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Monday, Mar 4, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


K92 Mining sets new record with annual revenue of US$188.2M

K92 also achieved a new record for annual processed ore at 448,087 tonnes, a 33 per cent increase from last year

Image via K92 Mining

K92 Mining (TSX : KNT) (OTCQX : KNTNF) produced a record annual revenue of US$188.2 million, representing an increase of 22 per cent from the previous year.

The company also recorded an annual net income of US$35.5 million, or $0.16 per share, the second-highest on record while producing 122,806 oz AuEq for the full year 2022, meeting the guidance range of 115,000 to 140,000 oz in gold equivalents (AuEq).

“Operationally, in 2022 we achieved record production, ore tonnes processed, ore tonnes mined and underground development. Our resource base expanded considerably, with measured and indicated resources increasing by 92 per cent and inferred by 251 per cent, driven by our updated resource estimate at Kora, maiden resource at Judd and maiden resource at Blue Lake,” said John Lewins, K92’s CEO.

In November, the company achieved a record monthly ore processing rate, averaging 1,382 tpd. This exceeded the stage 2A expansion run-rate of 1,370 tpd. Also, on December 25, the company achieved a record daily mill tonnes processed of 1,714 tonnes. These records were achieved before the company commissioned a major stage 2A expansion plant flotation expansion upgrade, planned for Q2 2023.

The mining company recorded a total material mined of 287,446 tonnes during the quarter. This is a 28 per cent increase from Q4 2021.

The company achieved strong quarterly production, the second-highest on record, of 35,538 oz gold equivalent (AuEq), or 31,204 oz gold, 1,827,085 lbs copper, and 40,517 oz silver. Additionally, the company incurred cash costs of US$512/oz gold and all-in sustaining costs (AISC) of US$870/oz gold.

Read more: Calibre Mining’s execution has been very strong in Nicaragua: VIII Eight Capital

Read more: Calibre Mining well-positioned to continue organic growth through gold grade increases: Cormark Securities

K92 processed 1,323 tonnes of gold equivalent per day

K92 maintained a cash position of US$109.9 million as of Dec. 31, 2022, while remaining debt-free. In addition, they set a quarter revenue record of US$62.0 million, representing a 15 per cent increase from Q4 2021. K92 also sold 35,212 oz gold, 1,923,116 lbs copper, and 44,828 oz of silver, as well as the gold concentrate and doré inventory of 3,612 oz as of Dec. 31, 2022.

The company also maintained an operating cash flow for the three months ended Dec. 31, 2022, of US$26.6 million or US$0.11 per share, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$30.5 million.

The company also achieved a new record for annual processed ore at 448,087 tonnes, representing a 33 per cent increase from the previous year. K92 also recorded a record ore mined of 448,079 tonnes and total material mined (ore plus waste) of 994,175 tonnes during the year, increases of 40 per cent and 25 per cent from 2021, respectively.

The company saw strong results from 93 holes. These were from both underground and surface at Kora, Kora South, Judd, Judd South and Northern Deeps.

The results extended the drill deposit strike length of both the Kora-Kora South and Judd-Judd South veins systems by approximately 600 meters. Additionally, the second hole drilled at North Deeps intersected 3.08 metres at 7.18 g/t AuEq.

“Exploration outside of our resource base has made significant progress, with record thickness intersections recorded via dilatant zones that were first discovered in early 2022 at Kora South and Judd South, in addition to significant strike extensions from step-out drilling at Kora-Kora South and Judd-Judd South,” said Lewins.

Targets at Kora and Blue Lake. Image via K92 Mining.

Read more: Calibre Mining expands high-grade gold discoveries at Panteon North

Read more: Calibre Mining builds strong foundation for continued success in Nicaragua: Canaccord Genuity

K92 Mining extends ten year lease in Papua New Guinea

The drilling at Kora-Kora South and Judd-Judd South also intersected potential dilatant zone mineralization. Kora South underground hole KMDD0495 recording multiple intersections including 30.55 m (11.80 m true width) at 12.82 g/t AuEq or 4.15 g/t Au, 78 g/t Ag and 4.79 per cent Cu from the K2 vein.

K92 achieved record quarterly ore processed of 121,686 tonnes or 1,323 tonnes per day (TPD). This beat the stage 2 expansion run-rate and represented a 22 per cent increase from Q4 2021. The stage 2A expansion to 500,000 tonnes per annum progressed during the quarter. The company added a new filter press and the additional TC-1000 crusher being operational. The final major remaining expansion item, the new rougher flotation tanks, is planned to be commissioned in Q2 2023.

K92 also recently extended its mining lease at Papua New Guinea by an extra 10 years to June 2034. The board of directors approved both the stage 3 and 4 expansions. This increases the annual processing throughput to 1.2 millions of tonnes per annum (mtpa) and 1.7 mtpa respectively.

Lewins indicates the preliminary economic assessment for its stage 4 development plan outlines peak annual production of 500 kilo-ounce AuEq.

K92’s properties in Papua New Guinea. Image via K92 Mining.


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