K92 Mining Inc. (TSX: KNT) shared today its production outlook for 2022. The report highlighted an estimated gold equivalent production of 115,000 – 140,000 ounces, a 34% increase over its 2021 production of 104,196 ounces.
“2021 was a record year and we plan to deliver another record year in 2022,” said CEO John Lewins. The 2021 annual production exceeded the company’s guidance of 96,000 to 102,000 ounces, which lowered in November 2021 from 115,000 to 135,000 ounces due to COVID-19’s impact on its operations.
The company also said it plans to deliver “low-cost production”, benchmarking 2022’s cash costs and all-in sustaining costs at US$560 – US$640 per gold ounce and US$890 – US$970 per gold ounce.
The firm is also anticipating incurring growth capital costs of US$41 – US$47 million, including the ongoing Stage 2A expansion to 500,000 tonnes per year at the Kainantu mine. A twin incline is also being developed to support the Stage 3 expansion, designed to increase throughput up to 2 million tonnes per annum.
On exploration, the company estimates spending US$12 – US$15 million, which will be focused on “resource growth from previously largely infill-drilling at Kora, with plans to drill the Judd, Kora, Judd South and Kora South vein systems, and the Blue Lake porphyry.”
K92 Mining last traded at $6.96 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.