K92 Mining (KNT) Mining Forum Europe 2026 summary

Growth strategy and production expansion

• Rapid near-term growth targets up to 500,000 ounces, with Stage 3 expansion recently commissioned for 300,000 ounces and plant design supporting up to 400,000 ounces within two years.

• Stage 3 expansion process plant completed and commissioned ahead of schedule, with operational guidance for 2026 at 190,000–225,000 ounces.

• Expansion phases have been executed in-house, with Stage 2 and 2A completed during COVID and Stage 3 enabling future scaling to 1.8 million tons per annum.

• 96% of expansion growth capital spent or committed, with production and development records achieved in the first quarter.

• Stage 4 infrastructure underway, including increased development meters and mining fronts to support higher output.

Financial performance and investment

• Maintains a strong balance sheet with over $230 million in cash at year-end, despite $350 million in capital spending and over $100 million in corporate tax payments in 2024–2025.

• Cash balance increased in Q1 even after significant tax and capital payments; first 2026 tax installment was PGK 287 million (~$70 million USD).

• All-in sustaining cost forecasted at $1,300 during expansion, with 2026 guidance at $1,250–$1,350 and cash costs of $710–$770 per ounce.

• On a co-product basis, AISC is $1,480–$1,580, reflecting ongoing underground development.

• Valuation is about 30% below peer average, with production growth of 130% projected between 2025 and 2028.

Operational improvements and infrastructure

• Major infrastructure upgrades include a new twin incline, ore pass system, ventilation incline, internal ramp system, and paste fill, all supporting increased efficiency and capacity.

• New process plant achieved 95.1% gold recovery in Q1, outperforming test work expectations by 2.5 percentage points.

• Upgraded haulage allows 60–70 ton trucks at higher speeds, improving material movement and reducing costs.

• Ventilation system expanded with large, variable-speed fans and increased power capacity, including plans for solar integration.

• Camp and infrastructure upgrades support up to 2,400 beds, with significant road and bridge improvements for logistics.