K92 Mining Inc. has released an update regarding its operations and strategic plans for the future with its 2025 Operational Outlook, which outlines another record year of production plus major capital investment and investment in exploration.
John Lewins, Chief Executive Officer and Director of K92 Mining, expressed his optimism and enthusiasm for the company’s trajectory in 2025 and beyond.
“There is tremendous enthusiasm internally, among our various stakeholders including in Papua New Guinea for the year ahead, as K92 transforms into a Tier 1 Mid-Tier Producer with the delivery of the Stage 3 Expansion,” he said.
A key milestone in this “transformative” journey is the scheduled commissioning of the Stage 3 Expansion process plant in the latter half of the second quarter of 2025, the company said.
This development represents a significant leap in K92’s throughput and production capacity, showing a step-change in operational capabilities.
A significant investment in the expansions has already been made. At the end of 2024, 70% of the capital required for the Stage 3 and Stage 4 expansions will have been spent or committed, it added.
Additionally, K92 Mining’s cash reserves have reached record highs, assuring funding for the remaining capital investment to complete the expansions, driven by two consecutive quarters of record gold production in a record gold price environment.
Strengthening the company’s financial position are $60 million in undrawn credit facilities, which include an accordion feature to increase capacity by an additional $30 million with Trafigura.
To mitigate commodity price risks, K92 has secured gold put contracts providing insurance against potential price downturns until mid-2025 while it completes this major investment.
The company also reiterated its commitment to exploration with yet another year of major exploration investment, with plans to significantly increase it upon delivery of the Stage 3 Expansion.
Lewins stated: “During this major production growth period, we plan to continue to invest heavily in exploration and significantly ramp up our exploration activities.”
K92 Mining’s exploration portfolio includes promising deposits such as Arakompa, Maniape, Kora-Kora South, and Judd-Judd South, and emerging targets like Mati, Mesoan, and Bona Creek.
Additionally, the company continues to advance its porphyry prospects, particularly Blue Lake and A1.
“We believe we control a significant and well-endowed mineral district that we are just scratching the surface of. We look forward to providing updates in due course,” Lewins said.
