K92 Mining Inc. Releases 2019 Q2 Financial Results, Increases 2019 Production Guidance and Decreases 2019 Cost Guidance
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
www.k92mining.com
NEWS RELEASE
August 15, 2019 Vancouver, British Columbia
K92 MINING INC. RELEASES 2019 Q2 FINANCIAL RESULTS, INCREASES 2019
PRODUCTION GUIDANCE AND DECREASES 2019 COST GUIDANCE
• For the three months (brackets six months) ended June 30, 2019, K92 sold 18,824
(37,240) gold o z for the period at a cost of US$551/oz1 ($472/oz1) and an all -in
sustaining cost (AISC) of US$681/oz1 (US$618/oz1)
• Head grade of 16.7 g/t Au (six months ended June 30, 2019 – 19.6 g/t Au)
• Revenue less Cost of Sales for the three months (brackets six months) ended June 30,
2019 was US$10,784,119 ($25,456,759)
• Increased production guidance for 2019 to 72,000 to 80,000 gold equivalent (AuEq)
oz (originally 68,000 to 75,000 AuEq oz).
• Decreased cost guidance for 2019 to cash costs of $560/oz 1 to $600/oz 1 (originally
$580/oz1 to $620/oz1) and AISC of $720/oz1 to $760/oz1 (originally $780/oz1 to $820/oz1)
K92 Mining Inc. (“K92” or the “ Company”) (TSXV: KNT; OTCQB: KNTNF) is pleased to
announce results from its financial statements for the three and six months ended June 30, 2019.
This second quarter of 2019 saw record tonnes processed, producing 19,652 oz AuEq from the
Kora North deposit with cash costs of US$551/gold oz and AISC of US$681/gold oz. Revenue
for the second quarter was US$23,293,370 with a gross margin US$10,784,119.
For complete details of the consolidated interim financial statements and associated management's
discussion and analysis, please refer to the Company's profile on SEDAR (www.sedar.com). All
amounts are in U.S. dollars unless otherwise indicated.
John Lewins, K92 Chief Executive Officer and Director, stated, “The second quarter of 2019 was
a record for K92 in terms of tonnes processed. K92 produced just under 20,000 oz AuEq for the
quarter and just under 40,000 oz AuEq for the year -to-date, putting us ahead of our production
guidance and below the cost guidance provided at the beginning of the year. As a result, K92 has
increased its production guidance to between 72,000 and 80,000 AuEq ounces and decreased its
all-in sustaining cost guidanc e to $720 to $760/oz from $780 to $820/oz gold . Production
continues to meet revised expectations in the third quarter of 2019.”
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MINE OPERATING ACTIVITIES
Three months ended Six months ended
June 30, 2019 June 30, 2019
Operating data
Head grade (Au g/t) 16.7 19.6
Gold recovery (%) 93.2% 93.4%
Gold ounces produced 18,980 38,106
Gold ounces equivalent produced (1) 19,652 39,437
Pounds of copper produced 261,800 525,900
Silver ounces produced 6,894 12,458
Financial data (in thousands of dollars)
Gold ounces sold 18,824 37,240
Revenues from gold sales US$23,680 US$46,654
Mine operating expenses US$10,679 US$18,353
Depreciation and depletion US$1,801 US$3,317
Statistics (in dollars)
Average realized selling price per ounce, net US$1,258 US$1,253
Cash cost per ounce (1) US$551 US$472
All-in sustaining cost per ounce (1) US$681 US$618
Review of financial results
Net income
The Company's net income for the three months ended June 30, 2019, totalled US$5,288,706, or
income per share of US$0.03 compared with US$4,071,596 or US$0.02 per share for the three
months ended June 30, 2018.
Operating Cash Flow
The Company’s operating cash flow for the six months ended June 30, 2019 totalled
US$15,551,272 or US$0.08 per share compared with US$8,923,410 or US$0.05 per share for the
six months ended June 30, 2018. Operating cash flow before working capital adjustments for the
six months ended June 30, 2019 totalled US$24,781,013 or US$0.13 per share compared with
US$10,210,147 or US$0.05 per share for the six months ended June 30, 2018.
Notes
(1) The Company provides some non -international financial reporting standard measures
as supplementary information that management believes may be useful to investors to
explain the Company's financial results. Please refer to non -IFRS financial
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performance measures of the Company's management's discussion and analysis dated
August 14, 2019, available on SEDAR, for reconciliation of these measures.
K92 has not based its production decisions on mineral reserve estimates or feasibility studies, and
historically such projects have increased uncertainty and risk of failure. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Qualified Person
K92 mine geology manager and mine exploration manager, Andrew Kohler, PGeo, a qualified
person under the meaning of Canadian National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and is responsible for the technical content of this news release.
Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face
sampling, underground workings, and discussing work programs and re sults with geology and
mining personnel.
For further information regarding the Kainantu gold mine, please refer to the technical report dated
January 8, 2019, and entitled, "Independent Technical Report, Mineral Resource Estimate Update
and Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu Project,
Papua New Guinea," available on SEDAR.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact Investor Relations at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news
release includes certain “forward -looking statements” under applicable Canadian securities
legislation. Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while c onsidered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward -looking statements. All statements
that address future plans, activities, events, or developments that the Company believes, expects
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Project, expectations of
future cash flows, the planned plant expansion, production results, cost of sales, sales of
production, potential expansion of resources and the generation of further drilling results which
may or may not occur. Forward -looking statements and information contained herein are based
on certain factors and assumptions regarding, among other things, the market price of the
Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount
of future exploration and development, capital and operating costs, the availability of financing,
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the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment
or processes to operate as anticipated, accidents, labour disputes, c laims and limitations on
insurance coverage and other risks of the mining industry, changes in national and local
government regulation of mining operations in PNG, and regulations and other matters.. There
can be no assurance that such statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward -looking statements. The Company disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.