Kainantu gold mine. Image by K92 Mining Inc.
K92 Mining (TSXV: KNT) recorded its highest ever quarterly revenue for the three months ended June 30, 2020, the Vancouver-based gold miner announced Thursday.
Total revenues for Q2 2020 were $47.9 million, a 105% increase over the same period last year. Net income came to $16.9 million or $0.08 per share.
Over the three-month period, the company generated record operating cash flow (before working capital adjustments) of $30.3 million and EBITDA of $29.7 million.
By quarter-end, K92 increased its cash holdings by $13.1 million to $34.7 million and reduced debt by $4.2 million to $9.1 million.
The company also achieved record gold production during the quarter at its Kainantu mine in Papua New Guinea despite covid-19 restrictions imposed by the PNG government. The national state of emergency was lifted on June 16.
Kainantu is expected to continue to take significant steps forward during the second half of 2020, the company said. The preliminary economic assessment (PEA) for a stage 3 expansion was completed last month, outlining a potential “tier 1” asset with about 318,000 oz AuEq of run-rate production annually.
Shares of K92 Mining were up 6% at market close Thursday, capping the company at a value of C$1.46 billion.