Section 1: Introduction

• Inflation is the gradual loss in purchasing power, primarily due increase in the price levels of goods and services over a given period.
• The monthly CPI (Consumer Price Index) inflation rose in June to 2.7% year-on-year (y/y), below last month's 2.9% y/y print. The deceleration was led by gasoline prices, which dropped 3.1% month-on-month (m/m), compared to the +5.6% m/m gain last month.
• There are two types of inflationary trends - high and low inflation. The cycles of high and low inflation mainly depend on policy action by the Government to balance the demand and growth of the country.

• K92 Mining Inc (TSX: KNT) owns and operates the high-grade Kainantu Gold Mine in Papua New Guinea which is currently operating at a design annualized production rate of approximately 120,000 oz AuEq per annum. MDA Ltd (TSX: MDA) is a developer and manufacturer of advanced technology and services to the burgeoning global space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. Geographically it serves the United States, Europe, Asia, the Middle East and Others whilst generating key revenue from domestic sales in Canada

Section 2: Company Overview

K92 Mining Inc (TSX: KNT) owns and operates the high-grade Kainantu Gold Mine in Papua New Guinea which is currently operating at a design annualized production rate of approximately 120,000 oz Gold Equivalent (AuEq) per annum and is expected to produce at a run-rate of +300,000 oz AuEq per annum following its Stage 3 Expansion. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Below charts depict the change in EBITDA Margin, Gross Margin and Debt to Equity Ratio for the firm for the last 5 reported quarters.

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology Illustrative EV to Sales Based

5.2 Price Performance and Stock Recommendation

The stock has witnessed a downside of ~14.96% in 1 month and of ~12.07% over the last 3 months. Moreover, the stock is trading above the average 52-week high price of CAD 8.60 and 52-week low price of CAD 4.64 providing an opportunity to ride the trend.

5.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of August 08, 2024). Source: REFINITIV, Analysis: Kalkine Group

5.4 Technical Summary

MDA Space Ltd.

Section 1: Company Overview

MDA Ltd (TSX: MDA) is a developer and manufacturer of advanced technology and services to the burgeoning global space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. Geographically it serves the United States, Europe, Asia, the Middle East and Others whilst generating key revenue from domestic sales in Canada. Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section2:  Financial Highlights

2.1 Key Financial Highlights

Section 3:  Key Metrics

Below charts depict the change in Debt to Equity, Gross Margin, Operating Margin of the Company for the last five reported quarters.

Section 4:  Stock Recommendation Summary

4.1 Valuation Methodology Illustrative EV to Sales Based

 4.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~5.27% in 1 month and a downside of ~2.30% over the last 3 months. Moreover, the stock is trading slightly above the average of 52-week high price of CAD 15.45 and 52-week low price of CAD 8.30 providing an opportunity to ride the trend.

4.3 One-Year Technical Price Chart

 One-Year Technical Price Chart (as of August 08, 2024). Source: REFINITIV, Analysis: Kalkine Group 

4.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 08, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.