K92 Mining posts record Q1 results, beats mill expansion targets

Mill sets multiple new throughput records in March

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K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF) exceeded the capacity of its newly expanded mill and posted record production results in the first quarter of 2023.

On Monday, the company reported record production and financial results for the first quarter of 2023 on Monday, including multiple new highs at its mill in Papua New Guinea. It also said it achieved strong safety and operating performance at its Kainantu gold mine while working through the COVID-19 pandemic, it said in a statement.

K92 set a record monthly processing rate of 1,490 tonnes per day in March, exceeding the Stage 2A mill expansion design by nine per cent. The company also achieved multiple new daily records, including processing 1,815 tonnes on March 11. For the quarter, K92 processed 1,310 tonnes per day, up 18 per cent from the first quarter of 2022. However, the head grade was below budget as underground mining encountered difficult ground conditions, impacting near-term mining.

Production for the three months totalled 21,488 gold equivalent ounces, including 17,593 ounces of gold, 1.65 million pounds of copper and 29,859 ounces of silver.

Read more: K92 Mining sets new production records despite numerous mechanical setbacks

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

The company moved a total of 277,534 tonnes of material, up 33 per cent from the first quarter of 2022.

K92 generated $40.4 million in revenue from selling 17,602 ounces of gold, 1.54 million pounds of copper and 29,164 ounces of silver. The company realized net income of $5 million or two cents per share. Operating cash flow amounted to $16.5 million or seven cents per share, while earnings before interest, taxes, depreciation and amortization totalled $14.8 million or six cents per share.

The company remains in a solid financial position with $88.6 million in cash and working capital of $117.3 million. It also invested $23.5 million in capital projects during the quarter.

K92 continued advancing its Stage 2A mill expansion to 500,000 tonnes per year, with new rougher flotation cells being commissioned in the second quarter, it said. Strong drill results were also reported from its Kora, Kora South, Judd, Judd South and Northern Deeps deposits.

K92 chief executive John Lewins said the first quarter demonstrated the potential to exceed the Stage 2A design rate. He added that milling operations continue to set records and underground operations are "making solid improvements" this quarter to bolster flexibility, positioning the miner for a "strong second half."

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