K92 Mining (KNT.V) is still working on the development of its Kainantu mine in Papua New Guinea, and the revenue from selling the gold and copper that’s currently being produced on-site is helping to fund these plans. The company produced 9,549 ounces of gold as well as 146,315 pounds of copper during the third quarter, after processing rock with an average grade of 16.7 g/t gold and 0.38% copper. The recovery rates were also excellent with a recovery rate of 94% for the gold and just over 93% for the copper.
That’s a pretty decent result considering the mining operations at Kainantu were disrupted for almost a month after the company had to improve its underground developments after an issue near Muck Bay 4. Despite this, K92 Mining maintained its expectations to be cash flow positive during the quarter, and we are looking forward to see the company’s financial statement and to see if K92 will be narrowing down its production guidance of 42,000-46,000 ounces of gold-equivalent this year.