K92 Mining Inc Releases Strong 2020 Q2 Financial Results Including Records for Revenue, Cash Flow and Net Cash - Seite 2

John Lewins, K92 Chief Executive Officer and Director, stated, “The second quarter represented another important step forward for Kainantu, achieving record gold production, mill throughput, cash flow generation and a very significant increase to mineral resources at Kora. During the quarter, our financial position strengthened considerably, with cash growing by $13.1 million to $34.7 million and debt decreasing by $4.2 million to $9.1 million as at June 30^th.

Importantly, this was largely achieved during the COVID-19 State of Emergency in Papua New Guinea and was possible due to the tremendous commitment of our workforce and the quality of the Kora deposit. Strong support from all levels of Government in Papua New Guinea, especially during this COVID-19 pandemic has also been a major positive factor in all our achievements to date. The State of Emergency was lifted on June 16^th.

During the second half of this year, Kainantu is expected to continue to take significant steps forward. Our Stage 3 Expansion PEA was completed last month outlining a potential Tier 1 asset with ~318,000 ounces per annum AuEq run-rate production at a life of mine average all-in sustaining cost of $362 per gold ounce net of by-product credits that is fully funded at $1,500/oz gold prices. Stage 2 Expansion commissioning and twin incline development are both underway and exploration activity has increased considerably. Currently three separate vein targets on the mining lease and one regional target is being explored, plus two additional drill rigs are arriving on site shortly.”

Mine Operating Activities

		Three months ended		Three months ended
		June 30, 2020		June 30, 2019
Operating data
Head grade (Au g/t)		17.6		16.7
Gold recovery (%)		92.1%		93.2%
Gold ounces produced		25,762		18,980
Gold ounces equivalent produced (1)		26,847		19,652
Tonnes of copper produced		241		119
Silver ounces produced		10,867		6,894
Financial data (in thousands of dollars)
Gold ounces sold		27,149		18,824
Revenues from concentrate sales		US$47,857		US$23,293
Mine operating expenses		US$8,027		US$4,369
Other mine expenses		US$6,936		US$6,339
Depreciation and depletion		US$3,408		US$1,801
Statistics (in dollars)
Average realized selling price per ounce, net		US$1,631		US$1,258
Cash cost per ounce		US$596		US$572
All-in sustaining cost per ounce		US$678		US$703