K92 Mining Announces Strong Q1 2026 Financial Results - Record Quarterly Revenue, Net Income, Operating Cash Flow, EBITDA and Net Cash Position

Financial Performance Overview

• Revenue reached US$236.3 million, a 63% increase year-over-year from Q1 2025.
• Net income recorded at US$116.6 million or $0.48 per share, up 66% YoY.
• EBITDA stood at US$179.9 million or $0.74 per share, a 68% increase from Q1 2025.
• Operating cash flow was robust at US$132.9 million before working capital adjustments.

Operational Metrics and Production

• Total production reached 46,743 oz AuEq (44,022 oz gold, 1.7M lbs copper, 38,845 oz silver).
• Ore processed increased by 37% YoY to 142,017 tonnes.
• Head grade averaged 10.9 g/t AuEq (10.2 g/t gold), with metallurgical recoveries of 95.1% for gold and 94.0% for copper.
• Cash costs were $785/oz gold, while AISC was $1,421/oz gold.

Capital Projects and Guidance

• Stage 3 Expansion capital is 96% spent or committed with projects on schedule.
• Ventilation upgrades increased primary airflow to 350 m³/s; Stage 4 electrification scheduled for mid-2026.
• Fleet expansion includes new Sandvik loaders and surface trucks arriving throughout 2026.
• Company reiterated 2026 annual production guidance of 190,000 to 225,000 oz AuEq.

Cash Position

• Record cash and cash equivalents of US$287.0 million.
• Net cash position stands at US$242.6 million.

Execution vs Expectations

• The financial results confirm the operational ramp-up previously guided in January 2026, validating the Stage 3 expansion timeline.
• Production volumes were "in line with budget," indicating no significant operational disruptions despite the safety incident reported in February 2026.
• Revenue and income growth are driven by higher throughput and realized gold prices ($4,641/oz), which significantly exceed historical averages mentioned in prior transcripts ($3,296/oz avg in 2025).

Cost Guidance Miss

• The reported AISC of $1,421/oz gold exceeds the upper end of the January 2026 guidance range ($1,250–$1,350/oz Au).
• This cost miss suggests operational inefficiencies or higher sustaining costs during the ramp-up phase that were not fully anticipated in the initial annual guidance.

Financial Strength

• The net cash position of $242.6 million provides substantial de-risking for the company, eliminating immediate financing needs for Stage 4 expansion or exploration.
• This liquidity supports the reiterated production guidance and allows for continued capital expenditure without dilution.

K92 Mining Inc.

• Operates the Kainantu Gold Mine in Papua New Guinea.
• Focuses on underground gold mining with significant copper and silver by-products.
• Transitioning from an exploration/development company to a Tier 1 mid-tier producer following Stage 3 expansion.

Flagship Project: Kainantu Gold Mine

• Stage 3 Expansion: A new 1.2 million tonne per annum (Mtpa) process plant commissioned in December 2025, now fully operational.
• Infrastructure: Includes ventilation upgrades, power station expansions to 15.3 MW, and haul road improvements enabling larger payload trucks.
• Production Profile: Currently producing at approximately 46k oz AuEq per quarter, targeting annual production of 190k–225k oz in 2026.