RE:New Press Release - K92 Mining Announces Q3 Production Results With Multiple Mill Throughput Records and First Ore Mined From the Twin Incline Area 2 Months Earlier Than ExpectedA personal overall observation…these Q3, 2023 operating results, reflect what is sometimes mining reality (a poor quarter vs. projections and expectations). The published Quarter results reflect a very challenging, but reasonably managed situation, impacted from the safety incident on June 28 which very regrettably resulted in Two Fatalities (reference June 28, 2023 and July 6, 2023 press releases), which resulted in the suspension of underground mining for 9 days and lead to the processing of significantly more than budgeted lower grade stockpiles.
Extracted Summary (for easy reference) from published operating results:
........................................... Q1, 2023...............Q2, 2023...............Q3, 2023
Gold Equiv. Produced ozs. 21,488 30,794 26,225
Gold ozs. Produced 17,593 27,405 22,227
Avg. Gold Head Grade g/t 5.21 8.2 6.20
Avg. Gold Equiv. Grade 6.35 9.23 7.32
Gold Sold ozs. 17,602 28,141 18,339
Copper Sold lbs. 1.5 M 1.657 M 1.25 M
Silver Sold ozs. ? 36,253 30,484
Price of Gold realized $US $1,807 $1,883 $ N/A (yet)
Net Income / share $0.021 $0.0375 $0.02 est. by ElJ
EBIDTA / share $0.06 $0.0921 $0.06 est. by ElJ
Note 1: I anticipate, with modest assumptions on unreleased financial details, that Net Income per share for Q3, 2023, will be $0.02 based on rounding from approx. $0.023
Note 2: I anticipate with similar modest assumptions on unreleased financial details, that EBIDTA per share for Q3, 2023, will be $0.06 based on rounding from approx. $0.058.
Colleague BBoard posters can read the published results and form personal assessments and conclusions, including future projections, as well as I can. The key highlights that I extracted included:
· Exploration, driven by the very promising results to date from our vein and porphyry drill programs has been increased to $20 million (originally $13 million to $16 million).
· Two ore drives on the 840 Level have advanced ~7 metres to the south and north, with multiple high grade faces from channel samples recorded including: Southern Drive – 4.6 m at 14.89 g/t AuEq and 6.8 m at 11.77 g/t AuEq, and; Northern Drive – 4.3 m at 7.19 g/t AuEq. Targeted diamond drilling of this area will commence shortly, and mining Kora via the twin incline is planned to commence in December.
· A new monthly record in September averaging 1,542 tonnes per day (“tpd”) compared to Stage 2A Expansion annual average run-rate target of 1,370 tpd, and a new daily record on September 28 of 1,867 tpd(3 Subsequent to quarter end, several new daily records of 1,902, 1,921 and 2,027 tonnes processed(3) were achieved on October 6, 8 and 10, respectively.
· In the third quarter, the mine delivered another material movement record despite operations being impacted in July due to the safety incident, with 124,236 tonnes of ore mined and 305,506 tonnes of total material mined (ore plus waste).
· Updated 2023 company production guidance… now 111,000 to 116,000 oz AuEq (originally 120,000 to 140,000 oz).
Peace,
Good Decision-making to all,
ElJ