$1,100 to U$1,250. This decreased slightly from U$1,190 in Q2 of 2022 and U$1,213 in the previous quarter.
Management is fairly experienced, with the CEO previously acting as the CEO of Klondex Mines from 2012 to 2018, and the CFO having mining sector experience for over 20 years at TSX and ASX listed companies.
We like KRR as a small, high-risk, and cheap play on the gold mining industry.