K92 Mining Announces 2024 Q4 and Annual Financial Results – Record Quarterly Net Income, Operating Cash Flow, EBITDA, Metal Sold, Production and Recoveries; Annual Production, Cash Cost and AISC, All Better Than Guidance
VANCOUVER, British Columbia, March 17, 2025 (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, 2024.
ProductionFourth Quarter 2024
Record quarterly production of 53,401 ounces gold equivalent ("AuEq"), or 51,371 oz gold, 958,312 lbs copper and 41,992 oz silver (1) (3), representing a 37% increase from Q4 2023.
Cash costs of US$483/oz gold, and all-in sustaining costs ("AISC") of US$837/oz gold (3).
Quarterly ore processed of 96,614 tonnes or 1,050 tonnes per day ("tpd"), with a head grade of 18.0 grams per tonne ("g/t") AuEq, or 17.3 g/t gold, 0.47% copper, and 15.2 g/t silver. AuEq head grade in Q4 was the highest since Q2 2020, benefiting from a combination of higher-grade stopes from Kora and Judd, plus a notable positive gold grade reconciliation and moderate positive copper grade reconciliation versus the latest independent mineral resource (effective date of September 12, 2023 for Kora and Judd). Throughput was deliberately reduced to maximize recoveries at the higher feed grade.
Record metallurgical recoveries in Q4 of 96.4% for gold and near-record recoveries of 94.7% for copper, with December achieving record monthly gold recoveries of 97.1% and copper recoveries of 96.1%.
Ore mined of 97,016 tonnes, with total material movements (ore plus waste) second highest on record, totaling 306,430 tonnes.
Full Year 2024
Record annual production of 149,515 ounces AuEq, or 139,123 oz gold, 4,926,738 lbs copper, and 142,009 oz silver, increasing 27% from 2023 and significantly exceeding the production guidance range of 120,000 to 140,000 ounces AuEq.
Cash costs of US$664/oz gold and AISC of US$1,066/oz gold, significantly beating guidance ranges for cash cost of US$820 to US$880/oz gold, and AISC of US$1,440 to US$1,540/oz gold (3).
Strong metallurgical recoveries achieved during the year of 94.6% for gold and 94.1% for copper.
Ore processed of 427,821 tonnes for the year, with a head grade of 11.5 g/t AuEq, or 10.7 g/t gold, 0.55% copper, and 15.2 g/t silver.
Ore mined of 419,611 tonnes for the year, with total material movements (ore plus waste) of 1,080,485 tonnes.
Financials
Fourth Quarter 2024
Near-record quarterly revenue of US$120.3 million, an increase of 60% from Q4 2023.
Record quarterly net income of US$55.5 million or US$0.23 per share, an increase of 178% from Q4 2023.
Record cash, cash equivalent and term deposits totaling US$141.3 million, which excludes restricted cash position of US$20.5 million (5).
Record sales of 48,851 oz gold, 954,657 lbs copper and 42,088 oz silver. Gold concentrate and doré inventory of 4,961 oz as of December 31, 2024, an increase of 3,074 oz over the prior quarter.
Record operating cash flow (before working capital adjustments) for the three months ended December 31, 2024, of US$72.0 million or US$0.30 per share, and record earnings before interest, taxes, depreciation and amortization ("EBITDA") (3) of US$84.2 million or US$0.35 per share, an 87% and 107% increase from Q4 2023, respectively.
Full Year 2024
Record annual revenue of US$350.6 million, an increase of 75% from 2023.
Record annual net income of US$111.2 million or US$0.47 per share, an increase of 235% from 2023.
Record annual sales of 141,159 oz gold, 5,051,087 lbs copper and 145,428 oz of silver.
Record operating cash flow (before working capital adjustments) for the twelve months ended December 31, 2024, of US$170.4 million or US$0.72 per share, and record earnings before interest, taxes, depreciation and amortization of US$196.5 million or US$0.83 per share (3), a 108% and 134% increase from 2023, respectively.
Growth
On the Stage 3 and 4 Expansions, 70% of growth capital has been either spent or committed as of December 31, 2024. Construction of the 1.2 million tpa ("tonnes per annum") Stage 3 Expansion Process Plant is rapidly advancing, with a majority of the long-lead time items on site for the process plant and construction most advanced at the grinding circuit (SAG + Ball), which is the critical path for the mill construction schedule. K92 remains on track to begin commissioning of the Stage 3 Expansion Process Plant in the second half of Q2 2025. For the paste plant, all long lead items have been ordered and the award of the construction contract is well advanced. Underground, the two raise bore rigs are operational, with reaming of the first raise (5 m diameter) completed to upgrade ventilation to the main mine. Development of the first waste/ore pass connecting the main mine to the twin incline to improve productivity in material handling has been completed and expected to be fully operational in mid-2025.
Strong results during the quarter from 95 diamond drill holes that were reported from underground and surface at the Kora, Kora South, Judd, and Judd South deposits in addition to Kora and Judd Deeps. The results identified multiple high-grade intersections plus two zones of broadening widths, known as dilatant zones, recorded in a previously sparsely drilled area near the twin incline at Kora. These zones exhibit significant strike lengths with approximately 60 metres in K1 and 100 metres in K2, indicating high potential for bulk mining. Located about 175 metres south of the current 950 Level access development, these zones offer potential for near-term mining.
Significant dilatant zone intercepts:
KMDD0752: 13.50 m at 19.02 g/t AuEq or 14.93 g/t Au, 199 g/t Ag, 1.00% Cu (K2 Dilatant Zone) (4)
KMDD0746: 14.40 m at 12.09 g/t AuEq or 9.58 g/t Au, 54 g/t Ag, 1.15% Cu (K2 Dilatant Zone)
KMDD0709: 16.10 m at 15.63 g/t AuEq or 11.48 g/t Au, 40 g/t Ag, 2.28% Cu (K1 Dilatant Zone)
KMDD0743: 14.05 m at 5.56 g/t AuEq or 3.14 g/t Au, 56 g/t Ag, 1.07% Cu (K1 Dilatant Zone)
High-grade intercepts:
KMDD0698A: 8.15 m at 24.49 g/t AuEq or 24.00 g/t Au, 16 g/t Ag, 0.18% Cu (K1 Vein)
KMDD0775: 4.00 m at 15.58 g/t AuEq or 11.53 g/t Au, 44 g/t Ag, 2.19% Cu (K1 Vein)
High-grade extensions up-dip from main underground mining area in Kora's K1 and K2 Veins:
KMDD0753: 10.60 m at 34.57 g/t AuEq or 27.85 g/t Au, 37 g/t Ag, 3.91% Cu (K1 Vein)
KMDD0702: 4.37 m at 33.27 g/t AuEq or 32.16 g/t Au, 10 g/t Ag, 0.61% Cu (K1 Vein)
KMDD0754: 9.35 m at 13.70 g/t AuEq or 11.51 g/t Au, 12 g/t Ag, 1.27% Cu (K2 Vein)
KMDD0705: 6.60 m at 10.76 g/t AuEq or 7.27 g/t Au, 12 g/t Ag, 2.08% Cu (K2 Vein)
Judd's J1 Vein reported multiple high-grade zones up-dip from main mine and high-grade intercepts were identified beyond the current resource at Judd Deeps and along strike in both directions:
JDD0251: 5.00 m at 178.59 g/t AuEq or 177.69 g/t Au, 2 g/t Ag, 0.54% Cu (J1 Vein Up-dip)
JDD0258: 3.95 m at 51.67 g/t AuEq or 50.06 g/t Au, 24 g/t Ag, 0.81% Cu (J1 Vein Up-dip)
KMDD0729: 1.30 m at 23.33 g/t AuEq or 16.77 g/t Au, 52 g/t Ag, 3.69% Cu (J1 Vein Deeps)
JDD0261: 1.70 m at 23.20 g/t AuEq or 21.63 g/t Au, 42 g/t Ag, 0.65% Cu (J1 Vein North)
See the Company's news release dated December 3, 2024 for additional details.
Subsequent to quarter's end, K92 reported results from the fourth set of drill holes from its maiden drill program at the Arakompa project, bringing the total number of holes reported for the year to 43. The 13 recent holes confirmed two significant thick high-grade veins, AR1 and AR2, extended the strike 150 metres south, and expanded the bulk zone, now defined over 900 metres of strike length and to a vertical depth of 650 metres. Drill results to date indicate an average bulk zone true thickness of 48 metres, reinforcing the project's strong bulk mining potential. Exploration activity has ramped up from one rig in Q1 2024 to four rigs currently operating, with a new compact heli-portable rig scheduled to arrive in mid-2025. This addition will significantly enhance our ability to efficiently target Arakompa's northern extension, unlocking a new front for exploration. K92 is on track to deliver a maiden mineral resource estimate for Arakompa by mid-2025. Key highlights from the fourth set of drill results include:
AR1 and AR2 Veins have been defined to a depth of over 500 metres and at significant strike lengths of approximately 675 and 775 metres, respectively. Both veins are open in multiple directions, recording a substantial average true thickness from drilling ...
