K92 Mining Releases Strong 2020 Q4 & Annual Financial Results - Record Net Cash, Revenue & Throughput Following Commissioning of Stage 2 Plant Expansion

VANCOUVER, British Columbia., March 29, 2021 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce results from its financial statements for the three and twelve months ended December 31, 2020.

Safety

• Strong safety record continues and one of the best safety records in the Australasia region since start of operations.
• Proactive and focused management of COVID-19. K92 continues to operate and has strong preventative and response plans.

Production

Fourth Quarter 2020

• Record quarterly tonnage of 68,932 tonnes treated, a 127% increase from Q4 2019.
• Record quarterly gold equivalent (“AuEq”) production of 29,820 oz, or 28,809 oz gold, 493,584 lbs copper and 10,395 oz silver, representing a 26% AuEq increase from Q4 2019⁽¹⁾.
• Cash costs of US$639/oz gold and all-in sustaining costs (“AISC”) of US$768/oz gold ounce⁽²⁾.
• Long hole stoping on both the K1 and K2 Veins has provided a notable positive impact on operational flexibility.

Full Year 2020

• Record annual tonnage of 230,365 tonnes treated, an 81% increase from 2019.
• Record annual gold equivalent production of 98,872 oz or 95,109 oz gold, 1,853,078 lbs copper and 36,067 oz silver, representing a year-over-year AuEq increase of 20%.
• Cash costs of US$651/oz gold and AISC of US$782/oz gold ounce.
  

Financials

Fourth Quarter 2020

• Sold 28,112 oz of gold, 512,203 lbs of copper and 10,594 oz of silver. Gold concentrate inventories of 5,451 oz as of December 31, 2020, a quarterly decrease of 408 oz.
• Record quarterly revenue of US$48.0 million, increasing 44% from Q4 2019.
• Operating cash flow (before working capital adjustments) for the three months ended December 31, 2020 of US$18.9 million or US$0.09 per share and earnings before interest, taxes, depreciation and amortization (“EBITDA”) of US$22.7 million or US$0.10 per share.
• Net income for the three months ended December 31, 2020 of US$10.9 million or US$0.05 per share.
• Quarterly gross margin of 53%.
• Balance sheet significantly strengthened during Q4, with cash increasing by US$10.3 million to US$51.5 million and debt decreasing by US$2.1 million to US$4.9 million as at December 31, 2020.

Full Year 2020