KNT // K92 Mining Inc. // KNTNF // US OTC, alsoTSX-V
K92 Mining is a precious metals producer and operates the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea. The mine is located in the eastern Papuan Mobile Belt and in May 2017, a northern extension to the 1.65 Moz AuEq inferred Kora deposit was discovered, called Kora North. By October 2018, Kora North had increased combined Kora-Kora North resources by +60%, having defined a Measured and Indicated Resource of almost 400,000 ozs AuEq and Inferred of almost 750,000 ozs AuEq. Mining of the Kora North discovery commenced in October 2017, commercial production was declared in February 2018 and production has been rapidly expanding since then.
K92 Mining also has significant growth upside potential through exploration, both near-mine and regionally. The regional land package is largely under-explored and with a large number of high priority vein and porphyry targets already identified.
Share Structure As of December 31, 2019
242 M Fully Diluted
https://k92mining.com/wp-content/uploads/2020/04/k92-april-2020-2.pdf Management’s Discussion and AnalysisThree months ended –March 31, 2020K92 Mining Inc. Description of Business K92 Mining Inc. (the “Company”) was incorporated pursuant to the provisions of the Business Corporations Act (British Columbia) on March 22, 2010. The Company’s shares are listed on Tier 1 of the TSX Venture Exchange (“TSX-V”) under the symbol KNTand quoted on the OTCQX under the symbol KNTNF. The Company is currently engaged in the production of gold, copper and silver ofthe Kainantu Gold Mine as well as exploration and development of mineral deposits in the immediate vicinity of the mine, including Blue Lake,in Papua New Guinea. Performance SummaryOperational –Q12020 - Gold production of 19,240gold ounces or 19,934AuEq ounces in Q12020, compared to production of 19,125gold ounces or 19,788AuEq ounces inQ12019.1 - Record mill throughputof 47,313 tonnesand mine material movements of 125,500 tonnes. - Record development metresadvanced of 1,560 metres as the Company benefits from the expanded mining fleet and the completion of multiple infrastructure projects. - Cash costs averaging $708per gold ounce in Q12020versus $391per gold ounce inQ12019.2The increase in cash costsper ounceis due to adecrease in mined gradesduring the period at 13.6 g/t Au in Q1 2020. The head grade was lower than previous quarters due to a greater focus on mining the K2 vein, with gold grades in line with budget. - All-in sustaining costs averaging $886per gold ounce in Q12020versus $567per gold ounce in Q120192as a result of the higher cash cost per ounceand change in calculation method. - The Kainantu mine continues to operate during the COVID-19 pandemic, with a significant focus on health, safetyand risk mitigation.Financial –Q12020 - Generated $7.5 millionfrom operating cash flowin Q1 2020 compared to $5.8 million for Q1, 2019. - Revenue growth of 15%totaling $27.6million in Q12020compared to $24.0million in Q12019. Sales of gold concentrate increased by 2% to 18,747oz inQ12020from 18,416inQ12019resulting in $0.4millionin higher revenues and payablegold prices increased by 20% to $1,502/oz inQ12020from $1,247/oz in Q12019resulting in $4.9millionin higher revenues. - Gross marginof45%in Q1 2020compared to 61% in Q12019. - EBITDA of$9.8million inQ12020compared to$13.7million inQ12019.2 - Cash position of $21.1millionat March 31, 2020 compared to $21.6 million at December 31, 2019. During Q1, 2020,the Company paid $2.1 million in principal loan payments andspent$3.2 million in expansion capital Great interview on TFMetals. https://youtu.be/As-cM9nm8i8
K92 Mining Inc is focused on advancing the Kainantu Gold Mine, located in the Eastern Highlands province of Papua New Guinea, towards production. The Kainantu property covers a total area of approx. 410km2 and was previously mined by Highlands Pacific and Barrick Gold from 2006-2009.
After being commissioned in 2006, the processing facilities operated for a cumulative total of approximately 7000 hours (292 days) before being put on care and maintenance by Barrick Gold, who continued this care and maintenance of the mill until the sale of the project to K92.
About Papua New Guinea
- Land of large mines
Democratic government with the Prime Minister as Head of Government
Population of approximately 7 million people over a land area of 462,840 km2
Mining a major source of economic activity with multiple major mining companies operating large mines
Mining and petroleum industry contributes over one third of government tax revenue
Competitive tax and regulatory environment
Mining licenses issued under the terms of the Mining Act 1992
I think the Kainantu project is one of the most prospective in Papua New Guinea. The strength of the structures and veins are most impressive. And they contain significant high grade gold!
– ALEX DAVIDSON, K92 Mining Advisor & Former Executive Vice President Barrick Gold Corporation
Corporate presentation: https://k92mining.com/wp-content/uploads/2020/04/k92-april-2020-2.pdf