K92 Mining Inc. has reported strong financial and operational results for the third quarter of 2025, with record cash balances, revenue, operating income, and production.
John Lewins, K92 Chief Executive Officer, said that the third quarter was highly successful, marked by the successful construction of the new 1.2 million tonnes-per-annum Stage 3 Process Plant under budget, multiple financial records, strong operational results and the advancement of several projects to set the Company up for success in the near and long-term.
“We are pleased to report that after quarter-end, the positive operational momentum has continued, with numerous milestones achieved,” Lewins said.
The executive said that commissioning of the plant is progressing well, first production of commercial grade concentrate from the new Stage 3 Process Plant occurred in October and practical completion of commissioning is expected shortly.
Underground mining rates have also taken a notable step forward as key-enabler projects have come online, he added.
Production Performance
K92 achieved a robust quarterly production of 44,323 ounces gold equivalent (AuEq), including 42,244 ounces of gold, 1,323,538 pounds of copper, and 34,831 ounces of silver. The company remains on track to meet its 2025 production guidance of 160,000–185,000 ounces AuEq, with over 80% of the lower-end target already achieved in the first three quarters.
The company also reported a commissioning stockpile of 4,893 ounces AuEq, in line with Stage 3 Expansion requirements. Cash costs stood at US$694 per ounce of gold, with all-in sustaining costs of US$1,254 per ounce. Metallurgical recoveries were strong at 95.0% for gold and 94.6% for copper.
The process plant has exceeded updated feasibility study recovery targets for six consecutive quarters. Quarterly ore processed reached 137,172 tonnes, with 152,485 tonnes mined. The ore had a head grade of 11.2 g/t AuEq, comprising 10.7 g/t gold, 0.47% copper, and 10.3 g/t silver.
Financial Highlights
K92 recorded a net cash position of US$131.2 million, with total cash and cash equivalents of US$185.4 million. Quarterly revenue rose 45% from Q3 2024 to US$177.5 million, while net income increased 84% to US$85.7 million, or US$0.35 per share.
Operating cash flow (before working capital adjustments) reached US$101.8 million, and EBITDA hit a record US$130.2 million. Sales during the quarter included 45,006 ounces of gold, 1,480,151 pounds of copper, and 43,271 ounces of silver. Gold concentrate and doré inventory stood at 7,913 ounces, down 500 ounces from the previous quarter.
Stage 3 Expansion
Construction of the new 1.2 million tonnes-per-annum Stage 3 Process Plant was completed under budget, a milestone highlighted by the official inauguration on October 16, attended by Prime Minister James Marape, Minister for Mining Rainbo Paita, other ministers, provincial leaders, landowner representatives, and the diplomatic and business community.
“As at September 30, 2025, 90% of Stage 3 Expansion growth capital has either been spent or committed; remains on budget,” the company said. Crushing, grinding, and flotation circuits have been commissioned with ore since September 2025, with first commercial-grade gold-copper-silver concentrate produced in mid-October. Full commissioning of the plant is expected to complete in November 2025.
Major construction for supporting infrastructure, including the pastefill plant, surface tailings filtration, and surface storage facilities, is underway and progressing on schedule. Key underground development projects, such as the Material Pass, Phase 2 Ventilation Upgrade, and Surface Tele-Remote Loader System, have been completed. Additional projects, including further ventilation upgrades and a second Material Pass, are scheduled for completion in early to mid-2026.
Exploration Updates
K92 reported results from its fifth set of drill holes at the Arakompa project, bringing the total to 67 holes for the year. The drilling confirmed significant porphyry-style mineralisation, extending the bulk tonnage zone over 1,100 metres of strike length to a vertical depth of 800 metres.
Notable drill results include:
- KARDD0065: 690.4 metres at 0.30% copper equivalent (0.17 g/t Au, 0.17% Cu, 2 g/t Ag) starting at 297 metres, including 395.3 metres at 0.38% CuEq.
- KARDD0061: 96.10 metres at 2.64 g/t AuEq (2.48 g/t Au, 4 g/t Ag, 0.07% Cu)
- KARDD0046: 62.20 metres at 1.08 g/t AuEq (0.87 g/t Au, 5 g/t Ag, 0.10% Cu)
Exploration at the Wera prospect revealed a large 3.5 km by 3.5 km mineralised system with high-grade rock chip samples, including up to 26.30 g/t Au. Drilling at Wera is now underway, while Arakompa will deliver a maiden mineral resource estimate in mid-2026.
“Financially, the Company is in the strongest position in our history, with a record $185 million in cash and cash equivalents, including a record net cash position of $131 million, while also continuing to invest heavily in the Stage 3 and 4 Expansions,” he said.
On exploration, Lewins said that consistent progress continues to be made at both near-mine and regional targets. With up to five rigs turning at Arakompa, one rig at Wera, and six rigs focused on expansion at Kora and Judd, K92 is well-positioned to close out another successful year of exploration.
In 2026, Lewins said that K92 plans to expand its exploration programs further, with two new surface diamond drill rigs expected to arrive in early Q1 2026. “We look forward to providing further updates in due course,” he said.
