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(Kitco News) - On Monday, K92 Mining (TSX: KNT) reported Q1 2023 production of 21,488 gold equivalent ounces (17,593 ounces of gold, 1,651,297 pounds of copper and 29,859 ounces of silver), which is a decrease of 24% from Q1 2022 (28,188 ounces).
The company said that, as previously reported, a head grade was impacted by underground mining encountering an area with more challenging ground conditions than expected in Kora, which impacted near-term production stoping rates and access to higher grade material during the quarter.
According to a press release, the process plant has continued to perform “exceptionally well”, setting a new monthly ore processed record in March of 1,490 tpd which is 9% higher than the Stage 2A Expansion design of 1,370 tpd.
K92 Mining added it expects Q2 2023 to be moderately below budget, with the second half of 2023 being the company's strongest, and 2023 production in the bottom half of the guidance range.
The company's Q1 2023 cash costs were $758/oz gold (Q1 2022: $536/oz) and all-in sustaining costs (AISC) were $1,506/oz gold (Q1 2022: $788/oz).
K92 Mining also reported revenue of $40.4 million (Q1 2022: $52.4 million), EBITDA of $14.8 million (Q1 2022: $27.2 million), and net income of $5.0 million or $0.02 per share (Q1 2022: net income of $14.4 million or $0.06 per share).
“The last two quarters delivered record development advance towards opening up more mining areas, our material rates have been strong, our stoping sequence is setting the operation up for a strong second half of the year and we expect our operational flexibility to increase significantly in multiple areas as the year progresses,” the company said.
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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| Karora more than doubles operating cash flow in Q1, says gold production exceeded target |
