K92 Mining (KNT) Status Update summary

Integrated Development Plan and Expansion Highlights

• Updated plan and Stage 3 expansion deliver major improvements in project economics, with robust NPV increases for both DFS and PEA cases at higher gold prices, and throughput doubling to 1.2 mtpa, targeting 303,288 oz AuEq/year.

• PEA case features a 14-year mine life, 5.0Moz AuEq produced, and a 73% NPV increase at $1,900/oz, with peak production of 484,692 oz in 2034 and mine life extended to 2037.

• Growth capital remains low and closely aligned with guidance, with 68% of expansion capital already spent or committed as of October 2024.

• All-in sustaining costs are highly competitive, with DFS and PEA cases at $920/oz and $822/oz AuEq, and further margin expansion due to improved concentrate offtake terms and mild inflation.

• Both scenarios are fully funded from cash, mine cash flow, and undrawn credit facilities, with strong liquidity and 68% of capital spent or committed.

Operational, Technical, and Infrastructure Updates

• Stage 3 plant commissioning is on track for late Q2 2025, with construction progress ahead of schedule and first saleable production in October 2025.

• Major infrastructure upgrades, including haulage roads, river crossings, twin incline, ore pass system, and ventilation improvements, are expected to improve safety, efficiency, and support increased production.

• Paste fill system redesign and construction reduce technical risk, operating costs, and environmental footprint, supporting higher mining flexibility and rates.

• Multiple mining fronts and labor increases in plant and maintenance will enhance flexibility and capacity, with potential reductions as expansions progress.

• New standalone 1.2 mtpa process plant (Stage 3) and planned Stage 4 expansion to 1.8 mtpa, with all major infrastructure designed for scalability.

Financial and Economic Performance

• DFS case delivers after-tax NPV5% of $680M at $1,900/oz and $1.1B at $2,500/oz; PEA case delivers $2.3B and $3.3B, with rapid payback and strong cash flow.

• Life of mine average cash cost is $380/oz gold ($694/oz AuEq) for DFS and $174/oz gold ($633/oz AuEq) for PEA, with AISC $920/oz and $822/oz AuEq, respectively.

• Average annual free cash flow at $1,900/oz is $239M (DFS) and $316M (PEA); at $2,500/oz, $328M and $431M, respectively.

• Downside gold price risk is mitigated by put options, while upside is fully retained, and sensitivity analysis shows significant NPV upside at higher gold prices.

• Attractive valuation with consensus P/NAV at 0.8x versus peer average of 1.3x, and free cash flow generation during build phase.