K92 Mining Q4 2025 Earnings Report

K92 Mining EPS Results

• Actual EPS: C$0.49
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

K92 Mining Revenue Results

• Actual Revenue: $234.30 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

K92 Mining Announcement Details

• Quarter: Q4 2025
• Date: 3/2/2026
• Time: Before Market Opens
• Conference Call Date: Monday, March 2, 2026
• Conference Call Time: 8:30AM ET

K92 Mining (TSE:KNT) is engaged in the production of gold, copper and silver at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018, is in a strong financial position, and is working to become a Tier 1 mid-tier producer through ongoing expansions. A maiden resource estimate on the Blue Lake copper-gold porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

K92 Mining Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: The Stage 3 1.2 Mtpa plant was commissioned on schedule and under budget, is processing all mine feed, and delivered higher-than-forecast recoveries (94.3% gold), underpinning the company’s target run-rate and 2026 production growth.
• Positive Sentiment: Financials are strong with record 2025 revenue of $595.2M, $230.9M cash, a record working capital position and $181.6M net cash, Stage 3/4 fully funded and an undrawn $60M credit facility plus downside protection via put options to end-2026.
• Positive Sentiment: Unit costs beat 2025 guidance—yearly byproduct cash cost of $695/oz and AISC of $1,308/oz—and management expects AISC to decline materially after Stage 3 ramp-up as economies of scale are realized.
• Positive Sentiment: Exploration is being significantly accelerated with a record $31–35M 2026 budget, multiple rigs active and high-impact results (e.g., high‑grade Kora/Judd intercepts and a large porphyry-style intersection at Arakompa) that support near‑term resource growth potential.
• Negative Sentiment: The company reported a fatal contractor incident near the Koomian camp; investigations are complete and mitigation/restart measures implemented, with management saying minimal project timeline impact but the event represents a serious safety and reputational risk.

Presentation

[Operator]

Welcome to the K92 Mining 2025 fourth quarter financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference, you may reach an operator by pressing star then zero. I would now like to turn the conference over to David Medilek, President and COO. Please go ahead.

[David Medilek, President and COO at K92 Mining]

Thank you, operator, and thanks everyone for attending K92 Mining's 2025 fourth quarter financial results conference call. We hope you and your families are doing well. In addition to myself, we have on the line John Lewins, Chief Executive Officer and Director, Justin Blanchet, Chief Financial Officer, and Rob Smillie, VP Exploration. I would also like to remind everyone that after the remarks from management, the call will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD&A and slide 2 of the webcast presentation. Please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted. I'll turn over John to provide you with an overview.

[John Lewins, CEO and Director at K92 Mining]

Well, thank you, David, and welcome everyone. We begin with safety, K92's highest priority. While this report covers the 2025 fiscal year, we're deeply saddened by the tragic incident last month that resulted in the death of a contractor. As previously disclosed in our February 6th release, the incident involved a contractor supporting roadwork activities near the Kumian camp operating in the designated contractor area located approximately 1.5km northeast and 8km northwest of the process plant and underground mine, respectively. Initial investigations by both the contractor and the MRA have now been completed. Mitigation measures have been implemented and a progressive managed restart of the contractor surface activities has commenced.

[John Lewins, CEO and Director at K92 Mining]

Minimal impact to the project construction timeline is expected. The health and safety of our workforce, our entire workforce, including contractors, has been and always will be our highest priority.

[John Lewins, CEO and Director at K92 Mining]

Circling back to the fourth quarter in 2025, the company recorded no lost time injuries, marking 10 consecutive LTI free quarters. A new integrated safety management and compliance system is being progressively rolled out on the site to further improve our health, safety, environment, quality, and training management. Over the past two years, there's been a substantial increase in field level risk assessments, hazard identifications, safety observations, safety technologies, and safety team capacity and capabilities. All strong leading indicators of the safety first culture.

[John Lewins, CEO and Director at K92 Mining]

Safety always is one of K92's core values. We remain steadfast in our commitment to achieving our ultimate goal, zero harm across the entire workforce. K92 is very proud to have received yet another industry ESG award during the PNG Investment Week Conference in Sydney last December, marking the fourth consecutive year of recognition of outstanding community humanitarian initiatives.

[John Lewins, CEO and Director at K92 Mining]

The PNG CORE Award recognizes K92's adult literacy program, which since 2021 has supported over 1,000 adult learners across 8 local communities and providing basic top vision and English literacy basic computer skills. We believe that the delivery of these foundational skills is key to a long-term empowerment of our host communities. Moving on to operations. During the quarter, the Kainantu Mine produced 47,178oz gold equivalent with cash cost of $768 per oz gold and all-in sustaining costs of $1,619 per oz gold. On a co-product basis, cash costs of $920 an oz gold equivalent and all-in sustaining costs of $1,716 per oz gold equivalent were reported.

[John Lewins, CEO and Director at K92 Mining]

Now, as annotated on the chart, all-in sustaining costs have been notably higher than cash costs since the beginning of 2023 due to K92's significant investment in the stage three expansion, with costs expected to decline considerably after delivering the stage three expansion, which will be discussed later in this presentation. We highlight that these temporarily elevated costs still fit well within the lower half of industry all-in sustaining cost curve, which reflects K92's ongoing commitment to cost discipline despite a rising gold price environment. Mill throughput for Q4 totaled a record of 186,198 tons, with a head grade of 8.0 g per ton gold equivalent and also a moderate positive gold and copper grade reconciliation versus the latest independent mineral resource estimate.

[John Lewins, CEO and Director at K92 Mining]

For the year, a record 174,134oz of gold equivalent was produced, delivering year-over-year production growth of 16% at the upper half of our production guidance range, which was 160,000-180,000oz gold equivalent. Cash costs of $695 per oz, beating our guidance range of $710-$770 per oz gold, all-in sustaining costs of $1,308 per oz, also beating the guidance range for all-in sustaining costs of $1,460-$1,560 per oz gold.

[John Lewins, CEO and Director at K92 Mining]

In the fourth quarter, K92 achieved a major milestone with the official inauguration of our new 1.2 million ton per annum state-of-the-art stage three expansion process plant on October 16th. The first production of saleable concentrate in early October and the completion of commissioning in December. The event was attended by the Prime Minister of Papua New Guinea, the Honorable James Marape, and then Minister for Mining, now Governor of Morobe, the Honorable Rainbo Paita. Other distinguished guests included government representative, landowner leaders, members of diplomatic and business community, the K92 board, and our project partners. The process plant was delivered safely, efficiently, and importantly under budget, marking a major achievement for our construction team. The plant has performed extremely well. Since late October, all mine material has been processed exclusively through the plant.

[John Lewins, CEO and Director at K92 Mining]

Overall metal recoveries for the quarter were 94.3% for gold, exceeding the recovery parameters in the updated definitive feasibility study, and 93.9% for copper in line with the DFS. In terms of key operational quarterly physicals, total material mined of 404,205 tons was a record, with material movements benefiting from the commissioning of the first material pass in Q3 2025 and the commencement of 30 ton surface trucks being able to operate in the twin incline in late Q3 2025. Total quarterly mine development was a record 2,787 meters, a 12% increase from the third quarter 2025.

[John Lewins, CEO and Director at K92 Mining]

Notably, a record of 1,027 meters was achieved in October, supported by the completion of several key infrastructure enablers, including improved power reliability resulting from the commissioning of our new 10.3MW primary power station, improvements in the underground service water supply system, and the additional ventilation volumes delivered by the phase two ventilation upgrade. As will be discussed later in the presentation, multiple key enabler projects have been completed in Q1 or are nearing completion, which are expected to continue to drive physicals higher. I'll now turn the call over to our Chief Financial Officer, Justin Blanchet, to discuss our financial results for the fourth quarter.

[Justin Blanchet, CFO at K92 Mining]

Thank you, John. Hello, everyone. During the fourth quarter of 2025, K92 generated quarterly revenue of $176.8 million, an increase of 47% from the same period prior year. We sold 40,031 gold oz at an average selling price of $3,955 compared to 48,851 oz at an average selling price of $2,564 in the prior year. As of December 31st, 2025, there were 14,032 gold oz in inventory, including both concentrate and doré, an increase of 6,119 oz when compared to September 30th, 2025, due to timing of sales.

[Justin Blanchet, CFO at K92 Mining]

During the year ended December 31st, 2025, we had record annual revenue of $595.2 million, a 70% increase from prior year. We sold a record 159,787 gold oz at an average selling price of $3,296 compared to 141,159oz at an average selling price of $2,356 in the prior year. During the fourth quarter of 2025, K92 had cost of sales of $46.6 million compared to $32.6 million in the same period prior year or $36.7 million compared to $23.8 million when excluding non-cash items. The increase in cost of sales was driven by significantly higher tonnes mined and processed when compared to prior year.

[Justin Blanchet, CFO at K92 Mining]

This is consistent with the higher mining and processing activity associated with the ramp-up of the stage three expansion. During the year December 31, 2025, cost of sales was $156.9 million compared to $142.2 million in the prior year or $126.4 million compared to $106.8 million when excluding non-cash items. As previously stated, total costs increased due to the stage three mining physicals ramp up while realizing a reduction in unit costs on a per tonne basis. During the fourth quarter of 2025, cash flow from operating activities before changes in working capital was $99.6 million compared to $72 million in the same period prior year.

[Justin Blanchet, CFO at K92 Mining]

For the year ended December 31st, 2025, we saw record cash flow from operating activities before changes in working capital of $329.3 million compared to $170.4 million in 2024. K92 recorded a write-down of property, plant, and equipment of a net $9.4 million in the fourth quarter of 2025. This primarily related to the old process plant. This adjustment can be reversed if and when we recommission that plant in future periods. As at December 31st, 2025, K92 had a record $230.9 million in cash and cash equivalents, a record working capital balance of $262.3 million, and a record net cash position of $181.6 million. Importantly, the Stage 3 and Stage 4 expansion projects are fully funded.

[Justin Blanchet, CFO at K92 Mining]

Our financial position is strong. We also have access to significant amounts of liquidity through an undrawn credit facility with $60 million available to draw down on demand. We would also like to highlight that our commodity price downside is protected through the cost-effective purchase of put option contracts, which extend until the end of 2026, allowing for 10,000oz of gold per month at a strike price of $3,500 per oz. To be clear, this is not a hedge. We will sell at spot if it is higher than $3,500 an oz. This is insurance, and we will retain full exposure to the upside in commodity prices.

[Justin Blanchet, CFO at K92 Mining]

As John mentioned, during the fourth quarter, the Kainantu Gold Mine produced 44,129oz of gold, 1,940,781lbs of copper, and 47,427oz of silver or 47,178oz of gold equivalent. We sold 40,031oz of gold, 1,726,051 lbs of copper, and 44,162oz of silver. During the year, the Kainantu Gold Mine produced 164,484 oz of gold, 5,942,203lbs of copper, and 159,309oz of silver, or 174,134oz of gold equivalent.

[Justin Blanchet, CFO at K92 Mining]

We sold 159,787oz of gold, 5,550,751lbs of copper, and 154,404oz of silver. On a byproduct basis, we recorded a cash cost of $768 per oz and an AISC of $1,619 per oz of gold in Q4 2025. Our AISC in Q4 was significantly below our net realized selling price of $3,955 per oz, reflecting our strong cost discipline and improved metal price outlook.

[Justin Blanchet, CFO at K92 Mining]

For the year, we incurred a cash cost of $695 and an all-in sustaining costs of $1,308 per oz of gold, which was significantly below our selling price of $3,296 per oz. Importantly, both our cash cost and all-in sustaining costs for the year beat the guidance ranges in 2025. Our 2025 byproduct cash cost per oz increased to $695 per oz from $664 in 2024. The increase is primarily due to higher costs as operations ramped up to support the Stage 3 expansion, offset by higher byproduct credits. It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 expansion is complete.

[Justin Blanchet, CFO at K92 Mining]

I will now turn the call back to John to discuss 2026 guidance, growth, and exploration.

[John Lewins, CEO and Director at K92 Mining]

Well, thank you, Justin. Turning to growth and exploration, we begin with an update on the Stage 3 and Stage 4 expansions, which are expected to fundamentally transform K92 into a tier-one mid-tier gold producer. As mentioned earlier, the Stage 3 expansion process plant achieved its first salable production in mid-October. The plant has been processing all mine feeds since the end of October. Commissioning was then completed in December. The Stage 3 expansion, as outlined in our updated Definitive Feasibility Study, supports a 1.2 million ton per annum throughput rate or 300,000oz gold equivalent per annum at that run rate. Commissioning of the process plant, as noted, was completed in December.

[John Lewins, CEO and Director at K92 Mining]

Stage four is expected to further increase production through expanding the stage three process plant at a low capital cost to 1.8 million tons per annum, reducing over 400,000oz gold equivalent per annum, targeting start of commissioning late 2027. The 600,000 ton per annum stage 2A plant, which has been idled, provides additional capacity for future expansion beyond stage four. Looking ahead to 2026, we are guiding yet another year of production growth, targeting 190,000-225,000 gold equivalent oz while making significant sustaining and growth capital investments as we transform K92 into a tier-one mid-tier producer. Production is expected to be weighted toward the second half of the year as additional mining fronts come online and ramp-up, plus major expansion enablers are completed.

[John Lewins, CEO and Director at K92 Mining]

Growth capital is forecast to be $100 million-$108 million in 2026, comprised of $25 million-$28 million for the stage three expansion capital, primarily paste fill plant and river crossings, and $75 million-$80 million in stage four expansion capital and accelerated growth capital. Given our strong financial position with record cash and stage three expansion capital now 95% spent or committed as at the end of January, we have taken the opportunity to bring forward several stage four expansion projects into 2026, leveraging our expanded owners project team and contractors already on site to accelerate stage four projects. The delivery of the stage three expansion ramp-up is expected to be driven by several key enablers. Starting with the underground, a major infrastructure transformation is now underway. The twin incline internal ramp system and the first material pass are complete.

[John Lewins, CEO and Director at K92 Mining]

I'm very pleased to annoz that in late February, the Puma vent incline has achieved its breakthrough to surface. The development in the Puma ventilation drive has been slowed recently due to its proximity to consolidated surficial rock conditions as it approached the breakthrough and being a long single heading. This clearly tied up significant resources for low lateral advance rates. Now that it's complete, resources have been reallocated to focus on high productivity development. With the breakthrough of the Puma Drive and the completion of the internal ramp, we've seen a very significant increase in underground primary ventilation. With our latest ventilation survey showing an increase from 200 cubic meters per second to approximately 350 cubic meters per second, representing an increase of approximately 175%. This meets the initial ventilation requirements for the stage 3 expansion.

[John Lewins, CEO and Director at K92 Mining]

In terms of the twin incline, it has already begun to transform underground material handling efficiencies, as shown in the image on the right versus the image on the left, which is the existing incline to access the main mine since commercial production. The twin incline can run 50% larger trucks at faster speeds and eliminates re-handling at the portal by hauling directly to the process plant run of mine stock pile. We expect these larger 60-ton payload trucks to be operational around mid-2026, following the completion of the key river crossings and surface haul road upgrades. The productivity gains from the twin incline infrastructure will be realized in stages as supporting infrastructure is completed and equipment added.

[John Lewins, CEO and Director at K92 Mining]

As noted in the previous quarterly update, the first tons were tipped down the first material pass in August, leveraging gravity to deliver tons approximately 350 meters vertically from the main mine to the highly productive twin inclines. The operation of surface articulated trucks in the twin incline continues to deliver material movement benefits and will notably increase upon the introduction of the larger trucks, as noted in the previous slide. The development of a second material pass, enabling dedicated separate ore and waste, is planned to commence later this month and is expected to be online mid-year. On January 24th, we achieved a key milestone, which was the completion of the internal ramp.

[John Lewins, CEO and Director at K92 Mining]

Prior to the completion of the internal ramp, we were effectively running two sets of crews, one for the upper mine, which was accessed by the old incline, as shown in the prior slide, and one for the lower part of the mine, which was accessed by the twin inclines. Now, as shown in the banner in the image, we are one mine, which means now there is only one crew. We've obviously got better equipment utilization, shorter travel times between work areas, and importantly, all mining fronts are connected to the highly productive twin incline, resulting in a notable boost to our operational efficiencies.

[John Lewins, CEO and Director at K92 Mining]

As shown in the images, substantial progress has been made with the 2 by 1.85MW primary fans now mechanically complete with ventilation having already achieved the initial requirements for stage three expansion, we plan to complete electrical commissioning around mid-year. Upon commissioning of the fan chamber, primary ventilation increases to over 600 cubic meters per second and can be expanded to 740 cubic meters per second by benching the Puma vent incline. This will more than meet the requirements for the stage three and stage four expansions and life of mine. The fans are variable speed. A single fan will initially be run at a lower speed to conserve power and progressively be ramped up as the operation expands and ventilation demands increase, with ultimately two fans being required to operate, but only in a number of years' time.

[John Lewins, CEO and Director at K92 Mining]

The next phase of the expansion for the full standby primary power station, moving from 10.7MW-15.3MW, is progressing on schedule with civil works for the additional generators, switch room, and fuel tanks now complete ahead of the arrival of key long lead items. Completion of the upgrade of the 15.3MW is expected around mid-2026. Since commissioning of the new primary standby power station last October, the operation has experienced minimal power disruptions across both the process plant and underground mine, demonstrating the positive impact of the infrastructure upgrades in reducing operational interruptions. Maintaining a spinning generator reserve now enables the primary power station to correct power fluctuations from our hydroelectric grid power that would previously have resulted in mining and processing interruptions and outages.

[John Lewins, CEO and Director at K92 Mining]

On top of this increased power reliability, we also expect to realize material operating cost benefits from this plant relative to the previous interim power plant configuration as this one operates at notably better fuel efficiency. In addition to completing various infrastructure enablers for the expansion, mine development continues to open up 2 new fronts, the twin incline and the lower Kora, with five and four new sub-levels being opened up respectively. Both fronts are expected to be notable contributors to production in 2026. With a demonstrated progressive ramp up in development rates, we will continue to advance new sub-levels to build greater operational flexibility. Since commercial production, ore has been sourced primarily from a single front 1.

[John Lewins, CEO and Director at K92 Mining]

Front 2 is scheduled to commence stopping in late Q1, early Q2, followed by front 3 in late Q2, early Q3, ramping up to 1.2 million ton per annum run rate by year-end and increasing to 4 production fronts in 2027. Currently, we have meaningful equipment upgrades underway this year, as shown in the table on the left. 4 new loaders are being added to the fleet, 3 additional, 1 replacement, with 2 already operating on site, 1 of which is shown on the image on the right. 2 more loaders arriving by June, as well as 2 new underground haul trucks expected in the third quarter. Towards year-end, we'll also add a new development jumbo, an additional explosive loading rig, a cement agitator unit, and a new production drill rig to replace the older unit.

[John Lewins, CEO and Director at K92 Mining]

The fleet of surface trucks is also significantly expanding for the operation in the twin incline, with 8 new 60-ton trucks planned to arrive in 2026, with the first batch of 6 trucks arriving first half of the year. The trucks will haul from the twin incline to the process plant, doubling, in fact tripling the payroll capacity at much higher speeds than the existing fleet. 5 of the 30-ton haulage trucks arrived on site in the second half of last year. They are being used initially to augment haulage in the twin incline ahead of the arrival of the 60-ton trucks and obviously needing the completion of the enabling river crossings to be able to run those 60-ton trucks. These trucks will later be repurposed to haul filter cake for the paste fill plant underground.

[John Lewins, CEO and Director at K92 Mining]

This substantial fleet investment ensures we have adequate capacity to meet not just the stage 3 expansion, but also the stage 4 expansion equipment requirements. In terms of the ancillary buildings, interim power station, warehouse, Kumian camp, primary power station, all complete. Maintenance facility, which is a lower priority and not critical for the stage 3 expansion, is targeting completion mid-2026. Significant progress has been made on the surface paste fill filtration plant, storage facility, and the underground paste fill plant packages.

[John Lewins, CEO and Director at K92 Mining]

As seen on the left image, the tailings filter plant facility is well advanced, with early electrical commissioning having commenced at the end of February. Paste binder and filter cake storage facility construction is also advancing with detailed design and bulk earthworks and leveling complete. Civil and concrete works are underway for the two larger binder storage buildings in the right of the image.

[John Lewins, CEO and Director at K92 Mining]

Major excavations for the underground paste fill plant are now complete, and sites are progressively being handed over to projects team for construction execution. Civil works have now commenced in the 1205 binder blending and storage area. Overall paste fill plant design is complete. Long lead items are progressively arriving on site. Commissioning of the paste fill infrastructure has already commenced with the tailings filter plant, with practical completion of the full paste fill circuit targeting end 2026. The major surface haul road and river crossings projects are also advancing well during the quarter. These projects enable the surface truck payloads to increase from 20 tons-60 tons or higher, resulting in lower traffic congestion, faster operating speeds, which will improve cycle times.

[John Lewins, CEO and Director at K92 Mining]

The work involves upgrading three river crossings, as shown in the images, plus widening, straightening, and gradient improvements in selected areas to improve haulage efficiency and payload. Phase one, which is focused on the river crossings and haul road widening to enable higher capacity 60-ton trucks, is on track for completion mid-2026. Phase two, which is focused on road alignment and gradient improvements in selected areas of the haul road, is scheduled for completion by year-end. In summary, as shown in the Gantt chart and from the prior slides, a significant number of key enabler projects have been completed or nearing completion for the stage three and stage four expansions. I'll now turn it over to Robert Smillie, VP Exploration, to provide an update on our exploration activities.

[Robert Smillie, VP of Exploration at K92 Mining]

Thank you, John. In 2026, we plan a very big year of exploration. In our guidance, we've guided a record $31 million-$35 million exploration budget in 2026, an increase of more than 50% from 2025, highlighting both the exceptional prospectivity of our land package and our commitment to delivering meaningful near-term resource growth. We currently have 7 underground drill rigs operating at Kora and Judd, 5 surface rigs at Arakompa and Maniape, one at Wera, and two additional surface rigs scheduled to arrive in the second quarter. In February, we reported results from 101 diamond drill holes from Kora South, and Judd South, with results continuing to demonstrate meaningful high-grade growth potential both near existing mine infrastructure, along strike, and at depth.

[Robert Smillie, VP of Exploration at K92 Mining]

At the K2 Vein, drilling has expanded the near mine dilation zone proximal to the twin incline mining front with new exceptional high-grade intercepts, including 20.5 meters at 14g per ton and 10.7 meters at 10.8g per ton gold equivalent. Importantly, this zone sits approximately 50 meters from existing development, positioning it as a potential near-term mining area to be mined via bulk transverse sloping methods following paste fill commissioning. We're also very pleased with the first set of results from Kora Deeps, as shown in the black ellipse, intercepting thick, high-grade mineralization at the K1 Vein, up to 350 meters below the twin incline and 250 meters down dip of the 2023 mineral resource estimate outline.

[Robert Smillie, VP of Exploration at K92 Mining]

Whilst it is early days, with approximately 400 meters of strike extent identified to date, this highlights strong potential for continuity of structure and grade at depth, pointing towards longer-term resource expansion. We also continue to extend high-grade mineralization up dip and along strike at both the K1 and K2 veins, with multiple intercepts exceeding resource grades, including multiple 20-plus g per ton gold equivalent in sections, and see significant growth potential in multiple directions. The results have delineated a substantial high-grade copper zone to the south of Kora, with copper grade tenor also increasing at depth within the K-one Vein. Magenta represents grades exceeding 4% copper, and the consistency of the high-grade copper drilling hit rates is very encouraging, as shown in the long sections.

[Robert Smillie, VP of Exploration at K92 Mining]

At Judd, drilling continues to successfully extend high-grade mineralization both up-dip from the main mine and beyond the 2023 mineral resource, with several bonanza intercepts near upper mine infrastructure, including 5.45 meters at 67g per tonne and 3.9 meters at 56.75g per tonne of gold equivalent. We are also extremely excited to report initial results from the Judd Deeps drilling campaign, where we have intercepted thick mineralization up to 300 meters below the twin incline and 350 meters below the mineral resource outline. Mineralization is now defined over approximately 450 meters of strike and remains open at long strike and at depth, reinforcing the scale and depth potential of the system.

[Robert Smillie, VP of Exploration at K92 Mining]

Encouraging results have also been recorded at Judd North, a near-surface area representing a prospective up-dip extension that will continue to be evaluated through ongoing underground drilling and planned surface drilling in the second half of the year. The target area geometries are approximately 800 meter strike by 250-500 meters vertical, as outlined in the triangular dotted black outline, with new intercepts including 20 meters at 14g per tonne and 3 meters at 15.5g per tonne gold equivalent. We reiterate that the Judd vein system remains significantly underexplored and is open in all directions. These results continue to highlight the strength and growth potential of the Kora Judd system, with drilling expanding mineralization both close to existing infrastructure and at depth, supporting future resource growth and operational flexibility.

[Robert Smillie, VP of Exploration at K92 Mining]

Exploration activity at the Arakompa vein system, located 4.5 km from the Kainantu process plant, is progressing well. Drilling is now supported by 5 active rigs, and the deposit has grown substantially in both scale and geological understanding. We're also starting to drill test the Maniape vein system, which sits approximately 1.5 km west of Arakompa and shows geological similarity to Arakompa. The approximate scale of the Maniape vein system is 1.1km in strike and 220 meters known vertical. As shown in the graphic, the most recent drilling has expanded the Arakompa bulk tonnage zone to approximately 1.1km in strike and 800 meters vertically, with an average true thickness of 39 meters. The bulk zone remains open in multiple directions and continues to demonstrate strong potential for large near-scale surface bulk mining.

[Robert Smillie, VP of Exploration at K92 Mining]

We're also excited about the discovery of porphyry copper-gold mineralization in drill hole KARDD0065, stepping out 250 meters to the south from previous drilling. This was our first hole testing a 600 by 600 meter copper in soils anomaly, and it intersected 690 meters at 0.3% copper equivalent, including 395 meters at 0.38% copper equivalent. This intersection is interpreted to be distal to a potential higher copper-gold grade potassic porphyry core and marks the first porphyry-related mineralization identified at Arakompa, a highly prospective target for ongoing drilling. This step-out discovery highlights Arakompa's scale and furthers our understanding of the project as a larger integrated mineral system, potentially linking epithermal vein mineralization with an underlying porphyry intrusive center.

[Robert Smillie, VP of Exploration at K92 Mining]

Our latest drilling also continues to define the high-grade AR1 and AR2 lodes along strike and at depth, confirming continuity within the broader Arakompa system. We're also seeing the emergence of a potential high-grade thick zone highlighted by standout intercepts, including 7.1 meters at 27.9g per tonne gold equivalent, 14.5 meters at 17.3g per tonne gold equivalent, and 20.6 meters at 9.9g per tonne gold equivalent. Together, these results demonstrate strong vertical continuity over 200 meters at a substantial average true thickness of 7.3 meters, reinforcing the potential for a high-grade core within the larger Arakompa system. We are looking to release the next set of results for Arakompa in Q2 and cut off new data in the near term for a maiden resource in mid-2026.

[Robert Smillie, VP of Exploration at K92 Mining]

In addition to Arakompa and Maniape, we continue to drill test the recently discovered Wera vein system, a large 3.5 by 3.5km low sulfidation epithermal gold system located about 10km southwest of Kora and Judd. The maiden exploration program, focused on rock chips and trenching, outlined multiple mineralized structures with numerous high-grade samples, including assays up to 26.3 g per tonne gold. Importantly, this area has never been accessed or tested by previous operators and lies within the same mineralized corridor that hosts Kora, Judd, and Arakompa. There is currently one drill rig operating, and there are plans to potentially increase the number of rigs to two by mid-year. We're very encouraged by the potential of this new greenfields discovery and look forward to results from our maiden scout drill program.

[Robert Smillie, VP of Exploration at K92 Mining]

Lastly, we highlight the significant pipeline of highly prospective exploration targets. The colored icons indicate a current exploration focus, and the black icons indicate where we plan to drill in the next 24 months. In the near term, in addition to Maniape, drilling is planned at the Mati Creek/Bona Creek target, situated within 1.6km of current mine workings and Judd North. The program will utilize small footprint heli-portable drill rigs set to arrive next quarter. These targets represent the next phase of near mine exploration, designed to expand our understanding of the broader mineralized system and potentially extend known mineralized corridors. Regional exploration will continue to drill test vein-hosted gold-silver mineralization at Wera. Underground drilling will focus on Kora South, Kora Deeps, Judd South, Judd North, and Judd Deeps.

[Robert Smillie, VP of Exploration at K92 Mining]

Our record exploration program of $31 million-$35 million is projected for 2026, with the aim of targeting many of these highly prospective targets concurrently. I will now turn the call back to John for concluding remarks.

[John Lewins, CEO and Director at K92 Mining]

Well, thank you, Rob. In summary, fourth quarter 2025 and 2025 operational, financial, and project delivery performance was strong. Notably, we have grown the cash balance to over $230 million while investing significantly in exploration and long-term infrastructure to support the stage three and stage four expansions. We enter 2026 with strong momentum, forecasting further low cost production growth of 190,000-225,000oz gold equivalent. Continued execution of multiple key surface and underground infrastructure enabler projects, along with a record exploration budget targeting multiple near mine and regional prospects on our large, highly prospective land package. Concurrently, we will continue to advance our community projects and deliver sustainable benefits to all our project stakeholders. With that, operator, we're happy to open the line for questions. Thank you.

[Operator]

Thank you. We will now begin the question and answer session. To join the question queue, you may press Star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star then two. The first question comes from Alex Terentiew with National Bank. Please go ahead.

[Alex Terentiew, Director and Equity Research Analyst at National Bank of Canada]

Hey, good morning, guys, and congrats on another great quarter here. Question for you on 2026 guidance. Is it possible for you to give us just a little bit more granularity on tonnes and grades? In particular, I'm just asking 'cause, you know, the mill and mine seem to be ramping up well. I know the phase 3, you know, official capacity of the mill is about 1.2 million tonne. I'm just wondering, you know, any opportunity, especially with gold being where it is to, you know, maybe fill the mill. Are there other lower grade tonnes that kind of wouldn't be part of a mine plan but could be incremental to production? I'm just wondering how you're seeing that this year.

[John Lewins, CEO and Director at K92 Mining]

Well, thanks, Alex. I guess a couple of things there. One is that, when you look at the year, the year, I think as we've indicated, is back-end loaded in as much as we'll produce, delivering it more in the second half of the year than the first half of the year. That will be driven primarily by tonnage. In other words, increased tonnes rather than a higher grade in the second half of the year. With the ramp up from underground, as we've, as we've indicated there, with the completion of a lot of those enablers in this, especially in this first quarter, with, both the internal ramp and the, Puma vent being completed.

[John Lewins, CEO and Director at K92 Mining]

Which of course dramatically improves our availability of equipment and especially our ability to more fully utilize our twin boomers for meters of development. That's obviously really important. We anticipate at the end of the year, we'll be exiting at a run rate of 1.2 million tonnes per annum. We're obviously not there at this point in time. In terms of overall grade this year, we're looking at around 6.5-7.5 g per tonne. And that's what gets us to our guidance of 190 to 225. In terms of opportunities to add tonnes, I mean, that's something that we always look to.

[John Lewins, CEO and Director at K92 Mining]

In the past, we have been able to add some lower grade tonnes. Our lower grade tonnes tend to be, like, 3g-4g per tonne, which I guess by most people's standard would be relatively high grade. We do have those sort of tonnes that do come out. We certainly have the capacity for the plant. Tonnage this year is not about the plant, it's obviously about ramping up underground, so we do have spare capacity in the plant. The plant, as was indicated, to date, is performing better in terms of metallurgical recoveries on gold than anticipated. I think we're running probably about 94% versus a study of 92.6% recovery. Even at, even at lower grade, lower feed grades.

[John Lewins, CEO and Director at K92 Mining]

Likewise, on a daily basis, we've been able to run it, the plant at significantly higher than an annualized basis at 1.2 million tons of product. The plant certainly has capacity to do 1.2 and beyond, which is as expected. Summary, grade 6.5 to 7.5. And that's the basis of our guidance. Yes, there could be some potential to add tons to it, but obviously we stick with what our guidance is. Thanks.

[Alex Terentiew, Director and Equity Research Analyst at National Bank of Canada]

Okay. Sounds good. Appreciate that. Just a kind of maybe a fine-tuning question. Production of, you know, gold and copper concentrate versus doré, is that, any change to what you were anticipating there or what you were seeing previously in the phase 2A? Or is everything, in terms of that split, still, you know, on par with your expectations?

[John Lewins, CEO and Director at K92 Mining]

I think we'd say it's on par with our expectations. It does vary. We tend to find that Judd has more gravity gold than Kora, sometimes we can get up to 40% from an area, whereas our overall average is more like 10%. There's certainly some work that we're planning on doing to see if we can improve our gravity recovery, for instance, by looking at our flash flotation column and actually seeing if we can take gravity gold out of that. There are a few things that we've got, we've got planned. Of course, the first thing was to get the plant commissioned and get it running in a stable manner. I've got to say, I've been involved in multiple flotation plants. The commissioning of this plant was the fastest I've seen.

[John Lewins, CEO and Director at K92 Mining]

Which is a real testament to our workforce, which is basically Papua New Guinean. And of course to GRES for the plant that they built. It has been a real pleasure actually on the commissioning front. You always get a few hiccups. It really is operating in terms of recoveries better than anticipated. You can't really ask for much more than that.

[Alex Terentiew, Director and Equity Research Analyst at National Bank of Canada]

Yeah, absolutely. Okay. No, that's great. Thank you.

[John Lewins, CEO and Director at K92 Mining]

Thanks, Alex.

[Operator]

Once again, if you have a question, please press star then one. This brings to a close today's Q&A and the K92 Mining conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Participants

Executives

• David Medilek, President and COO
• John Lewins, CEO and Director
• Justin Blanchet, CFO
• Robert Smillie, VP of Exploration

Analysts

• Alex Terentiew, Director and Equity Research Analyst at National Bank of Canada