K92 Mining Inc. has announced its financial results for the first quarter of 2026, achieving record quarterly revenue, net income, operating cash flow, EBITDA, and net cash position. The company reported strong quarterly production of 46,743 ounces of gold equivalent (AuEq), including 44,022 ounces of gold, 1,696,714 pounds of copper, and 38,845 ounces of silver, in line with budget. K92 reaffirmed its 2026 annual production guidance of 190,000 to 225,000 ounces of AuEq.
Financial Highlights
Record quarterly revenue of US$236.3 million marked a 63% increase from Q1 2025. Net income reached US$116.6 million, or US$0.48 per share, up 66% year-over-year. Operating cash flow before working capital adjustments was US$132.9 million (US$0.54 per share), and EBITDA hit US$179.9 million (US$0.74 per share), representing increases of 64% and 68%, respectively. Cash and cash equivalents totaled US$287.0 million, with a net cash position of US$242.6 million.
Cost Performance
On a net of by-product credit basis, cash costs were US$785 per ounce of gold, and all-in sustaining costs (AISC) were US$1,421 per ounce. On a co-product basis, cash costs were US$991 per ounce of AuEq, and AISC was US$1,587 per ounce of AuEq. Sales included 44,854 ounces of gold, 1,874,270 pounds of copper, and 41,467 ounces of silver. Gold concentrate and doré inventory stood at 12,318 ounces as of March 31, 2026, a decrease of 1,713 ounces from the prior quarter.
Operational Performance
Quarterly ore processed reached 142,017 tonnes, a 37% increase from Q1 2025, with a head grade of 10.9 grams per tonne (g/t) AuEq (10.2 g/t gold, 0.6% copper, 11 g/t silver). Gold and copper grades reconciled positively versus the latest independent mineral resource estimate. Metallurgical recoveries were strong at 95.1% for gold and 94.0% for copper, exceeding the updated definitive feasibility study (Updated DFS) recovery parameters for gold (92.6%) and performing in line for copper (94.2%). The new 1.2 million tonnes-per-annum Stage 3 Expansion Process Plant continued to perform well after commissioning.
Record quarterly mine development of 3,007 metres was achieved, a 21% increase from Q1 2025, including a new monthly record of 1,067 metres in March 2026. Lateral development rates now exceed the Stage 3 Expansion requirement of 1,000 metres per month. Subsequent to quarter end, a new monthly record of 1,109 metres was set in April. Total material mined (ore plus waste) was 378,430 tonnes, with quarterly ore mined of 154,104 tonnes. Long hole open stoping performed to design, and quarterly tonnes to surface reached a record 410,356 tonnes, benefiting from the first material pass, surface trucks operating in the Twin Incline, and completion of the Decline-Incline Convergence Project in late January 2026.
Growth and Expansion
As of March 31, 2026, 96% of Stage 3 Expansion growth capital had been spent or committed, remaining on budget. Significant progress was made on pastefill infrastructure, including the Underground Pastefill Plant, Surface Tailings Filtration Plant, Binder Blending Plant, and Filter Cake Storage Facility. First tailings filter cake production from the Surface Tailings Filtration Plant was delivered in late April, with commissioning ongoing. Civil and concrete works at the Binder Blending Plant are complete, and structural steel erection of the Filter Cake Storage Facility is underway, expected to finish in Q3 2026. At the Underground Pastefill Plant, concrete pours are advanced on the 1205 Level, with practical completion of the pastefill circuit scheduled for Q4 2026.
Key Stage 3 Expansion underground projects completed or nearing completion include:
- Decline-Incline Convergence Project: Completed in late January 2026, connecting the Main Mine with the Twin Incline via internal ramp access, enabling one-way traffic flow across all mining fronts.
- Phase 3 Ventilation Upgrade: Surface breakthrough of the Puma Ventilation Drive in late February 2026 increased primary mine airflow from 200 m³/s to 350 m³/s (+75%), meeting initial Stage 3 Expansion requirements and reducing blast re-entry times.
- Stage 4 Expansion Primary Ventilation Upgrade: HV Electrical works advancing, with electrification scheduled for mid-2026, increasing primary airflow capacity to approximately 600 m³/s (expandable to ~700 m³/s). Variable speed drive fans will initially operate at ~350 m³/s.
- Major Fleet Expansion: Three additional Sandvik 517i underground loaders commenced operation in Q1 2026, with a fourth arriving in Q2 2026. Six new 60-tonne surface trucks are scheduled for mid-2026, with two more by year-end. Two new Sandvik 45-tonne underground trucks arrive in Q4 2026. A new Sandvik DL 432i long-hole production drill rig was commissioned in late April, and a new Sandvik DD 422i jumbo is expected in late 2026.
- Primary Power Station: Phase 2 expansion to 15.3 MW is well advanced, with commissioning expected in Q2 2026, meeting Stage 4 Expansion standby power requirements.
Two new mining fronts have been substantially developed, with five sublevels on the Twin Incline front and four sublevels on the Lower Kora front. Stope production from Lower Kora commenced in April 2026, introducing a second mining front to increase operational and throughput flexibility. Major surface haul road and river crossing projects advanced, including completion of the Baupa Bridge in early April 2026. The Kasese river crossing and Kokomo bridge projects are progressing toward mid-year completion. These projects will enable tripling of surface truck payload capacity from 20 to 60 tonnes with faster cycle times, delivering cost savings and meeting Stage 3 and 4 Expansion throughput requirements.
Second material pass vertical development (5-metre diameter, 200-metre vertical) is complete from the 1110 level to the 910 level (Twin Incline), with civil construction underway, targeting operation in late Q2. This will enable a dedicated material pass for ore and waste, boosting material handling capabilities in the Main Mine and Lower Kora. Development of a third material pass is planned to commence mid-year.
John Lewins, K92 Chief Executive Officer and Director, stated: "We are very pleased to deliver record financial results in the first quarter, reflecting continued strong execution across the operation. The Stage 3 Expansion process plant performed well in its first full quarter following completion of commissioning in December, with gold recoveries exceeding the Updated DFS by 2.5% and copper recoveries in line. Underground, multiple key milestones were achieved, including completion of the internal ramp connecting all mining fronts to the highly productive twin incline in late January, and the surface breakthrough of the Puma Vent Drive in late February, increasing primary ventilation rates by 75%. Completion of these projects supported record development performance during the quarter, including a monthly record of 1,067 metres in March. Subsequent to quarter-end, a further monthly record of 1,109 metres was achieved in April, marking consecutive monthly records, with development rates now exceeding the Stage 3 Expansion requirement of 1,000 metres per month."
The Company's interim consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2026 are available on the Company's website and under its profile on SEDAR+. All amounts are in U.S. dollars unless otherwise indicated.
