K92 Mining Q2 Earnings Call Highlights

K92 Mining produced 46,093 gold-equivalent ounces, processed a quarterly-record 225,965 tonnes, and achieved 93.8% recovery. The company reiterated its 2026 production guidance, with stronger output expected in the second half. Revenue rose 113% year over year to $205.2 million, while cash and equivalents reached a record $349.4 million. Stage 3 and Stage 4 expansion projects remain on track, targeting 300,000 and more than 400,000 gold-equivalent ounces of annual run-rate production, respectively. Drilling at Arakompa identified high-grade gold lodes and prospective copper-gold porphyry zones, with a maiden resource estimate planned for the second half of 2026. Exploration also continues at the Kora, Judd, Wira and Mati targets. K92 Mining reported record mining and processing activity in the second quarter of 2026, alongside revenue of $205.2 million and a record $349.4 million cash balance, as the company advanced its Stage 3 and Stage 4 expansion projects at the Kainantu mine in Papua New Guinea. Chief Executive Officer and Director John Lewins said Kainantu produced 46,093 gold-equivalent ounces during the quarter. Mill throughput reached a quarterly record of 225,965 tonnes, while head grade was 6.7 grams per tonne gold equivalent. Gold recovery was 93.8%, exceeding the updated definitive feasibility study parameter for the ninth consecutive quarter. Underground operations recorded 426,012 tonnes of material mined and 228,254 tonnes of ore mined, both quarterly records. Lewins attributed the increase to the ramp-up of a second mining front, improved material movement capacity following the June completion of a second material pass, and prior completion of the internal ramp and Puma Vent Incline surface breakthrough. Total mine development reached a record 3,326 meters, up 35% from a year earlier and 11% above the 3-kilometer quarterly development rate required for the Stage 3 expansion. The company achieved 1,150 meters of development in May and subsequently reported a monthly record of 1,220 meters in July. Lewins said the July development result exceeded the Stage 4 expansion requirement of 1.2 kilometers per month, even before completion of several planned enabling projects and the expected arrival of another jumbo drill late in the fourth quarter. He said the performance positions the company to exceed Stage 4 development requirements beginning in early 2027. K92 reiterated its 2026 production guidance. Management expects second-half production to be strongest as mine physicals and plant throughput increase, additional infrastructure projects enter service, and a higher-grade stoping sequence is scheduled for the fourth quarter. Quarterly revenue increased 113% year over year to $205.2 million. The company sold 46,682 ounces of gold at an average selling price of $4,493 per ounce, compared with 28,864 ounces at $3,166 per ounce in the prior-year period. Cost of sales was $64.7 million, compared with $32.4 million a year earlier. Excluding non-cash items, cost of sales was $49.8 million, compared with $26.2 million in the prior-year quarter. The higher costs reflected significantly greater mining and processing activity associated with the Stage 3 ramp-up. Cash flow from operating activities before working-capital changes was $105.1 million, up from $47 million in the prior-year quarter. As of June 30, K92 had $349.4 million in cash and cash equivalents.