Kuniko (ASX:KNI) share price drops following production update

The market isn't impressed, despite the miner announcing it has hit a number of progress points at its Norway mines.

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The Kuniko Ltd (ASX: KNI) share price is heading underground at the opening of trade on Wednesday. This is after the company released an exploration progress update this morning.

Kuniko shares are now trading at $2.25 each, a 2.16% drop from the open.

Let's investigate what Kuniko announced and what this could mean for investors.

What did Kuniko announce?

Kuniko advised it has achieved a number of progress points at its prospective copper and cobalt projects in Norway.

Specifically, it states that field explorations at the company's Skuterud Cobalt and Vangrofa Copper projects are now complete.

Kuniko also explains that an "airborne geophysics program" is now underway at these two sites. The airborne program is also operating at the Undal project site.

The company collected a total of 1,202 soil samples from these field explorations, according to the announcement.

Investors can expect the "initial laboratory analysis" from these sampling programs "during September and October". Whereas data from the airborne surveys is "to be available in October 2021".

And yet, the Kuniko share price isn't reflecting the positive news.

What did management say?

Speaking on the announcement, Kuniko CEO Antony Beckmand said:

The launch of the airborne geophysics program is a milestone for Kuniko as we commence delivering on our commitment to apply modern exploration methods to historical battery metals resources at our project sites.

Regarding the upcoming results, Beckmand added:

We are also pleased with the progress made by our exploration field team who have been working efficiently and effectively on completing the geochemical survey programs… We look forward to sharing the results of our geophysics and geochemical surveys across September and October.

Kuniko share price snapshot

The Kuniko share price has shot up over 1,060% since listing in August, much to the delight of investors that subscribed to its initial public offering (IPO).

That return is well ahead of the Australian broad indices, including the All Ordinaries Index (ASX: XAO) loss of 2.4% over the last month.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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