Q1 financials
BACK Articles @nasdaq/k92-mining-inc-releases-strong-2020-q1-financial-resultschannel 6 online TodayThis week by@nasdaqon 14 May 2020, 15:19 K92 Mining Inc. Releases Strong 2020 Q1 Financial Results VANCOUVER, British Columbia, May 14, 2020 (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, 2020. First Quarter 2020 Highlights: Safety Strong safety record continues, with no lost time injuries and one of the best safety records in the Australasia region since start of operations.Proactive and focused management of COVID-19, with no confirmed cases amongst employees. K92 continues to operate and has strong preventative and response plans. Production Q1 production of 19,240 oz of gold, 339,993 lbs copper and 6,937 oz silver for a total of 19,934 gold equivalent (AuEq) oz, representing the second highest quarter on record.Record material movements of 125,500 tonnes and record underground development of 1,560 metres, increasing from Q1 2019 by 110% and 215%, respectively.Commenced long hole stoping at Kainantu with the first stope from the K1 vein.Record tonnage of 47,313 tonnes treated, a 76% increase from Q1 2019.Cash costs of US$708/oz gold and all-in sustaining costs of US$886/oz gold. Financials Sold 18,747 ounces of gold, 306,993 lbs of copper and 7,165 ounces of silver for revenues of US$27,633. Gold equivalent concentrate inventories increased by 746 ounces during the quarter, to 4,913 ounces.EBITDA of US$9.8 million or US$0.05 per share and operating cash flow (before working capital adjustments) of US$12.5 million or US$0.06 per share. Growth High-grade drill results continue to be reported at Kora North, which will contribute to our upcoming resource expected in May 2020 and Stage 3 Expansion PEA.Record stockpile of 17,982 tonnes built ahead of the plant expansion commissioning. For complete details of the annual audited consolidated financial statements and associated managements discussion and analysis, please refer to the Companys website or profile on SEDAR (www.sedar.com). All amounts are in U.S. dollars unless otherwise indicated. John Lewins, K92 Chief Executive Officer and Director, stated,The first quarter demonstrated the tremendous growth potential of the Kainantu Mine, both operationally and through exploration. Operationally, the completion of infrastructure projects and fleet expansions in prior quarters delivered record material movements and development rates. The development rates, importantly, are consistent with the advance rates required long-term and material movements have built stockpiles for over one month of process plant production. Production from our first long hole stope on the K1 vein also commenced during the quarter and represents a major milestone. Long hole stoping to date has performed well, and we are very encouraged by the enhanced operational flexibility that comes with this mining method. On exploration, we continued to deliver high-grade step-out and infill results from both underground and surface drilling at Kora North. Since the latest resource estimate in Q4 2018, step-out drilling has consistently intersected the structure along strike to the South, to depth and up-dip. Mining has also steadily delivered positive grade and tonnage reconciliations. We look forward to providing our updated resource estimate in the near-term and a Preliminary Economic Assessment (PEA) on the Stage 3 Expansion shortly thereafter. Most importantly, I would like to acknowledge the outstanding commitment of our workforce and the strong support from Government during the COVID-19 pandemic environment. Mine Operating ActivitiesThree months endedThree months endedMarch 31, 2020March 31, 2019Operating dataHead grade (Au g/t)13.623.6Gold recovery (%)93.0%93.7%Gold ounces produced19,24019,125Gold ounces equivalent produced(1)19,93419,788Tonnes of copper produced154120Silver ounces produced6,9375,564Financial data (in thousands of dollars)Gold ounces sold18,74718,416Revenues from concentrate salesUS$27,633US$23,994Mine operating expensesUS$7,716US$4,369Other mine expensesUS$5,951US$3,435Depreciation and depletionUS$1,556US$1,517Statistics (in dollars)Average realized selling price per ounce, netUS$1,502US$1,247Cash cost per ounceUS$708US$391All-in sustaining cost per ounceUS$886US$567 Notes: Gold equivalent for 2020 based on the following prices: gold $1,500 per ounce; silver $17.75 per ounce; and copper $2.70 per pound. Gold equivalent for 2019 based on the following metal prices: gold $1,300 per ounce; silver $16.50 per ounce; and copper $2.90 per pound. The Company provides some non-international financial reporting standard measures as supplementary information that management believes may be useful to investors to explain the Companys financial results.Please refer to non-IFRS financial performance measures in the Companys managements discussion and analysis dated May 14, 2020, 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. Updated Guidance The Company is withdrawing its full-year 2020 production guidance as a result of timing uncertainty related to international travel for commissioning of our Stage 2 Plant Expansion due to the COVID-19 National State of Emergency declared in Papua New Guinea on March 20, 2020. Once clarity on timing is reached, we will provide updated guidance. The Kainantu Mine continues to operate at the Stage 1 plant throughput with modifications made to mine sequencing already implemented to increase cash flow. There are no confirmed cases of COVID-19 within our workforce and we are encouraged by the progressive relaxing of r