Getting To Know Bryan Slusarchuk of K92 Mining

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Today, we continue our 2016 project of shining some light upon some names in the mining sector with which you may not be familiar. Listen to this podcast and get to know Bryan Slusarchuk of K92 Mining. I think you'll find that K92 is a fascinating and compelling story.

I want to thank Dan Ameduri for bringing this to my attention. It was a pleasure to speak with Bryan and I will be buying my first 1,000 K92 shares on Monday, once everyone else at TFMR has had a chance to digest this information. Of course, that's not a recommendation or a suggestion for anyone else to buy. As always, I'm simply attempting to be completely up-front with what my positions are.

Over the course of this discussion, Bryan addresses:

  • His background and the experience and expertise of others on the K92 team
  • How K92 came about and the viability of its primary assets
  • The intention of K92 to start actual gold production later this summer
  • But also his personal feelings toward endless QE, NIRP and all the rest. Like Keith Neumeyer, here's an actual head of a mining company that "gets it". The guy fits right in with the rest of us in Turdville.

So, over the weekend, please carve out some time to give this a listen. I think you'll find the story to be quite interesting and I'm grateful to Bryan for taking the time to tell it.



Marchas45's picture

4th?????????? NOPE

FIRST  Keep Stacking

Buzzedbud's picture



Dirt_Reynolds's picture



Royal Flush's picture


4th - what kind of ducks?

Marchas45's picture

4th - what kind of ducks?

Mallards and Wood Ducks

Royal Flush's picture


I use to raise call ducks and white pekin. Wood ducks are really pretty.

Dirt_Reynolds's picture

Turd on SOT

Part 1:

Part 2:

gazzmann's picture

Flight to Safety

RickshawETF's picture


Another Top Ten!  Wasn't expecting a Saturday missive . . .

Marchas -- Planning to add to the stack on Monday, after the usual Sunday night beatdown . . .

Blackshook's picture


Sounds interesting but I wish he had quoted actual Gold grades... Not gold equivalent. Would be much clearer and transparent. Does anyone know the answer ?

infometron's picture

@Blackshook Re: Grades

According to Don Durrett's excellent website:

"Kainantu mine has about 1.5 million oz at 7 gpt"

AlienEyes's picture


Excellent vid !  yes

Mucho h/t's.

Blackshook's picture


Many thanks infometron. 

Dr Jerome's picture


I have noticed that many of these mining CEOs are fairly young--certainly not old farts like me (56) but usually in their 40s or younger. There is something refreshing in that.

Captain Caveman's picture



Captain Caveman's picture



AlienEyes's picture


I'd like to have two of them.

One to poop on and one to cover it up with.

RickshawETF's picture


I believe the Earl of Sandwich already came up with that . . .

Dingo's picture

Yes Prime Minister explains Brexit 30 years ago

mgilbert's picture

K92 Ian Stalker

I plan on getting some next week too.  Thanks Turd!

mgilbert's picture

K92 - Interview a few months ago - good stuff

Future Money Trend Interview - good stuff. 

Newager23's picture

Risk/Reward Looks Good

From the database:

K92 Mining is a near-term producer in Papua New Guinea. They purchased a past producing mine (2006 to 2009) from Barrick Gold for $2 million plus $60 million in future payments. The Kainantu mine has about 1.5 million oz (7 gpt) with extensive exploration potential (and additional 1.3 million oz of historical resources). Investors have bid up the FD market cap to $109 million. Once they reach 1 million oz of reserves or M&I resources, they have to pay Barrick $20 million. Then they have to pay another $40 million (expect dilution) as resources increase in size ($5 million increments for every 250,000 oz).

They plan to be back in production in August 2016. The CEO said he expects their cash costs to be in the lowest quartile of the industry. That should be under $700 per oz. They have raised about $20 million to resume production. About half is debt, about 1/3 is a gold loan for 20,000 oz (paid over the first 36 months of the mine life), and the rest in equity financing.

They have used a lot of creative financing to purchase the mine and get it into production. They have a strong board and will likely be successful. The key is going to be exploration and production growth, as well as higher gold prices. They should have enough cash flow to grow the company.

The best time to buy mid-tier producers is before they reach $150 million market cap. Then you hold them and hope they grow into billion dollar companies. It's usually not the first mine where you make your large returns, but the second. These companies generally find a second mine with their cash flow.

This stock is not as cheap as I would prefer, and is not quite valued as a 5 bagger at higher gold prices. However, it is a large property (100,000 acres) with a lot of exploration potential. They have a solid team and with just a little bit of luck they will be able to grow. The risk/reward looks very good. 

Grey Mare's picture

K92 analysis

Thanks Newager.  Nice analysis.  A couple of cautionary notes and questions:

I have found no clear roadmap from here (apparently nice resource) to an economic mining project.  Red flag:  Barrick purchased the property in Dec 2007 and got mining underway in 1st half of 2008.  They only operated the mine for 6 months before putting under care and maintenance for 6+ years until its sale to current owners.  Why?  It was decommissioned long before Barrick's need to get rid of non-core assets due to debt.  During that time, Barrick did invest 100 million in the property, but they also paid a consultant to 'evaluate' the mining of the property.  Why does an experienced miner such as Barrick need a consultant to figure out how to mine economically? Why were none of the recommendations implemented?  I did not find a record of a feasibility study ever conducted on the property. True, present owners refer to it as a resource not 'reserves' as is appropriate in the absence a FS, but I found it curious that Ian Stalker suggested (video on website) that they intended to mine it as a low-cost operation (i.e. economic at $600 gold price).  Just what do they intend to do what Barrick apparently could not?   I recall Collusus minerals...  No feasibility study...

How would you stack this up against something like Red Eagle, at about same the same market cap and lower share price?  RD has a projected AISC of around $700, IRR of 53% at $1,300 gold at a 5% discount rate, yada, yada...  (you probably know better than I).



Turd Ferguson's picture

Thanks to everyone for their


Thanks to everyone for their contributions and due diligence on K92. All a part of what makes Turdville special.

Newager23's picture

K2 Analysis - Grey Mare

Grey Mare,

You make a lot of very good points. Economics is not guaranteed and they might not hit their $620 cash cost target. However, they have significant wiggle room to generate cash flow. If we can avoid sub $1200 gold, they should be fine. I don't expect their cash costs to miss badly.

This is a much different story from Colossus Minerals. Here we have both a resource and expected cash costs. For Colossus we had neither. I avoided Colossus for these reasons.

My concern with this stock is exploration success. Currently they don't have a lot of M&I (measured and indicated) resources. This to me is the biggest red flag. And your concerns about why Barrick would walk away pertain to this issue. Will exploration be limited? It's possible, but I hope not. Their additional historical resources point to a long life mine and more gold to be found. And I like that it is a large property near existing gold mines. I think they will find more gold.

As for the Red Eagle Mining comparison, I was an early investor in Red Eagle and love the stock. It's a good comparison. Red Eagle is bit pricier (it only pencils as 3 bagger), with a bit higher market cap, and I think it has better management, based on their execution to date. I like Red Eagle because I am more comfortable with their growth strategy and management team. However, it's difficult to predict which stock will outperform over the next 5 years. I would expect Red Eagle, but would not be surprised if K92 matches them - if they have success with exploration.

Danforth Coxwell's picture

Gold has had….

a nice "POP" out of the gates. Now $1327/oz. USD/JPY now 102.03.

This will be a most interesting evening and night!

Captain Scott's picture

Heads up everyone - our

Heads up everyone - our wonderful chancellor (the one without any actual economics qualifications) will be making a pre-market "emergency speech". Watch out for some truly epic jawboning and possible efforts by the banks to cover around 7am London time

crylandjr's picture

Political risk?

My inlaws went diving in PnG, they said that while touring the place the bus employed guards with full auto ARs if I remember right. They commented on the lack of property rights in the culture, basically theft was rampant. Don't know if that translates to political risk, and don't want to slander. All second hand and I know how middle-class doctors and lawyers on dive trips like to exaggerate the depravity of the natives... 

Edit: that being said the guy does sound true blue, like Turd said he gets "it".

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