K92 Mining Announces Strong 2023 Q4 and Annual Financial Results – Record

VANCOUVER, British Columbia, April 01, 2024 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce financial results for the three and twelve months ended December 31, 2023.

Production
Fourth Quarter 2023

• Record quarterly production of 39,101 ounces gold equivalent (“AuEq”), or 33,309 oz gold, 2,728,623 lbs copper and 56,502 oz silver ^{(1) (2)}.

• Cash costs of US$430/oz gold, second lowest to date, and all-in sustaining costs (“AISC”) of US$1,062/oz gold ⁽²⁾.

• Record quarterly ore processed of 151,908 tonnes or 1,651 tonnes per day (“tpd”), 21% greater than the Stage 2A Expansion run-rate and a 25% increase from Q4 2022.

• Record daily throughput achieved on November 19^th of 2,320 tonnes, and a 7-day throughput record achieved in November averaging 2,136 tpd, 69% and 56% greater than the Stage 2A Expansion plant design rates, respectively ⁽³⁾. The records demonstrate not only a significant immediate opportunity with the Stage 2A plant having considerably greater capacity than expected, but also the potential for the Stage 3 Expansion process plant, which is based on the same design throughput parameters, for significantly greater capacity than its 1.2 million tpa (“tonnes per annum”) design.

• Record amount of ore mined of 155,062 tonnes and record total mined material (ore plus waste) of 347,529 tonnes, a 39% and 21% increase from Q4 2022, respectively.

Full Year 2023

• Strong annual production of 117,607 ounces AuEq or 100,533 oz gold, 7,690,477 lbs copper and 160,628 oz silver, beating updated guidance range of 111,000 to 116,000 oz AuEq.

• Cash costs of US$585/oz gold and AISC of US$1,162/oz gold, beating original guidance ranges for cash cost of $620 to $680/oz gold, and AISC of $1,180 to $1,300/oz gold ⁽²⁾.

• Record annual ore processed of 503,484 tonnes, a 12% increase from 2022.

• Record annual ore mined of 506,318 tonnes, a 13% increase from 2022.

• Strong recoveries achieved during the year of 91.5% for gold and 92.8% for copper.

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Financials

Fourth Quarter 2023

• Record quarterly revenue of US$75.3 million, an increase of 22% from Q4 2022.

• Record net income of US$20.0 million or $0.09 per share, a 51% increase from Q4 2022.

• Strong cash and treasury bill position of US$79.1 million as of December 31, 2023 while remaining debt-free.

• Sales of 33,273 oz gold, 3,061,956 lbs copper and 63,301 oz of silver. Gold concentrate and doré inventory of 5,285 oz as of December 31, 2023, a decrease of 781 oz over the prior quarter.

• Record operating cash flow (before working capital adjustments) for the three months ended December 31, 2023, of US$38.6 million or US$0.16 per share, and record earnings before interest, taxes, depreciation and amortization (“EBITDA”) ⁽²⁾ of US$40.7 million or US$0.17 per share.

Full Year 2023

• Record annual revenue of US$200.3 million, an increase of 6% from 2022.

• Annual net income of US$33.2 million or $0.14 per share.

• Annual sales of 97,355 oz gold, 7,512,951 lbs copper and 159,202 oz of silver.

• Record operating cash flow (before working capital adjustments) for the twelve months ended December 31, 2023, of US$82.1 million or US$0.35 per share, and record earnings before interest, taxes, depreciation and amortization of US$84.1 million or US$0.36 per share ⁽²⁾.

Growth

• During the quarter, K92 announced its updated Kora and Judd resource estimates. The updated Kora resource estimate reported a Measured and Indicated Resource of 2.3 million ounces at 10.24 g/t AuEq and an Inferred Resource of 3.9 million ounces at 8.60 g/t AuEq, representing increases of +8% and +58% from the previous resource estimate respectively. The updated Judd resource estimate reported a Measured and Indicated Resource of 0.35 million ounces at 8.68 g/t AuEq and Inferred Resource of 0.56 million ounces at 7.72 g/t AuEq, representing increases of +167% and +211% respectively.

• Subsequent to year end, results from the first two holes from K92’s maiden drill program at the Arakompa project recorded significant near-surface mineralization, with 4 high-grade lodes intersected in hole KARDD0002. Between the high-grade lodes, the tonalite to dioritic host rock is overprinted with porphyry style mineralization increasing the potential for bulk mining. The target size of Arakompa is very large, with mineralization demonstrated from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within a ~150-225 m wide mineralized intense phyllic altered package, and exhibits a vertical extent of +500 m. Arakompa is sparsely drilled, with K92’s maiden drill results representing the first drilling on the project completed in 32 years. A total of 18 holes were drilled historically, with the vast majority shallow. Highlights from the…