K92 Mining Announces 2025 Operational Guidance Highlighting Significant Production Growth

K92 Mining Inc. is pleased to provide its operational outlook for 2025, forecasting a significant increase in production, the delivery of the Stage 3 Expansion later in the year, which plans to transform the Company into a Tier 1 Mid-Tier Producer, and a substantial exploration budget to continue supporting its highly effective exploration activities on multiple targets.

• Production in 2025 is expected to be 160,000 to 185,000 ounces gold equivalent (“AuEq”), significantly increasing from the record 2024 production of 149,515 oz AuEq, driven by the commissioning and ramp-up of the new 1.2 million tonnes per annum (“mtpa”) Stage 3 Expansion process plant scheduled to commence in the second half of Q2 2025. As a result, production in the second half of the year is expected to be the strongest, with planned stockpiling ahead of the commissioning occurring in Q2 2025.
• Net of by-product credit basis cash costs between $710-$770 per ounce gold and all-in sustaining costs (“AISC”) of $1,460-$1,560 per ounce gold forecasted for 2025. On a co-product basis, cash costs between $830-$890 per ounce AuEq and AISC of $1,490-$1,590 per ounce AuEq are forecasted for 2025. As the Company is executing the Stage 3 and 4 Expansions, sustaining capital costs are closely aligned with the higher sustaining capital Updated Integrated Development Plan ⁽¹⁾ (“Updated IDP”) Stage 4 Preliminary Economic Assessment (“PEA”) Case, in addition to a moderate amount of sustaining capital that has shifted from 2024 to 2025. For 2025, sustaining capital is weighted towards the first half of the year, and in the second half of the year we forecast a significant reduction in AISC upon the Stage 3 Expansion commissioning and ramp-up. The Company notes that it expects to beat its 2024 AISC guidance, driven by sustaining capital shifting into 2025 plus delivering record annual production.
• Large exploration program planned, with $17-$20 million projected for 2025. Surface exploration plans to focus on Arakompa, Maniape, Kora South, Judd South, plus increased exploration activity within the Mati, Mesoan and Bona Creek veins proximal to the Kora and Judd deposits. Underground drilling plans to focus on Kora, Kora South, Kora Deeps, Judd, Judd South, and Judd Deeps.
• Growth capital is forecasted to be $105-$110 million in 2025, with $102 million spent in 2024 and $15 million spent in 2023. Total growth capital, for the Stage 3 and 4 Expansions remains closely aligned with the Updated IDP PEA Case of $216 million (including 2023 capital spent). As at December 31, 2024, 70% of the Stage 3 and 4 Expansion growth capital has been either spent or committed, and importantly, the largest package, the Stage 3 Process Plant, has been awarded on a lump-sum fixed price basis to GR Engineering Services Limited, significantly de-risking the project ( see July 24, 2023 press release ). The remaining major package, the paste fill plant, is well advanced with all long-lead time items ordered, early bulk earthworks underway by K92, detailed engineering contract awarded to GR Engineering Services Limited, and the award of the construction contracts planned for this quarter.

Note: All amounts in United States Dollars unless otherwise indicated.
(1): Refer to Updated Integrated Development Plan (“Updated IDP”) Definitive Feasibility Study (“DFS”) Case and Preliminary Economic Assessment (“PEA”) Case. Updated IDP effective date is January 1, 2024.

John Lewins, K92 Chief Executive Officer and Director, stated, “There is tremendous enthusiasm internally, amongst our various stakeholders including in Papua New Guinea for the year ahead as K92 transforms into a Tier 1 Mid-Tier Producer with the delivery of the Stage 3 Expansion. In the second half of Q2, the Stage 3 Expansion process plant is scheduled to commence commissioning, marking the beginning of a step-change in our throughput and production capabilities.

Importantly, we enter 2025 in a position of strength, with 70% of our Stage 3 and 4 Expansion growth capital spent or committed at 2024 year end, plus a notable strengthening of our cash position to a record high, through two consecutive quarters of record production in a record gold price environment. Furthermore, we are supported by $60 million of undrawn credit facilities with an accordion feature to increase a further $30 million with Trafigura, in addition to gold put contracts as insurance against commodity price downside until mid-2025.

During this major production growth period, we plan to continue to invest heavily in exploration and significantly ramp up our exploration activities after the Stage 3 Expansion is delivered. Between the Arakompa, Maniape, Kora-Kora South, Judd-Judd South deposits, the emerging Mati, Mesoan and Bona Creek vein targets, and our porphyries, particularly Blue Lake and A1, we believe we control a significant and well endowed mineral district that we are just scratching the surface of. We look forward to providing updates in due course.”