K92 Mining, the operator of the Kainantu gold mine in Eastern Highlands, Papua New Guinea has announced strong financial results for the third quarter.
K92 also reported revenue of US$36.4 million (about K 124.93 million), net income of US$3.1 million (about K10.64 million) and operating cash flow of US$12.8 million (about K43.93 million).
Chief executive and director John Lewins said the third quarter represented “yet another major step forward for the company.”
“Operationally, Kainantu delivered one of our most complete quarters to date, with near-record production, development, record ore processed, and record ore mined,” he said.
A major positive from the mine over the last several quarters has been the process plant and was once again for the third quarter.
Ore tonnes processed increased 35 per cent from the third quarter of last year and was significantly higher than the stage two expansion run-rate.
Lewins said that in August, Kainantu realised Stage 2A expansion processing throughput, “ahead of the completion of the flotation cells, the last major plant upgrade, highlighting the potential for the process plant’s ultimate throughput to exceed design.”
He said the quarter delivered a major growth milestone, with the completion of the integrated development plan outlining a Stage 3 definitive feasibility study and an alternative stage 4 preliminary economic assessment case.
“Both cases demonstrated Tier 1 production and costs, and strong economics.” Stage 3 and Stage 4, represent major capital investments into Papua New Guinea, with a total life of mine capital investment for Stage 4 of K2.15 billion.
Lewins on the financial results conference call, highlighted the investment bank analyst visit to PNG on Oct 19-20, stating that he believed the analysts were impressed at how the operation had progressed since their last visit.
Statement/TheNational/PacificMiningWatch