K92 Mining (KNT) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue, net income, operating cash flow, EBITDA, and net cash position for Q1 2025, driven by strong production and favorable gold prices.

• Achieved the best first quarter on record, with significant progress on the Stage 3 expansion project.

• Maintained a strong safety record with zero lost-time injuries for the seventh consecutive quarter and enhanced safety initiatives.

• Hosted the inaugural CARES Award Ceremony to reinforce a values-driven culture and recognized outstanding employees.

• Major progress on Stage 3 Expansion, with 75% of growth capital spent or committed and commissioning expected in Q2 2025.

Financial highlights

• Quarterly revenue reached $144.6 million, a 142% increase from Q1 2024.

• Net income was $70.2 million ($0.29/share), up 2,190% year-over-year.

• Sold 45,886 gold oz at an average price of $2,739/oz, compared to 27,996 oz at $2,016/oz in Q1 2024.

• Cash cost per gold oz decreased to $559 from $934 in Q1 2024; all-in sustaining cost at $1,010/oz.

• Operating cash flow before working capital changes reached $80.9 million, a new quarterly record.

Outlook and guidance

• Stage 3 expansion commissioning targeted for the second half of Q2 2025, aiming to increase production to over 300,000 oz AuEq per annum.

• Stage 4 expansion planned for the second half of 2027, targeting over 400,000 oz AuEq per annum.

• Exploration at Arakompa is ramping up, with a maiden mineral resource estimate planned for the second half of 2025.

• Downward pressure on costs expected as economies of scale are realized post-expansion.

• Financial position and liquidity remain strong, with full funding for ongoing projects.