K92 Mining Reports Strong Q1 Growth and Progress in Expansions
K92 Mining has released its financial and operational results for the first quarter ended March 31, 2024, showcasing substantial growth and operational advancements. The company reported a 39% increase in gold equivalent production, achieving 27,462 ounces, and processed a record amount of ore, indicating robust operational capabilities.
Financially, K92 remains in a strong position with $73.4 million in cash and treasury bills, maintaining a debt-free status. The quarterly revenue surged by 48% to $59.8 million compared to Q1 2023, with operating cash flow reaching $20.0 million. The company also reported an EBITDA of $17.6 million, translating to $0.07 per share.Significant progress was noted in the company’s expansion projects. Stage 3 and 4 Expansions are well underway with 52% of the growth capital already spent or committed. The construction of the 1.2 million tonnes per annum Stage 3 Process Plant, handed over to GR Engineering, is now targeting a commissioning date in late April 2025. This slight delay is attributed to an extended rainy season, although the financial impact remains minimal.
Moreover, K92 initiated the electrification of two raise bore rigs for the underground development, which are set to begin operations soon. The development of a new ventilation raise and the commencement of the first waste/ore pass are scheduled for the coming months, reinforcing the company’s infrastructure to support sustained long-term growth.
In exploration, the first drilling results from the Arakompa project have been promising, with significant mineralization encountered. This highlights the potential for bulk mining due to the extensive mineralized zone, which has been underexplored for over three decades.
