K92 Mining Q2 2026 Earnings Report

K92 Mining EPS Results

• Actual EPS: C$0.48
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

K92 Mining Revenue Results

• Actual Revenue: $291.61 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

K92 Mining Announcement Details

• Quarter: Q2 2026
• Date: 8/10/2026
• Time: Before Market Opens
• Conference Call Date: Monday, August 10, 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record operating performance continued in Q2, with 225,965 tonnes milled, 46,093 AuEq ounces produced, and record material mined and mine development. Management expects stronger production in the second half of 2026 and reiterated full-year guidance.
• Positive Sentiment: Financial results benefited from higher production and gold prices, with revenue rising 113% year over year to $205.2 million, operating cash flow before working-capital changes reaching $105.1 million, and cash increasing to a record $349.4 million. Management said the Stage 3 and Stage 4 expansions are fully funded.
• Positive Sentiment: Expansion enablers are progressing, including ventilation upgrades, new mining fronts, larger haul trucks, paste-fill facilities, and road and river-crossing improvements. Stage 3 targets 300,000 AuEq ounces per year at run rate, while Stage 4 is expected to lift capacity above 400,000 AuEq ounces and target expanded plant commissioning in late 2027.
• Positive Sentiment: Exploration results continued to indicate substantial growth potential, particularly at Arakompa, where 100 holes have now been reported and high-grade veins, bulk-tonnage mineralization, and porphyry-style copper-gold targets remain open. A maiden resource estimate for Arakompa is planned for the second half of 2026.
• Neutral Sentiment: Costs remain elevated during the Stage 3 expansion, with Q2 all-in sustaining costs of $1,376 per AuEq ounce on a by-product basis and $1,529 on a co-product basis. Management expects economies of scale and completion of the expansion to reduce costs, but execution of numerous infrastructure projects remains important to that outlook.

Presentation

[David Medilek, President and COO at K92 Mining]

Thank you, operator, and thanks everyone for attending K92 Mining's 2026 second 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 two of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars, unless otherwise noted. Now, I'll turn it over to 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. For many years, K92 has been operating with one of the better safety records in the Australasian region. Our total reportable injury frequency rate, as shown in the chart on the left, has been improving year-over-year and is well below the average reported by the International Council on Mining and Metals, which includes many of the world's largest mining companies. Field level risk assessments, hazard identification, and safety observations, as shown on the right chart, have significantly increased over the past three years, which are positive leading indicators for safety. Our safety-first culture continues to strengthen as we enhance our systems and introduce new safety technologies. During the quarter, we fully implemented Skytrust, our new cloud-based safety and compliance platform.

[John Lewins, CEO and Director at K92 Mining]

The system improves the management of safety and environmental incidents, frontline safety interactions, injury management, inspections, audits, and broader health and safety documentation across the operation. This represents a meaningful step forward in our occupational health and safety management systems. Safety always is one of K92's core values, and we remain steadfast in our commitment to achieving our ultimate goal, zero harm across our entire workforce. On sustainability, K92 was proud to publish our 2025 sustainability report in June. The report builds on previous versions, maintaining alignment with the SASB Metals and Mining Standards for the seventh consecutive year and includes climate-related disclosures in alignment with the TCFD framework.

[John Lewins, CEO and Director at K92 Mining]

The report highlights K92's strong commitment to ESG and to the people and country of Papua New Guinea, including 91% of our employees and permanent contractors are from Papua New Guinea, with a major focus on hiring and developing talent within Papua New Guinea, and especially from our local communities. Our strong commitment to supporting the local economy, including $33 million of expenditure supporting local joint ventures and procurement of $162 million incurred within Papua New Guinea, representing 52% of our total procurement for the mine. Significant tax and royalty paid, including $139 million in 2025, 122% increase over 2024, including $98.7 million in corporate tax. I'd also like to highlight that in 2026, year-to-date, we have already eclipsed 2025 in terms of corporate tax paid, with approximately $121 million paid as at the end of June.

[John Lewins, CEO and Director at K92 Mining]

This is getting significant positive coverage in the media in Papua New Guinea. Significant progress on K92's first PNG Infrastructure Tax Credit Scheme project, with 35% physical completion at the end of 2025 of the Konkua-Bilimoia road upgrades, which will connect many of our communities to the main road network and ultimately lead to significant opportunities to increase trade and business development. The project is now at 48% complete as at the end of June. The establishment of the Kainantu Endowment, an independent charitable trust dedicated to advancing education, skills development, long-term opportunity for the people across Papua New Guinea. K92 is extremely proud of the positive impact it's having on the prosperity and development of Papua New Guinea, and we encourage you to read our report, found at www.k92mining.com. Moving on to operations.

[John Lewins, CEO and Director at K92 Mining]

During the quarter, the Kainantu Mine produced 46,093 ounces AuEq, with mill throughput totaling a quarterly record of 225,965 tonnes and a head grade of 6.7 gram per tonne AuEq, benefiting from a moderate positive gold grade reconciliation versus the latest independent mineral resource estimate. Cash costs of $850 per ounce gold and all-in sustaining costs of $1,376 per ounce gold were recorded for the quarter on a by-product basis. On a co-product basis, cash costs of $1,045 per ounce AuEq and all-in sustaining costs of $1,529 per ounce AuEq were reported. As shown on the chart, all-in sustaining costs have remained meaningfully above cash costs since early 2023, reflecting K92's substantial investment in the Stage 3 expansion. Costs are expected to decline materially once the expansion is completed and the operation reaches steady-state production.

[John Lewins, CEO and Director at K92 Mining]

Importantly, even at these temporarily elevated levels, K92 remains in the lower half of the industry all-in sustaining cost curve, underscoring the high quality of the K92 Gold Mine and the company's continued focus on cost discipline. In terms of processing, as previously noted, Q2 was a record quarter in total tonnes milled and marked the second full quarter in which all material was processed exclusively through the new plant, which continues to deliver a very strong performance. Overall metal recoveries were 93.8% for gold, exceeding the updated definitive feasibility study parameter for the ninth consecutive quarter, while copper recoveries performed well during a low copper head grade quarter. In terms of our key operational quarterly physicals, we took a major step forward in the second quarter. We achieved record mill throughput, as noted earlier.

[John Lewins, CEO and Director at K92 Mining]

We also achieved record material mined of 426,012 tonnes and ore tonnes mined of 228,254 tonnes, given by the introduction and progressive ramp-up of the second mining front, which commenced stoping in April, the improved material movement capacity from the delivery of a second material pass system in June, the completion of the internal ramp, and the surface breakthrough of the Puma Vent Incline in Q1. Total mine development for the quarter reached a record 3,326 m, up 35% year-over-year and exceeding the required development rate of 3 km per quarter for the Stage 3 expansion by 11%. In May, we achieved a monthly record of 1,150 m, and I'm pleased to report that subsequent to the quarter end, we achieved a new monthly development record of 1,220 m in July, exceeding the Stage 4 expansion development rate of 1.2 km per month.

[John Lewins, CEO and Director at K92 Mining]

Importantly, this was achieved ahead of the completion of multiple key enablers scheduled for this quarter, in addition to the planned arrival of a further new jumbo in late Q4, highlighting that K92 is well-positioned to significantly exceed Stage 4 development requirements starting in early 2027. This is expected to provide a considerable boost to our operational flexibility. For the second half of the year, we expect production to be strongest, driven by increased mine physicals and plant throughput as more key enabler projects come online, which will be discussed later in this presentation, plus a scheduled higher-grade stoping sequence in Q4. We reiterate our production guidance for 2026. I will now turn the call over to our Chief Financial Officer, Justin Blanchet, to discuss our financial results for the second quarter.

[Justin Blanchet, CFO at K92 Mining]

Thank you, John, and hello, everyone. Revenue for the quarter was $205.2 million, an increase of 113% when compared to the same period in the prior year. We sold 46,682 gold ounces at an average selling price of $4,493, compared to 28,864 ounces at an average selling price of $3,166 during the same period in the prior year. As of June 30th, 2026, there were 9,225 gold ounces in inventory, including both concentrate and doré, a decrease of 3,093 ounces when compared to March 31st, 2026. K92 had quarterly cost of sales of $64.7 million, compared to $32.4 million in the same period prior year, or $49.8 million compared to $26.2 million when excluding non-cash items. The increase in cost of sales was driven by significantly higher tonnes mined and processed when compared to the same period in the 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 3 expansion. Cash flow from operating activities before changes in working capital was $105.1 million for the second quarter, compared to $47 million during the same period in the prior year. As of June 30, 2026, K92 had a record $349.4 million in cash and cash equivalents, a record working capital balance of $396.7 million, and a record net cash position of $310 million. Importantly, the Stage 3 and 4 expansion projects are fully funded, and our financial position is strong. We also have access to significant amounts of liquidity through undrawn credit facilities with $60 million available to draw down on demand and $5 million of loan principal repaid during the quarter.

[Justin Blanchet, CFO at K92 Mining]

We would also highlight that our downside exposure to the gold price is protected through a cost-effective put option program extending to the end of 2026. The program covers 10,000 ounces per month at a strike price of $3,500 per ounce. Importantly, this is not a hedge. If the spot price of gold is above $3,500 per ounce, we will sell at the higher market price. The put simply puts downside protection while preserving the full exposure to any further upside in gold prices. As John mentioned, during the second quarter of 2026, the Kainantu Gold Operations produced 42,931 ounces of gold, 1,780,506 pounds of copper, and 50,109 ounces of silver, or 46,093 ounces of AuEq. We sold 46,682 ounces of gold, 1,811,181 pounds of copper, and 49,004 ounces of silver.

[Justin Blanchet, CFO at K92 Mining]

On a byproduct basis, we recorded a cash cost of $859 per ounce and an all-in sustaining cost of $1,376 per ounce of gold in Q2 2026. Our all-in sustaining cost in Q2 was significantly below our realized selling price of $4,493 per ounce, reflecting our strong cost discipline and the Kainantu Gold Mine's asset quality. Our cash cost increased when compared to the prior period, largely due to lower head grades, which was partially offset by higher byproduct credits. We will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 expansion is complete. I will now turn the call back to John to discuss 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 of the Stage 3, Stage 4 expansions, which are expected to fundamentally transform K92 into a Tier 1, mid-tier gold producer. The Stage 3 expansion, as outlined in our updated definitive feasibility study, supports a 1.2 million tonne per annum throughput rate, producing 300,000 ounces AuEq per annum at run-rate. Stage 4 will take us to over 400,000 ounces AuEq per annum at run-rate, targeting expanded plant commissioning in late 2027. The 600,000 tonne per annum Stage 2A plant, which has been idled, provides additional capacity for future expansion beyond Stage 4. The delivery of Stage 3 expansion ramp-up is driven by several key enablers, which have already driven a significant ramp-up in mining and processing physicals, as shown earlier.

[John Lewins, CEO and Director at K92 Mining]

Starting with underground, the twin incline was completed in 2024. The internal ramp system in Q1 of this year. First material pass, Q3 last year. Second material pass completed in June of this year. Development of a third material pass is underway, targeting Q4 of this year, and the Puma Ventilation Drive brought through in late February. The breakthrough of the Puma, together with the internal ramp, resulted in a significant increase in underground primary ventilation, which now meets the initial ventilation requirements for the Stage 3 expansion. Up until that point, ventilation was a notable operating constraint. The delivery of the paste fill system will be another key enabler of the Stage 3 and Stage 4 expansions, particularly Stage 4, providing greater flexibility in mine sequencing and improving stoping performance, including lower dilution, reduced waste handling, and higher mining recoveries.

[John Lewins, CEO and Director at K92 Mining]

On this slide, we provided several images to highlight the significant positive impact of some of the key enabler projects. Starting with the twin incline. The image on the left is the incline acquired from Barrick, which moved all production tonnes until recently. The image on the right is the new incline, which we completed, as I said, in 2024, and which enables 50% larger trucks at faster speeds. It effectively is an underground highway for material transport. In late January, we completed the internal ramp, enabling all of the mining fronts to now be connected to the highly productive twin incline. As you can see from the image, it was a big deal for our crews with the banner, We are one mine. Before then, we effectively operated two separate crews and fleets in the lower and upper mine, respectively.

[John Lewins, CEO and Director at K92 Mining]

Now we are much more efficient as a single mine. As shown in the prior slide, a large majority of the resource sits above the twin incline, which gives us a significant gravity advantage that we are leveraging through the installation of material passes. Currently, there are two material passes, one for ore, one for waste. The third pass currently being developed and expected to be completed in Q4. The image on the bottom left shows a truck that has been loaded on a nearby sub-level, hauled a short distance, and directly tipping down the ore pass. For this particular pass, the material travels down approximately 350 m vertically and then loaded onto trucks in the twin incline. Further material handling productivity and cost benefits will be realized following the completion of the key river crossing and surface haul road upgrades.

[John Lewins, CEO and Director at K92 Mining]

This will enable the use of our new 60-tonnes payload trucks that are expected to be operational by the end of this quarter. These trucks will haul from underground directly to the process plant, eliminating surface rehandle and operating at much faster speeds than the current fleet. Four of these trucks are already on-site. One has recently arrived in country, and the final three are expected on-site before the end of the year. As shown in these images, substantial progress has been made on the Stage 4 primary ventilation upgrade project, with both 1.85 MW primary fans mechanically complete and the high voltage and associated electrical installations now substantially complete. We plan to complete electrical commissioning this quarter.

[John Lewins, CEO and Director at K92 Mining]

Upon commissioning of the primary fans, overall ventilation capacity increases from 350 cu m per second currently to over 600 cu m per second, and can be expanded to over 700 cu m per second through benching of the Puma Vent Incline. This more than meets the requirements for Stage 3 and 4 expansions and life of mine. A further reduction in blast clearance times is expected upon completion, along with additional benefits realized from reconfiguring the twin incline traffic to highly productive one-way traffic flow. As the fans are variable speed drive, they will initially be run at lower speeds to conserve power and progressively be ramped up as the operation expands and ventilation demand increases. In addition to completing various infrastructure enablers for the expansion, mine development continues to open up two new mining fronts, the twin incline and Lower Kora.

[John Lewins, CEO and Director at K92 Mining]

First stoping ore from the second mining front, Lower Kora, was delivered in April 2026, with production progressively ramping-up. First stop ore from the third mining front to an incline is expected this quarter, initially from Judd, with operation expected to ramp-up to four mining fronts in 2027. Importantly, with the significant increase in lateral development rates over the past three quarters, plus July now exceeding the Stage 4 expansion development requirement, we plan to open existing and new sublevels at an increased rate to build greater operational flexibility at the stoping fronts. Currently, we have meaningfully upgraded our equipment and have more underway. As shown on the table on the left, with 25 new major equipment units scheduled to arrive between late last year and the end of 2026. Between older unit replacements and new additions, this will increase our fleet size by 16 units.

[John Lewins, CEO and Director at K92 Mining]

This substantial fleet investment ensures we have adequate capacity to meet not only Stage 3 expansion but also Stage 4 expansion equipment requirements. On the production side, four new loaders have been added to the fleet this year, comprising two additional units and two replacements, plus a large Sandvik LH621i loader is scheduled to arrive in Q4. A new long-hole production drill was also commissioned in late April. Two new underground haul trucks will be added to the fleet by year-end. A new development jumble, an additional explosive charging unit, and a cement agitator are also scheduled for delivery towards the end of the year, further expanding the underground fleet and our development advanced capabilities.

[John Lewins, CEO and Director at K92 Mining]

As previously highlighted, we are also on the cusp of unlocking higher underground and surface haulage productivity with the imminent completion of the key river crossing project, Phase 1 haul road upgrade, and commissioning of the new 60-tonne Volvo haul truck fleet. Ancillary projects are progressing well, with the Phase 2 power station expansion from 10.7 MW prime power output to 15.3 MW completed in May. The expanded primary power station now meets Stage 4 expansion total power requirements and provides increased standby power for any unexpected local grid outages. Since commissioning the new primary power station last October, the operation has seen minimal power disruptions across both the process plant and underground mine, highlighting the effectiveness of these upgrades. The maintenance facility is well advanced, and completion of the main workshop is scheduled for this quarter, and then the tire and machine rebuild center facilities for the fourth quarter.

[John Lewins, CEO and Director at K92 Mining]

Significant progress has also been made on the surface paste fill filtration plant, surface storage facility, and underground paste fill plant packages. The tailings filter plant is now practically complete, and the first filter cake was produced in late April. Wet commissioning and performance testing was completed early this month, which demonstrated the strong filter press capacity and overall system performance in line with design. Once fully operational, the paste fill system is expected to redirect approximately 60% of tailings underground, materially reducing the capacity required for surface tailings storage. The filter tailings will be converted into paste fill to backfill stopes, improving ground stability and supporting higher mining rates as we continue to ramp up production. At the surface paste binder blending area and filter cake storage facility, civil and concrete works are complete.

[John Lewins, CEO and Director at K92 Mining]

With structural, mechanical, and piping works well advanced across all facilities, commissioning is expected in this quarter. At the underground paste plant, construction activities are rapidly advancing across all levels, with concrete works in the silo chamber now complete, hopper installation underway, and binder mixing and screw conveyor installed. Remaining civil structural mechanical installations are progressing as planned. Commissioning of the underground paste plant, which will be completed as a paste circuit, is planned for Q4 2026. As shown on the slide, the major surface haul road and key river crossing projects made substantial progress during the quarter. Phase 1 comprises upgrades to the three river crossings and widening of selected haul road sections to enable the operation of the 60-tonne trucking fleet.

[John Lewins, CEO and Director at K92 Mining]

Key milestonnees included completion of the Baupa Bridge in early April, recent completion of the Kokomo Bridge in late July, and major backfilling works on Kasese culvert nearing completion. Phase 1 remains on track for completion this quarter. Phase 2, comprising road straightening, realignment, and gradient improvements, is scheduled for completion by year-end. In addition to an increase in trucking payload, delivery of these projects substantially reduces our traffic congestion and improves haulage cycle times and unit costs. In summary, as shown in the Gantt chart and from the prior slides, a significant number of key enabler projects have been sequentially completed or are nearing completion, including many over the next two months for the Stage 3 and the Stage 4 expansions. I'll now turn it over to Rob Smillie, VP Exploration, to provide an update on our exploration activities.

[Rob Smillie, VP of Exploration at K92 Mining]

Thank you, John. It's been another quarter of strong progress across our exploration program. We currently have seven underground drill rigs operating at Kora and Judd, five surface rigs at Arakompa, and 1 at Wira. A new rig arrived in early April, with a second additional surface rig currently undergoing commissioning, bringing us up to 16 rigs operating. This also includes a new small footprint heli-portable rig planned to commence drilling at Mati late in the third quarter, unlocking a target within 1.6 km of and running parallel to current mine workings that has not yet been drill tested. Drilling is also planned to commence from surface at Judd North, with drill site preparation well advanced during the quarter. At Kora, drilling continues to advance across multiple fronts concurrently along more than 2.5 km of drill-defined strike.

[Rob Smillie, VP of Exploration at K92 Mining]

From the twin incline, we're testing Kora Deeps, Kora North Deeps, and Kora South Deeps while a separate program from the 1205 level drill drive is advancing Kora South. Kora Deeps drilling continues, targeting down to 500 m RL over the next 12 months, building on the thick, high-grade mineralization intersected below the twin incline. Results continue to record strong dilating zone intercepts and, at increasing drill density, extend high-grade zones. The results have also delineated a substantial high-grade copper zone to the south of Kora for both K1 and K2, with copper grades here increasing in depth within the K1 vein thus far. The consistency of these high-grade copper hit rates with grades exceeding 4% copper is very encouraging and points towards a meaningful copper gold corridor developing towards the A1 porphyry target and interpreted heat source for the broader vein system.

[Rob Smillie, VP of Exploration at K92 Mining]

The Kora system remains open in multiple directions along strike, up-dip, and at depth, and we look forward to sharing further results as drilling progresses. At Judd, drilling continues to test the Judd South, and Judd Deeps systems, which remain sparsely drilled, with drill-defined strike length having grown more than 130% since the end of 2021. Judd Deeps drilling is underway from the twin incline, targeting down to 500 m RL over the next 12 months, while Judd South drilling also continues. At Judd North, underground drilling continues to test a compelling 800-m strike target with up to 500 m of vertical extent. Results to date have been very encouraging, and we plan to commence surface drilling in late Q3.

[Rob Smillie, VP of Exploration at K92 Mining]

The Judd system remains significantly underexplored and open in all directions, and we believe the best of Judd is still ahead of us. I am very encouraged by the significant increases in our development rates, which will provide us with more discretionary development meters to be allocated to exploration drill drives, including advancing the 1205 level drill drive and the twin incline to the south so that we can better target Kora South, Judd South, Kora South Deeps, and Judd South Deeps, which are showing strong exploration vectors. Turning now to Arakompa, located approximately 4.5 km from the Kainantu process plant. In June, we released our sixth set of results from the maiden surface drill program with 33 new holes, which included 40 intersections above 5 grams per tonne AuEq and 20 exceeding 10 grams per tonne AuEq

[Rob Smillie, VP of Exploration at K92 Mining]

We have now reported a total of 100 holes to date. Drilling continues to target the strike and depth extensions of the AR-1 and AR-2 lodes, bulk tonnage zones, as well as prospective porphyry-style mineralization to the south. Arakompa has grown substantially in scale and geological understanding since the maiden program began, and we are currently planning a maiden resource estimate in the second half of 2026. Drilling continues to define two major high-grade lodes, AR-1 and AR-2. At AR-1, increased drill density has expanded and upgraded the near-surface thick high-grade zone, now defined up to approximately 300 m of vertical extent and up to 400 m of strike length, starting at 100 m depth. Within this lode, the weighted average grade and average true width are 9.47 grams per tonne AuEq and 4.32 m, respectively.

[Rob Smillie, VP of Exploration at K92 Mining]

Highlights included 11.9 m at 14.3 grams per tonne AuEq in KARDD0076, 10 m at 15.21 grams per tonne AuEq in KARDD0106, and 14.5 m at 17.33 grams per tonne AuEq in KARDD0038. AR-2 also delivered multiple high-grade intercepts, including 4.7 m at 41.9 grams per tonne AuEq in KARDD0084G and 3.4 m at 20.31 grams a tonne AuEq in KARDD0090. Both veins remain open in multiple directions, averaging approximately 3 m in width, with mineralization confirmed to extend to surface, reinforcing several high-priority near-surface infill targets ahead of the maiden resource. In terms of the bulk tonnenage zones, several holes returned thick, high-grade bulk intercepts close to surface, including 99 m at 2.90 grams per tonne AuEq in KARDD0076, 106.5 m at 2.22 grams per tonne AuEq in KARDD0090, and 105.4 m at 2.26 grams per tonne AuEq in KARDD0084G.

[Rob Smillie, VP of Exploration at K92 Mining]

This increased drill density has meaningfully improved our confidence in geological continuity, while also highlighting the potential for grade profile upgrades as infill and step-out drilling continue. Surface sampling also indicates mineralization extends to the surface along Arakompa's more than 2-km strike length, opening up a number of high-priority infill targets up-dip of the zones defined to date. On the porphyry side, vector drilling continued to advance following our previously reported discovery hole, KARDD0065. The latest step-out hole, KARDD0077, intercepted 1,151.2 m at 0.3% CuEq. KARDD0093G returned 800.7 m at 0.33% CuEq, and KARDD0074 returned 494 m at 0.35% CuEq. These holes move through out-of-potassic alteration, giving us an important vector towards what we believe could be a high-grade potassic core. Given the significance of this target, we have now allocated a second rig specifically to drill test the porphyry system, with drilling now underway.

[Rob Smillie, VP of Exploration at K92 Mining]

This graphic really captures how quickly Arakompa has grown from just two holes reported back in February 2024 to 100 holes reported as of this latest release. The mineralized footprint has expanded steadily with each release, and increased infill density is strengthening our geological model with each phase of drilling. We continue to see meaningful upside from the high-grade veins, bulk tonnage zones, and the emerging porphyry targets at the south. As you can see, this reflects the depth of what is still ahead of us, a wide range of highly prospective targets across our 837 sq km land package, with several programs now running concurrently. In the near term, our focus continues on Arakompa, alongside continued underground drilling at Kora Deep, Judd Deep, and Judd North, with drilling to the south expected to ramp up as we develop more drill platforms.

[Rob Smillie, VP of Exploration at K92 Mining]

At Mati, a new small footprint heli-portable rig is planned to commence drilling in the third quarter, targeting a system that remains completely undrilled to date but immediately adjacent to ML 150 and running sub-parallel to Kora and Judd. Drill testing continues to advance at Wira as part of our broader regional pipeline. Lastly, our plans are well advanced to commence drilling at Judd North next quarter from the surface, which shows high potential. 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, K92 delivered another strong quarter, achieving multiple records, including record mine and processing physicals and a record cash balance of $349 million, further strengthening the business as we advance to Stage 3 and Stage 4 expansions. We are very encouraged by the positive operational momentum, particularly the record monthly development of 1,220 m achieved in July. With continued strong development rates allowing us to further open up the mine and build operational flexibility. Looking ahead, the third quarter will see the culmination of more large capital projects, including the primary ventilation fan upgrade and the roads and river crossing upgrades, projects that have required years of investment and will deliver clear operational benefits for K92. We also continue to focus on the progressive ramp-up in stoping from the new mining fronts and execution of ongoing operational excellence projects.

[John Lewins, CEO and Director at K92 Mining]

Exploration continues to advance across both near mine and regional drill programs while maintaining our focus on safety, communities, and sustainable stakeholder benefits. Concurrently, we will continue to advance our community projects and deliver sustainable benefits to all project stakeholders, highlighted in our recent published sustainability report. With that, operator, we are happy to open the line for questions. Thank you.

Participants

Executives

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