K92 Mining releases guidance for 2026

Executive Summary

• K92 Mining Inc. has issued its 2026 operational guidance, forecasting a significant increase in gold equivalent (AuEq) production to 190,000–225,000 ounces, up from the 2025 record of 174,134 oz AuEq.
• The company projects lower cost structures for 2026, with net cash costs of $710–$770/oz Au and All-In Sustaining Costs (AISC) of $1,250–$1,350/oz Au.
• A record exploration budget of $31–$35 million is planned, supported by the arrival of two additional drill rigs in Q1 2026, bringing the total rig count to 14.
• Growth capital expenditure is forecasted at $100–$108 million, primarily funding Stage 3 and Stage 4 expansion projects, including power upgrades, fleet expansion, and infrastructure improvements.

Key Details

• Production Guidance:
  • 2026 AuEq Production: 190,000 to 225,000 ounces.
  • 2025 Actual Production: 174,134 oz AuEq (record).
  • Production expected to be strongest in H2 2026 due to ramp-up of two new mining fronts.
• Cost Guidance (2026):
  • Net of byproduct credit: Cash costs $710–$770/oz Au; AISC $1,250–$1,350/oz Au.
  • Co-product basis: Cash costs $980–$1,040/oz AuEq; AISC $1,480–$1,580/oz AuEq.
• Exploration Program:
  • Budget: $31–$35 million.
  • Surface Targets: Arakompa, Maniape, Judd North, and Mati-Mesoan-Bona Creek vein systems (proximal to Kora and Judd).
  • Underground Targets: Kora, Kora South, Kora Deeps, Judd, Judd South, and Judd Deeps.
  • Regional Drilling: Wera vein-hosted gold-silver mineralization.
  • Equipment: Two additional surface drill rigs arriving Q1 2026 (Total rigs: 14).
• Capital Expenditure (Growth CapEx):
  • Total Forecast: $100–$108 million.
  • Stage 3 Expansion Capital: $25–$28 million (95% spent/committed as of Dec 31, 2025; on budget).
  • Stage 4 Expansion & Accelerated Growth Capital: $75–$80 million.
• Key Expansion Projects & Enablers (Completion/Status):
  • Ventilation: Phase 3 upgrade (Puma Vent Drive breakthrough 10m remaining as of Jan 25, 2026); Stage 4 primary ventilation upgrade (Late Q1 2026).
  • Infrastructure: Decline-Incline Convergence connecting Main mine to Twin Incline (Completed Jan 24, 2026).
  • Fleet: Major load and haul fleet expansion (H1 2026).
  • Logistics: River crossings for 60-tonne truck payloads from Twin Incline to process plant (Scheduled completion Q2 2026).
  • Processing: Paste-fill plant commissioning mid-Q1 2026; practical completion H2 2026.
  • Power: Stage 4 expansion power station upgrade to 15.3 MW (Scheduled completion Q2 2026).
• Specific Stage 4 & Growth Project Costs:
  • Stage 4 power plant upgrade to 15.3 MW: $6 million.
  • Stage 4 haul road upgrade: $5 million.
  • 132-kV power supply and line upgrade: $9 million (supports 2030 GHG reduction targets).
  • Stage 4 water treatment and management upgrade: $8 million.
  • Stage 4 engineering, project management, and owner's team: $10 million.
  • Camp expansion and facilities upgrade: $5 million.
  • Stage 4 vertical mine development: $11 million.
  • Port upgrade (Port of Lae, PNG): $3 million.
  • Kainantu Community Affairs Office: $3 million.

Notable Quotes

• John Lewins, CEO: "Building on our record operational performance in 2025... we are pleased to provide our 2026 guidance, forecasting a significant increase in production, with low cash costs and all-in sustaining costs."
• John Lewins, CEO: "Importantly, we enter 2026 in a strong financial position, with record net cash and the stage 3 expansion 95 per cent spent or committed, and on budget. This strength has enabled us to leverage our proven project owner's team and mobilized on-site contractors to bring forward stage 4 expansion projects in 2026..."