K92 Mining Releases Strong 2022 Q2 Financial Results - Record Cash Balance, Mine and Mill Throughput

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Overig advies 16/08/2022 11:15
VANCOUVER, British Columbia, Aug. 15, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc . (“ K92 ” or the “ Company ”) (TSX : KNT; OTCQX : KNTNF) is pleased to announce second quarter financial results for the three and six months ended June 30, 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, and has strong preventative and response plans, with pandemic resiliency strengthening through ongoing vaccination programs.
Production

Record plant throughput of 108,853 tonnes processed during the quarter, or 1,196 tonnes per day (“ tpd ”), significantly exceeding the Stage 2 Expansion run-rate and a 44% increase from Q2 2021.
Record mine throughput with 114,471 tonnes mill feed mined during the quarter or 1,258 tpd, an increase of 59% from Q2 2021.
Strong quarterly gold equivalent (“ AuEq ”) production of 26,085 oz or 22,934 oz gold, 1,229,961 lbs copper and 25,224 oz silver (1) .
Cash costs of US$617/oz gold and all-in sustaining costs (“ AISC ”) of US$893/oz gold (2) .
Strong metallurgical recoveries of 91.0% for gold and 90.9% for copper, ahead of the installation of the additional flotation cells planned for Q4 2022, which will double rougher tank capacity.
Record monthly throughput achieved in June, averaging 1,251 tpd, 14% above the Stage 2 Expansion run-rate of 1,100 tpd. During May and June, 48% of days (29 days) exceeded 1,300 tpd.
Subsequent to quarter end, multiple process plant daily throughput records were realized that significantly exceeded the Stage 2A Expansion run-rate of 1,370 tpd, with 1,638 tonnes and 1,642 tonnes processed on July 6 and 14, respectively, in addition to 1,609 tonnes processed on July 12.

Financials
Record cash position of US$81.7 million as of June 30, 2022. Subsequent to quarter end, K92 closed a C$50 million bought deal financing to further strengthen the balance sheet while remaining debt-free.
Sales of 23,674 oz of gold, 1,349,816 lbs of copper and 27,033 oz of silver. Gold concentrate and doré inventory of 3,012 oz as of June 30, 2022, a quarterly decrease of 1,836 oz.
Operating cash flow (before working capital adjustments) for the three months ended June 30, 2022, of US$10.5 million or US$0.05 per share, and earnings before interest, taxes, depreciation and amortization (“ EBITDA ”) of US$13.3 million or US$0.06 per share.
Net income of US$5.1 million or $0.02 per share, a 17% increase from Q2 2021.
Quarterly revenue of US$37.4 million, a 5% increase from Q2 2021.
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 crusher was installed in late Q2 and was commissioned in July, while new flotation tanks are scheduled to arrive in Q4 2022. Additional mining equipment arrived on site in early Q2, including a new truck and loader; while a loader and jumbo are scheduled to arrive in Q3. The performance of the process plant to date continues to demonstrate the potential to approach Stage 2A Expansion run-rate ahead of the new flotation tanks being installed.
Results for 116 diamond drill holes reported for the Kora and Judd deposits with 25 intersections exceeding 10 g/t AuEq at Kora and 19 intersections exceeding 10 g/t AuEq at Judd. Highlights include multiple intersections at JDD0051 including 8.80 m at 61.17 g/t AuEq from the J1 Vein and multiple intersections at KMDD0402 including 4.20 m at 37.38 g/t AuEq from the K2 Vein and 8.50 m at 26.34 g/t AuEq from the K1 Vein (see June 9, 2022 press release).
Significant advance of the twin incline in Q2, with incline #2 (6m x 6.5m) advanced to 1,276 metres and #3 (5m x 5.5m) advanced to 1,317 metres as of June 30, 2022. Year-to-date, twin incline development has exceeded budget by 38%. Overall mine development was 1,826m, an increase of 75% and 19% from Q2 2021 and Q1 2022, respectively.

Subsequent to quarter end, K92 announced its maiden resource estimate at the Blue Lake porphyry project. The maiden Blue Lake resource estimate reported a significant inferred resource of 10.8 million ounces AuEq at 0.61 g/t AuEq or 4.7 billion pounds copper equivalent (“ CuEq ”) at 0.38% CuEq. Future exploration plans at Blue Lake include drilling to target expanding the higher-grade core, which is open at depth, and exploring for additional mineralized porphyries beneath an extensive composite lithocap that extends to and includes the A1 Porphyry Target, our highest priority porphyry target based on geophysics completed in late 2021. Plans are underway to imminently commence soil sampling at A1 followed by drilling (see August 9, 2022 press release).
The Company’s interim consolidated financial statements and associated management’s discussion and analysis for the quarter ended June 30, 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, “ In the second quarter we continued our growth trajectory with multiple records achieved: record cash balance of $82 million with no debt; record mill throughput averaging 1,196 tpd that is significantly higher than the Stage 2 Expansion run-rate of 1,100 tpd; record mine production averaging 1,258 tpd, and; record average monthly throughput in June of 1,251 tpd.

Following the installation of our additional TC-1000 crusher the process plant took another step forward, achieving daily process plant records well in excess of the Stage 2A Expansion design of 1,370 tpd or 500,000 tpa. July 6 recorded 1,638 tonnes, on July 14 1,642 tonnes were processed, and on July 12, 1,609 tonnes were processed. This strong performance is especially significant as we have not yet installed a key upgrade for the Stage 2A Expansion, which is the additional flotation cells to double rougher capacity targeting Q4. Concurrent with the increasing mill throughput capabilities, underground mine throughput capabilities are growing as well, with a new jumbo and loader recently arriving in-country and plans to add more equipment over the coming months. The strong performance of the process plant and plans for higher grade stopes in the second half of this year well positions K92 to achieve its 2022 production guidance of 115,000 to 140,000 ounces AuEq. In addition to Stage 2A, economic studies for the Stage 3 Expansion and beyond are progressing well and we plan to announce near term.

Only a few days ago, K92 achieved a major milestone in our copper-gold porphyry exploration, with the announcement of the maiden inferred resource estimate for the Blue Lake Porphyry of 10.8 million oz AuEq or 4.7 million lbs CuEq. We believe Blue Lake is only the tip of the porphyry iceberg at Kainantu. In Papua New Guinea, porphyries tend to cluster and there are five other porphyry targets proximal to Blue Lake, with A1 being of highest priority. Soil sampling of A1 is expected to commence imminently, followed by diamond drilling.

Also on exploration, we are pleased to report that our fourth drill rig is now operating at Kora South and Judd South, and a fifth rig is now on order. Underground drilling of Kora South and Judd South has also commenced through long targeted holes.

Between our operational growth, copper-gold porphyry exploration and high-grade vein field exploration, there is certainly a lot to look forward to. ”

Mine Operating Activities
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https://k92mining.com/news/k92-mining-releases-strong-2022-q2-financial-resul-4507/



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