Gold miner K92 reports record cash balance, mine and mill throughput in second quarter
(Kitco News) - K92 Mining (TSX: KNT) today reported gold equivalent production of 26,085 oz in Q2 2022 (Q2 2021: 25,015 oz) from its Kainantu gold mine, which consists of 22,934 oz of gold, 1,229,961 lbs of copper and 25,224 oz of silver.
The company also announced a record plant throughput of 108,853 tonnes processed during the quarter, significantly exceeding the Stage 2 Expansion run-rate and a 44% increase from Q2 2021, as well as a record mine throughput of 114,471 tonnes mill feed mined during the quarter, an increase of 59% from Q2 2021.
The company’s cash position was a record US$81.7 million as of June 30, 2022.
Operating cash flow (before working capital adjustments) for the three months ended June 30, 2022, was US$10.5 million or US$0.05 per share, and earnings before interest, taxes, depreciation and amortization were US$13.3 million or US$0.06 per share.
More importantly, the company’s Q2 2022 net income was US$5.1 million or $0.02 per share, a 17% increase from Q2 2021.
CEO and Director John Lewins 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.
"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."
K92 Mining 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.
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