K92 Mining ups gold equivalent production in Q3, lowers 2021 guidance due to COVID-19 impact
(Kitco News) - K92 Mining (TSX : KNT) reported Monday that its quarterly gold equivalent production of 24,122 oz in Q3 2021 was 8% higher than in Q3 2020 (22,261 oz).
However, the company said that challenges related to COVID-19 were significantly greater than expected, with COVID-19 mitigation measures directly increasing cash costs of $60 to 80 per ounce and $70 to $90 per ounce gold attributable.
"COVID-19 also had a notable impact on production, particularly due to staff shortages from increased quarantine requirements and absenteeism," the company noted in a statement.
As a result, the company said that it expects production of between 96,000 and 102,000 oz AuEq in 2021 (originally 115,000 to 135,000 oz), with all-in sustaining costs expected to be between $920 and $970 per ounce gold (originally $825 to $875 per ounce gold).
The company added that its Q3 2021 revenue was $35.4 million (Q3 2020: revenue of US$35.6 million) and net income was $4.9 million or $0.02 per share (Q3 2020: net income of US$9.4 million or US$0.04 per share.).
K92 Mining is engaged in the production of gold, copper and silver from the Kora deposit at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine.
By Vladimir BasovFor Kitco News
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