Investor
Presentation
K92 Mining owns and operates the Kainantu Gold Mine, a high-grade underground mine located in the Eastern Highlands province of Papua New Guinea (PNG). Spanning ~830 km², the mine sits within a region renowned for Tier 1 gold deposits. After the successful Stage 2 Expansion in 3Q20, which doubled throughput to 400 ktpa, the Stage 2A Expansion in 2Q23 further increased capacity by 25% to 500 ktpa and is now capable of operating at +600 ktpa, a +50% increase from Stage 2. Building on this success, K92 announced transformative Stage 3 and 4 expansions in December 2022 to establish a world-class Tier 1 gold operation. The Integrated Development Plan, updated in October 2024, projects a Stage 3 DFS run-rate production of +303 koz AuEq per year with an average AISC of $920/oz co-product, and Stage 4 PEA run-rate production of +414 koz AuEq per year with AISC decreasing to $822/oz co-product(1). With construction progressing, Stage 3 commissioning is on track for completion by late-Q2 2025. Simultaneously, up to 11 drill rigs continue advancing exploration efforts to expand resources and unlock additional growth potential. K92 Mining is committed to delivering exceptional value through low-cost gold production and strategic exploration. Stay updated on the latest developments and investment opportunities by following K92’s progress and stock performance.
Note (1): Refer to Updated Integrated Development Plan (IDP) DFS Case and PEA Case. IDP effective date is January 1, 2024.
3Q 2024 Financial Results Conference Call
"Papua New Guinea is the land of Tier 1 mining assets, both in terms of size and grade, has some of the best geology on the planet and we strongly believe that we are located in one of the most prospective parts of the country. At K92 we are very fortunate to have two exceptional resources; our workforce of which over +95% is from PNG and our mineral resource. Additionally, the support from all levels of government has been a major factor in all of our achievements to date."
- CEO and Director, John Lewins
Stage 3 DFS Highlights(1)
(January 1, 2024 Effective Date)
100% Throughput Increase
From 600 ktpa Stage 2A Expansion - New 1.2 mtpa Stage 3 Plant
Tier 1 Asset
303,000 oz AuEq pa Run Rate
Large Reserve Base
7 years of production
Low Capex
US$194m initial Pre-expansion Capex
Tier 1 Asset LOM Costs
US$920/oz AISC
(co-product)
US$665/oz AISC
(net of by-products)
(co-product)
US$665/oz AISC
(net of by-products)
Stage 3 Expansion
Commissioning Scheduled for late-Q2 2025
Stage 4 PEA Highlights(1)
(January 1, 2024 Effective Date)
200% Throughput Increase
From 600 ktpa Stage 2A Expansion - 1.8 mtpa (Stage 3 & 2A Plants Both Operating)
485,000 oz AuEq Peak Annual Production
414,000 oz AuEq pa Run Rate
14 Year Mine Life
5 moz AuEq over 14 years
Low Capex
US$201m initial Pre-expansion Capex
Low LOM Cost
US$822/oz AISC
(co-product)
US$432/oz AISC
(net of by-products)
(co-product)
US$432/oz AISC
(net of by-products)
Stage 4 Expansion
Commissioning Scheduled for 2H 2027
Stage 3 & 4 Expansions
“The Updated Integrated Development Plan is a major milestone for K92, marking a significant improvement to mine economics by incorporating a larger updated Mineral Resource estimate, a new off-take agreement with Trafigura, more robust engineering designs and information from our ongoing construction activities, along with margin expansion from improved commodity prices.
This has resulted in the DFS Case NPV5% increasing from US$586 million at $1,600/oz in the 2022 IDP to, in the Updated IDP, US$680 million at $1,900/oz, or US$1.2 billion at near-spot prices of $2,600/oz. The PEA Case saw its NPV5% rise from US$1.3 billion at $1,600/oz in the 2022 IDP to, in the Updated IDP, US$2.3 billion at $1,900/oz or US$3.5 billion at near-spot prices of $2,600/oz gold.
Importantly, the realization of strong cash flow and the economic benefits of the Updated IDP are expected near-term. In less than nine months, the commissioning of the Stage 3 Plant Expansion is planned to begin, marking the start of K92’s transformation into a Tier 1 Mid-Tier Producer.”
- CEO and Director, John Lewins
October 16, 2024
Note (1): Refer to Updated Integrated Development Plan (IDP) DFS Case and PEA Case. IDP effective date is January 1, 2024.
Thayer Lindsley award 2021
BEST GLOBAL DISCOVERY
“We are extremely proud to receive the Thayer Lindsley Award, which we believe recognizes the world-class nature of the Kainantu Gold Mine, the tremendous geologic potential of Papua New Guinea, and the significant value creation from the K92 team. The rapid progress has been truly remarkable, achieving commercial production in late-January 2018, exceeding production guidance in both 2018 and 2019, completing our Stage 2 Process Plant Expansion followed by a Stage 2A Process Plant Expansion underway, while also advancing our next stages of growth through the Stage 3 Expansion DFS and Stage 4 Expansion PEA in announced in 3Q 2022. This would not have been possible if it weren’t for the extraordinary commitment of our team and the strong support of all levels of government in Papua New Guinea.”
- CEO and Director, John Lewins
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(View)Latest News
K92 Mining Announces 2024 Q3 Financial Results - Record Revenue, Net Income and Operating Cash Flow with a Significant Increase in Net Cash
November 14, 2024
K92 Mining Announces Significant Strike Extension to the South at Arakompa and Discovery of Potential Thick High-Grade Zone
October 22, 2024
K92 Mining Announces Significant Improvement to Economics With Updated Kainantu Gold Mine Integrated Development Plan