K92 Mining withdrew its 2020 guidance because the COVID-19 pandemic has hindered the second stage of its plant expansion in Papua New Guinea.
The global crisis has severely hampered international travel, which has delayed work on the expansion project, the company indicated while reporting its Q1 2020 earnings. The Kainatu Mine will maintain its stage one plant thoroughput, although modifications have been made to increase cash flow.
K92 produced 154mt of copper during the first quarter of the year, increasing from 120mt during the same quarter last year. The company also sold 139mt of copper in Q12020, the equivalent of $2.70/lb a decline from a sale price of $2.90/lb in the same quarter last year.
K92 reported a $9.8mn EBITDA in Q1 2020 and operating cash flow of $12.5mn.