K92 Mining (KNT) Q2 2025 earnings summary

Executive summary

• Achieved eight consecutive quarters without lost time injuries and 734 consecutive days without a lost-time incident, even as man hours increased during Stage 3 Expansion construction.

• Released 2024 sustainability report, maintaining SASB and advancing TCFD alignment, with 92-93% of workforce from Papua New Guinea.

• Paid $62.6 million in taxes and royalties in 2024, up 134% year-over-year, and $70 million YTD 2025.

• Produced 78,110 oz gold and 82,633 oz gold equivalent in H1 2025, up 70% and 59% year-over-year, exceeding budget due to higher grades and recoveries.

• Stage 3 Expansion commissioning began in late June, targeting over 300,000 ounces gold equivalent per annum, with practical completion expected in early Q4 2025.

Financial highlights

• Q2 2025 revenue was $96.3 million, up 102% year-over-year; YTD Q2 2025 revenue was $240.9 million, up from $107.6 million year-over-year.

• Net earnings reached $109.4 million for YTD Q2 2025, compared to $9.2 million in the prior year; EBITDA was $166.9 million, up from $34.2 million.

• Sold 28,864 gold ounces at $3,166/oz in Q2 2025 vs. 19,064 oz at $2,246/oz in prior year.

• Cash and cash equivalents stood at $182.9 million as of June 30, 2025, up from $71.1 million a year earlier.

• Operating cash flow was $108.9 million for YTD Q2 2025, up from $40.7 million year-over-year.

Outlook and guidance

• 2025 gold equivalent production guidance is 160,000–185,000 oz, with strongest output expected in H2 2025 post-Stage 3 Expansion.

• Cash cost guidance is $710–$770/oz gold and AISC of $1,460–$1,560/oz gold; AISC expected to decline in H2 2025.

• Stage 4 Expansion to target over 400,000 ounces gold equivalent per annum by H2 2027.

• Growth capital for 2025 forecasted at $105–$110 million; exploration spend planned at $17–$20 million.

• Second half of 2025 forecast to be stronger, with further ramp-up expected as Stage 3 Expansion completes.