K92 Mining Inc Releases Strong 2020 Q2 Financial Results Including Records for Revenue, Cash Flow and Net Cash
VANCOUVER, British Columbia, Aug. 13, 2020 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to announce results from its financial statements for the three months ended June 30, 2020.
Second Quarter 2020 Highlights:
- Strong safety record continues, with no lost time injuries and one of the best safety records in the Australasia region since start of operations.
- Proactive and focused management of COVID-19, with no confirmed cases amongst employees. K92 continues to operate and has strong preventative and response plans.
- Record quarterly production of 26,847 gold equivalent (“AuEq”) oz, comprising 25,762 oz of gold, 531,406 lbs copper and 10,867 oz silver.
- Record tonnage of 49,311 tonnes treated, a 30% increase from Q2 2019.
- Cash costs of US$596/oz gold and all-in sustaining costs (“AISC”) of US$678/oz gold(2).
- Long hole stoping at the K1 and K2 Veins has continued to perform to design and has provided a notable positive impact on operational flexibility.
- Sold 27,149 ounces of gold, 566,084 lbs of copper and 11,729 ounces of silver. Gold concentrate inventories of 3,439 ounces as of June 30, 2020, a quarterly decrease of 1,474 ounces.
- Record quarterly revenue of US$47.9 million, a 105% increase from Q2 2019.
- Record operating cash flow (before working capital adjustments) of US$30.3 million or US$0.14 per share and EBITDA of US$29.7 million or US$0.14 per share.
- Net income of US$16.9 million or US$0.08 per share.
- Balance sheet significantly strengthened, with cash increasing by US$13.1 million to US$34.7 million and debt decreasing by US$4.2 million to US$9.1 million as at June 30, 2020.
- Reported an updated mineral resource for Kora, with a Measured and Indicated Resource of 1.1 million ounces at 10.45 g/t AuEq and Inferred Resource of 3.7 million ounces at 9.01 g/t AuEq, representing a +180% and +50% increase from the October 2018 resource, respectively (see May 19, 2020 Press Release – K92 Mining Inc. Reports Significant Resource Increase at High-Grade Kora Deposit).
- Surface exploration recommenced in late Q2 following lifting of the COVID-19 State of Emergency (“SOE”) in Papua New Guinea, targeting nine diamond drill rigs operating by the end of Q3 2020 and ten rigs by year end.
- Resumed commissioning of the Stage 2 Expansion and development of the twin incline following the lifting of the SOE. Stage 2 Expansion commissioning is expected to be completed by the end of Q3 2020.
For complete details of the interim consolidated financial statements and associated management’s discussion and analysis, please refer to the Company’s website or profile on SEDAR (www.sedar.com). All amounts are in U.S. dollars unless otherwise indicated.