K92 Mining Inc Q4 2023 Earnings Call Transcript

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

Question: Ovais Habib - Scotiabank - Analyst : Thanks, operator. Hi, John. And can you do just a couple of questions from me in regards to the shutdown, John, you mentioned that the impact is going to be moderate in Q1 and Q2. What is the cutoff point where the shutdown starts to impact the 2024 guidance? And is there an opportunity to catch up on the ounces that you lost in Q1 and potentially Q2?

Question: Ovais Habib - Scotiabank - Analyst : But again, and John, do you have any stopes that are available to you right now? I mean, in terms of blasting that you can recommence operations as soon as you get the order from the regulators? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 02, 2024 / 12:30PM, KNT.TO - Q4 2023 K92 Mining Inc Earnings Call

Question: Ovais Habib - Scotiabank - Analyst : But I just just further to this question. I mean, this suspension does this impact it all your underground development that you needed to complete in preparation for the expansion expected in Q1 2025? And then again, is there a catch-up process there as well on?

Question: Ovais Habib - Scotiabank - Analyst : Okay. That's that's great, Dan, and that's it for me. So thanks for taking my questions.

Question: Alex Terentiew - PI Financial - Analyst : Yes, good morning, everybody. Thanks for taking my questions. Just sticking with the same theme here from UBS and correct me if I'm not understanding the form 29 and from the stoppage here. But assuming your appeal of form 29 doesn't work and see how much time would be needed for the various I'll call it, I guess safety initiatives to be implemented in BTM, raise requests or just a little bit kind of confused or not. Questions are what's actually needed to be done and how much time that will take before you can restart underground operations?

Question: Alex Terentiew - PI Financial - Analyst : Okay. And then during this stoppage of the underground, it's in surface construction activities or any exploration that impacted?

Question: Alex Terentiew - PI Financial - Analyst : Okay. Okay, great. And then just my last question, kind of related to you know that from second half of April, maybe before your guidances impacted you, I suggest to me that they're seeing us on some good grade high-grade tonnes that you can that are available. They can catch up on here, but if you will, related to that, I guess and is how much stockpile the mills still running at the moment? Did you have a it comes from a low base of capital available to us to be putting through the mill.

Question: Alex Terentiew - PI Financial - Analyst : Okay. And that's it for me now. Thank you.

Question: Nicolas Dion - Cormark Securities - Analyst : We see big, guys. Congrats on the Q4 and congrats on the drill results at our conference. And just one for me and sorry, if you've already spoken to this, but maybe just to reiterate, it will take a few items, including operating costs and mill throughput for better than expected in Q4 on the Stage two mill. And so I'm just wondering what that might mean for the upcoming Stage three expansion on how many inferences or readers we can make there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 02, 2024 / 12:30PM, KNT.TO - Q4 2023 K92 Mining Inc Earnings Call

Question: Nicolas Dion - Cormark Securities - Analyst : Okay. Okay. Thanks. That's it for me. Thank you.

Question: Arun Lamba - TD Securities - Analyst : Thanks, operator. Just in terms of development, so without accounting for the shutdown, and I know you did just under 900 meters on average per month in Q4. Can you remind us what the expectation is of where you're going to get to by the end of this year? Is it kind of slightly north of 1,000 meters. What are the expectations?

Question: Arun Lamba - TD Securities - Analyst : Thanks for that, John. And then just lastly from me, I know you're well funded [$80 million] of cash, no debt and just in the MD&A kind of come to the how the $100 million loan conditions haven't been satisfied to access that. Are there any major conditions that are pending and to be able to get access to that facility? Or is it simply given where the balance sheet is? You didn't need the money in Q1 and you just kind of saving interest? Just any color on that would be great.

Question: Arun Lamba - TD Securities - Analyst : Great. Thanks, John.

Question: Andrew Mikitchook - BMO Capital - Analyst : John, lots of questions asked just one point of clarification. I think earlier you mentioned that because you're building or scheduled to build a material stockpile in the second half of this year, that, to some degree, gives you some flexibility in dealing with this delay in mining delay in underground development that's been going on here since March 13, is because essentially you can absorb some of that in the stockpile and or defer a little bit of that stockpile or development or mining into next year? Is that the correct interpretation of that comment?

Question: Andrew Mikitchook - BMO Capital - Analyst : Okay. Well, that's it for me. Thanks for all the detail. And I'm sure everyone's waiting for further positive updates from the MRA, and we'll stay tuned Thanks, John.

Question: Stephen Soock - Stifel - Analyst : Yes, thanks, guys. Just a quick one for me, John, you mentioned you're doing a reline on the mill and how long how long do you expect that to take before the mill will be? I call it ready be ready to be running again, our the reline will be

Question: Stephen Soock - Stifel - Analyst : Got it. And then just changing tracks a little bit here. Sort of question about the taxes on seems to be reasonably low on the cash taxes compared to kind of be the profit generated through the year. If you could just provide a little color there as their incentives for kind of the dollars being rolled back into the mine for the expansions or how should we kind of think about that about that run rate suspects.

Question: Stephen Soock - Stifel - Analyst : Okay. Makes sense. Thanks. That's it for me.