K92 Mining Inc. (“
K92” or the
“
Company”) (TSX:
KNT; OTCQX:
KNTNF) is pleased to announce financial results
for the three months ended March 31, 2022.
Safety
- Strong focus on safety with one of
the best safety records in the Australasia region since
commencement of operations.
- Proactive and focused management of
COVID-19. K92 has continuously operated throughout the COVID-19
pandemic, has strong preventative and response plans, with pandemic
resiliency strengthening through ongoing vaccination programs.
Production
- Strong quarterly gold equivalent
(“AuEq”) production of 28,188 oz or 24,152 oz
gold, 1,524,827 lbs copper and 28,142 oz silver, representing a 49
% increase from Q1 2021 (1).
- Cash costs of US$536/oz gold and
all-in sustaining costs (“AISC”) of US$788/oz gold
(2).
- Quarterly tonnage of 99,611 tonnes
treated, a 36% increase from Q1 2021.
- Record throughput was achieved in
March averaging 1,219 tonnes per day (“tpd”), 11%
above the Stage 2 Expansion target of 1,100 tpd, and 45% of days
(14 days) exceeded 1,300 tpd.
- Gravity circuit produced 1,161 gold
doré ounces, and, subsequent to March 31, 2022, the Bank of Papua
New Guinea granted K92 a Gold Doré Export Mining License, enabling
the sale of gold doré ounces. Production from gravity will now be
ramped up.
Financials
- Quarterly revenue of US$52.4
million, an increase of 78% from Q1 2021.
- Balance sheet significantly
strengthened during Q1, with a record cash position of US$79.9
million as of March 31, 2022.
- Sales of 26,471 oz of gold,
1,247,967 lbs of copper and 24,899 oz of silver. Gold concentrate
and doré inventory of 4,848 oz as of March 31, 2022, a quarterly
decrease of 2,299 oz.
- Operating cash flow (before working
capital adjustments) for the three months ended March 31, 2022 of
US$22.7 million or US$0.10 per share, and earnings before interest,
taxes, depreciation and amortization (“EBITDA”) of
US$27.2 million or US$0.12 per share.
- Net income for the first quarter of
US$14.1 million or US$0.06 per share.
Growth
- The Stage 2A Expansion to 500,000
tonnes per annum (“tpa”) continued to progress
during the quarter with works underway and the new filter press
operational; the additional TC-1000 secondary crusher arrived on
site in late Q1 and is planned to be installed in Q2, while the new
flotation tanks are scheduled to arrive in the second half of 2022.
Additional mining equipment arrived on site, including a new jumbo
in late Q1 and new truck and loader in early Q2. The performance of
the process plant to date, with 45% of days in March exceeding
1,300 tpd, continues to demonstrate the potential to approach Stage
2A Expansion run-rate ahead of the new flotation tanks being
installed.
- Reported the updated Kora resource
estimate and maiden Judd resource estimate. The updated Kora
resource estimate reported a Measured and Indicated Resource of 2.1
million ounces at 9.20 g/t AuEq and Inferred Resource of 2.5
million ounces at 9.48 g/t AuEq. The maiden resource estimate for
the Judd deposit reported a Measured and Indicated Resource of 0.13
million ounces at 11.00 g/t AuEq and Inferred Resource of 0.18
million ounces at 5.66 g/t AuEq. The resource estimates will form
the basis for the upcoming economic studies (see February 23, 2022
press release).
- K92 announced high-grade and record
thicknesses from maiden surface step-out drilling results at both
Kora South and Judd South. The results include the discovery of a
previously unknown vein, and the discovery of significant
mineralized dilatant zones at both Kora South and Judd South. An
airborne geophysics survey was also completed, defining extensive
new targets (see February 16, 2022 press release). Exploration at
Kora South and Judd South has increased to two drill rigs operating
during Q1, and subsequent to quarter-end, a third drill rig
commenced drilling. In 2022, up to 11 drill rigs are planned to be
operating.
- Significant advance of the twin
incline in Q1, 15% above budget, with incline #2 (6m x 6m) advanced
to 1,010 metres and #3 (5m x 5m) advanced to 1,063 metres as of
March 31, 2022. In the past three quarters, development exceeded
budget by 10%.
The Company’s interim consolidated financial
statements and associated management’s discussion and analysis for
the quarter ended March 31, 2022 are available for download on the
Company’s website and under the Company’s profile on SEDAR
(www.sedar.com). All amounts are in U.S. dollars unless otherwise
indicated.
John Lewins, K92 Chief Executive Officer and
Director, stated, “We are very pleased with the financial results
during the first quarter. Financially, the Company has never been
stronger, with a record cash balance of $79.9 million, increasing
by $8.6 million during the quarter. All-in sustaining costs and
cash costs were also very strong, at $788/oz and $536/oz,
respectively, and we are pleased to see the continued compression
of unit operating costs driven by economies of scale and overall
increased efficiencies as COVID-19 restrictions are progressively
eased.
In terms of production growth, the process plant
continues to exceed our expectations. In March 2022, the plant
delivered a record average daily throughput for the month of 1,219
tpd and 45% of the days exceeded 1,300 tpd. This is well above the
1,100 tpd Stage 2 Expansion run-rate and shows the potential to
approach the Stage 2A Expansion run-rate of 500,000 tpa or 1,370
tpd, ahead of the installation of the flotation cells. Work on the
next phases of growth is also proceeding with an economic study
underway for the Stage 3 Expansion and Stage 3A Expansion.
Exploration also continues to deliver strong
results on multiple fronts. I am pleased to report that the third
drill rig is now operating at Kora South and Judd South, rapidly
increasing the number of rigs from one rig earlier this year.
Drilling at Judd South followed by Kora South with long underground
holes is also planned to commence shortly.
Lastly, I would like to highlight that the
achievements in Q1 occurred during the COVID-19 Omicron wave in
Papua New Guinea. Our control measures on site held up very well. I
am extremely proud of our workforce and what they have achieved
during the pandemic environment and I am pleased to report a
significant relaxing of restrictions on site, including the removal
of quarantining. This is already having a noticeable positive
impact on operational efficiencies and costs. The support of the
Governments of both Papua New Guinea and Australia throughout the
pandemic has also been a major factor in our success.”
Mine Operating Activities
|
Three months ended |
Three months ended |
|
March 31, 2022 |
March 31, 2021 |
Operating data |
|
|
Head grade (Au g/t) |
8.3 |
8.5 |
Gold recovery (%) |
90.9% |
88.9% |
Gold ounces produced |
24,152 |
17,774 |
Gold ounces equivalent produced(1) |
28,188 |
18,914 |
Tonnes of copper produced |
692 |
193 |
Silver ounces produced |
28,142 |
7,925 |
|
|
|
Financial data (in thousands of dollars) |
|
|
Gold ounces sold |
26,471 |
21,879 |
Revenues from concentrate sales |
US$52,412 |
US$29,513 |
Mine operating expenses |
US$8,738 |
US$7,630 |
Other mine expenses |
US$9,400 |
US$10,420 |
Depreciation and depletion |
US$4,397 |
US$2,857 |
|
|
|
Statistics (in dollars) |
|
|
Average realized selling price per ounce, net |
US$1,769 |
US$1,735 |
Cash cost per ounce |
US$536 |
US$745 |
All-in sustaining cost per ounce |
US$788 |
US$1,038 |
Notes:
(1) Gold equivalent for 2022 is based on the
London Metal Exchange quarterly spot average price: gold $1,879 per
ounce; silver $24 per ounce; and copper $4.53 per pound. Gold
equivalent for 2021 is based on the following prices: gold $1,800
per ounce; silver $25 per ounce; and copper $4.35 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 13, 2022, available on SEDAR or the Company’s website,
for reconciliation of these measures.K92 has not based its
production decisions on mineral reserve estimates or feasibility
studies, and historically such projects have increased uncertainty
and risk of failure. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
Conference Call and Webcast to Present
Results
K92 will host a conference call and webcast to
present the 2022 first quarter financial results at 8:30 am (EDT)
on Monday, May 16, 2022.
- Listeners may access the conference
call by dialing toll-free to 1-800-319-4610 within North America or
+1-604-638-5340 from international locations.
- The conference call will also be
broadcast live (webcast) and may be accessed via the following
link:
https://services.choruscall.ca/links/k92mining20220516.html
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.
Resource estimates are in included in a
technical report titled, “Independent Technical Report, Mineral
Resources Estimate Update Kora and Judd Gold Deposits, Kainantu
Project, Papua New Guinea” dated January 1, 2022.
About K92
K92 Mining Inc. is engaged in the production of
gold, copper and silver from the Kora and Judd deposits 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.
The Company commenced an expansion of the mine
based on an updated Preliminary Economic Assessment on the property
which was published in January 2019 and updated in July 2020. K92
is operated by a team of mining company professionals with
extensive international mine-building and operational
experience.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact David
Medilek, P.Eng., CFA at +1-604-416-4445
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain “forward-looking
statements” under applicable Canadian securities legislation. All
statements in this news release that address events or developments
that we expect to occur in the future are forward-looking
statements. Forward-looking statements are statements that are not
historical facts and are generally, although not always, identified
by words such as “expect”, “plan”, “anticipate”, “project”,
“target”, “potential”, “schedule”, “forecast”, “budget”,
“estimate”, “intend” or “believe” and similar expressions or their
negative connotations, or that events or conditions “will”,
“would”, “may”, “could”, “should” or “might” occur. All such
forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made.
Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks,
uncertainties and other factors, many of which are beyond our
ability to control, that may cause our actual results, level of
activity, performance or achievements to be materially different
from those expressed or implied by such forward-looking
information. Such factors include, without limitation, Public
Health Crises, including the COVID-19 Pandemic; changes in the
price of gold, silver, copper and other metals in the world
markets; fluctuations in the price and availability of
infrastructure and energy and other commodities; fluctuations in
foreign currency exchange rates; volatility in price of our Common
Shares; inherent risks associated with the mining industry,
including problems related to weather and climate in remote areas
in which certain of the Company’s operations are located; failure
to achieve production, cost and other estimates; risks and
uncertainties associated with exploration and development; the fact
that a feasibility studying of mineral reserves demonstrating
economic and technical viability has not been prepared for the
Kainantu Mine; uncertainties relating to estimates of mineral
resources including uncertainty that mineral resources may never be
converted into mineral reserves; the Company’s ability to carry on
current and future operations, including development and
exploration activities; the timing, extent, duration and economic
viability of such operations, including any mineral resources or
reserves identified thereby; the accuracy and reliability of
estimates, projections, forecasts, studies and assessments; the
Company’s ability to meet or achieve estimates, projections and
forecasts; the availability and cost of inputs; the price and
market for outputs, including gold, silver and copper; inability of
the Company to identify appropriate acquisition targets or complete
desirable acquisitions; failures of information systems or
information security threats; political, economic and other risks
associated with the Company’s foreign operations; geopolitical
events and other uncertainties, such as the conflict in Ukraine;
compliance with various laws and regulatory requirements to which
the Company is subject to, including taxation; the ability to
obtain timely financing on reasonable terms when required; the
current and future social, economic and political conditions,
including relationship with the communities in jurisdictions it
operates; other assumptions and factors generally associated with
the mining industry; and the risks, uncertainties and other factors
referred to in the Company’s Annual Information Form under the
heading “Risk Factors”. Estimates of mineral resources are also
forward-looking statements because they constitute projections,
based on certain estimates and assumptions, regarding the amount of
minerals that may be encountered in the future and/or the
anticipated economics of production, should mining occur.
Forward-looking statements are not a guarantee of future
performance, and actual results and future events could materially
differ from those anticipated in such statements. Although we have
attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking statements, there may be other factors that cause
actual results to differ materially from those that are
anticipated, estimated, or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
K92 Mining (TSX:KNT)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
K92 Mining (TSX:KNT)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024