K92 Mining Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ralph Profiti - Eight Capital - Analyst : Thanks operator. John, thanks for the presentation and the videos. So firstly, as it pertains to developments and total material mined, just wondering if your -- the original target was 1.6 million tonnes of total material mined for '24. Just wondering if you're kind of back to that run rate at least and sort of whether or not that target is still good for 2024.

Question: Ralph Profiti - Eight Capital - Analyst : Great. Yeah, thanks. A question on the dilatant zones and it's still early days. And we've got some indication on the May 6 press release on where you're going with that. I'm just wondering even though it's still early days, is it the view that from a dimension of these zones that both vertically and a long strike, the same dimensions as the veins themselves or are we going great long strikes or perhaps even greater depth extent dilatants versus veins?

Question: Ralph Profiti - Eight Capital - Analyst : Yeah, that's what I was looking for. Thank you, John.

Question: Alex Terentiew - Renton Financial - Analyst : Hey guys. Good morning. Couple of questions. First one on the Trafigura loan, I know that it's been in work for a while. Any update there you can tell us about, obviously, $73 million in cash in the balance sheet now. So there's no need to use that SIM, but I am just wondering any insights on the progress there would be appreciated.

Question: Alex Terentiew - Renton Financial - Analyst : Okay. Good. Well, it sounds its making progress then. Okay a second question I have is then, Q1 obviously, you guys had a bit of downtime there, but despite processing a bunch of stockpiles, the grade was still pretty solid. I got to say better than expected. Any color you can give on grades for the rest of this year or kind of what you're seeing now? Are they in-line with plan or a little bit better?

Question: Alex Terentiew - Renton Financial - Analyst : Okay. Great. Just one more, just if I may? Just curious in your comments there kind of lead into this question, maybe think about something here. With the Phase 3, 4 ramp up schedule, you're targeting a melt commissioning in late April. But what's underground mining? What's your target to kind of get to the 1.2 million tonne per annum rate? I know, obviously, it does normally take some time, but then I'm just also curious given the success you guys had been having, you already have the 500,000 or whatever it's -- 600,000 tonne per year mill at the moment running. Are you looking at opportunities to kind of keep that one going? Or is just kind of shut it down once the other one starts up and then restart it once you have the capacity? And just looking to get your latest on the ramp up schedule and potential to keep tonnes even higher?

Question: Alex Terentiew - Renton Financial - Analyst : That sounds like a lot of good work ahead. Thank you.

Question: Stephen Soock - Stifel Financial Corp. - Analyst : Hi guys. Congrats on the quarter. Just two quick ones for me here. I guess, just on critical path with the plants slipping a little bit and the underground obviously shut down for a few weeks. Just wondering what kind of the critical path items are here. And then, a second one for me, do you expect to see kind of an elevated ASIC through the next three quarters to try and make up some of that ground that was lost in Q1. Thanks.

Question: Stephen Soock - Stifel Financial Corp. - Analyst : Perfect. Great. Thanks so much. That's it for me. I'll open the line to anyone else.

Question: Andrew Mikitchook - BMO Capital Markets - Analyst : Hey John. Congrats on navigating a challenging quarter remarkably well. A lot of great questions have been asked, just two short ones. I just want to come back to this dilatants zone, should we -- maybe if you could just offer some sort of context as to where the areas where these dilatants structures have been intercepted lie in comparison to the existing mine plan? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2024 / 12:30PM, KNT.TO - Q1 2024 K92 Mining Inc Earnings Call Is that already either inside the mine plan and the mine plan has to be adjusted for these different thicknesses? Or is it essentially right next to it? What is the actual logistics and timing and impact here?

Question: Andrew Mikitchook - BMO Capital Markets - Analyst : Okay. Just a quick financial question. The financial statements have a note disclosing the collars. What level of flexibility do you guys have to reschedule delay, adjust delivery on those obligations?

Question: Michael Gray - Agentis Capital - Analyst : Good morning, John, Dave, Justin. Great to see the no LTIs the last three quarters. Great on the safety performance. Appreciate the answers, the detail and the answers especially on the design of the processing plant and the potential going forward in terms of expansion capacity. My question, just one question on Arakompa, the scope of the program. Can you just speak to the philosophy on whether you're going to really with the three Jewel's sketch in the size of the system both the high-grade and the bulk minable potential or you're going to systematically step away and build out resources? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2024 / 12:30PM, KNT.TO - Q1 2024 K92 Mining Inc Earnings Call

Question: Michael Gray - Agentis Capital - Analyst : Sounds like it's going to be dynamic. I appreciate that (inaudible) and very exciting. Thank you.