- For the three months ended March 31, K92 produced 19,125 gold ozs or 19,778 gold equivalent (AuEq) oz for the year at a cost of US$377/gold oz or US$395/gold equivalent oz and an all-in sustaining cost of US$533/gold oz or US$545/AuEq oz1
- Head grade of 23.6 g/t AuEq
- Revenue less Cost of Sales for the three months ended March 31, 2019, was US$14,672,640
- Initial production guidance for 2019 expected to be between 68,000 and 75,000 AuEq oz
For complete details of the annual audited consolidated financial statements and associated management's discussion and analysis, please refer to the company's filings on SEDAR. All amounts are in U.S. dollars unless otherwise indicated.
VANCOUVER, British Columbia, May 08, 2019 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSXV: KNT; OTCQB: KNTNF) is pleased to announce results from its financial statements for the three months ended March 31, 2019.
This first quarter of 2019 saw record production of 19,778 oz AuEq from the Kora North deposit with Cash Costs of US$377/gold oz or US$395/AuEq oz and all-in sustaining costs (“AISC”) of US$533/gold oz or US$545/AuEq oz. Revenue for this first quarter was US$23,994,173 and a gross margin US$14,672,640.
John Lewins, K92 Chief Executive Officer and Director, stated, “The first quarter of 2019 was a record for K92 in multiple aspects, just under 20,000 oz AuEq produced, Cash Costs below US$400/oz AuEq, AISC below US$550/oz AuEq and revenue of almost US$24 million. As a result, there was a significant increase in cash on hand even while we repaid 4,771 Au oz million in gold loans and invested over US$3 million in sustaining capital, expansion and exploration. Production continues to meet expectations in the second quarter of 2019.”
MINE OPERATING ACTIVITIES
|Three months ended|
|March 31, 2019|
|Head grade (Au g/t)||23.6|
|Gold Recovery (%)||93.7%|
|Gold ounces produced||19,125|
|Gold ounces equivalent produced (1)||19,788|
|Pounds of copper produced||264,114|
|Silver ounces produced||5,564|
|Financial data (in thousands of dollars)|
|Revenues -- gold sales||US$23,994|
|Mine operating expenses||(US$7,674)|
|Depreciation and depletion||(US$1,517)|
|Statistics (in dollars)|
|Average realized selling price (per ounce)||US$1,247|
|Cash cost (per AuEq) (1)||US$395|
|All-in sustaining cost (per AuEq) (1)||US$545|
Review of financial results
The Company's net income for the three months ended March 31, 2019, totalled US$5,100,166, or income per share of US$0.03 compared with US$3,317,070 or US$0.02 per share for the three months ended March 31, 2018.
(1) The Company provides some non-international financial reporting standard measures as supplementary information that management believes may be useful to investors to explain the Company's financial results. Please refer to non-IFRS financial performance measures of the Company's management's discussion and analysis dated May 7, 2019, available on SEDAR for reconciliation of these measures.
K92 has not based its production decisions on mineral reserve estimates or feasibility studies, and historically such projects have increased uncertainty and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
K92 mine geology manager and mine exploration manager, Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this MD&A. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings, and discussing work programs and results with geology and mining personnel.
For further information regarding the Kainantu gold mine, please refer to the technical report dated January 8, 2019, and entitled, "Independent Technical Report, Mineral Resource Estimate Update and Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu Project, Papua New Guinea," available on SEDAR.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact Investor Relations at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events, or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.