KSN Reasonable Valuation

Have been meaning to pull together a summary of reasonable valuation comparisons for KSN, as we are finally a successful producer.

Figured the easiest way to do this is to compare with gold producers (because MEK did the work for us), then to the other poly metallic producers, to see how we stack up. Fully appreciate here KSN is a single asset producer, in ramp-up. It has been an interesting comparison for me, goldies clearly with a much higher multiple EV/production than the copper focussed poly companies. IMO some value can be found in our neighboors

Valuation vs goldies (Thanks to MEK for doing the leg work - late 2024). No consideration in below for hedging etc, its just raw numbers. Obviously gold has appreciated and most all producers have (apart from KSN)
- Average EV/oz production $11,100/oz
- KSN ambition is 24koz AuEq production
- At A$100M market cap KSN is A$4,166/oz MC/oz production
- On the EV front (post sale - assume A$50M cash) would be A$2,083/oz multiple
- If you considered last Q production of 4koz annualised (16koz) on an EV front would be A$3,125/oz multiple
- Based on these rudimentary comparisons IF KSN were to achieve the average multiple it could 3-5X
- If you consider smaller players in below graphs, or the African (jurisdictional risk players) the EV/oz production multiple average reduces to around $6,000/oz - against this back drop, still 2-3X potential on an EV basis







Then thought I would take a look at the other poly metallic producers in the region. Not as pretty a picture.
AIS - Aeris. Just recapitalised through Sol Pats, maybe A$180M EV for 44kt CuEq (~95koz AuEq) - so very cheap also (worth a look....) - up tick in gold price could turn these guys around and provide the FCF to unconstrain their Cobar plant...
AMI - Aurelia. Just got crunched on the investor day outlook. EV A$410M for FY26 guidance of 76koz/pa AuEq (~30kt CuEq) - so this gives EV per production ounce of A$5,395/oz AuEq - again 1.8 - 2.5X higher ratio than KSN... But since then SP down 30% so EV around A$260M - ratio A$3,400/oz on current price. Aurelia are targeting 1.1 - 1.2Mpta processing capacity, vs. KSN which is 350ktpa current and ambition to 700kpa capacity.

KSN interestingly not mispriced against its Cobar peers, maybe there is value in all of them.... Certainly open to others to add some more meat to bone.