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K92 Mining reports second highest annual net income on record in 2022

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(Kitco News) - On Thursday, K92 Mining (TSX: KNT) announced record annual production of 122,806 gold equivalent ounces (107,546 ounces of gold, 6,247,950 pounds of copper and 126,043 ounces of silver) in 2022, up 18% from 2021 and within the guidance range of 115,000 to 140,000 gold equivalent ounces.

The company said that cash costs of US$538/oz gold and AISC of US$864/oz gold beat the guidance range for cash cost of $560 to $640/oz gold and AISC of $890 to $970/oz gold.

K92 also reported record annual revenue of US$188.2 million, an increase of 22% from 2021, adding that annual net income of US$35.5 million ($0.16 per share) was the second highest on record.

Operating cash flow (before working capital adjustments) for the twelve months ended December 31, 2022, was US$72.5 million or US$0.32 per share, and earnings before interest, taxes, depreciation and amortization were US$82.2 million or US$0.36 per share.

CEO and Director John Lewins commented, “In 2022, Kainantu took another major step forward, achieving significant growth financially, operationally, in our resource base and from exploration in general. Financially, the company ended the year stronger than ever, with $110 million of cash and no debt. Operationally, in 2022 we achieved record production, ore tonnes processed, ore tonnes mined and underground development.

“Our resource base expanded considerably, with measured and indicated resources increasing by 92% and inferred by 251%, driven by our updated resource estimate at Kora, maiden resource at Judd and maiden resource at Blue Lake.”

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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