VANCOUVER, British Columbia, March 27, 2020 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92” or the “Company”) (TSXV: KNT; OTCQB: KNTNF) is pleased to announce results from its financial statements for the three and twelve months ended December 31, 2019.Fourth Quarter 2019 HighlightsRecord quarterly cash costs of US$461 per gold ounce and all-in sustaining costs (AISC) of US$658 per gold ounce.Record quarterly gold equivalent (AuEq) production of 23,646 AuEq ounces, exceeding budget by 30% and increasing 23% from the third quarter.Record quarterly revenue totaling US$33.4 million, increasing 59% from the third quarter. The financial results do not include 4,167 oz of gold ounces held in inventory, which was sold in January due to longer concentrate drying times.Record net income for the three months ended December 31, 2019 of US$22.5 million or US$0.10 per share.Record operating cash flow (before working capital adjustments) for the three months ended December 31, 2019 of US$18,061,639 or US$0.09 per share.Record quarterly gross margin of 58%.Full Year 2019 Highlights:Record annual cash costs of US$494 per gold ounce and AISC of US$680 per gold ounce. This was significantly below the upgraded guidance of US$560-$600/oz Au (originally $580-620/oz Au) and AISC of US$720-760/oz Au (originally US$780-820/oz Au).Record AuEq production of 82,256 AuEq ounces, increasing 91% from 2018. This exceeded the top end of the upgraded production guidance range of 72,000 to 80,000 AuEq oz.Record annual revenue of US$101.7 million, increasing 91% from 2018.Record net income for the twelve months ended December 31, 2019 of US$32.5 million or US$0.16 per share.Record operating cash flow (before working capital adjustments) for the twelve months ended December 31, 2019 of US$49,713,822 or US$0.24 per share.Record annual gross margin of 53%.For complete details of the annual audited consolidated 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 Fourth Quarter saw K92 achieve multiple records including production, costs and revenue. This strong performance resulted in exceeding our upgraded annual guidance by 2,256 oz gold equivalent production and significantly beating all-in sustaining costs with costs of US$680 per ounce gold versus the upgraded guidance of US$720-US$760 per ounce gold.The strong performance through 2019 has also resulted in a significant strengthening of K92’s financial position. As at December 31, 2019, the Company held just under US$22 million in cash, with the only material debt being a US$13.3 million secured facility with Trafigura. Additionally, the vast majority of our US$15 million Stage 2 expansion capital has already been spent.”MINE OPERATING ACTIVITIES
Gold equivalent for 2018 and 2019 based on the following metal prices: gold $1,300 per ounce; silver $16.50 per ounce; and copper $2.90 per pound.
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 performance measures of the Company’s management’s discussion and analysis dated March 26, 2020, 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.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 DirectorFor further information, please contact David Medilek, P.Eng., CFA 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 considered 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 Gold Mine, 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, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims 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.
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