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K92 Mining Inc. (KNT $16.21)
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Collective Mining Ltd. (CNL $19.27)
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Andean Precious Metals Corp. (APM $6.88)
Q: Hello friends,
I've recently read about these two companies in a report regarding insider activity. Both have impressive 52-week runs. My first opinion after a quick research is that APM looks pretty good, not so much CNL.
I would like a quick expert analysis on both, an opinion if their performance can continue and perhaps better alternatives, if your analysis does not result in a buy recommendation.
Many thanks!
I've recently read about these two companies in a report regarding insider activity. Both have impressive 52-week runs. My first opinion after a quick research is that APM looks pretty good, not so much CNL.
I would like a quick expert analysis on both, an opinion if their performance can continue and perhaps better alternatives, if your analysis does not result in a buy recommendation.
Many thanks!
5i Research Answer:
APM experienced solid momentum recently, as the company essentially doubled its revenue in FY2024, and is on track for another 30% in FY2025. The company is trading at 7.5x Forward P/E, and growth in FY2026 is expected to be around 12%. We like APM; however, we think this is a highly cyclical industry, and any slowdown in topline growth could materially affect the company’s share price.
On the other hand, despite strong momentum, CNL does not generate any revenue or cash flow yet; the company is still largely in the development stage and is still highly speculative. We would wait until there is more certainty regarding the company’s business model. Regarding other names in the mining industry, we also like KNT.