I have been looking for my next project bike and this time around I was looking to go Cafe. I finally found the barn find of my life and my first order of business was to take a look at the engine. The only negative thing I had delivered to me about the whole bike was that it ran but started to exhibit an engine knock. knowing this I got it all drained, cleaned up a bit and pulled. Here is the evidence I have noticed on the cam

And here is the Rocker matching it.

To a trained eye, does this look bad enough to repair or can I just slap it back together and redo spring adjustment?
From what I have seen digging in to this motor, I have been debating on if to rebuild it completely. I have not formally done a complete rebuild before and can tell that deeper in to it, it has good compression (though I screwed up and didn't get a reading with my pressure gauge before tearing it down.
thanks in advance and glad to find a home to talk about SOHC!