KNT: 2Q26 production results: Unlocking the next throughput gear

研报英文原文证据摘录

KNT: 2Q26 production results: Unlocking the next throughput gear

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

Harrison Reynolds (Analyst)

July 8, 2026

K92 Mining Inc.

2Q26 production results: Unlocking the next throughput gear

TSX: KNT | CAD 21.96 | Outperform | Price Target CAD 44.00

Sentiment: Positive

Event: K92 released 2Q26 production results from its Kainantu mine in Papua New Guinea

Our view

• Modest positive. Production was broadly in line with estimates as stronger throughput offset grade normalization. Critically,

we are encouraged by the step-change in mining and processing rates with record quarterly ore processed (226kt, +59% q/

q) and lateral development (3,326m, +11% q/q) providing confidence in the ramp-up to Stage 3 production. Gold sales of

46.7koz outpaced production (+11% RBCe/cons.), representing a positive revenue tailwind for the quarter. We continue to

focus on a successful ramp-up of the Stage 3 expansion to deliver a step-change in production to +300koz/a before layering on

further low-cost growth via Stage 4 to +400koz by YE 2028, which together with ongoing exploration option value supports a

re-rating of shares.

Details

• Production: 2Q production totalled 46.1koz AuEq (-1% RBCe 46.4koz, -2% cons. 47.1koz). Results were driven by significantly

stronger throughput of 226kt (+5% RBCe, +59% q/q), which more than offset grade normalization (6.2 g/t Au vs. 10.2 g/t in

1Q) as mining activity expands across multiple fronts and the mill ramps up. Recoveries of 93.8% Au and 93.2% Cu continue to

exceed feasibility study parameters.

• Guidance: Reiterated at 190-225koz AuEq (RBCe 202koz). Production is expected to be strongest in 2H, driven by the progressive

ramp-up of new mining fronts and the completion of key expansion enabler projects.