K92 Mining Inc has reported a 116% increase in quarterly net income to US$84.6 million, as its Kainantu operations in Papua New Guinea delivered record ore processing and mine development during the second quarter.
The Vancouver-based miner reported revenue of US$205.2 million for the three months ended June 30, up 113% from the same period in 2025. Net income rose to US$0.34 per share, while EBITDA increased 136% to US$140.7 million.
The strong financial performance was underpinned by a significant increase in production at Kainantu, where K92 processed a record 225,965 tonnes of ore during the quarter, 73% higher than in the second quarter of 2025 and 59% above the previous quarter.
The operation produced 46,093 ounces of gold equivalent, comprising 42,931 ounces of gold, 1.78 million pounds of copper and 50,109 ounces of silver.
The company also recorded 46,682 ounces of gold, 1.81 million pounds of copper and 49,004 ounces of silver in sales during the quarter.
K92 said the new 1.2-million-tonne-per-year Stage 3 expansion process plant in PNG continued to perform well after becoming fully operational in December 2025. Gold recovery reached 93.8% in the quarter, exceeding the 92.6% recovery parameter in the company's updated definitive feasibility study for the ninth consecutive quarter.
The strong processing performance coincided with record mine development at Kainantu.
The operation advanced 3,326 metres of mine development during the quarter, a 35% increase from the second quarter of 2025 and an 11% increase from the first quarter of 2026.
A further monthly record of 1,220 metres was achieved in July, taking development rates above the 1,000 metres per month requirement for Stage 3 and the 1,200 metres per month requirement for the planned Stage 4 expansion.
K92 chief executive officer John Lewins said the company expected production to be strongest in the second half of 2026, with the fourth quarter expected to be the strongest quarter of the year.
Expansion advances in PNG
The financial results come as K92 continues to invest heavily in expanding its PNG operation.
As of June 30, 98% of Stage 3 expansion growth capital had either been spent or committed, with the project remaining on budget.
Several major infrastructure projects supporting the expansion have also been completed or are nearing completion.
These include the second material pass, which became operational in June and is expected to significantly improve material handling capacity at the Main Mine and Lower Kora.
The company's Phase 2 expansion of its primary power station was completed in May, increasing prime power output to 15.3 megawatts from 10.7MW. K92 said the expanded facility now meets the total power requirements of the Stage 4 expansion and provides additional standby capacity during potential disruptions to the local hydroelectric grid.
Infrastructure work has also extended beyond the mine.
The Baupa Bridge was completed in April, while the Kokomo Bridge was completed in late July and the Kasese River Crossing is expected to be completed in the third quarter.
K92 said the projects will enable a tripling of surface haulage payload from 20 tonnes to 60 tonnes while reducing haulage cycle times, supporting higher throughput under the Stage 3 and Stage 4 expansions.
The company is also expanding its mining and haulage fleet. Four new Sandvik LH517i underground loaders had been added during 2026 as of the end of the quarter, while a larger LH621i loader is scheduled to arrive in the fourth quarter.
Four new 60-tonne surface trucks have also been delivered and are expected to enter service in the third quarter, with another four units due by year-end.
Arakompa exploration expands
K92 is simultaneously advancing exploration around Kainantu, with drilling at Arakompa continuing to identify high-grade gold mineralisation.
The company reported the sixth set of results from its maiden surface diamond drilling programme at Arakompa during the quarter. The programme has now reported results from 100 holes, with all holes intersecting mineralisation.
K92 said 40 intersections exceeded 5 grams per tonne gold equivalent, including 20 intersections above 10g/t AuEq.
The drilling has expanded and upgraded the near-surface AR1 high-grade zone, which is now defined over about 400 metres of strike and up to 300 metres vertically. The zone has a weighted average grade of 9.47g/t AuEq and an average true width of 4.32 metres.
Drilling has also identified a substantial near-surface bulk-tonnage zone, while surface sampling indicates mineralisation extends to the surface over more than two kilometres of strike.
K92 is targeting a maiden mineral resource estimate for Arakompa in the second half of 2026.
The company said exploration will continue alongside the Stage 3 and Stage 4 expansion programme, supported by additional drilling capacity. A new rig arrived at site in April, while a second additional surface rig was undergoing commissioning, potentially bringing the operation's drilling fleet to as many as 16 rigs.
K92 ended the quarter with US$349.4 million in cash and cash equivalents and a record net cash position of US$310 million.
Lewins said the strong balance sheet would allow K92 to continue delivering the Stage 3 and Stage 4 expansions while increasing exploration activity in Papua New Guinea.
The company reiterated its 2026 production guidance and said the combination of higher development rates, additional mining fronts, infrastructure upgrades and fleet expansion was expected to support stronger production in the second half of the year.
