K92 Mining (KNT) Q2 2024 earnings summary

Executive summary

• Achieved zero lost time injuries over the last 12 months, with enhanced safety technology and training initiatives.

• Q2 2024 production reached 24,347 oz AuEq, impacted by a temporary suspension of operations.

• Net income for the quarter was $6.1 million, or $0.03 per share.

• Released 2023 sustainability report, highlighting strong ESG commitment and local economic impact in Papua New Guinea.

• Stage 3 and 4 expansions are fully financed, with 57% of growth capital spent or committed as of July 31, 2024.

Financial highlights

• Q2 2024 revenue was $47.8 million, with 19,064 gold oz sold at an average price of $2,246/oz, down from 28,141 oz at $1,883/oz in Q2 2023.

• Net income for the quarter was $6.1 million, with EBITDA of $17.1 million.

• Cost of sales was $27.7 million, down from $29.2 million in Q2 2023; cash cost per oz rose to $919 from $597 year-over-year.

• All-in sustaining cost was $1,510/oz, up from $975/oz year-over-year, but below the average selling price.

• Operating cash flow before working capital changes was $17.3 million, up from $16.2 million in Q2 2023.

Outlook and guidance

• Reiterated 2024 operational guidance, expecting the second half to be the strongest, driven by increased throughput and marginally higher grades.

• Stage 3 process plant commissioning planned for late April 2025; Stage 4 expansion on track for late 2026.

• Maiden resource for Arakompa expected by Q1 2025.