K92 Mining Releases 2021 Q1 Financial Results - Record Net Cash & Process Plant Throughput
VANCOUVER, British Columbia, May 13, 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 months ended March 31, 2021.
- Strong focus on safety with 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.
- Record quarterly tonnage of 73,221 tonnes treated, a 54% increase from Q1 2020.
- Quarterly gold equivalent (“AuEq”) production of 18,654 oz, or 17,774 oz gold, 426,153 lbs copper and 7,925 oz silver.
- Cash costs of US$745/oz gold and all-in sustaining costs (“AISC”) of US$1,038/oz gold ounce(2).
- Long hole stoping continuing to perform well and to design on both the K1 and K2 veins, with stoping operations interrupted for ~3 weeks in March and recommenced near the end of the quarter, following an incident involving an underground loader, which prevented backfilling operations. Production from four high-grade stopes was deferred to Q2, resulting in the plant treating a larger amount of lower grade stockpile material during Q1, while benefiting Q2 production (see March 18, 2021 press release – Kainantu Operations and COVID-19 Update). Operations were also impacted from mid-January to late-February due to a shortage of bulk emulsion explosives as a result of unforeseen COVID-19 international shipping logistical issues compounded by increasing global transport restrictions as a result of the Beirut Incident. This was addressed through utilizing less productive alternative explosives (ANFO and packaged explosives) and supplementing mill feed from lower grade stockpiles. A significant shipment of bulk emulsion explosives arrived on site in late-February, the supplier has diversified sources and is expected to commence domestic production in May, nearby in Lae, to totally mitigate this issue (see April 16, 2021 press release - K92 Mining Announces Q1 Production Results and Record Plant Throughput at the Kainantu Gold Mine).
- Balance sheet significantly strengthened during Q1. During the quarter, K92 fully repaid the outstanding loan balance of US$5 million and increased its cash balance by US$15 million, ending the quarter with a historically high cash balance of US$66 million as at March 31, 2021.
- Sold 21,879 oz of gold, 394,635 lbs of copper and 7,463 oz of silver. Gold concentrate inventories of 2,379 oz as of March 31, 2021, a quarterly decrease of 3,072 oz.
- Record quarterly revenue of US$29.5 million, increasing 7% from Q1 2020.
- Operating cash flow (before working capital adjustments) for the three months ended March 31, 2021 of US$7.7 million or US$0.04 per share and earnings before interest, taxes, depreciation and amortization (“EBITDA”) of US$8.0 million or US$0.04 per share.
- Net income for Q1 of US$2.2 million or US$0.01 per share.