K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF) is pleased to announce financial results for the three months ended March 31, 2024.
Production
Financials
Growth
Other historic highlights reported include:
See news release dated February 21, 2024 for additional details.
High-grade zones extended in multiple directions including up-dip from the main underground mining area at the K1, K2 and J1 Veins, to the South outside the Kora resource at the K2 Vein and 300 m to the North near surface at the J1 Vein. Highlights include:
See news release dated May 6, 2024 for additional details.
The Company’s interim consolidated financial statements and associated management’s discussion and analysis for the three months ended March 31, 2024 are available for download on the Company’s website and under the Company’s profile on SEDAR+ (www.sedarplus.ca). All amounts are in U.S. dollars unless otherwise indicated.
See Figure 1: Quarterly Production, Cash Cost and AISC Chart
See Figure 2: Quarterly Total Ore Processed, Development Metres Advanced and Total Mined Material Chart
See Figure 3: Process Plant Throughput Performance, Daily Records and Near-Records
John Lewins, K92 Chief Executive Officer and Director, stated, “During the first quarter, K92 delivered strong financial results and above-budget production, even with the temporary suspension of underground operations for the last 22 days of March following a non-industrial incident. Since the lifting of the temporary suspension of underground operations in the first half of April, we have been pleased with the focus and motivation of our workforce, with operations having returned to normal. Financially, we remain in a strong position with $73 million in cash and treasury bills at quarter end, plus significant liquidity with the $100 million loan with Trafigura.
On the Stage 3 Expansion, we continue to move forward on multiple initiatives and as of April 30th, 52% of the Stage 3 and 4 Expansion growth capital has now been either spent or committed. The complete handover to GR Engineering for the construction of the Stage 3 Process Plant was a major milestone, in addition to the commencement of raise bore works planned for later this month, which will drive a step-change in productivity underground over the next few months.
And lastly, as shown this past week with our exploration drilling results, the Kora-Kora South and Judd-Judd South system is world class, has significant expansion potential and with the increase in drilling activity at Arakompa, we expect exploration to continue to be a driver of value during the Stage 3 Expansion construction period and beyond.”
Mine Operating Activities |
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Three months ended March 31, 2024 |
Three months ended March 31, 2023 |
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Operating data | |||
Gold head grade (Au g/t) | 6.4 | 5.2 | |
Copper grade (%) | 0.55% | 0.70% | |
Gold equivalent head grade (AuEq g/t) | 7.2 | 6.4 | |
Gold recovery (%) | 90.7% | 89.1% | |
Copper recovery (%) | 91.9% | 91.3% | |
Gold ounces produced | 24,389 | 17,593 | |
Gold ounces equivalent produced (1) (2) | 27,462 | 21,488 | |
Tonnes of copper produced | 655 | 749 | |
Silver ounces produced | 35,650 | 29,891 | |
Financial data (in thousands of dollars) |
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Gold ounces sold | 27,996 | 17,602 | |
Revenues from concentrate and doré sales | US$59,798 | US$40,366 | |
Mine operating expenses | US$12,465 | US$8,753 | |
Other mine expenses | US$20,942 | US$8,241 | |
Depreciation and depletion | US$7,482 | US$6,744 | |
Statistics (in dollars) | |||
Average realized selling price per ounce, net | US$2,016 | US$1,807 | |
Cash cost per ounce (2) | US$934 | US$758 | |
All-in sustaining cost per ounce (2) | US$1,366 | US$1,506 | |
Notes: | |||
(1) | Gold equivalent in Q1 2024 is calculated based on: gold $2,070 per ounce; silver $23.34 per ounce; and copper $3.83 per pound. Gold equivalent in Q1 2023 is calculated based on: gold $1,890 per ounce; silver $22.55 per ounce; and copper $4.05 per pound. | ||
(2) | The Company provides some non-international financial reporting standard measures as supplementary information that management believes may be useful to investors to explain the Company’s financial results. Please refer to non-IFRS financial performance measures in the Company’s management’s discussion and analysis dated May 10, 2024, available on SEDAR+ or the Company’s website, for reconciliation of these measures. | ||
(3) | Daily tonnes processed record achieved on day with 23.5 hours of plant operation. 7-day tonnes processed recorded achieved with 98.1% plant availability. 95.4% plant availability in January. 2024 budget annual average plant availability is 94.0%. | ||
(4) | Gold equivalent exploration results are calculated using longer-term commodity prices with a copper price of US$4.00/lb, a silver price of US$22.50/oz and a gold price of US$1,750/oz. | ||
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Qualified Person
K92 Mine Geology Manager and Mine Exploration Manager, Mr. Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and is responsible for the technical content of this news release.
Technical Report
The Integrated Development Plan, including the Definitive Feasibility Study and Preliminary Economic Assessment for the Kainantu Gold Mine Project in Papua New Guinea is included in the Technical Report, titled, “Independent Technical Report, Kainantu Gold Mine Integrated Development Plan, Kainantu Project, Papua New Guinea” dated October 26, 2022, with an effective date of January 1, 2022.
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018 and is in a strong financial position. A maiden resource estimate on the Blue Lake copper-gold porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.
Figure 1: Quarterly Production, Cash Cost and AISC Chart
Figure 2: Quarterly Total Ore Processed, Development Metres Advanced and Total Mined Material Chart
Figure 3: Process Plant Throughput Performance, Daily Records and Near-Records
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