K92 Mining Posts $236.3 Million Revenue, Tsx Index Eyes Cash
K92 Mining’s tsx index-linked first quarter was driven by $236.3 million in revenue and record cash balances as output at the Kainantu Gold Mine improved after the Stage 3 processing plant was commissioned. For shareholders, that meant more cash on the balance sheet and more room to fund the company’s Stage 3 and Stage 4 expansion projects without immediate strain.
Kainantu Output Reached 46,743 Ounces
46,743 gold-equivalent ounces came from the Kainantu Gold Mine in Papua New Guinea in the first quarter, with mill throughput of 142,017 tonnes and head grade of 10.9 grams per tonne gold equivalent. Those figures point to a higher-volume quarter that helped lift the top line and supported the company’s operating cash flow.
$236.3 million in revenue followed, up 63% from the same period a year earlier, as K92 sold 44,854 ounces of gold at an average selling price of $4,641 per ounce. The prior-year quarter brought in $2,739 per ounce on 45,886 ounces, so the gap was driven by both higher realized pricing and stronger production through the plant.
March 31 Cash Hit $287 Million
$287 million in cash and cash equivalents sat on K92’s books as of March 31, alongside $343.3 million in working capital and a $242.6 million net cash position. Justin Blanchet, the chief financial officer, said K92 generated $236.3 million in revenue in the quarter and reported record cash, working capital, and net cash balances.
$132.9 million in operating cash flow before changes in working capital compared with $80.9 million in the prior-year quarter, while cost of sales rose to $57.3 million from $34.1 million and cost of sales excluding non-cash items increased to $45.5 million from $27.4 million. The quarter also carried cash costs of $785 per ounce of gold on a byproduct basis and all-in sustaining costs of $1,421 per ounce, with co-product costs at $991 per gold-equivalent ounce and $1,587 per gold-equivalent ounce.
Stage 3, Safety and Liquidity
Stage 3 and Stage 4 expansion projects are fully funded, and K92 also has access to additional liquidity through undrawn credit facilities, including $60 million available on demand. The company also bought put option contracts through the end of 2026 covering 10,000 ounces of gold per month at a strike price of $3,500 per ounce; Blanchet said, “To be clear, this is not a hedge.”
John Lewins described the quarter as “strong,” but the period also included a fatal contractor incident near the Kumian Creek camp in a designated area about 1.5 kilometers northeast of the process plant and 8 kilometers northeast of the underground mine. A progressive restart of the contractor’s activities began March 1, and the contractor has been fully operational since March 7, after K92 had recorded 10 quarters without a lost-time injury.
