Great job KNT! Second Quarter 2020 Highlights:
Record quarterly production of 26,847 gold equivalent ("AuEq") oz, comprising 25,762 oz of gold, 531,406 lbs copper and 10,867 oz silver.
Record tonnage of 49,311 tonnes treated, a 30% increase from Q2 2019.
Cash costs of US$596/oz gold and all-in sustaining costs ("AISC") of US$678/oz gold(2).
Long hole stoping at the K1 and K2 Veins has continued to perform to design and has provided a notable positive impact on operational flexibility.
Financials
Sold 27,149 ounces of gold, 566,084 lbs of copper and 11,729 ounces of silver. Gold concentrate inventories of 3,439 ounces as of June 30, 2020, a quarterly decrease of 1,474 ounces.
Record quarterly revenue of US$47.9 million, a 105% increase from Q2 2019.
Record operating cash flow (before working capital adjustments) of US$30.3 million or US$0.14 per share and EBITDA of US$29.7 million or US$0.14 per share.
Net income of US$16.9 million or US$0.08 per share.
Balance sheet significantly strengthened, with cash increasing by US$13.1 million to US$34.7 million and debt decreasing by US$4.2 million to US$9.1 million as at June 30, 2020.
Growth
Reported an updated mineral resource for Kora, with a Measured and Indicated Resource of 1.1 million ounces at 10.45 g/t AuEq and Inferred Resource of 3.7 million ounces at 9.01 g/t AuEq, representing a +180% and +50% increase from the October 2018 resource, respectively (see May 19, 2020 Press Release -- K92 Mining Inc. Reports Significant Resource Increase at High-Grade Kora Deposit).
Surface exploration recommenced in late Q2 following lifting of the COVID-19 State of Emergency ("SOE") in Papua New Guinea, targeting nine diamond drill rigs operating by the end of Q3 2020 and ten rigs by year end.
Resumed commissioning of the Stage 2 Expansion and development of the twin incline following the lifting of the SOE. Stage 2 Expansion commissioning is expected to be completed by the end of Q3 2020.
Mine Operating Activities
Three months ended Three months ended
June 30, 2020 June 30, 2019
Operating data
Head grade (Au g/t) 17.6 16.7
Gold recovery (%) 92.1% 93.2%
Gold ounces produced 25,762 18,980
Gold ounces equiv produced (1) 26,847 19,652
Tonnes of copper produced 241 119
Silver ounces produced 10,867 6,894
Financial data (in thousands of dollars)
Gold ounces sold 27,149 18,824
Revenues from concentrate sales US$47,857 US$23,293
Mine operating expenses US$8,027 US$4,369
Other mine expenses US$6,936 US$6,339
Depreciation and depletion US$3,408 US$1,801
Statistics (in dollars)
Average realized sell price per ounce, net US$1,631 US$1,258
Cash cost per ounce US$596 US$572
All-in sustaining cost per ounce US$678 US$703