K92 Mining reports 49% gold equivalent production increase in Q1, boasts record cash position
(Kitco News) - K92 Mining (TSX: KNT) today reported quarterly gold equivalent 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.
The company said that 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.
K92 added that all-in sustaining costs were US$788/oz gold in Q1 2022, a decrease of 24% compared to Q1 2021 (US$1,038/oz). The company noted it sees the continued compression of unit operating costs driven by economies of scale and overall increased efficiencies as COVID-19 restrictions are progressively eased.
The company also pointed out that its quarterly revenue was US$52.4 million, an increase of 78% from Q1 2021, while balance sheet significantly strengthened during Q1, with a record cash position of US$79.9 million as of March 31, 2022.
The company's operating cash flow (before working capital adjustments) for the three months ended March 31, 2022 was US$22.7 million or US$0.10 per share, and EBITDA was US$27.2 million or US$0.12 per share. Net income for the first quarter was US$14.1 million or US$0.06 per share.
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CEO John Lewins commented, "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.
"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. Work on the next phases of growth is also proceeding with an economic study underway for the Stage 3 Expansion and Stage 3A Expansion."
K92 Mining 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 has commenced an expansion of the mine.