K92 MINING Inc in PNG records cash balance of US$71 million

 K92 MINING Inc in Kainantu , Papua New Guinea has a record cash balance of US$71 million (about K250 million) and no debt and is well positioned to fund its growth and exploration, chief executive officer John Lewins says.

In a 2021 financial year report released on Wednesday, Lewins said last year represented another major step forward for the miner.

“Operationally, Kainantu delivered record throughput, production and finished the year particularly strong,” he said.

Lewins said the fourth quarter also provided its most complete quarter to date, including record production, mine throughput, mill throughput, strong metallurgical recoveries, low all-in sustaining costs of US$672 (about K2,366) per ounce (oz) and a positive grade reconciliation to the resource model.

This resulted in the Kainantu operation doing better than its updated guidance on both production and costs.

“In terms of production growth, we achieved the Stage 2 Expansion run-rate of 400,000 tpa (tonnes per annum (1,100 tonnes per day (tpd)) in late third quarter and in early fourth quarter, announced a Stage 2A plant expansion to increase throughput another 25 per cent, as the mill has continued to show that it is capable of operating at much higher throughput rates,” he said.

Lewins said the fourth quarter recorded 21 days with throughput exceeding 1,300 tpd and a daily record of 1,538 tonnes.

Commissioning is expected for Stage 2A in the second half of 2022, at a plant expansion capital cost of approximately US$2.5 million (about K8.8 million).


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