RE:K92 Mining Announces Strong Q1 Production ResultsAs a serious investor I am impressed by K92 Q1, 2022 production results, But I raise a concern about the Financial results that will reflect this Q1, 2022 operating performance: - The gold head grade has clearly been considerably lower than in the previous 3 quarters.
Reasoning:
- Tons processed has been rising as phase 2A operations is settling-in...
Q4, 2021 99,713 and Q1, 2022 99,611 with a 2 day shorter quarter - Copper pounds produced was significantly increased
Q4, 2021 1,524,827 and Q1, 2022 1,048,100 pounds - Silver ounces produced was similar to Q4, 2021
Q4, 2021 28,218 and in Q1, 2022 28,142
But since Gold Equiv. oz produced was significantly different in Q1, 2022 vs. Q4, 2021 we can reach the conclusion that Gold Grade was significantly lower in Q1, 2022.
Gold Equiv. oz. Sold (Q1, 2022 28,188 vs. 36,145 in Q4, 2021) This is not a longer range problem, but Financial performance in Q1, 2022 might disappoint the "Headlines reader".
NOTE: Gold produced (Q1, 2022 24,152 vs. 33,220 in Q4, 2022) and Gold Equiv. produced (Q1, 2022 28,188 vs. Q4, 2021 36,145)
We can all do the math and therefore Cash Costs and AISC can be expected to be higherr in Q1, 2022 than the excellent figures recorded in Q4, 2021, taking into account the higher copper content contribution in Q1, 2022.
The management of feed mix is a strategic operating element in overall operating management and K92 mining deliberately processed an average Gold Head grade of 8.5 in 1, 2021. The Gold head grade in Q4, 2021 was 11.2 and the average Equiv. Head grade was 12.1 in the same quarter. This post is provided as a "heads up" onto colleague BB posters on my anticipation of temporarily higher Cash costs and AISC costs and lower Qtr. to Qtr. Earnings in Q1, 2022.
Reserves update when released by K92 Mining during year 2022 will be great IMHO,
Peace,
Good Decision-making to All,
ElJ