K92 Mining Aktie

Good morning. It's now 10 a.m., the scheduled start time of the meeting. My name is John Lewins, CEO of K92 Mining Inc. I welcome you to the company's 2026 Annual General Meeting of Shareholders. We're pleased to host the meeting in person in Vancouver and through this virtual meeting platform, accessible to all our shareholders regardless of physical location to participate, submit questions and vote.

I'd like to introduce you to Anne Giardini, Chair of K92, who will chair this meeting. Thank you.

Thank you. I officially call the meeting to order and appoint Nancy La Couvee, Corporate Secretary of the company, to act as Secretary of the meeting; and Sonia Handa of TSX Trust Company to act as scrutineer of the meeting.

Only registered shareholders who held K92 Mining shares in their name as of April 16, 2026, the record date of this meeting or their validly appointed proxy holders are entitled to vote at this meeting. To expedite the meeting, we will deal with the formal business of the meeting first. And afterward, David Medilek, K92's President and COO, will give a presentation and will also be available to answer any questions that you may have.

I will now start the formal business of the meeting.

On April 28, 2026, the notice of meeting, notification of notice and access, form of proxy and request for annual and interim financial statements of the company were mailed to all of the shareholders of record as of the close of business on April 16, 2026. The affidavit as to how such mailing was prepared by TSX Trust Company and is available for inspection by any interested party.

In view of this having been done, unless there is an objection, I will dispense with calling for reading of the notice and I will take the notice of meeting as read. The declaration as to mailing will be filed with the minutes of this meeting to be retained by the Secretary with the records of the meeting. As such, proper notice of the meeting has been given.

If you voted prior to the meeting by proxy, you do not need to cast your vote at this meeting unless you wish to change your vote. As specified in the notice of the meeting, the items of business for the meeting are: to receive the audited financial statements of the company for the year ended December 31, 2025; to fix the number of directors at 7; to elect 7 directors for the ensuing year; to appoint the auditor for the ensuing year and to authorize the directors to fix the auditor's remuneration and to approve a nonbinding advisory resolution accepting the company's approach to executive compensation. All resolutions must be approved by a simple majority of votes cast either in person or by proxy as ordinary resolutions.

We will conduct the votes on each of the matters by a poll. On a poll, every shareholder entitled to vote on the matter has one vote in respect to each share entitled to be voted on that matter and held by that shareholder. The poll will be open for all resolutions at the same time for shareholders attending virtually. This will allow you to choose to vote on each resolution immediately or you can wait until the conclusion of discussion on each resolution before you cast your vote.

For shareholders attending in person, you would have received a ballot when you arrived. The ballot will include each item of business being voted today. Please mark and sign your ballots as the meeting progresses if you have not already done so, and the scrutineer will collect them. Registered shareholders and their duly appointed proxy holders who attend the meeting virtually will have the ability to vote at the meeting if they have not yet voted by proxy or to change their vote if they've already voted by proxy. Once voting is declared open, please click the voting button to the left of your screen. The text and voting choices will be displayed in the pop-up window. To vote, select your voting direction and click submit to cast your vote. If you've already submitted your votes by proxy and don't wish to change your vote, no action is required.

For registered shareholders and their duly appointed proxies only, there will be an opportunity to ask questions by text for each resolution in turn. To ask a question, please click Ask a Question. Your question will be answered during the meeting.

Once discussion on all items of business has concluded, I will give you a minute to enter your votes online, and then I will declare voting closed on all resolutions. Preliminary voting results will be provided during the meeting, and final voting results will be provided after the conclusion of the meeting. The final results of the meeting will be announced in a news release and will be available on our website after the meeting. We will consider each of the items on the agenda in turn, responding to questions on that item of business, if any, while it is before the meeting.

In order to expedite the formal business of today's meeting, I will make all of the motions. A seconder is not required. I now declare the polls open for all resolutions.

I was advised by our scrutineer that there is a quorum present, being 2 persons present or represented by proxy who, in the aggregate, hold at least 25% of the issued shares of the company. I direct that the final report of the scrutineer be filed with the minutes of the meeting.

The notice of the meeting having been given as required by the articles and by the Business Corporations Act of British Columbia and a quorum being present, I declare this meeting to be duly called and constituted for the transaction of Business.

The last meeting of shareholders was held on June 10, 2025. I confirm the minutes from the 2025 Annual General Meeting reflect a true record of the proceedings. The minutes of that meeting are available for review by any shareholder. Unless anyone wishes to have them read, I will dispense with the reading of the minutes of the last Annual General Meeting and the minutes will be taken as read and as approved and adopted as tabled.

The initial item of business is consideration of the audited financial statements of the company and the report of the auditor. It's customary to have the meeting acknowledge receipt of the financial statements. A copy of the financial statements and auditor's report for the year ended December 31, 2025, is available on the company's website and the SEDAR website as well as by request by the company should any shareholder wish to see them. Therefore, the audited financial statements of the company for the year ended December 31, 2025, and the auditor's report on those statements will be acknowledged as having been received.

Is there any discussion?

Hearing no discussion, I acknowledge the financial statements as having been received.

The first item of business is the approval of an ordinary resolution setting forth the number of directors for the company at 7 for the forthcoming year. I move that the number of directors for the ensuing year be fixed at 7.

Is there any discussion?

If there are no questions, please cast your vote on item 1 by hitting the voting button before we move on to item 2. Please vote now.

[Voting]

The second item of business is the election of directors by the company -- of the company. Directors elected at this meeting will hold office until their successors are elected or appointed subject to the company's articles and the Business Corporations Act of British Columbia. Each of Michael Carew, Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John D. Lewins have informed the company that they will stand for election at this meeting, and they are management's nominees for election to the Board this year. I nominate the following individuals as directors of the company to hold office until the next annual meeting of the company or until their successors are duly elected or appointed, subject to the provisions of the company's articles. Michael Carew, Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John D. Lewins. Are there any nominations for other directors?

Seeing no further nominations, I move that the nominations be closed. Are there any questions on this motion?

If there are no questions, I ask that you please cast your votes on item 2 before we move on to item 3. Please vote now.

[Voting]

A majority of the votes cast is in favor of the election of the nominees. And accordingly, I declare the motion carried and the persons nominated are elected as directors of the company by acclamation to hold office until the next Annual General Meeting of the company subject to the articles of the company and the Business Corporations Act of British Columbia.

Appointment of auditor. The third item of business is the appointment of auditor of the company for the ensuing year and authorization of the company's directors to fix the remuneration of the auditor. I now move that PricewaterhouseCoopers LLP, chartered professional accountants, be appointed as auditors of the company for the ensuing year, and that the directors of the company be authorized to fix the remuneration of the auditor. Is there any discussion?

If there are no questions, I ask that you please cast your votes on item 3 before we move on to item 4. Please vote now.

[Voting]

The fourth item of business is to approve an advisory resolution on the company's approach to executive compensation as more particularly set out in the company's management information circular for the meeting. The text of the resolution to approve the company's approach to executive compensation is set out on page 17 and 18 of the management information circular. I now move that the nonbinding advisory resolution on executive compensation set out on Pages 17 and 18 of the information circular be approved, which, unless a shareholder present desires a reading of it, I will not repeat. Is there any discussion?

If there are no questions, I ask that you please cast your votes on item 4. Please vote now.

[Voting]

Thank you. For those of you who have not yet voted on all of the resolutions and wish to do so, please do so now as I will shortly close the poll. I will close the poll on all resolutions in 30 seconds to allow online viewers to catch up.

[Voting]

I confirm the polls are now closed. I ask that the scrutineer provide their preliminary report on the votes -- on the results of the voting.

I ask the secretary to confirm receipt of the scrutineer's report and confirm that all resolutions are passed.

The scrutineer has provided their preliminary report of the results of the voting at today's meeting. On the matter of setting the number of directors, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of setting the number of directors at 7. Therefore, I declare that this motion is carried.

On the matter of the election of directors, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of election of all of the nominees being Michael Carew, Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John Lewins. Therefore, I declare that this motion is carried.

On the matter of appointment of auditors, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of the appointment of PricewaterhouseCoopers LLP, chartered professional accountants. Therefore, I declare this motion is carried.

On the matter of approval of the advisory resolution on executive compensation, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of the advisory resolution. Therefore, I declare that this motion is also carried.

A news release disclosing the voting results will be issued and filed online on the SEDAR+ website and will be available on our website shortly.

We have now concluded the formal business of the meeting. Is there any other business that anyone in attendance wishes to bring to the attention of the meeting?

If there's no further business to be brought before the meeting, I declare that the formal part of this meeting is concluded.

Well, thank you. This concludes the formal portion of the meeting. I'd now like to introduce David Medilek, President and COO of K92, who will present a corporate update. Following this, he is available to answer any questions you may have. You may submit questions through the Ask a Question icon that appears on your screen.

Over to you, David.

Thank you, John. Just confirming that everyone can hear me and see the screen share.

I'll take that as a yes. It is with great excitement to be providing a corporate update on K92 during a very transformational time for the company. Forward-looking and cautionary statements to read at your leisure. I've said it before, and I'll say it again, K92 is a Tier 1 opportunity, a special situation in the precious metal sector. Effectively, in May 2017, we made a disruptive near-mine infrastructure discovery called Kora North, 2 to 3x the thickness, 2 to 3x the grade plus better geotech metallurgy and geologic continuity compared to the Irumafimpa deposit that we're mining at that time. It effectively checked all the boxes for a highly productive underground mine.

We rapidly pivoted to mining Core North. And in early 2018, we declared commercial production, largely self-funding multiple stages of expansion as shown on the chart on the bottom left, with our most transformational expansion Stage 3 to 300,000 ounces gold equivalent per annum now well underway, plus plans for Stage 4 expansion to over 400,000 ounces gold equivalent per annum run rate, which I will go over later in the presentation.

The geologic continuity is exceptional and leveraging our free cash flow, we have significantly grown the high-grade resources at Kora and Judd, plus executed a disciplined porphyry program as shown on the chart on the bottom right. The team is very experienced operating in Papua New Guinea. And last year, the company celebrated its 10-year anniversary.

Our balance sheet is strong and continues to strengthen with free cash flow generation expected to accelerate. We remain strongly focused on ESG with strong relations with government community and our workforce.

And we see a strong re-rating potential with over 40% re-rating to peer multiples implied on a price to NAV basis while offering one of the best growth profiles amongst peers. In terms of the balance sheet, we ended Q1 with a record cash position of $287 million and see the cash balance significantly growing over the course of the year. We are widely covered by investment banks with over 12 banks having active coverage, and our shareholder register is strong.

In terms of sustainability, we remain laser-focused on doing the right thing. We are a major employer, major taxpayer with strong environmental and safety performance with rapidly expanding community, social and infrastructure programs. The slide features our 2024 sustainability report, and I'm pleased to report that next week, we plan to announce our 2025 sustainability report.

In many of our press releases received locally in Papua New Guinea, we highlight that as the mine expands, so too do the benefits that our local communities in Papua New Guinea receive. And you will certainly see the year-over-year increase in benefits to the stakeholders in the 2025 sustainability report. We are very proud of the positive impact we are making.

Looking back, 2025 was a transformational year for K92. The company shows the grand opening -- sorry, the photo shows the grand opening of the Stage 3 expansion centered by the Prime Minister of Papua New Guinea, the Honorable James Marape, with then Mining Minister at the time, now Governor of Morobe Province, the Honorable Rainbo Paita, and local MP for Kainantu, the Honorable William Hagahuno with our CEO, John Lewins, and Chair, Anne Giardini, celebrating this major milestone. The plant was delivered under budget and is performing well, as I will go into later in the presentation.

Our strategy has been to systematically expand Kainantu into a Tier 1 mid-tier producer. In 2020, we delivered Stage 2, doubling plant capacity to 400,000 tonnes per annum. In 2023, we delivered Stage 2a increasing the capacity to 500,000 tonnes per annum. And in December 2025, we completed commissioning of a brand-new stand-alone state-of-the-art 1.2 million tonne per annum process plant. Stage 3, targeting 300,000 ounces of gold equivalent per annum. The plant was designed and built to be easily expandable. The combination circuit is oversize and allowances were made to enable effective -- cost-effective expansion of the flotation circuit and filter presses to increase capacity by 50% to Stage 4, which is 1.8 million tonnes per annum, targeting run rate production of over 400,000 ounces of gold equivalent.

As of the end of April, 98% of Stage 3 growth capital has been spent or committed and the project remains on budget. The old Stage 2a plant remains available for other ore sources as they are developed.

In terms of operational results, K92 has demonstrated a strong record of expanding production as shown in the chart. In 2025, we achieved the upper half of our production guidance. And in 2026, we have had a good start to the year with Q1 recording production moderately above budget, and we reiterate our production guidance for 2026 of 190,000 to 225,000 ounces of gold equivalent.

In terms of physicals, we have demonstrated a strong track record of ramping up material movements and lateral advance, and I'm particularly pleased with the increase in development meters. In Q1, we marked a major milestone, a record, achieving the 1 kilometer per month requirement for the Stage 3 expansion. And in March and April, we delivered consecutive monthly development records with April recording 1,109 meters of development, well exceeding the Stage 3 expansion requirement.

We remain in a strong position to ramp up development and achieved a 1.2 million -- sorry, 1.2 kilometer per month requirement for the Stage 4 expansion later in the year and are planning to exceed it in 2027. In terms of process plant performance, we are very pleased. Q1 marked the first month of the new Stage 3 expansion process plant operating. The plant achieved gold recoveries exceeding the updated DFS by 2.5% with copper recoveries in line. Additionally, the plant has delivered numerous daily throughput records exceeding plant design nameplate.

To achieve the Stage 3 and 4 expansion in terms of moving material from the underground, the mine is being transformed through several key enabler infrastructure upgrades. As you can see from the slide, there are quite a few checkmarks. The twin incline is complete, the ore pass system complete, Puma vent complete and the internal ramp system complete with the Puma vent and the internal ramp system actually completed last quarter. Over the next few slides, I'll go over each of these projects and the positive impact they bring.

Starting with the twin incline. On the left is the incline we acquired with the asset and on the right is the twin incline we developed. The twin incline is capable of operating trucks 50% larger and traveling 3 to 4x the speed of the old incline. It is effectively an underground highway, enabling the operation of surface trucks that can report directly to the process plant, driving significant economies of scale.

On January 24, we are very pleased to achieve a major milestone, which is the completion of the internal ramp. This connects all mining fronts to a highly productive twin incline, turning the underground into one mine as shown on the banner. Bring significant synergies through having one crew instead of two crews, which was one operating in the upper mine and one operating in the lower mine.

In August of last year, we are pleased to have completed our first material pass as shown in the images. This reports material roughly 350 meters vertically, leveraging gravity to the twin incline where it then gets loaded on trucks, which is effectively the underground highway delivering significant economies of scale. The second material pass is almost completed, and we'll look to have that operational by the end of the quarter. And in Q3, we plan to start development of a third material pass.

Significant upgrades are being made to our ventilation circuit. As shown in the image is our vent chamber. This is an absolutely massive structure, 15 meters wide, 9.5 meters vertical, and that profile actually 35 meters into the page and it tapers for another 35 meters. Each motor on those fans is 1.85 megawatts, and this takes care of our ventilation requirements well beyond what we need today. It caters for Stage 3, Stage 4 and life of mine. To conserve power, these are variable speed fans, so we'll be able to operate at 350 cubes per second initially. We plan to get these operational in the third quarter. We're currently doing an electrical run for it.

In terms of the Puma vent incline, pleased to have broken through that in late February. This drove a 75% increase in our ventilation airflow. This meets the initial ventilation requirements for the Stage 3 expansion. The team is about to install the life of mine geotechnical structures, which are the [ onco ] tunnels.

Concurrent with the underground infrastructure upgrades we are making, we have significantly opened up the underground mine. Front #1 is where we've been mining since declaring commercial production. Front #2, we call the Lower Kora. We are pleased to have commenced a longhole stoping in April. And then Front #3 is what we call the twin incline front, where we look to start a longhole stoping first on the Judd vein in the third quarter.

In addition, we've made significant increases to our mobile fleet to drive the expansion as shown on the table. There is a particularly large increase to our Load and Haulage fleet. The image on the right is one of four underground motors that have arrived on site year-to-date. By the end of the year, we are scheduled to get another jumbo, which will position us to well exceed the 1.2 kilometer per month development rate required for the Stage 4 expansion.

The support from government has been very strong and government has been, in our view, a key factor in the success of the operation. The slides here show the various site visits from government delegations, and we are very pleased to have hosted the Mining Minister, the Honorable Solen Loifa earlier this month.

Looking at the Gantt chart, you will see that we are on the cusp of completing all of the key enabler projects for the Stage 3 expansion.

This is an image of the new Stage 3 expansion process plant, which, as I noted earlier, was completed under budget and is performing extremely well.

In terms of ancillary construction projects, they are largely complete. The Phase 2 power upgrade was actually completed the other day. We are looking at doing a further expansion to the Kumian Creek Camp as you can see from the area that's been cleared, adding another 192 rooms.

A major development focus for us this year in terms of infrastructure is the underground pastefill plant. As a reminder, the way the circuit works is that we produce a tailings filter cake in the valley at the tailings filtration plant that's next to the process plant, that gets trucked up to a surface storage system staging area near the portal area, and then it gets trucked as required to the underground pastefill plant. All long lead time items have been -- have arrived on site. All contracts have been awarded and significant progress is underway.

The first is the tailings filter plant. Construction was completed earlier this quarter. And you can see that in April, we actually started commissioning of the filter cake. We are pleased with the performance of the filter, plus the total moisture limit is actually better than the design and that enables us to effectively transport the filter cake from the valley up to the surface staging area near the portal.

In terms of the surface storage area, that is tracking very well, rapidly moving along with the erection of structural steel, and we plan to get that completed in July. In terms of the underground, the underground paste silo, that is actually complete. The last pour was completed the other day, and they are in the process of installing a grizzly. We aim to get the pastefill circuit commissioned by the end of the year.

In terms of the river crossings, the Baupa Bridge that was completed in April, the Kokomo and the Kasese river crossings are planned to be completed in July. Concurrent with this, we are doing a major upgrade to the haul roads. This unlocks the ability to operate the 60-tonne trucks underground, which would then report directly to the mill. Currently, as you can see from the Kasese river crossing image, you can see the current bridge that has a payload restriction of 20 tonnes. So we're actually able to triple the payload of the trucks that we're operating, plus it's a much more efficient road through widening and straightening and smoothing out the gradients.

In terms of exploration, we currently have 13 drill rigs operating. We have 6 underground. Those are targeting #1 to 3, and then #4 to 5 is targeted by the balance of our surface drill rigs. We are actually adding 2 more rigs. We had a rig arrived in country last month, which is being commissioned, and we plan to have another rig arrive next month to get that operating in July.

Looking at Kora, the last set of results we put out was about 100 holes that was out in February. I'm really pleased with the results. There's a few themes to highlight here. Number one, as you can see from the dashed ellipse in the upper part of the mine, we continue to increase the high-grade zones up dip through increasing the drill density. As you can see, some of the results at 18 meters at 11.7 grams, 4.4 meters at 29.6 grams. Concurrent with that, and what was particularly exciting from the drilling results was the extension of mineralization at depth. This is Kora Deeps. So one of the major areas that we're starting to focus on is pivoting from the infill drilling for the Stage 3 expansion to now more step-out drilling. The mineralization has extended hundreds of meters below the twin incline and also the known resource, and some of the highlights are 8 meters at 10.2 gram per tonne and 17.2 meters at 5-gram per tonne gold equivalent.

Similar story with Judd. Significant high-grade results recorded 300 to 400 meters below the twin incline and the known resource at 6.8 meters at 6.2 grams per tonne and 8.5 meters at 8.64 gram per tonne. Importantly, when you actually look at the lithology of the core, you'll see that it shows strong indications that the system remains robust at depth and that depth extension remains highly prospective. At Judd, we also extended high-grade mineralization up dip, 16.1 meters at 14.4 gram per tonne and 5.5 meters at 67 gram per tonne. From both long sections, you'll see that there are significant quadrants that have yet to be drilled, and we continue to believe that we are just scratching the surface.

Another important item to flag with Kora is the significant high-grade copper zone as we go to the south and also at depth. Magenta in this long section actually represents over 4% copper, so very high grade.

Arakompa, in terms of our regional exploration is a major focus for us. It's located actually close to the process plant in Kora and Judd, roughly 4.5 kilometers away. We currently have 5 drill rigs operating, and we are targeting a maiden resource over the coming weeks. This just shows you the significant growth that we've achieved at Arakompa. In February 2024, we announced our initial drilling results with one drill rig operating, and now we have five drill rigs operating and have significantly expanded the strike. At Arakompa, there is both high-grade vein systems and a bulk component with the bulk component shown on this slide.

Speaking with our VP Ex, Rob Smillie. He is of the view that we have over 25 years of exploration drilling in front of us. We are very pleased that we have increased our exploration budget this year by over 50% with a forecast of $31 million to $35 million. And we believe, as I said earlier, that we are just scratching the surface.

I will now hand it over for any questions.

Thank you. Anne and John, there are no questions asked.

Thank you, everyone, for attending the 2026 AGM of K92 Mining. The meeting is now terminated.

Thank you for standing by. This is the conference operator. Welcome to the K92 Mining 2026 First Quarter Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions]. I would now like to turn the conference over to David Medilek, President and COO. Please go ahead.

Thank you, operator, and thanks, everyone, for attending K92 Mining's 2026 First Quarter Financial Results Conference Call. We hope you and your families are doing well. In addition to myself, we have on the line John Lewins, Chief Executive Officer and Director, Justin Blanchet, Chief Financial Officer; and Rob Smillie, VP Exploration. I would also like to remind everyone that after the remarks from management, the call will be followed by a Q&A session.

As we will be making forward-looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD&A in the Slide 2 of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted. Now I'll turn it over to John to provide you with an overview.

Well, thank you, David, and welcome, everyone. We begin with safety, K92's highest priority. We were deeply saddened by the tragic incident in the first quarter that resulted in the death of a contractor. As previously disclosed in our February 6 press release, the incident involved a contractor supporting surface roadwork activities near the Kumian Creek camp operating in the designated area located approximately 1.5 kilometers northeast of the process plant, 8 kilometers northeast of the underground mine, respectively. The contractor and relevant authorities with K92 oversight conducted comprehensive safety audits and implemented a series of mitigation measures to strengthen safety systems well beyond that, that was mandated by the regulator at K92's request.

With K92's approval on March 1, a progressive restart of the contractor's activities commenced and the contractor has been fully operational since March 7. We take every incident very seriously and extend our condolences to the family, friends, and colleagues of the deceased. I think it's important to highlight that for many years, K92 has been operating with one of the best safety records in the Australasian region. Our total reportable injury frequency rate, as shown in the chart, has been for the past several years, well below the average reported by the International Council on Mining and Metals, which includes many of the world's largest mining companies. Before the contractor incident, K92 recorded 10 quarters without a lost-time injury, which coincided with a substantial increase in proactive risk assessments, safety technologies, and safety and training team capacity, all strong leading indicators of a safety-first culture.

Our safety-first focus continues to strengthen, and I'm pleased to report that in Q1, we made significant progress integrating our new Skytrust cloud-based safety and compliance platform into our operations. The platform is designed to centralize and enhance the management of safety and environmental incidents, frontline safety interactions, injury management, inspections, audits, and broader health and safety documentation. Safety always is one of K92's core values, and we remain steadfast in our commitment to achieving our ultimate goal, zero harm across our entire workforce.

On sustainability, K92 looks forward to publishing our 2025 sustainability report later this month, highlighting our strong commitment to delivering sustainable value to the people and country of Papua New Guinea. The report also reflects our strong commitment to transparent disclosure in aligning with international standards, including the Sustainability Accounting Standards Board Metals & Mining Standard and the Task Force on Climate-Related Financial Disclosure framework. K92 is extremely proud of the positive impact it's having on the prosperity and development of Papua New Guinea, and we encourage you to read our report when it is published on www.k92mining.com.

Moving on to operations. During the quarter, the Kainantu Gold Mine produced 46,743 ounces gold equivalent with a mill throughput totaling 142,017 tonnes, and a head grade of 10.9 gram per tonne gold equivalent, benefiting from a positive gold and copper grade reconciliation versus the latest independent mineral resource estimate. Cash costs of $785 per ounce gold and all-in sustaining costs of $1,421 per ounce gold were recorded for the quarter on a byproduct basis. On a co-product basis, cash costs of $991 per ounce gold equivalent and an all-in sustaining cost of $1,587 per ounce gold equivalent were reported. As annotated on the chart, all-in sustaining costs have been notably higher than cash cost since the beginning of 2023 due to K92's significant investment in the Stage 3 Expansion with costs expected to decline considerably after delivering the Stage 3 Expansion.

We highlight that these temporarily elevated costs still fit well within the lower half of the industry all-in sustaining cost curve, which reflects the very high asset quality of the Kainantu Gold Mine and K92's ongoing commitment to cost discipline.

In light of the global supply chain disruptions in the Middle East, it's important to highlight that Kainantu Gold Mine remains highly operationally resilient. We currently maintain approximately 3 months of fuel storage across the site and at the Port of Lae. Our energy supplier, Puma Energy, which is owned and controlled by Trafigura, who are also our offtake partner.

And in early April, we increased our storage capacity in Lae. Since the Middle East disruptions began at the end of February, fuel shipments in mid-March and late April have been received and another shipment is scheduled for early June. Our strategy is to avoid drawing down on inventory and instead continue to replenish at market rates. Given that Kainantu is a high-grade underground operation supported by grid hydro power, our fuel cost sensitivity is well below the industry average.

In 2026, our budget, which was approved in January, sees that diesel costs represent approximately $70 per ounce. In terms of reagents, on average, we currently hold approximately 6 months' supply. This elevated inventory level is partly due to the earlier-than-expected idling of the Stage 2A process plant in Q4, driven by the strong performance of the new Stage 3 plant during its commissioning. Our supply chain team continues to actively monitor the latest developments to ensure that Kainantu remains resilient during this period of uncertainty.

In terms of processing, Q1 marked the first quarter in which all material was processed exclusively through the new plant, which delivered a very strong performance. Overall metal recoveries were 95.1% for gold, exceeding the updated definitive feasibility study parameters by a substantial 2.5%. Copper recoveries were also strong at 94%, in line with the DFS results.

In terms of key operational quarterly physicals, record total material move to surface of 410,356 tonnes was achieved, benefiting from the positive impact of the first material pass, the commencement of surface trucks operating in the Twin Incline, the completion of the Decline-Incline Convergence Project connecting the main mine with the Twin Incline via an internal ramp access, which occurred in late January 2026, and the surface breakthrough of the Puma Vent Incline in late February, which resulted in primary ventilation rates increasing by 75%. Total mine development for the quarter reached a record 3,007 meters, up 21% year-on-year, including a monthly record of 1,067 meters in March. I'm also pleased to report that in April, a new monthly record of 1,109 meters was achieved, marking consecutive monthly lateral development records.

Lateral development rates are now well exceeding the Stage 3 requirement of 1,000 meters per month. Importantly, these have been achieved even with the continuing allocation of some jumbo capacity to capital projects, including pastefill excavations and Stage 4 primary ventilation work.

Further improvement in development rates are expected as these projects are handed over to the project construction team this quarter, alongside additions to our load and haul fleet and continued operational improvements, including the transition to 12-hour firing implemented during the quarter. We're very pleased that even with record lateral advance, we also achieved a reduction in total waste mined driven in part by improvements in development, drill and blast and tighter control of our overbreak.

As discussed later in the presentation, multiple key project enablers have been completed in Q1 or are nearing completion. And when paired with the introduction of the additional mining fronts are expected to continue to drive physicals higher. I will now turn over to our Chief Financial Officer, Justin Blanchet, to discuss our financial results for the first quarter.

Thank you, John, and hello, everyone. During the first quarter of 2026, K92 generated revenue of $236.3 million, an increase of 63% when compared to the same period in the prior year. We sold 44,854 gold ounces at an average selling price of $4,641 compared to 45,886 ounces at an average selling price of $2,739 in the prior year. As of March 31, 2026, there were 12,318 gold ounces in inventory, including both concentrate and dore, a decrease of 1,714 ounces when compared to December 31, 2025. During the first quarter of 2026, K92 had cost of sales of $57.3 million compared to $34.1 million in the same period prior year or $45.5 million compared to $27.4 million when excluding noncash items.

The increase in cost of sales was driven by significantly higher tonnes mined and processed when compared to prior year. This is consistent with the higher mining and processing activity associated with the ramp-up of the Stage 3 Expansion. During the first quarter of 2026, cash flow from operating activities, before changes in working capital, was $132.9 million compared to $80.9 million in the same period prior year. As of March 31, 2026, K92 had a record $287 million in cash and cash equivalents, a record working capital balance of $343.3 million, and a record net cash position of $242.6 million.

Importantly, the Stage 3 and 4 Expansion projects are fully funded and our financial position is strong. We also have access to significant amounts of liquidity through undrawn credit facilities, with $60 million available to draw down on demand and $5 million repaid during the quarter. We would also like to highlight that our commodity price downside is protected through the cost-effective purchase of put option contracts, which extend until the end of 2026, allowing for 10,000 ounces of gold per month at a strike price of $3,500 per ounce. To be clear, this is not a hedge. We will sell at spot if it is higher than $3,500 an ounce. This is insurance, and we retain full exposure to the upside in commodity prices.

As John mentioned, during the first quarter of 2026, the K92 gold operations produced 44,022 ounces of gold, 1,696,714 pounds of copper, and 38,845 ounces of silver or 46,743 ounces of gold equivalent. We sold 44,854 ounces of gold, 1,874,270 pounds of copper, and 41,467 ounces of silver. On a by-product basis, we recorded a cash cost of $785 per ounce and an all-in sustaining cost of $1,421 per ounce of gold in Q1 2026. Our all-in sustaining costs in Q1 were significantly below our realized selling price of $4,641 per ounce, reflecting our strong cost discipline and the Kainantu Gold Mine's high asset quality.

Our cash and all-in sustaining costs increased when compared to the prior period due to lower head grades than prior year and higher costs as operations ramped up to support the Stage 3 Expansion. This was partially offset by higher by-product credits. It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 Expansion is complete. I will now turn the call back to John to discuss growth and exploration.

Well, thank you, Justin. Turning to growth and exploration. We begin with an update on the Stage 3 and Stage 4 Expansions, which are expected to fundamentally transform K92 into a Tier 1 mid-tier gold producer. The Stage 3 Expansion as outlined in our updated definitive feasibility study supports a 1.2 million tonne per annum throughput rate or equivalent to 300,000 ounces gold equivalent per annum. Stage 4 will take this to over 400,000 ounces gold equivalent targeting commissioning in late 2027 with a throughput of 1.8 million tonnes per annum. The 600,000 tonnes per annum Stage 2A plant, which has been idled, provides additional capacity for future expansions beyond Stage 4.

Now in January, we announced our 2026 operational guidance, targeting another year of strong production growth with 190,000 to 225,000 ounces gold equivalent, alongside significant sustaining and growth capital investments as we advance K92 toward a Tier 1 mid-tier producer status. Production is expected to be weighted to the second half of the year as additional mining fronts come online, ramp-up continues, and key expansion enablers are completed. Growth capital is forecast at $100 million to $108 million in 2026, including $25 million to $28 million of Stage 3 capital, primarily for the pastefill plant and river crossings, and $75 million to $80 million of Stage 4 and accelerated growth capital. Importantly, following the strong Q1 performance, we are well-positioned to achieve our 2026 production guidance.

The delivery of the Stage 3 expansion ramp-up is driven by several key enablers. Starting with underground, a major infrastructure transformation is progressively being executed. The Twin Incline internal ramp system, first material pass and the Puma Vent Drive are now complete. The breakthrough of the Puma and the internal ramp has already resulted in a very significant increase in underground primary ventilation with our latest ventilation survey showing an increase from 200 cubic meters a second to approximately 350 cubic meters a second, representing an increase of 75%. This meets the initial ventilation requirements for the Stage 3 Expansion. Delivery of the pastefill system will be another key enabler for Stage 3 and Stage 4 Expansions, particularly Stage 4, providing greater flexibility in mine sequencing and improving stoping performance, including lower dilution, reduced waste rehandling, and higher mine recoveries.

In terms of the Twin Incline, it's already begun to transform underground material handling efficiencies as shown in the image on the right versus the image on the left, which is the existing incline to access the Main Mine since the commercial production started. The Twin Incline can run about 50% larger trucks at much faster speeds and eliminates rehandling at the portal by hauling directly from underground to the process plant. We expect these larger 60-tonne payload trucks to begin operation in mid-2026 following the completion of the key river crossings and surface haul road upgrades. As noted previously, the first material pass has been operational since August last year, leveraging gravity to deliver tonnes approximately 350 meters vertically from the Main Mine to the highly productive Twin Incline.

The operation of surface articulated trucks in the Twin Incline continues to deliver material movement benefits, which will notably increase upon the introduction of larger trucks as noted in the previous slide. Development of a second 5-meter diameter material pass is complete, and that goes from the 110 level to the 910 level and, obviously, that can be easily accessed on the Twin Incline. The civil construction works are underway, targeting operation late Q2. This will enable a dedicated material pass for ore and a dedicated material pass for waste, providing considerable boost to our material handling capabilities in the Main Mine and Lower Kora. Development of a third material pass is planned to commence mid-year to further enhance our material handling capabilities.

As previously highlighted, the internal ramp breakthrough was achieved during the quarter, effectively joining the upper and the lower mines into one mine. Prior to the completion of the internal ramp, we were effectively running 2 sets of crews, one for the upper part of the mine, which was accessed by the old incline as shown in the prior slide, and one for the lower part of the mine, which was accessed by the Twin Incline. This connection means there's now only one crew with improved equipment utilization, more resource sharing, improved supervision, shorter travel times between working areas, and importantly, all mining fronts being connected to the highly productive Twin Incline, resulting in a notable boost in operational efficiencies.

As shown in the images, substantial progress has been made with the 2 1.85-megawatt primary fans now mechanically complete with significant process made during the quarter on the required high-voltage electrical installations and switch room development and construction of the Twin Incline. With the ventilation rates already achieving the initial requirement for Stage 3, we plan to complete electrical commissioning around mid-year. Upon commissioning of the fan chamber, primary ventilation capacity increases to over 600 cubic meters per second and can be expanded to over 740 cubic meters per second through benching the Puma Vent Incline.

This more than meets the requirements for the Stage 3 and Stage 4 Expansions and life-of-mine. As the fans are variable speed and variable pitch, they will initially be run at a lower speed to conserve power and be progressively ramped up as the operation expands and ventilation demands increase. These images show the Puma Vent Incline breakthrough to surface, which was achieved in late February and subsequent surface civil works around the area. With the breakthrough of Puma and the completion of the internal ramp, as noted, we've seen a 75% increase in underground primary ventilation, which meets the initial ventilation requirements of the Stage 3 Expansion. We note that this development was completed through challenging ground conditions and a long single heading configuration, which required constant equipment utilization at our most experienced jumbo operators. Work on this is now complete.

Those resources have been redeployed to higher productivity headings, further increasing our overall development capacity. Remaining civil works at the surface breakthrough area include installation of a reinforced weather-protective steel arch tunnel canopy, which will enable long-term ground stability. All materials for this project are on site and completion is expected mid-year. In addition to completing various infrastructure enablers for the expansion, mine development continues to open up 2 new fronts, the Twin Incline and the Lower Kora with 5 and 4 new sub levels being opened up, respectively. Both fronts are expected to be notable contributors to the production in 2026 with the first long-haul opening stope production ore from Front 2, the Lower Kora mining front delivered in late April.

This is a key milestone for the company as production ore has been sourced primarily from a single mining front, Front 1, since commercial production. Production from Front 3 is expected in Q3, ramping up to 4 production fronts in 2027. With a demonstrated progressive ramp-up in development rates highlighted by our record development exceeding 3 kilometers in the first quarter, we will continue to advance new sub levels to build greater operational flexibility.

Currently, we have meaningful equipment upgrades underway this year, as shown in the table on the left, with nearly 25 new major equipment units arriving between late last year and the end of 2026. Between older unit replacements and new additions, this will increase our fleet size by 15 units. This substantial fleet investment ensures that we have adequate capacity to meet not just Stage 3 Expansion, but also the Stage 4 Expansion equipment requirements. Four new loaders have been added to the fleet, 3 additional, 1 replacement, all of which are now operating on site with the fourth unit commissioned earlier this month.

A new long-haul production drill rig was also commissioned in late April, replacing an older unit to further improve equipment reliability and increase production capacity. We are scheduled to also add 2 new underground haul trucks in the third quarter as well as a new development jumbo, an additional explosive loading rig, a cement agitator unit all towards the end of the year, and that will be further expanding our fleet.

The fleet of surface trucks is also significantly expanding for the operation in the Twin Incline with 8 new 60-tonne trucks planned to arrive in 2026 with the first batch of trucks entering operation mid-year. The trucks will haul from the Twin Incline to the process plant, tripling the payload capacity at much higher speeds than the existing fleet. Five new 30-tonne haulage trucks arrived on site in the second half of last year, and these are being used initially to augment haulage in the Twin Incline ahead of the arrival of the 60-tonne trucks and completion of the enabling river crossing upgrades. These trucks will then later be repurposed to haul filter cake for pastefill underground.

In terms of ancillary buildings, the warehouse, Kumian Creek and Phase 1 primary power stations are all complete. The maintenance facility, which is a lower priority and not on the critical path with Stage 3 Expansion is targeting completion mid-2026. And as shown in the picture, is progressing rapidly with steel structural works largely complete and electrical installation underway. The next phase of the expansion for the full standby power station from 10.7 to 15.3 megawatts is well-advanced with all major electrical infrastructure installed, the switch room in place, and commissioning expected to be completed in Q2, providing increased standby power capacity, meeting Stage 4 Expansion requirements.

Since commissioning of the new primary power station last October, the operation has seen minimal power disruptions across both the process plant and underground mine, highlighting the effectiveness of these upgrades. The addition of a spinning generator reserve now allows the station to stabilize fluctuations from the hydroelectric grid power that would have previously caused mining and processing operation interruptions. Significant progress has been made on the surface pastefill filtration plant, surface storage facility, and the underground pastefill plant packages. All pastefill

long lead items have arrived on site and all major construction contracts are executed and rapidly progressing. Importantly, the entire pastefill plant is being constructed to the capacity required for the Stage 4 expansion. Tailings Filter Plant is now practically complete with the first filter cake produced in late April. Commissioning is ongoing and completion of commissioning is expected well in advance of the other pastefill infrastructure. This footage captures a significant milestone for K92, the first ever filter cake discharge from the new surface Tailings Filtration Plant. The filter press squeezes process tailings between 2 large plates dewatering the tailings to produce a solid cake seen here falling into the bunker below.

Following filtration, the water is then recycled and used at the Stage 3 process plant. Following this first successful discharge, the team conducted transportable moisture limit testing, confirming that the filter cake moisture content achieved can be safely loaded and transported to the surface binder blending plant near the mine portal. Once fully operational, the pastefill system is expected to divert approximately 60% to 70% of tailings to the underground pastefill, significantly reducing the operations required capacity for surface storage. This filter cake will ultimately be used as pastefill to fill mined out stopes to improve ground stability and unlock higher mining rates as K92 continues to scale up production.

Moving to the surface storage area near the portal. Civil works at the binder blending plant are now complete with structural steel erection of the filter cake storage facility underway and expected to be completed in Q3 2026. At the underground pastefill, concrete pores are well-advanced across the 1205 level with silo chamber lining concrete works ongoing as shown in the picture on the right. Overall, pastefill plant design is complete and all long lead items have arrived on site with practical completion for the pastefill circuit scheduled for the end of 2026.

The major surface haul road and river crossing projects are also progressing well during the quarter, highlighted by the completion of the Baupa Bridge as shown in the 2 photos on the slide from early April. These projects enable the surface truck payload to increase from 20 tonnes to 60 tonnes with lower traffic congestion and faster operating speeds, resulting in improved cycle times. It involves upgrading the 3 river crossings as shown in the images, plus widening, straightening, and grading improvements in selected areas to improve haulage efficiency and payload.

Phase 1, which is focused on the river crossing upgrades and haul road widening to enable the higher capacity 60-tonne trucking fleet, is on track for completion mid-year. Phase 2, which is focused on road alignment and grading improvements in selected areas of the haul road, is scheduled for completion by the end of the year. In summary, as shown in the charts and from prior slides, a significant number of key enabler projects have been sequentially completed or are nearing completion in the first half of the year for the Stage 3 and 4 Expansions. I will now turn over to Robert Smillie, VP Exploration, to provide an update on our exploration activities.

Thank you, John. 2026 is shaping up to be a record year for exploration. We've guided a $31 million to $35 million exploration budget in 2026, an increase of more than 50% from 2025, highlighting both the exceptional prospectivity of our land package and our commitment to delivering meaningful near-term resource growth. We currently have 7 underground drill rigs operating at Kora and Judd, 5 surface rigs at Arakompa and Maniape, 1 at Wera with a new rig that arrived in early April, and 1 additional surface rig scheduled to arrive this quarter, bringing us up to 15 rigs operating.

In February, we reported results from 101 diamond drill holes at Kora South and Judd South, continuing to demonstrate strong high-grade growth near existing infrastructure along strike and at depth. At the K2 vein, drilling expanded a near-mine dilation zone adjacent to the Twin Incline with intercepts including 20.5 meters at 14 grams per tonne and 10.7 meters at 10.8 grams per tonne gold equivalent. This zone sits approximately 50 meters from development and represents a potential near-term mining area following pastefill commissioning. Initial Kora Deeps results were particularly exciting, intersecting thick high-grade K1 mineralization up to 350 meters below the Twin Incline. The quality and continuity of mineralization we're seeing in the Deep Kora is very encouraging and suggests the system has strong depth extension potential at Kora.

Mineralization continues to extend up dip and along strike at both K1 and K2 with multiple intercepts exceeding 20 grams per tonne gold equivalent, reinforcing significant growth potential in multiple directions. The results have also delineated a substantial high-grade copper zone to the south of Kora with copper grade tenor also increasing at depth within the K1 vein. The consistency of these high-grade copper hit rates with grades exceeding 4% copper, shown in magenta on the long section, is very encouraging and points towards a meaningful copper-gold corridor developing towards the A1 porphyry target.

At Judd, Bonanza-grade intercepts near the upper mine infrastructure, including 5.45 meters at 67 grams per tonne and 3.9 meters at 56.75 gram per tonne gold equivalent, continue to reinforce the high-grade nature of this system. Initial Judd Deeps results have now intersected mineralization up to 300 meters below the Twin Incline and 350 meters below the resource, recording multiple thick high-grade intersections. Like Kora Deeps, we are very encouraged by the mineralization in the drill core, which shows strong depth extension potential.

At Judd North, near-surface intercepts, including 20 meters at 14 grams per tonne and 3 meters at 15.5 grams per tonne gold equivalent highlighting a compelling 800-meter strike target of up to 500 meters of vertical extent, which we plan to ramp up from the surface in the second half of the year. The Judd system remains significantly underexplored and open in all directions, and we believe the best is still ahead of us. Exploration activity at the Arakompa Vein System, located 4.5 kilometers from our Kainantu process plant, is progressing well. Drilling is supported by 5 active rigs and the deposit has grown substantially in both scale and geological understanding ahead of our maiden resource estimate planned for mid-year.

As shown in the graphic, the Arakompa bulk tonnage zone has now expanded to approximately 1.1 kilometers of strike and 800 meters vertically with an average true thickness of 39 meters, remaining open in multiple directions and demonstrating strong potential for large-scale near-surface bulk mining. The standout development is the discovery of porphyry copper gold mineralization in hole KARDD0065, a 250-meter step out to the south returning 690 meters at 0.3% copper equivalent, including 395 meters at 0.38% copper equivalent. Interpreted as distal to a potential high-grade porphyry core, this is the first porphyry style mineralization identified at Arakompa and supports our growing view of this as a larger integrated system, one potentially linking epithermal vein mineralization to an underlying porphyry center.

Follow-up drilling is underway alongside detailed geochemistry and paragenesis work to help vector towards higher-grade zones. Latest drilling continues to define the high-grade AR1 and AR2 lodes with a potential high-grade thick zone emerging, highlighted by intercepts of 7.1 meters at 27.9 grams per tonne, 14.5 meters at 17.3 grams per tonne and 20.6 meters at 9.9 grams per tonne gold equivalent, demonstrating strong vertical continuity over 200 meters at an average true thickness of 7.3 meters. We've commenced closer-space drilling within this Kora zone to support the maiden resource, which we are targeting for mid-2026. In addition to Arakompa and Maniape, we continue to drill test the recently discovered Wera Vein System, a large 3.5 x 3.5 kilometer low-sulfidation epithermal gold system located about 10 kilometers southwest of Kora and Judd.

Our maiden scout program is currently underway with contract drill rig. What makes Wera particularly exciting is that this area has never been accessed or tested by previous operators, yet rock chip samples have already returned grades up to 26.3 grams per tonne gold, sitting within the same major mineralized corridor that hosts Kora, Judd, and Arakompa. We look forward to sharing initial drill results from what we believe is a very promising new discovery in due course.

Lastly, this graphic reflects the scale of opportunity in front of us and a deep pipeline of highly prospective targets across our 836.8 square kilometer land package with drilling planned across multiple targets concurrently. In the near-term, new heli-portable rig arriving this quarter will unlock drilling at Mati-Mesoan and Judd North, both situated within 1.6 kilometers of current mine workings. Near-mine surface exploration is also commencing north of Mati-Mesoan and Maniape, a large, underexplored area within just 1 kilometer of the processing plant. Underground programs remain focused at Kora, Kora Deeps, Judd, and Judd Deeps, while regional drilling continues at Wera.

A record $31 million to $35 million exploration program positions us well to deliver meaningful resource growth across multiple fronts in 2026. I will now turn the call back to John for concluding remarks.

Well, thank you, Rob. So in summary, Q1 2026 operational, financial and project delivery performance was strong and substantial progress was made to strengthen contractor safety systems and to further improve safety performance. Notably, we have grown the cash balance to $287 million while investing significantly in exploration and long-term infrastructure to support the Stage 3 and Stage 4 expansions. The first quarter production and cost performance sets us up well in terms of meeting our 2026 production guidance of 190,000 to 225,000 ounces gold equivalent.

We're very excited about the next few months, which will see the completion of several key surface and underground infrastructure enabler projects, our maiden resource estimate at Arakompa, and further ramp-up in drilling activities from the arrival of 2 new drill rigs this quarter. Concurrently, we will continue to advance our community projects and deliver sustainable benefits to all project stakeholders, which will be highlighted in the delivery of our sustainability report this quarter. With that, operator, we're happy to open the line for questions. Thank you.

[Operator Instructions] The first question comes from Bryce Adams with Desjardins.

Thanks for the presentation and update. Apologies if this came up through the presentation and I missed it. But on the Q1 grade profile, the press release talks to positive grade reconciliation, but doesn't quantify the magnitude of that reconciliation. Can you talk to what was your budgeted Q1 grade profile? And how much was a surprise to the block model?

Yes. Thank you, Bryce. I'm going to jump in here. John is in Papua New Guinea at a location with a connection that's not quite stable. I'd say if you look at last quarter, positive grade reconciliation was around 8% to 10%. What we've had is when you look at our resource model, when you are in areas which are medium to low grade, it reconciles incredibly well with the resource model. When you are in areas of high grade, which have a cutting factor applied, a top cut, you tend to get a positive reconciliation. And what we will look at doing is -- on our next resource update, is we'll look at refining the geostatistical parameters. But I would say that it is a consistent relationship that in the high grade, there is a positive grade reconciliation.

Okay. And for Q1, it was around that 10%?

Yes. And I would also note that -- when John is on the call, it's just his connection is not good right now. Correct, yes.

Understood. And then just following on from that, the top cut that you talked to, is that the update that you mentioned? You could increase that in the next resource update?

It's something that we are looking at. And what we found is that if you look at the iterations of the resource model, we've worked with the same independent consultant and over the years, he has increased the top cut because he is getting more confidence and more data. What I will point to is that there is a much longer mining history and grade reconciliation from Kora. And then Judd, there is less of a mining history and grade reconciliation from Judd. Where we are seeing the positive grade reconciliation is, however, in both Kora and Judd.

[Operator Instructions] The next question comes from Alex Terentiew with National Bank.

Congrats on another really good quarter here. You gave a lot of operational details there. So I don't have any operational questions at the moment. But a question I do have is your balance sheet continues to get very strong. You're still paying down debt a little bit. So you have nominal on your balance sheet. Have you guys given any more thought to a capital return program? What are you thinking of managing your cash balance over the course of this year and into 2026? Any plans on any returns?

Yes. Thanks for the question, Alex. We have been having discussions at the Board level with respect to return of capital to shareholders, whether it is through a buyback or a dividend. Our thinking at this point is late this year, early next year. So we certainly are having those conversations. And you are absolutely correct that we are generating a lot of cash. You'll see last quarter, we did a big tax installment. It's [ 1 of 3 ] tax installments, spent a considerable amount of money on capital, and we still generated a significant increase in net cash. And then as you look at the year, obviously, the second half of the year is expected to be the strongest, and we expect the cash flow generation to continue to increase.

This concludes the question-and-answer session and today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Thank you for standing by. This is the conference operator. Welcome to the K92 Mining 2025 Fourth Quarter Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to David Medilek, President and COO. Please go ahead.

Thank you, operator, and thanks, everyone, for attending K92 Mining's 2025 Fourth Quarter Financial Results Conference Call. We hope you and your families are doing well. In addition to myself, we have on the line, John Lewins, Chief Executive Officer and Director; Justin Blanchet, Chief Financial Officer; and Rob Smillie, VP, Exploration.

I would also like to remind everyone that after the remarks from management, the call will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD&A and Slide 2 of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted.

Now I'll turn it over to John to provide you with an overview.

Well, thank you, David, and welcome, everyone. We begin with safety, K92's highest priority. While this report covers the 2025 fiscal year, we're deeply saddened by the tragic incident last month that resulted in the death of a contractor. As previously disclosed in our February 6 release, the incident involved a contractor supporting roadwork activities near the Kumian camp, operating in the designated contractor area located approximately 1.5 kilometers northeast and 8 kilometers northwest of the process plant and underground mine, respectively. Initial investigations by both the contractor and the MRA have now been completed. Mitigation measures have been implemented and a progressive managed restart of the contractor service activities has commenced. Minimal impact to the project construction time line is expected. The health and safety of our workforce, our entire workforce, including contractors, has been and always will be our highest priority.

Circling back to the fourth quarter and 2025, the company recorded no lost time injuries, marking 10 consecutive LTI-free quarters. A new integrated safety management and compliance system is being progressively rolled out on the site to further improve our health, safety, environment, quality and training management. Over the past two years, there's been a substantial increase in field-level risk assessments, hazard identifications, safety observations, safety technologies and safety team capacity and capabilities, all strong leading indicators of the safety-first culture. Safety always is one of K92's core values, and we remain steadfast in our commitment to achieving our ultimate goal, zero harm across the entire workforce.

K92 is very proud to have received yet another industry ESG award during the PNG Investment Week Conference in Sydney last December, marking the fourth consecutive year of recognition of outstanding community humanitarian initiatives. The PNG CORE Award recognizes K92's adult literacy program, which since 2021 has supported over 1,000 adult learners across eight local communities and providing basic top vision and English literacy and basic computer skills. We believe that the delivery of these foundational skills is key to a long-term empowerment of our host communities.

Moving on to operations. During the quarter, the Kainantu mine produced 47,178 ounces gold equivalent with cash cost of $768 per ounce gold and all-in sustaining costs of $1,619 per ounce gold. On a co-product basis, cash costs of $920 an ounce gold equivalent and all-in sustaining costs of $1,716 per ounce gold equivalent were reported. Now as annotated on the chart, all-in sustaining costs have been notably higher than cash costs since the beginning of 2023 due to K92's significant investment in the Stage 3 expansion with costs expected to decline considerably after delivering the Stage 3 expansion, which will be discussed later in this presentation. We highlight that these temporarily elevated costs still fit well within the lower half of industry all-in sustaining cost curve, which reflects K92's ongoing commitment to cost discipline despite a rising gold price environment.

Mill throughput for Q4 totaled a record of 186,198 tonnes. with a head grade of 8.0 grams per tonne gold equivalent and also a moderate positive gold and copper grade reconciliation versus the latest independent mineral resource estimate. For the year, a record 174,134 ounces of gold equivalent was produced, delivering year-on-year production growth of 16% and at the upper half of our production guidance range, which was 160,000 to 180,000 ounces gold equivalent. Cash costs of $695 per ounce, beating our guidance range of $710 to $770 per ounce gold and all-in sustaining costs of $1,308 per ounce, also beating the guidance range for all-in sustaining costs of $1,460 to $1,560 per ounce gold.

In the fourth quarter, K92 achieved a major milestone with the official inauguration of our new 1.2 million tonne per annum state-of-the-art Stage 3 expansion process plant on October 16. The first production of salable concentrate in early October and the completion of commissioning in December. The event was attended by the Prime Minister of Papua New Guinea, the Honorable James Marape and then Minister for Mining, now Governor of Morobe, the honorable Rainbo Paita. Other distinguished guests included government representative, landowner leaders, members of diplomatic and business community, the K92 Board and our project partners. The process plant was delivered safely, efficiently and importantly, under budget, marking a major achievement for our construction team.

Additionally, the plant has performed extremely well. Since late October, all mine material has been processed exclusively through the plant. Overall metal recoveries for the quarter were 94.3% for gold, exceeding the recovery parameters in the updated definitive feasibility study and 93.9% for copper, in line with the DFS.

In terms of key operational quarterly physicals, total material mined of 404,205 tonnes was a record with material movements benefiting from the commissioning of the first material pass in Q3 2025 and the commencement of 30-tonne surface trucks being able to operate in the twin incline in late Q3 2025. Total quarterly mine development was a record 2,787 meters, a 12% increase from the third quarter 2025. Notably, a record of 1,027 meters was achieved in October, supported by the completion of several key infrastructure enablers, including improved power reliability resulting from the commissioning of our new 10.3-megawatt primary power station, improvements in the underground service water supply system and the additional ventilation volumes delivered by the Phase 2 ventilation upgrade.

As will be discussed later in the presentation, multiple key enabler projects have been completed in Q1 or are nearing completion, which are expected to continue to drive physicals higher.

I'll now turn the call over to our Chief Financial Officer, Justin Blanchet, to discuss our financial results for the fourth quarter.

Thank you, John, and hello, everyone. During the fourth quarter of 2025, K92 generated quarterly revenue of $176.8 million, an increase of 47% from the same period prior year. We sold 40,031 gold ounces at an average selling price of $3,955 compared to 48,851 ounces at an average selling price of $2,564 in the prior year. As at December 31, 2025, there were 14,032 gold ounces in inventory, including both concentrate and dore, an increase of 6,119 ounces when compared to September 30, 2025, due to timing of sales. During the year ended December 31, 2025, we had record annual revenue of $595.2 million. a 70% increase from prior year. We sold a record 159,787 gold ounces at an average selling price of $3,296 compared to 141,159 ounces at an average selling price of $2,356 in the prior year.

During the fourth quarter of 2025, K92 had cost of sales of $46.6 million compared to $32.6 million in the same period prior year or $36.7 million compared to $23.8 million when excluding noncash items. The increase in cost of sales was driven by significantly higher tonnes mined and processed when compared to prior year. This is consistent with the higher mining and processing activity associated with the ramp-up of the Stage 3 expansion.

During the year December 31, 2025, cost of sales was $156.9 million compared to $142.2 million in the prior year or $126.4 million compared to $106.8 million when excluding noncash items. As previously stated, total costs increased due to the Stage 3 mining physicals ramp-up while realizing a reduction in unit costs on a per tonne basis.

During the fourth quarter of 2025, cash flow from operating activities before changes in working capital was $99.6 million compared to $72 million in the same period prior year. For the year ended December 31, 2025, we saw record cash flow from operating activities before changes in working capital of $329.3 million compared to $170.4 million in 2024. K92 recorded a write-down of property, plant and equipment of a net $9.4 million in the fourth quarter of 2025. This primarily related to the old process plant. This adjustment can be reversed if and when we recommission that plant in future periods.

As at December 31, 2025, K92 had a record $230.9 million in cash and cash equivalents, a record working capital balance of $262.3 million and a record net cash position of $181.6 million. Importantly, the Stage 3 and Stage 4 expansion projects are fully funded. Our financial position is strong. We also have access to significant amounts of liquidity through an undrawn credit facility with $60 million available to draw down on demand.

We would also like to highlight that our commodity price downside is protected through the cost-effective purchase of put option contracts, which extend until the end of 2026, allowing for 10,000 ounces of gold per month at a strike price of $3,500 per ounce. To be clear, this is not a hedge. We will sell at spot if it is higher than $3,500 an ounce. This is insurance, and we will retain full exposure to the upside in commodity prices.

As John mentioned, during the fourth quarter, the Kainantu gold operations produced 44,129 ounces of gold, 1,940,781 pounds of copper and 47,427 ounces of silver or 47,178 ounces of gold equivalent. We sold 40,031 ounces of gold, 1,726,051 pounds of copper and 44,162 ounces of silver. During the year, the Kainantu gold operations produced 164,484 ounces of gold, 5,942,203 pounds of copper and 159,309 ounces of silver or 174,134 ounces of gold equivalent. We sold 159,787 ounces of gold, 5,550,751 pounds of copper and 154,404 ounces of silver. On a byproduct basis, we recorded a cash cost of $768 per ounce and an all-in sustaining cost of $1,619 per ounce of gold in Q4 2025. Our all-in sustaining cost in Q4 was significantly below our net realized selling price of $3,955 per ounce, reflecting our strong cost discipline and improved metal price outlook.

For the year, we incurred a cash cost of $695 and an all-in sustaining cost of $1,308 per ounce of gold, which was significantly below our selling price of $3,296 per ounce. Importantly, both our cash cost and all-in sustaining costs for the year beat the guidance ranges in 2025. Our 2025 byproduct cash cost per ounce increased to $695 per ounce from $664 in 2024. The increase is primarily due to higher costs as operations ramped up to support the Stage 3 expansion, offset by higher by-product credits. It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 expansion is complete.

I will now turn the call back to John to discuss 2026 guidance, growth and exploration.

Well, thank you, Justin. Turning to growth and exploration. We begin with an update on the Stage 3 and Stage 4 expansions, which are expected to fundamentally transform K92 into a Tier 1 mid-tier gold producer. As mentioned earlier, the Stage 3 expansion process plant achieved its first saleable production in mid-October, and the plant has been processing all mine feed since the end of October and commissioning was then completed in December.

The Stage 3 expansion, as outlined in our updated definitive feasibility study, supports a 1.2 million tonne per annum throughput rate or 300,000 ounces gold equivalent per annum at that run rate. Commissioning of the process plant, as noted, was completed in December. Stage 4 is expected to further increase production through expanding the Stage 3 process plant at a low capital cost to 1.8 million tonnes per annum, producing over 400,000 ounces gold equivalent per annum, targeting startup commissioning late '27. The 600,000 tonne per annum Stage 2A plant, which has been idled, provides additional capacity for future expansion beyond Stage 4.

Now looking ahead to 2026, we are guiding yet another year of production growth, targeting 190,000 to 225,000 gold equivalent ounces while making significant sustaining and growth capital investments as we transform K92 into a Tier 1 mid-tier producer. Production is expected to be weighted towards the second half of the year as additional mining fronts come online and ramp up plus major expansion enablers are completed.

Growth capital is forecast to be $100 million to $108 million in 2026, comprised of $25 million to $28 million for the Stage 3 expansion capital, primarily the paste fill plant and River Crossings and $75 million to $80 million in Stage 4 expansion capital and accelerated growth capital. Given our strong financial position with record cash and Stage 3 expansion capital now 95% spent or committed as at the end of January, we have taken the opportunity to bring forward several Stage 4 expansion projects into 2026, leveraging our expanded owner's project team and contractors already on site to accelerate Stage 4 project.

The delivery of the Stage 3 expansion ramp-up is expected to be driven by several key enablers. Starting with the underground, a major infrastructure transformation is now underway. The Twin Incline internal ramp system and the first material pass are complete. And I'm very pleased to announce that in late February, the Puma Vent Incline has achieved its breakthrough to surface. The development in the Puma Ventilation Drive has been slowed recently due to its proximity to consolidated surficial rock conditions as it approached the breakthrough and being a long single heading. This clearly tied up significant resources for low lateral advance rates. And now that it's complete, resources have been reallocated to focus on high productivity development.

With the breakthrough of the Puma Drive and the completion of the internal ramp, we've seen a very significant increase in underground primary ventilation with our latest ventilation survey showing an increase from 200 cubic meters per second to approximately 350 cubic meters per second, representing an increase of approximately 175%. This meets the initial ventilation requirements for the Stage 3 expansion.

In terms of the Twin Incline, it has already begun to transform underground material handling efficiencies as shown in the image on the right versus the image on the left, which is the existing incline to access the main mine since commercial production. The Twin Incline can run 50% larger trucks at faster speeds and eliminates rehandling at the portal by hauling directly to the process plant run-of-mine stockpile. We expect these larger 60-tonne payload trucks to be operational around mid-'26 following the completion of the key river crossings and surface haul road upgrades.

The productivity gains from the Twin Incline infrastructure will be realized in stages as supporting infrastructure is completed and equipment added. As noted in the previous quarterly update, the first tonnes were tipped down the first material pass in August, leveraging gravity to deliver tonnes approximately 350 meters vertically from the main mine to the highly productive twin inclines. The operation of surface articulated trucks in the Twin Incline continues to deliver material movement benefits and will notably increase upon the introduction of the larger trucks, as noted in the previous slide. The development of a second material pass enabling dedicated separate ore and waste is planned to commence later this month and is expected to be online midyear.

On January 24, we achieved a key milestone, which was the completion of the internal ramp. Prior to the completion of the internal ramp, we were effectively running two sets of crews, one for the upper mine, which was accessed by the old incline, as shown in the prior slide and one for the lower part of the mine, which was accessed by the twin inclines. And now as shown in the banner in the image, we are one mine, which means now there is only one crew. We've obviously got better equipment utilization, shorter travel times between work areas and importantly, all mining fronts are connected to the highly productive Twin Incline, resulting in a notable boost to our operational efficiencies.

As shown in the images, substantial progress has been made with the 2x1.85 megawatt primary fans now mechanically complete with ventilation having already achieved the initial requirements of Stage 3 expansion, we plan to complete electrical commissioning around midyear. Upon commissioning of the fan chamber, primary ventilation increases to over 600 cubic meters per second and can be expanded to 740 cubic meters per second by benching the Puma Vent Incline. This will more than meet the requirements for the Stage 3 and Stage 4 expansions and life of mine. The fans are variable speed. A single fan will initially be run at a lower speed to conserve power and progressively be ramped up as the operation expands and ventilation demands increase with ultimately two fans being required to operate, but only in a number of years' time.

The next phase of the expansion for the full standby primary power station moving from 10.7 megawatts to 15.3 megawatts is progressing on schedule with civil works for the additional generators, switch room and fuel tanks now complete ahead of the arrival of key long lead items. Completion of the upgrade of the 15.3 megawatt is expected around mid-'26.

Since commissioning of the new primary standby power station last October, the operation has experienced minimal power disruptions across both the process plant and underground mine, demonstrating the positive impact of the infrastructure upgrades in reducing operational interruptions. Maintaining a spinning generator reserve now enables the primary power station to correct power fluctuations from our hydroelectric grid power that would previously have resulted in mining and processing interruptions and outages.

On top of this increased power reliability, we also expect to realize material operating cost benefits from this plant relative to the previous interim power plant configuration as this one operates at notably better fuel efficiency. In addition to completing various infrastructure enablers for the expansion, mine development continues to open up two new fronts the twin incline and the Lower Kora with five and four new sublevels being opened up, respectively. Both fronts are expected to be notable contributors to production in 2026. With a demonstrated progressive ramp-up in development rates, we will continue to advance new sublevels to build greater operational flexibility.

Since commercial production, ore has been sourced primarily from a single front, front 1. Front 2 is scheduled to commence stoping in late Q1, early Q2, followed by Front 3 in late Q2, early Q3, ramping up to 1.2 million tonne per annum run rate by year-end and increasing to four production fronts in 2027. Currently, we have meaningful equipment upgrades underway this year, as shown in the table on the left. 4 new loaders are being added to the fleet, three additional replacement with two already operating on site, one of which is shown on the image on the right and two more loaders arriving by June as well as two new underground haul trucks expected in the third quarter. Towards year-end, we'll also add a new development jumbo, an additional explosive loading rig, a cement agitated unit and a new production drill rig to replace the older unit.

The fleet of surface trucks is also significantly expanding for the operation in the twin incline with eight new 60-tonne trucks planned to arrive in 2026 with the first batch of six trucks arriving first half of the year. The trucks will haul from the twin incline to the process plant, doubling, in fact, tripling the payroll capacity at much higher speeds than the existing fleet. Five of the 30-tonne haulage trucks arrived on site in the second half of last year, and they're being used initially to augment haulage in the twin incline ahead of the arrival of the 60-tonne trucks and obviously needing the completion of the enabling river crossings to be able to run those 60-tonne trucks. But these trucks will later be repurposed to haul filter cake for the paste fill plant underground. This substantial fleet investment ensures we have adequate capacity to meet not just the Stage 3 expansion, but also the Stage 4 expansion equipment requirements.

In terms of the ancillary buildings, interim power station, warehouse, Kumian camp, primary power station, all complete. Maintenance facility, which is a lower priority and not critical for the Stage 3 expansion is targeting completion mid-'26. Significant progress is being made on the surface paste fill filtration plant, storage facility and the underground paste fill plant packages.

As seen on the left image, the tailings filter plant facility is well advanced with early electrical commissioning having commenced at the end of February. Paste binder and filter cake storage facility construction is also advancing with detailed design and bulk earthworks and leveling complete. Civil and concrete works are underway for the two larger binder storage buildings in the right of the image.

Major excavations for the underground pastefill plant are now complete and sites are progressively being handed over to projects team for construction execution. Civil works have now commenced in the 1205 binder blending and storage area. Overall pastefill plant design is complete. Long lead items are progressively arriving on site. Commissioning of the pastefill infrastructure has already commenced with the tailings filter plant with practical completion of the full pastefill circuit targeting end 2026.

The major surface haul road and river crossings projects are also advancing well during the quarter. These projects enable the surface truck payloads to increase from 20 tonnes to 60 tonnes or higher, resulting in lower traffic congestion, faster operating speeds, which will improve cycle times. The work involves upgrading three river crossings as shown in the images plus widening, straightening and gradient improvements in selected areas to improve haulage efficiency and payload. Phase 1, which is focused on the river crossings and haul road widening to enable higher capacity 60-tonne trucks is on track for completion mid-2026. Phase 2, which is focused on road alignment and grading improvements in selected areas of the haul road is scheduled for completion by year-end.

In summary, as shown on the Gantt chart and from the prior slides, a significant number of key enabler projects have been completed or nearing completion for the Stage 3 and Stage 4 expansions.

I'll now turn it over to Rob Smillie, VP Exploration, to provide an update on our exploration activities.

Thank you, John. In 2026, we plan a very big year of exploration. In our guidance, we have guided a record $31 million to $35 million exploration budget in 2026, an increase of more than 50% from 2025, highlighting both the exceptional prospectivity of our land package and our commitment to delivering meaningful near-term resource growth.

We currently have seven underground drill rigs operating at Kora and Judd, five surface rigs at Arakompa and Maniape, one at Wera and two additional surface rigs scheduled to arrive in the second quarter. In February, we reported results from 101 diamond drill holes from Kora, Kora South and Judd, Judd South, with results continuing to demonstrate meaningful high-grade growth potential, both near existing mine infrastructure along strike and at depth.

At the K2 vein, drilling has expanded the near-mine dilatant zone proximal to the Twin Incline mining front with new exceptional high-grade intercepts, including 20.5 meters at 14 grams per tonne and 10.7 meters at 10.8 grams per tonne gold equivalent. Importantly, this zone sits approximately 50 meters from existing development, positioning it as a potential near-term mining area to be mined via bulk transverse stoping methods following pastefill commissioning.

We are also very pleased with the first set of results from Kora Deeps, as shown in the black lips, intercepting thick high-grade mineralization at the K1 vein, up to 350 meters below the twin incline and 250 meters down dip of the 2023 mineral resource estimate outline. Whilst it is early days with approximately 400 meters of strike extent identified to date, this highlights strong potential for continuity of structure and grade at depth, pointing towards longer-term resource expansion.

We also continue to extend high-grade mineralization up-dip and along strike at both the K1 and K2 veins with multiple intercepts exceeding resource grades, including multiple 20-plus grams per tonne gold equivalent intersections and see significant growth potential in multiple directions. The results have delineated a substantial high-grade copper zone to the south of Kora with copper grade tenor also increasing at depth within the K1 vein. Magenta represents grades exceeding 4% copper and the consistency of the high-grade copper drilling hit rates is very encouraging as shown in the long sections.

At Judd, drilling continues to successfully extend high-grade mineralization, both up dip from the main mine and beyond the 2023 mineral resource with several bonanza intercepts near upper mine infrastructure, including 5.45 meters at 67 grams per tonne and 3.9 meters at 56.75 grams per tonne of gold equivalent. We are also extremely excited to report initial results from the Judd Deeps drilling campaign, where we have intercepted thick mineralization up to 300 meters below the twin incline and 350 meters below the mineral resource outline. Mineralization is now defined over approximately 450 meters of strike and remains open at long strike and at depth, reinforcing the scale and depth potential of the system.

Encouraging results have also been recorded at Judd North, a near surface area, representing a prospective up extension that will continue to be evaluated through ongoing underground drilling and planned surface drilling in the second half of the year. The target area geometries are approximately 800 meters strike by 250 to 500 meters vertical as outlined in the triangular dotted black outline with new intercepts including 20 meters at 14 grams per tonne and 3 meters at 15.5 grams per tonne gold equivalent. We reiterate that the Judd vein system remains significantly underexplored and is open in all directions.

Overall, these results continue to highlight the strength and growth potential of the Kora, Judd system with drilling expanding mineralization both close to existing infrastructure and at depth, supporting future resource growth and operational flexibility.

Exploration activity at the Arakompa vein system located 4.5 kilometers from the Kainantu process plant is progressing well. Drilling is now supported by five active rigs, and the deposit has grown substantially in both scale and geological understanding. We are also starting to drill test the Maniape vein system, which sits approximately 1.5 kilometers west of Arakompa and shows geological similarity to Arakompa. The approximate scale of the Maniape vein system is 1.1 kilometers in strike and 220 meters known vertical.

As shown in the graphic, the most recent drilling has expanded the Arakompa bulk tonnage zone to approximately 1.1 kilometers in strike and 800 meters vertically with an average true thickness of 39 meters. The bulk zone remains open in multiple directions and continues to demonstrate strong potential for large near-scale surface bulk mining.

We're also excited about the discovery of porphyry copper gold mineralization and drill hole KARDD0065, stepping out 250 meters to the south from previous drilling. This was our first hole testing a 600 by 600 meter copper installs anomaly and it intersected 690 meters at 0.3% copper equivalent, including 395 meters at 0.38% copper equivalent. This intersection is interpreted to be distal to a potential higher copper gold grade potassic porphyry core and marks the first porphyry-related mineralization identified at Arakompa, a highly prospective target for ongoing drilling. This step-out discovery highlights Arakompa's scale and furthers our understanding of the project as a larger integrated mineral system, potentially linking epithermal vein mineralization with an underlying porphyry intrusive center.

Our latest drilling also continues to define the high-grade AR1 and AR2 loads along strike and at depth, confirming continuity within the broader Arakompa system. We're also seeing the emergence of a potential high-grade fix zone highlighted by standout intercepts including 7.1 meters at 27.9 grams per tonne gold equivalent, 14.5 meters at 17.3 grams per tonne gold equivalent and 20.6 meters at 9.9 grams per tonne gold equivalent. Together, these results demonstrate strong vertical continuity over 200 meters at a substantial average true thickness of 7.3 meters, reinforcing the potential for a high-grade core within the larger Arakompa system. We are looking to release the next set of results for Arakompa in Q2 and cut off new data in the near term for a maiden resource in mid-2026. In addition to Arakompa and Maniape, we continue to drill test the recently discovered Wera vein system, a large 3.5x3.5 kilometer low-sulfidation epithermal gold system located about 10 kilometers southwest of Kora and Judd.

The maiden exploration program focused on rock chips and trenching outlined multiple mineralized structures with numerous high-grade samples, including assays up to 26.3 grams per tonne gold. Importantly, this area has never been accessed or tested by previous operators and lies within the same mineralized corridor that hosts Kora, Judd and Arakompa. There is currently one drill rig operating, and there are plans to potentially increase the number of rigs to two by midyear. We're very encouraged by the potential of this new greenfields discovery and look forward to results from our maiden scout drill program.

Lastly, we highlight a significant pipeline of highly prospective exploration targets. The colored icons indicate our current exploration focus and the black icons indicate where we plan to drill in the next 24 months.

In the near term, in addition to Maniape, drilling is planned at the Mati Creek Bona Creek target situated within 1.6 kilometers of current mine workings and Judd North. The program will utilize small footprint, highly portable drill rigs set to arrive next quarter. These targets represent the next phase of near-mine exploration designed to expand our understanding of the broader mineralized system and potentially extend known mineralized corridors.

Regional exploration will continue to drill test vein-hosted gold 7 mineralization at Wera. Underground drilling will focus on Kora, Kora South, Kora Deeps, Judd, Judd South, Judd North and Judd Deeps. Our record exploration program of $31 million to $35 million is projected for 2026 with the aim of targeting many of these highly prospective targets concurrently.

I will now turn the call back to John for concluding remarks.

Well, thank you, Rob. In summary, both quarter '25 and 2025 operational, financial and project delivery performance was strong. Notably, we have grown the cash balance to over $230 million while investing significantly in exploration and long-term infrastructure to support the Stage 3 and Stage 4 expansions.

We enter 2026 with strong momentum, forecasting further low-cost production growth of 190,000 to 225,000 ounces gold equivalent, continued execution of multiple key surface and underground infrastructure enabler projects, along with a record exploration budget targeting multiple near-mine and regional prospects on our large, highly prospective land package. Concurrently, we will continue to advance our community projects and deliver sustainable benefits to all our project stakeholders.

With that, operator, we're happy to open the line for questions. Thank you.

[Operator Instructions] The first question comes from Alex Terentiew with National Bank.

Congrats on another good quarter here. Question for you on 2026 guidance. Is it possible for you to give us just a little bit more granularity on tonnes and grades. In particular, I'm just asking because the mill and mine seem to be ramping up well. I know the Phase 3 official capacity of the mill is about 1.2 million tonnes. But I'm just wondering, any opportunity, especially with gold being where it is to maybe fill the mill? Are there other lower-grade tonnes that kind of wouldn't be part of a mine plan, but could be incremental to production? I'm just wondering how you're seeing that this year.

Well, thanks, Alex. So, I guess, a couple of things there. One is that when you look at the year, year, I think, as we've indicated, is back-end loaded in as much as we'll produce more in the second half of the year than the first half of the year. And that will be driven primarily by tonnage. So, in other words, increased tonnes rather than a higher grade in the second half of the year. And with the ramp-up from underground, as we've indicated there, with the completion of a lot of those enablers in this -- especially in this first quarter with both the internal ramp and the Puma Vent being completed, which, of course, dramatically improves our availability of equipment and especially our ability to more fully utilize our twin boomers front 4 meters of development. That's obviously really important. So we anticipate at the end of the year, we'll be exiting at a run rate of 1.2 million tonnes per annum, but we're obviously not there at this point in time. In terms of overall grade this year, we're looking at around 6.5 to 7.5 grams per tonne. So it's -- and that's what gets us to our guidance of 190 to 225.

In terms of opportunities to add tonnes, I mean that's something that we always look to. And in the past, we have been able to add some lower grade tonnes and our lower grade tonnes tend to be like 3 to 4 grams per tonne, which, I guess, by most people's standard would be relatively high grade. But we do have those sort of tonnes that do come out. And we certainly have the capacity for the plant. So tonnage this year is not about the plant. It's obviously about ramping up underground. So we do have spare capacity in the plant.

The plant, as was indicated, to date is performing better in terms of metallurgical recoveries on gold than anticipated. I think we're running probably about 94% versus the study of 92.6% recovery. So even at lower grade -- lower feed grades. So likewise, on a daily basis, we've been able to run the plant at significantly higher than an annualized basis at 1.2 million tonnes per annum. So the plant certainly has capacity to do 1.2 million and beyond, which is as expected.

So, in summary, grade 6.5 to 7.5, and that's the basis of our guidance. yes, there could be some potential to add tonnes to it, but obviously, we stick with what our guidance is.

Okay. Sounds good. I appreciate that. And just kind of maybe a fine-tuning question. Production of gold and copper concentrate versus dore, is that any change to what you were anticipating there or what you were seeing previously in the Phase 2a? Or is everything in terms of that split still on par with your expectations?

Look, I think we'd say it's on par with our expectations. It does vary. We tend to find that Judd has more gravity gold than Kora. And sometimes we can get up to 40% from an area, whereas our overall average is more like 10% there's certainly some work that we are planning on doing to see if we can improve our gravity recovery, for instance, by looking at our flash float and seeing if we can take gravity gold out of that. So there are a few things that we've got planned.

But of course, the first thing was to get the plant commissioned and get it running in a stable manner. And I've got to say, I've been involved in multiple flotation plants. The commissioning of this plant was the fastest I've seen, which is a real testament to our workforce, which is basically Papua New Guinean. It is -- and of course, to GRES for the plant that they built. But it has been a real pleasure, I see on the commissioning front. You always get a few hiccups, but it really is operating in terms of recoveries better than anticipated. So you can't really ask for much more than that.

[Operator Instructions] This brings to a close today's Q&A and the K92 Mining conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Thank you for standing by. This is the conference operator. Welcome to the K92 Mining 2025 Third Quarter Financial Results Conference Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to David Medilek, President and COO. Please go ahead.

Thank you, operator, and thanks, everyone, for attending K92 Mining's 2025 Third Quarter Financial Results Conference Call. We hope you and your families are doing well. In addition to myself, we have on the line John Lewins, Chief Executive Officer and Director, and Justin Blanchet, Chief Financial Officer.

I would also like to remind everyone that after the remarks from management, the call will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD&A and Slide 2 of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted.

Now I'll turn it over to John to provide you with an overview.

Well, thank you, David, and welcome, everyone. We begin with safety, K92's highest priority. I'm very pleased to share that the company recorded no lost time injuries during the third quarter, marking 9 consecutive LTI-free quarters, a notable achievement as activity levels continue to increase with the advancement of our Stage 3 Expansion.

Over the last 2 years, there's been a substantial increase in field-level risk assessments, hazard identifications, safety observations, safety technologies and safety team capacity and capabilities, all strong leading indicators of a strong safety culture. Safety always is one of K92's core values, and we remain steadfast in our commitment to achieving our ultimate goal of zero harm across our workforce.

Subsequent to the end of the quarter, the company achieved a major milestone with the official inauguration of our Stage 3 Expansion process plant on September 16 and the first production of our saleable concentrate. The event was attended by the Prime Minister of Papua New Guinea, the Honorable James Marape; the Minister for Mining, the Honorable Rainbo Paita as shown in the photo; other distinguished government representatives, landowners, members of diplomatic and business community and the K92 Board and project partners.

The process plant was delivered safely, efficiently and under budget, making a major achievement for the construction team. The Prime Minister and the Minister for Mining also attended a gold pour at the new process plant as shown in the accompanying video. Additionally, they conducted a helicopter tour of the mine site and regional exploration areas as well as an underground tour showcasing several completed major infrastructure upgrades, including the twin incline and material pass, which, of course, are key enablers for our Stage 3 Expansion.

In August, we're also honored to host a delegation led by the Mining Minister, the Honorable Rainbo Paita. The in-depth visit showcased the company's key Stage 3 Expansion growth projects, ongoing exploration activities and progress on the Konkua-Bilimoia Road Infrastructure Tax Credit Scheme project as well as productive discussions with local community business leaders. K92 remains committed to transparent engagement and open dialogue with all of our key stakeholders. We truly appreciate the support from our stakeholders, which have been a major factor in our success.

Now moving on to operations, during the quarter, the Kainantu Gold Mine produced 44,323 ounces gold equivalent at a cash cost of $694 per ounce of gold and all-in sustaining cost of $1,254 per ounce gold. On a co-product basis, cash costs were $797 per ounce gold equivalent and all-in sustaining costs were $1,330 per ounce gold equivalent. As annotated on the chart, all-in sustaining costs have been notably higher than cash costs since the beginning of 2023, which, of course, is due to K92's significant investment in the Stage 3 Expansion. So costs are expected to decline considerably after delivering the Stage 3 Expansion, which we'll be discussing later in the presentation.

The mill throughput for Q3 was 137,172 tonnes, which was in line with budget and at a head grade of 11.2 grams per tonne gold equivalent. With more than 80% of the lower end of annual guidance achieved for the first 3 quarters, plus we ended Q3 with approximately 4,900 gold equivalent ounces in the commissioning stockpile, K92 remains on track to meet its 2025 production guidance of 160,000 to 185,000 ounces gold equivalent.

Now in terms of our key operational quarterly physicals, total material mined of 353,770 tonnes was a record and multiple daily tonnes to surface records were also achieved in late September, which demonstrates the increased material movement benefits realized from the commissioning of our first material pass during the quarter, combined with the commencement of surface trucks operating in the twin incline. Total mine development was 2,477 meters. The operation continues to balance lateral development priorities between the completion of key underground projects, including prioritizing of low equivalent lateral advanced jumbo activities such as the Puma ventilation drive and the underground pastefill chamber.

Pleased to report that development rates achieved a significant milestone in October, supported by a number of the recently completed infrastructure and operational improvement initiatives. A new record was sent for monthly development totaling 1,028 meters. The first time K92 has exceeded the 1 kilometer per month target outlined in the Updated Definitive Feasibility Study for the Stage 3 Expansion. This achievement is particularly notable given that since June, one jumbo has been offline at any given time for an on-site mini-rebuild program aimed at improving equipment reliability.

We're now completing the rebuild of the final jumbo with the completion expected later this quarter. Once finalized, this will effectively increase our active jumbo fleet by one rig, which will further support high development rates going forward. In addition to this, as more key enabler projects are completed, which will be discussed later in the presentation, we expect development and mine physicals to continue to ramp up.

Total ore mined during the quarter was 152,485 tonnes, second highest on record, with mining activities across 13 levels at Kora and Judd. Long-hole stoping executed to design. Process grades benefited from a positive gold grade reconciliation versus the latest independent mineral resource estimate. The Stage 2a process plant continued to perform well, exceeding the Updated Definitive Feasibility Study recoveries for the sixth consecutive quarter, achieving 95% for gold and 94.6% for copper, which compares to 92.6% for gold and 94.2% in the Updated DFS.

I'll now turn the call over to our Chief Financial Officer, Justin Blanchet, to discuss the financial results for the third quarter.

Thank you, John, and hello, everyone. During the third quarter of 2025, K92 had record quarterly revenue of $177.5 million, an increase of 45% from the same period prior year. We sold 45,006 gold ounces at an average selling price of $3,361 compared to 45,248 ounces at an average selling price of $2,388 in the prior year. As at September 30, 2025, there were 7,913 gold ounces in inventory, including both concentrate and doré, a decrease of 500 gold ounces when compared to June 30, 2025, due to timing of sales.

During the third quarter of 2025, K92 had quarterly cost of sales of $43.8 million compared to $41 million in the prior year or $35.5 million compared to $30.7 million when excluding noncash items. The increase in cost of sales was driven by higher underground activity and greater tonnes mined with year-to-date ore mined and processed significantly higher versus the prior year. This is consistent with the higher mining and processing activity associated with the ramp-up of the Stage 3 Expansion.

Q3 2025 cash flow from operating activities before changes in working capital was $101.8 million compared to $61 million in the prior year, the highest quarterly increase on record. As of September 30, 2025, K92 had a record $185.4 million in cash and cash equivalents. We had a record working capital balance of $227.8 million, and we had a record net cash balance position of $131.2 million. The company has a loan balance of $55 million as of September 30. K92's receivable balance as at September 30 increased 88% or $39 million as compared to June 30, of which a significant portion was received in the first half of October, resulting in a significant increase to our cash balance subsequent to quarter end.

Importantly, the Stage 3 and 4 Expansion projects are fully funded and our financial position is strong. We also have access to a significant amount of liquidity through undrawn credit facilities with $60 million available to draw down on demand plus an additional $30 million of liquidity through an accordion feature. We also would like to highlight that our commodity price downside is protected through the cost-effective purchase of put option contracts, which extend until the end of 2025, allowing for 15,000 ounces of gold per month at a strike price of $3,000 per ounce. Subsequent to quarter end, K92 purchased additional put option contracts allowing for 10,000 ounces of gold per month at a strike price of $3,500 per ounce in 2026.

To be clear, this is not a hedge. We will sell at spot if it is higher than $3,000 per ounce in 2025 or $3,500 an ounce in 2026. This is insurance, and we retain full exposure to the upside in commodity prices. As John mentioned, during the third quarter, the Kainantu Gold operations produced 42,244 ounces of gold; 1,323,538 pounds of copper and 34,831 ounces of silver or 44,323 ounces of gold equivalent. We sold 45,006 ounces of gold, 1,480,151 pounds of copper and 43,271 ounces of silver. On a byproduct basis, we incurred a cash cost of $694 per ounce and an all-in sustaining cost of $1,254 per ounce of gold.

Our all-in sustaining costs in Q3 was significantly below our net realized selling price of $3,361 per ounce. For the 9 months ending September 30, 2025, our byproduct cash cost per ounce was $669 and our all-in sustaining cost was $1,202 per ounce, both below our 2025 guidance of cash costs between $710 to $770 per ounce and all-in sustaining costs of between $1,460 to $1,560. It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 Expansion is complete.

I will now turn the call back to John to discuss exploration and growth.

Well, thank you, Justin. Turning to growth and exploration. We begin with an update on the Stage 3 and Stage 4 Expansions, which are expected to fundamentally transform K92 into a Tier 1 mid-tier gold producer. As mentioned earlier, the Stage 3 Expansion process plant achieved its first saleable production in mid-October. The Stage 3 Expansion as outlined in our Updated Definitive Feasibility Study supports a 1.2 million tonne per annum throughput rate producing approximately 300,000 ounces gold equivalent per annum at that run rate. Commissioning of the process plant is nearly complete.

Stage 4 is expected to further increase production through expanding the Stage 3 process plant at a low capital cost to 1.8 million tonnes per annum producing around 400,000 ounces gold equivalent per annum, targeting commissioning late 2027. The Stage 2a plant provides additional capacity for future expansion beyond Stage 4. In late October, K92 was pleased to host a large group of analysts and investors for a comprehensive 2-day visit to the Kainantu Gold Mine to see firsthand the major transformation underway on site and to also showcase the mining-friendly jurisdiction of Papua New Guinea.

These photos show key parts of the surface and underground site tours, including the new 1.2 million tonne per annum state-of-the-art Stage 3 process plant, as shown on the image on the left and the underground paste silo excavation as shown on the image on the right. On the following slide, as shown on the image on the left, the visitors also toured the primary fan chambers, which is a 15-meter wide by 9.5 meter high excavation, 35 meters long at that profile, tapering off for a total length of 75 meters. The image on the right is from the top of the material pass, which was also visited.

More details on these projects will be discussed over the next few slides. We believe the site visit clearly demonstrated the strong momentum across the operation and the significant progress being made on multiple transformation projects that will underpin further growth and productivity gains of Stage 3 and Stage 4 Expansions are delivered. I'll now provide an update on the construction progress of Stage 3 Expansion, which as of 30th September 2025, had seen 90% of growth capital spent or committed and the expansion remains on budget.

In terms of the major underground infrastructure transformation, the twin incline is complete. The first material pass is complete, and the Puma vent incline is now within 40 meters of breakthrough. Following the breakthrough of the Puma and the energization of the primary fan system in Q1, the ventilation circuit will be configured to enable both twin inclines to be fresh air intake and therefore, enable highly productive one-way traffic in the twin incline in late Q1 2026. The internal ramp system, which will connect the main mine and all mining fronts to the highly productive twin inclines is advancing rapidly. It's scheduled for completion also in Q1 2026.

Upon its completion, combined with the Puma vent drive and the energization of the fan chamber, it will also enable all inclines to transition to a more efficient one-way traffic flow. The twin incline has already begun to transform underground material handling efficiencies as shown on the image on the right versus the image on the left, which is the existing incline to access the main mine since commercial production commenced. The twin incline can run 50% larger trucks than the existing single incline at a much faster speed and will also eliminate rehandling at the portal as surface trucks will haul directly through the process plant from loading in that twin incline.

Productivity gains from the twin incline infrastructure will be realized in stages as supporting infrastructure is completed and equipment added. I'm pleased to report that in Q3, we completed our first material pass, leveraging gravity to deliver tonnes approximately 350 meters vertically from the main mine to the highly productive twin inclines. This was further augmented by the introduction of surface articulated trucks into the twin inclines in September. This combination resulted in several daily tonnes to surface records being established, including 5,769 tonnes on September 27 and 6,404 tonnes on September 29. Now that's equivalent to an annualized approximately 2.3 million tonnes per annum.

A second material pass, enabling dedicated passes for ore and waste, respectively, is planned for late Q1 2026. As noted previously, with the completion of the Puma vent drive and energization of the primary fan chamber plus the completion of the internal ramp system, both scheduled for Q1, we expect further near-term productivity gains throughout the mine. We're also pleased to report that the Phase 2 ventilation upgrade, which involved the development of 2 large vertical fresh air intake raises has recently been completed, and it has resulted in a notable increase in our primary ventilation airflow, increasing airflow by approximately 30% to now over 200 cubic meters per second.

This, in turn, has resulted in a significant reduction in our blasting reentry times to clear the fumes. Work is nearly complete to commission our centralized blasting system to reduce blast initiating time. And once this is complete later this quarter, we plan to transitioning to blasting twice a day from the current once per day. These combined improvements will increase available underground operating hours per day in addition to the operational flexibility gained by firing twice per day.

Further reduction in reentry time is expected upon the breakthrough of the Puma, which as noted earlier, is approximately 40 meters from the surface. This is estimated to increase airflow from 200 cubic meters per second to 250 cubic meters per second. Now this, combined with the energization of the fan chamber is expected to result in a threefold increase in primary air flow from current levels to something over 600 cubic meters a second.

This air flow is well above the requirement for the Stage 4 Expansion and is designed for life of mine. It could also be further expanded to 740 cubic meters per second through benching of the Puma incline. Currently, as shown in the images, the fans are being installed. The completion of this project is planned for the first quarter 2026. Now the underground mine has recently been further enhanced with the completion and commissioning of the primary power station, which added 8.8 megawatts of generating capacity subsequent to the quarter end. This, of course, is our standby power.

This plant is now capable of powering both the process plant and underground mine, delivering improved power reliability and synchronization with grid power to help with power supply stability. This project was successfully completed by our owners' team on schedule and for approximately half the cost of the EPC tender bids, which we received, highlighting just one example of how the construction team has been able to keep Stage 3 Expansion on budget. And since commissioning in mid-October, the operation has seen minimal power disruptions to both the process plant and underground mine, which shows the positive effects of these key infrastructure projects will deliver in terms of minimizing disruptions to increase our mine physicals. We also expect to realize material operating cost benefits from the plant relative to the previous interim power plant configuration as when operating is notably better fuel efficiency.

The next phase of expansion of this power station Phase 1 to 10.4 megawatts is planned for completion by the end of the year and a further expansion to 15.2 megawatts which is required for Stage 4 Expansion is planned to be completed first half of 2026. In addition to completing various infrastructure enablers for the expansion, mine development continues to open up 2 new fronts, the twin incline and the lower Kora with 5 and 4 new sublevels being opened up, respectively. Both fronts are expected to be notable contributors to production in 2026.

It's important to highlight that for years, K92 has prioritized waste material movement to open up the mine through developing sublevels, twin inclines, internal ramps and mine infrastructure. The plan maps shown are levels from the lower Kora mine front or front #2 on the previous slide, which show not only extensive development completed today over multiple levels but that we have not mined a single long-hole stope yet from this front.

Importantly, this means we have developed a significant amount of stoping inventory ahead of our expansion. The area in the red ellipse, which is the K1 vein, where development is well advanced on approximately 250,000 tonnes of long-hole stoping ore. It's a similar case at the twin incline. We plan to commence production of highly productive long-hole stoping in first quarter 2026 at the lower Kora front and late first quarter 2026 at the twin incline front, and these will be key drivers in the ramp-up of ore tonnes. I think it's also important to note we have already demonstrated production rates of over 500,000 tonnes per annum from a single mining front on the main mine.

In addition to the completion of key enabler infrastructure projects and expansion to the number of mining fronts, we've made considerable investment in technology and equipment. On the left is our surface operated tele-remote system, which leverages our underground fiber optic backbone to operate loaders from surface, including during shift change and reentry to allow up to 24-hour operation per day. Concurrently, a significant amount of new equipment is expected to arrive between now and the end of 2026, including 4 new loaders between now and June, of which 2 are replacement and 2 are additional units, 2 new haul trucks as replacement around midyear next year. A new development jumbo to add our fleet around midyear next year, plus 2 explosive loading rigs, 1 cement agitator and 1 production drill rig.

The fleet of surface trucks is significantly expanding for operation in the twin incline with 8 new 60-tonne trucks planned to arrive in 2026. The first batch of 6 arriving in the first quarter. Recently, 5 new 30-tonne haulage trucks arrived on site are being used initially to augment haulage from the twin incline ahead of the arrival of the 60-tonne trucks and the upgrading of the river crossings. These trucks will then be repurposed to haul filter cake to the pastefill underground later in 2026. These trucks are planned to be owned and operated by one of our local joint venture contracting companies.

This substantial fleet investment ensures that we have adequate capacity to meet not just Stage 3 Expansion but also Stage 4 Expansion equipment requirements. Commissioning of the Stage 3 Expansion process plant is nearly complete. First ore was received in September, first saleable concentrate produced and shipped in mid-October. As noted earlier, we held an official inauguration for the process plant on October 16. The Stage 2a process plant has now been idled and is available to be reactivated, if required. We expect to have commissioning the new plant completed later this month and hand over to operations.

In terms of ancillary buildings, the interim power station warehouse Kumian Creek camp and primary power station are all complete. The maintenance facility which is a low priority and is not on the critical path for Stage 3 is targeting completion late Q1 2026. In Q3 2025, significant progress was made on the surface pastefill filtration plant, surface storage facility and underground pastefill plant packages.

The surface pastefill filtration plant civil works are progressing as shown on the image on the left and are benefiting from a recent shift to both day and night shift operations. Site establishment is being completed for the surface storage facility with earthworks underway as shown on the image on the right. Major excavations of the underground pastefill plant are approaching completion with planned handover to the projects team this quarter. Detailed engineering now complete.

All long lead items for all packages are either ordered or are now on site. Commissioning is expected to commence in mid-Q1 2026 with practical completion of the full pastefill circuit scheduled for mid-2026. Substantial progress has also been made on the surface haul road and river crossing project during the quarter. This project enables the surface truck payload to increase from current 20 tonnes to 60 tonnes while also improving cycle times.

It involves upgrading 3 river crossings together with widening, straightening and gradient improvements of selected areas to improve haulage efficiency and payload. Phase 1 which is focused on river crossing upgrades and haul road widening to enable higher capacity 60-tonne trucking fleet to operate is on track for completion by late Q1 2026. Phase 2, which is focused on road alignment and grading improvements in select areas of the haul road is scheduled for completion by Q4 2026.

Now in terms of exploration, we're drilling at Kora, Kora South and Judd, Judd South systems from underground with 6 rigs plus we have 5 surface rigs drilling at the Arakompa vein system and 1 rig drilling at Wera. At Kora, drilling is underway at Kora Deeps, Kora North and Kora South Deeps with access to the deeper zones enabled by the twin incline and the 1205 Level drill drive. As shown in the annotated intersections, we continue to extend high-grade zones, define dilatant zones and step-out mineralization from our drill program.

Over the next 12 months, our step-out program is predominantly focused on Kora Deeps down to the 500-meter RL level as shown in the green rectangle. Drill drives and step-out drilling to the south are also planned. At Judd, the vein system remains significantly underexplored and open in all directions. Recent results have continued to expand the high-grade zone as shown in the selected annotated drill results. Over the next 12 months, like Kora, step-out drilling will focus on depth extensions as shown in the green rectangle in addition to southern step-out drilling. As shown from our initial drill results at depth, the system remains thick and well mineralized. Exploration activity at Arakompa vein system located approximately 4.5 kilometers from the Kainantu process plant continues to advance rapidly. Drilling is now supported by up to 5 active rigs and the deposit has grown substantially in both scale and geological understanding.

As shown in the graphic, recent drilling has expanded the Arakompa bulk tonnage zone to approximately 1.1 kilometers in strike and 800 meters vertically with an average true thickness of 39 meters. The bulk zone remains open in multiple directions and continues to demonstrate strong potential for large-scale near surface bulk mining. The latest key intercepts include 96 meters at 2.6 gram per tonne gold equivalent and 62 meters at 1.1 gram per tonne gold equivalent. We're also excited about the discovery of the porphyry style copper gold mineralization in drill hole KARDD0065, stepping out 250 meters to the south from previous drilling. This was our first hole testing a 600-meter by 600-meter copper-in-soil anomaly and an intersected 690 meters at 0.3% copper equivalent including 395 meters at 0.38% copper equivalent within the 600-meter by 600-meter copper-in-soil anomaly.

The intersection is interpreted to be distilled to a potassic porphyry core and marks the first porphyry style mineralization identified at Arakompa, a highly prospective target for ongoing drilling. This step-out discovery reinforces Arakompa's scale and strengthens our understanding of the project as a large integrated system linking high-grade vein mineralization with potential underlying porphyry center. Our latest drilling also continues to define the high-grade AR1 and AR2 loads along strike and at depth confirming continuity within the broader Arakompa system. We're also seeing the emergence of a potential high-grade thick zone, highlighted by standout intercepts, including 7.1 meters at 27.9 grams per tonne gold equivalent, 14.5 meters at 17.3 grams per tonne gold equivalent and 20.6 meters at 9.9 grams per tonne gold equivalent.

Together, these results demonstrate strong vertical continuity of up to 200 meters at a substantial true thickness of 7.3 meters, reinforcing the potential for a high-grade core within the Arakompa system. Arakompa has advanced incredibly quickly, increasing from just 2 holes reported in early 2024 to 67 holes reported and 5 drill rigs currently operating. The rapid expansion of the drill program reflects both the exceptional results received to date and the scale of the system with mineralization continuing to extend along strike and at depth. We remain on track to deliver a maiden mineral resource for Arakompa first half of 2026. Now in addition to Arakompa, we've begun drill testing the newly discovered Wera vein system, a large 3.5 by 3.5 kilometer low-sulphidation epithermal gold system located approximately 10 kilometers southwest of Kora and Judd.

The maiden exploration program focused on rock chips and trenching outlined multiple mineralized structures with numerous high-grade samples, including assays up to 26.3 grams per tonne gold. Importantly, this area has never been accessed or tested by previous operators and lies within the same mineralized corridor that hosts Kora, Judd and Arakompa. We're very encouraged by the potential of this new greenfields discovery and look forward to results from our maiden scout drill program.

Lastly, we highlight the significant pipeline of highly prospective exploration targets. The colored icons indicate a current exploration focus, and the black icons indicate where we plan to drill in the next 24 months. In the near term, drilling is planned at the historic Maniape target located approximately 1.5 kilometers west of Arakompa and at the Mati, Mesoan target situated within 1.6 kilometers of the current mine workings. Both programs will utilize a new small footprint heli-portable drill rig scheduled to commence drilling in late 2025 to early 2026.

These targets represent the next phase of near-mine exploration designed to expand our understanding of the broader mineralized system and potentially extend non-mineralization corridors. Upon delivery of the Stage 3 Expansion, we expect not only a major inflection in our production and free cash flow, but a significant ramp-up in our exploration budget, aiming to progress many of these highly prospective targets concurrently. Two additional surface rigs have been ordered and commissioning is scheduled for Q1 2026 for future ramp-up. With up to 5 rigs turning at Arakompa, 1 rig at Wera, 6 rigs focused on expansion of Kora and Judd underground, K92 is well positioned to close out another successful year of exploration.

In summary, Q3 2025 was another strong quarter for K92 from an operational, financial, projects, exploration and safety perspective. We're fully funded through the expansion via our record net cash balance and mine cash flow. We're tracking well to our 2025 operational guidance, and we are confident that we will continue the positive mine physicals momentum for the remainder of the year and into 2026 as we realize the benefits of the delivery of a number of key underground infrastructure and operational improvement projects.

With that, operator, we'd now like to commence the Q&A session.

[Operator Instructions] The first question today comes from Harrison Reynolds with RBC.

Congratulations on a strong quarter, K92 team. Great to see the significant progress and momentum being made on site firsthand back in October. Just a couple of questions from me. First, wondering if you could talk about cost performance and sustaining capital spend. It's good to see ASIC below expectations and the guided range again. But wondering if you could talk about your expectations for sustaining capital spend in Q4 and maybe into early next year and sort of separate what percentage of this performance has been based on cost control and things coming in under budget versus what's capital just yet to be spent.

Yes. Thanks, Harrison. I'll jump in for this one, John's flight arrived late this morning. So in terms of sustaining capital, we expect it to be elevated in Q4 and also going through 2026. There's a few reasons for that. One, as you saw in the presentation is the haul road upgrade. The river crossings are growth capital for the Stage 3 Expansion. The haul road upgrade is sustaining. And that work will go through 2026. A large part of that gets done in the first half of 2026, but there is a component for certain parts of the haul road, select areas that do get upgraded in the latter part of 2026.

The other thing I'd like to flag is the lateral advance. We've obviously ramped up the lateral advance, delivered a development record in October, and we're certainly looking to build on that, not just in Q4, but in 2026 as we continue to ramp up, ultimately targeting the 1.2 kilometer per month rate that's required for the Stage 4 Expansion. Just on the input cost, we have done a good job in terms of the input costs. If you look at labor, if you look at fuel, if you look at power, there's obviously the opportunity for economies of scale with the improved material movement rates that you will get in Q4. So in terms of both ASIC and cash cost guidance, we certainly are looking well for the remainder of the year.

That's good to hear. And maybe just switching gears, looking forward to the Arakompa resource next year, and I appreciate all the details in the prior remarks. And just it's early days still and -- but it might be interesting to hear the latest thoughts on how soon this could be an ore source for the Stage 2 mill and sort of what the focus following the resource will be whether that's continuing to step out and understand the scale and size of this deposit or derisking it and trying to get it in the reserve category and putting it into the mill as soon as possible.

Yes. Thanks, Harrison for that question. Arakompa is a very exciting prospect for us. There are 2 kind of projects within the project. There is the high-grade vein system component with the AR1 and AR2, which you have seen from the results, and John went over that in the conference call. What you do see is still a requirement for greater drill density to really define these high-grade areas. Many of the drill holes are in spacing of excess of 100 meters. And there are some areas where we have tightened the spacing, and we've gotten some really good results. One is that discrete high-grade thick zone that was highlighted in the presentation.

We are looking at, as we do step out to the north there is a change in host rock to the same host rock as Kora and Judd. So we are quite intrigued by what that could mean as we get closer to that artisanal working that was highlighted on the plan view. So there certainly is this high-grade vein system potential, which is a logical source for the Stage 2a plant, but it ultimately requires more drilling to firm that up. And then there clearly is a bulk project, which we continue to define.

The thing that I'd like to point out here is we see the project that's potentially beyond Arakompa as an Arakompa and Maniape. When you look at Maniape, similar host rock and the historic drilling does show really real similarities between Arakompa in terms of both having bulk intercepts and high-grade vein potential. So we are excited about what we have at Arakompa. We'll see where we get to in terms of the first half of the year 2026, where we are targeting a resource. It certainly has a potential to be a higher-grade feed for the Stage 2a, but we certainly have to let the drill bit play out here.

[Operator Instructions] There are no further questions at this time, which concludes our question-and-answer session. I would like to turn the conference back over to David Medilek for any closing remarks.

Yes. Thank you, everyone, for joining us today and for your continued interest in K92 mining. We're very proud of the progress achieved this quarter, both operationally and financially. I'd also like to take a moment to thank our employees, contractors and partners for their hard work and dedication and also various levels of government and our communities for their ongoing support.

If you have any further questions following today's call, please do not hesitate to reach out to our Investor Relations team. Thank you again for joining us, and we look forward to updating you on our continued progress next quarter.

This concludes today's conference call. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Thank you for standing by. This is the conference operator. Welcome to the K92 Mining 2025 Second Quarter Financial Results Conference Call. [Operator Instructions]. The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to David Medilek, President and COO. Please proceed, sir.

Thank you, operator, and thanks, everyone, for attending K92 Mining's 2025 Second Quarter Results Conference Call. We hope you and your families are doing well. In addition to myself, we have on the line John Lewins, Chief Executive Officer and Director; and Justin Blanchet, Chief Financial Officer. I would also like to remind everyone that after the remarks from management, the call will be followed by a Q&A session.

As we will be making forward-looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD&A and Slide 2 of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted. Now I'll turn it over to John to provide you with an overview.

Well, thank you, David, and welcome, everyone. We begin with safety, K92's #1 priority as always. I'm pleased to report that there have been no lost time injuries recorded in the second quarter, marking yet another major safety milestone with 8 consecutive LTI-free quarters. This achievement is particularly significant as it was achieved during a notable increase in total man hours worked as construction and delivery of the Stage 3 expansion progressed. Field level risk assessments, hazard identification and safety observations have significantly increased over the past 2 years, which are positive leading indicators for safety.

As the operation expands, we have continued to increase the capacity and capabilities of our occupational health and safety team and also the training team. Systems continue to be enhanced, safety technologies were introduced and additional technologies are planned to be introduced in the near future. Safety always is one of K92's core values, and I'd like to reiterate that K92 relentlessly pursues our goal of achieving zero harm among our workforce. We're extremely pleased to have released our 2024 sustainability report in June. The report builds on previous versions, maintaining alignment with the SASB Metals and Mining Standard for the sixth consecutive year and demonstrating continued progress towards alignment with the TCFD framework.

The report highlights K92's strong commitment to ESG and to the people and country of Papua New Guinea, including our focus on hiring and developing local content with approximately 92% to 93% of our workforce are PNG nationals, including a majority from our local communities. Our strong commitment to supporting the local economy, including $28 million of expenditure to support our local joint ventures and procurement of $96 million incurred in Papua New Guinea, representing 42% of our total procurement for the mine.

Our delivery of significant benefits to the country with $62.6 million in taxes and royalties paid in 2024. That's a 134% increase over 2023. I'd also like to highlight that in 2025 year to date has eclipsed 2024 in terms of corporate tax paid with approximately $70 million paid as of the end of July, and this has gained significant positive coverage from the media in Papua New Guinea. $6.6 million was allocated for K92's first PNG infrastructure tax credit scheme project for the 11.7 kilometers Konkua-Bilimoia local road upgrade which will connect many of our communities to the main road network and ultimately lead to significant opportunities for increased trade and business development.

K92's ongoing success with its adult literacy program in partnership with local communities. We expect to enroll over 500 local community members in the program in 2025. And our commitment to combating climate change with an emission reduction target set for 2030. K92 is extremely proud of the positive impact it is having on the prosperity and development of Papua New Guinea, and we encourage you to read our report, which you can find at www.k92mining.com.

In terms of the operations, during the quarter, the Kainantu Gold Mine produced 34,816 ounces of gold equivalent, a cash cost of $786 per ounce gold all-in sustaining cost of $14.08 per ounce gold. On a co-product basis, cash costs were $907 per ounce gold equivalent, and all-in sustaining cost of $1,489 per ounce gold equivalent.

Gold equivalent production increased 43% from Q2 2024. As annotated on the chart, all-in sustaining costs have been notably higher than cash costs since the beginning of 2023 due to K92's significant investment in that Stage 3 expansion with costs expected to decline considerably after delivering the Stage 3 expansion, which will be discussed later in the presentation. Mill throughput for Q2 totaled 130,337 tonnes in line with our budget with a head grade of 8.9 grams per tonne gold equivalent. With 82,633 ounces gold equivalent produced in the first 6 months of 2025, we've exceeded budget so far. And the second half is forecast to be stronger. So we reiterate our 2025 operational production guidance of 160,000 to 185,000 ounces gold equivalent.

In terms of our key operational quarterly physicals, Q2 delivered the second highest total material movement, that's ore plus waste on record. And another solid quarter of mine development with 2,466 meters achieved despite cumulative 5 days of disruption of underground operations from the Stage 3 expansion electrical commissioning activities that we undertook.

The team remains focused on ramping up development rates, completing key projects underground and building out stoping capacity for the Stage 3 expansion. With several projects and initiatives, either recently completed or nearing completion, we expect development and mine physicals to continue to increase as the year progresses. Mining activities during the quarter took place across 13 levels at Kora and Judd with long-haul stoping executed to design. Process grades were largely in line with the latest independent mineral resource estimate. The Stage 2A process plant continues to perform well, exceeding the updated DFS recoveries for the fourth consecutive quarter, achieving 93.3% recovery for gold and 94.9% for copper. And that compares with recoveries of 92.6% for gold and 94.2% copper in the updated DFS.

I will now turn the call over to our Chief Financial Officer, Justin Blanchet, to discuss our financial results for the second quarter.

Thank you, John, and hello, everyone. During the second quarter of 2025, K92 had quarterly revenue of $96.3 million an increase of 102% from the same period prior year. We sold 28,864 gold ounces at an average selling price of $3,166 compared to 19,064 ounces at an average selling price of $2,246 in the prior year. As at June 30, 2025, there were 8,413 gold ounces in inventory including both concentrate and doré, an increase of 3,988 gold ounces when compared to March 31, 2025, due to timing of sales. During the second quarter of 2025, K92 had quarterly cost of sales of $32.4 million compared to $27.7 million in the prior year or $26.2 million compared to $19.4 million when excluding noncash items.

The increase in cost of sales was primarily due to an increase in tonnes mined and processed including an increase in capital development tonnes mined that resulted in an increase to capitalized development costs in property, plant and equipment. Q2 2025 cash flow from operating activities before changes in working capital was $47 million compared to $17.3 million in the prior year. As at June 30, 2025, K92 had a record $182.9 million in cash and cash equivalents. We had a record working capital balance of $189.3 million and we had a record net cash balance position of $123.8 million. The company does have a loan balance of $60 million.

Importantly, the Stage 3 and 4 expansion projects are fully funded, and our financial position is strong. We also have access to significant amounts of liquidity through undrawn credit facilities with $60 million available to draw down on demand, plus an additional $30 million of liquidity through an accordion feature. We would also like to highlight that our commodity price downside is protected through the cost-effective purchase of put option contracts, which extend until the end of 2025, allowing for 15,000 ounces of gold per month at a strike price of $3,000 per ounce.

To be clear, this is not a hedge. We will sell at spot if it is higher than $3,000 per ounce. This is insurance, and we retain full exposure to the upside in commodity prices. As John mentioned, during the second quarter, the K92 Gold operations produced 32,375 ounces of gold, 1,536,505 pounds of copper and 42,824 ounces of silver or 34,816 ounces of gold equivalent. We sold 28,864 ounces of gold, 1,275,176 pounds of copper and 34,532 ounces of silver. On a by-product basis, we incurred a cash cost of $786 per ounce, down from $919 in the corresponding period last year and an all-in sustaining cost of $1,408 per ounce down from $1,510 per ounce in the prior year.

Our all-in sustaining costs in Q2 was significantly below our realized selling price of $ 3,166 per ounce. Our second quarter cash cost per ounce of gold, net of byproduct credits decreased to $786 from $919 in Q2 2024. The decrease was due to an increase in gold ounces sold and our fixed costs charged accordingly as well as higher byproduct credits. It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up and the Stage 3 expansion is complete.

I will now turn the call back to John to discuss exploration and growth.

Well, thank you, Justin. So turning to growth and exploration. We'll begin with an update of the Stage 3 and Stage 4 expansions, which are expected to fundamentally transform K92 into a Tier 1 mid-tier gold producer. The Stage 3 expansion process plant commissioning commenced in June, supporting the planned ramp up to over 300,000 ounces gold equivalent per annum. Stage 4 is expected to further increase production at a very low capital cost to over 400,000 ounces gold equivalent per annum with commissioning targeted in the second half of 2027.

So we'll now provide an update on the construction progress of the Stage 3 expansion. As of July 31, 2025, 87% of growth capital has been spent or committed and the expansion remains on budget. Progress into major underground infrastructure upgrades, the twin incline is complete, and earlier this month, we marked a major milestone with the first material conveyed down the ore/waste pass, which we also referred to as the material pass. The video shown is taken on the 1245 level, so at the top of the material pass. It's approximately 350 meters long and connects the main mine with the twin incline. The material pass enables the truck loaded within the main mine, haul a short distance and then tip the rock down the material pass.

The top of the material pass as you'll see, has grizzly installed, which prevents oversize traveling down the pass. And of course, that mitigates the risk of blockages and improves material handling at the twin-incline truck loading pocket at the bottom. Multiple safety systems have been incorporated in our material pass design, including engineered truck stops, signage, lighting, training, procedures and obviously a grizzly capable of supporting large loads. The grizzly, as you'll see, is positioned at an angle to encourage oversize to roll off.

Not all of that oversize rolls off, as you can see in the video there. In this instance, secondary breakage of oversize is dealt with by using a rock breaker and loader which is on the other side of the material pass side where we're filming from effectively. So importantly, this means that the bulk of material handling shifts from the existing smaller, more congested incline that has serviced the main mine since we started commercial production as shown on that image on the left, to the highly productive twin incline as shown in the image on the right, and that can run trucks that are 50% larger. They travel at far faster speeds. And importantly, also by trucking from underground to the plant, we eliminate rehandling at the portal. So work is well underway for additional passes and to provide even greater efficiencies obviously.

On ventilation, puma incline is approximately 120 meters from the breakthrough, and we expect that to occur in early Q4. a slight revision from late Q3 and in the main part due to the modifications that we've made to the portal breakthrough location, which was based on geotech probe drilling that we carried out last quarter. Shorter development rounds are also required for this final stage as we approach surface to better control that incline breakthrough. Our company-owned raised bore is currently drilling a two-leg fresh air rise with the first leg completed.

The second leg is scheduled for completion in late Q3. So upon completion of the puma breakthrough and those ventilation raises, each of those 2 are expected to contribute an additional approximately 50 cubic meters per second of air flow to our circuit. And that represents a combined 60% increase to airflow from the current levels to an estimated primary airflow of around 260 cubic meters per second. Due to the previously conservative model mine resistance factors, we now expect to not need the primary vent fans to meet Stage 3 vent requirements or not be required until work late in the piece.

That said, work continues to advance the fan chamber from the Stage 3 expansion. And as shown in the photo the fan chamber is very substantial. It's capable of delivering airflow up to 4x of our current rate, and we plan to opportunistically complete the project in the first half of 2026. So in addition to completing the various infrastructure enablers for the expansion, mine development continues to open up 2 new fronts, the twin incline and lower Kora with 4 and 2 new sub levels being opened up, respectively. Both these fronts are planned to be notable contributors to production stoping in 2026.

And currently, we're also introducing technology to maximize our productivities. This video shows our recently commissioned surface operated tele remote loaders being operated from just aside the portal in our office area. The system was commissioned in late July, leveraging on our underground fiber optic system to continuously operate our production stoping loaders during shift change and a blast entry thereby maximizing the amount of productive hours we get per 24-hour period.

Multiple pieces of new equipment are also arriving on site. This image shows our new Epiroc Easer L raise bore rig, which arrived on site in late July is currently being commissioned. The Easer L rig is capable of drilling blind raises for our stope slots to help with derisk the production blasting and also to accelerate drilling of our pastefill holes. As part of the ramp-up to Stage 3 and 4 throughput rates, we're also expecting the arrival of several underground mobile mining fleet equipment. That includes new cable bolter, shock reader, [ ADJI ], 4 low-profile underground loaders, 2 of which are replacement, 2 of which are additional and additional trucks and a high-profile loader for the twin incline. They'll be coming in the next few months.

We now move on to the latest drawn footage taken just a few days ago, of the new 1.2 million tonne per annum Stage 3 process plant, which, as we noted, commenced commissioning in late June. Starting at the ROM stockpile, we're pleased to report that the stockpile build is tracking ahead of schedule, now totaling over 20,000, almost 25,000 tonnes. Commissioning of the crusher is well advanced with a dedicated crusher commissioning stockpile established nearby. First tonnes have already gone through the crusher as shown in the video with the ore feeder loading it. Going through the rest of the circuit transfer conveyors, stacking conveyors, reclaimer are all complete.

Moving on to the grinding area. Ball mill lining is complete. SAG mill lining is bit over 50% complete. The mills are supported by a dedicated liner handler as annotated in the video there, first material through the mill is scheduled for early September. The admin building gold room is substantially complete, gravity circuit is complete. Flotation circuit is practically complete with the team going through final checks ahead of wet commissioning planned for early September. Both the tailings and the concentrate thickness are complete and the multi-stream analyzer is going through its final checks. Filter press is also complete and going through final checks.

Lastly, all high-voltage MCCs and infrastructure are complete and have been commissioned. We remain on track to complete the commissioning and hand over the process plant to operations in the first half of Q4. In terms of ancillary buildings, the interim power plant and warehouse are complete. The new Kumian Creek Camp is complete, adding an extra 160 ensuite rooms. The camp is initially being used for excess capacity during construction and then we repurposed for a combination for our Stage 4 expansion.

The primary power plant is nearing completion with commissioning commencing in the coming weeks. This project will add an immediate 8.8 megawatt generation capacity increasing to 10.6 by, I think, the end of the year, and the next phase of expansion, which will take that up to over 15 megawatts is already underway with orders already placed to complete this stage in 2026. In terms of the new maintenance facilities, all structural steel and buildings are on site. The main workshop is progressing well with the foundations and footing support as shown in the image.

Civil works have also progressed at the tire and weld shop and the mine rebuild center buildings. Completion of all 3 workshops is targeted for late 2025. Now in Q2, 2025, significant progress was also made with the award of the EPCM contract for the pastefill filtration plant and the EPC contract for the storage facility. While the underground pastefill package was self-awarded earlier in the quarter. All background pastefill plant long-lead items have been ordered. Front-end engineering design work is complete, detailed engineering work and design by GR Engineering is complete. And the Quattro Engineering is nearing completion. Underground development of various large pastefill infrastructure excavation is progressing well.

Earthworks are also progressing well for the surface storage area near the portal and the tailings filtration plant near the Stage 3 process plant is complete. Commissioning of all 3 facilities is expected to commence in Q1 2026 with practical completion and full pastefill circuit remaining on schedule for mid-2026. Now in August 8, we were honored to host the honorable Rainbo Paita, Minister for Mining along with the government delegation for a site visit. The visit received significant media coverage and also included tourists of the underground, new Stage 3 expansion process plant and a helicopter tour of our exploration areas and our new infrastructure tax credit scheme growth. These visits also underscore our strong commitment to transparent stakeholder engagement and responsible mining.

Moving on to exploration. We are now drilling the Kora-Kora South, Judd-Judd South vein systems from underground, plus drilling the Arakompa vein system from surface. Earlier-stage exploration work programs are focused on the Mati, Mesoan and also the Wira Henke prospects. In June, we reported 19 diamond drill holes from Kora-Kora South, Judd-Judd South with the results further reinforcing the significant potential for high-grade resource growth. The K2 vein drilling expanded the dilatant zone recording 12.8 meters at 31.89 gram per tonne gold equivalent and also 16.29 gold equivalent.

The results are especially significant as they are near mine infrastructure located only 100 meters from existing mine workings. And that provides the potential for near-term bulk mining to support Stage 3 expansion ramp-up once our pastefill system is complete. Results also continued to extend high-grade mineralization up-dip at K1 and K2, as shown on the right black ellipses and delineated a substantial high-grade copper zone at K2 as shown in the left black ellipse. Importantly, the drilling has also commenced at Kora Deeps targeting over the next 12 months, a substantial area, 400 meters below the twin incline down to around 500-meter RL as shown in the shaded light green rectangle.

After multiple years of focusing on infill drilling ahead of Stage 3 expansion, we're fairly excited to now be targeting this area for some of our step-out drilling. As noted earlier, the results have delineated a substantial high-grade copper zone to the south. Magenta represents grades exceeding 4% copper and the consistency of the high-grade copper drilling hit rates is very encouraging as shown in the long section here. At Judd drill results continue to extend high-grade mineralization up-dip of the main mine, as shown in the top black ellipse and below the main mine workings. Multiple high-grade results outside of the resource have also been recorded. Like Kora Deeps, Judd Deeps drilling has also commenced initially targeting down to that 500-meter RL very much over the next 12 months and has, again, as shown in the light green shaded rectangle.

From the initial Judd Deep results, which have been reported, the structure appears to remain robust at depth with whole KMDD0809, which was located approximately 300 meters below the twin incline recording 12.9 meters at 4.3 grams per tonne gold equivalent from Judd link and 14.15 meters at 3.97 grams per tonne gold equivalent from J1.

And obviously, we're looking forward to providing the next set of results in due course. Exploration activity at the Arakompa vein system located approximately 4.5 kilometers from the process plant is progressing with up to 5 rigs active. As shown in the image, the deposit is rapidly growing and so is our conviction by adding more rigs. The results reported to date have delineated 2 significant high-grade veins AR1, AR2, which recorded an average true thickness of approximately 3 meters over strike lengths of approximately 675 and 775 meters, respectively. The veins are also high grade with previously reported drilling results recording a hit rate of plus 5-gram per tonne gold equivalent of 50% AR1 and 42% AR2 and plus 10-gram per tonne gold equivalent of 28% at AR1, 21% at AR2. Arakompa also features a large, lower-grade bulk zone, which is open in multiple directions as shown in the plan view here.

With the addition of the new compact heli-portable rig drilling of the Northern strike extension of Arakompa, as shown in the ellipse on the far right image will be an increased focus. The area is highly prospective featuring strong vectors from artisanal workings. We plan to announce our next set of drilling results of Arakompa later this quarter, and we're targeting a maiden resource late 2025, early 2026.

Lastly, we'd like to highlight the significant pipeline of highly prospective exploration targets that we have. The colored icons indicate current exploration focus and the black icons indicate where we plan to be drilling within the next 24 months. Upon delivery of the Stage 3 expansion we expect to not only see a major inflection in our production and free cash flow, but also a significant ramp-up in our exploration budget, aiming to target many of these highly prospective targets concurrently. Two additional surface rigs have been ordered recently, and they will assist with that future ramp-up.

So in summary, Q2 2025 was another strong quarter for K92 from an operational, financial, safety perspective. We're fully funded through the expansion via a record net cash balance and mine cash flow. And we're tracking well to our 2025 operational guidance and continue to execute on a number of key Stage 3 expansion projects, including achieving the major milestone, the start-up commissioning of the new 1.2 million tonne per annum process plant during the quarter.

We're confident that we will continue this positive momentum into the second half of the year, and we expect to see the benefit to mine physicals from the delivery of a number of key underground infrastructure and operational improvement projects, including the material pass.

With that, operator, we'd like to now commence the Q&A session. Thank you.

[Operator Instructions]. Today's first question comes from Harrison Reynolds with RBC.

Congratulations on a good quarter, K92 team. One question from my end. Could you talk about your confidence and comfort level on progress made in the underground development to reach the run rates required for Stage 3? I imagine more progress will be made with the material pass system up and running and the additional ventilation, but is there anything else we should be thinking about here is kind of the 2,500 meters what you expected for the quarter? Or were there any challenges that came up?

Thanks, Harrison, for the question. In relation to the development meters, I would say, it's one area within the quarter that we didn't really achieve what we wanted. We were certainly looking for higher than that 2,700 or 2,800. What we did have that we hadn't really factored in was that if we look at our underground development of infrastructure, we had about a 5-, 6-day delay where because of the installation of electrical infrastructure underground, we basically had 5, 6 days of delays in development.

And if you look at that in the context of achieving around 30 to 40 meters a day that basically drops you a couple of 150 to 200 meters. And so we did drop that during the quarter. You're correct in that the commissioning of the ore pass is quite -- not quite, is a very significant contributor to enable us to achieve the meters that we're looking to do. As you know, as it currently stands, we've got more activity, I think, than we actually recognize we would have in the construction period. So that's adding to the congestion that we see in our single incline. So we've got the one right up until the end of the quarter.

We've been running basically all of our waste, all of our ore coming in -- sorry, going out on that one existing incline. But in addition to that, we've got, for instance, multiple concrete loads moving up for the construction of our underground infrastructure. So the ore pass itself, all the work that we've been doing on the vent chamber or the concrete that comes in, all the steel work that's come in for those and continues to come in from those. All of that, I think, had more impact than perhaps we realized it would. There's a huge amount of work being done there.

And obviously, we've also got the work that we're doing on the pastefill underground, the excavations for the pastefill underground, which also add to that. So certainly, the ore pass and ore/waste pass, and our view is going to be a very significant contributor to improving our performance in terms of development meters. I think the other point you will have seen is that we do have additional equipment that will be coming in. I think the first loader is due in September, October, our first new loader. So there are also additional pieces of equipment that will be coming in, which will be able to also utilize that improved access.

And the next question will come from Alex Terentiew with National Bank.

Congrats on getting everything coming and moving along nicely. It's good to see both the underground and the mill progressing well. A question on that. You noted first half Q4 to complete commissioning. I'm just trying to understand, or make sure I understand kind of how you're defining that. Is that coincident with declaring commercial production as well? Or what kind of metrics are you looking for to complete commissioning?

Okay. Well, I guess, first off, commercial production per se, we don't really use simply because we're already in commercial production. So would be declaring something we're already doing.

Yes -- no, sure, good point.

Yes. No, no. It's a discussion we've had internally actually. So it's not an incorrect question, and I understand what you mean. So what we anticipate is that by the end of the quarter, we will effectively have the plant able to operate at its design capacity. Now we'd also expect that we should be able to achieve our design recoveries by that point. So we're really looking at the plant is effectively operating at its design.

That's helpful. And then another question on grades, obviously, in the past, I guess, even 3 or 4 quarters, you guys have been mining some pretty good grades above plan. How should we think about grades for the next couple of quarters. Q2 obviously came down but still was probably, I think, a little bit higher than long term. But what do you -- any guidance you can kind of give us to prepare for the next couple of quarters and what to expect?

In terms of grade, you should expect pretty much what is the long term. If anything, grades in Q4, I would expect to be lower simply because we will be commissioning with lower grade material into the plant, so it will have a bias towards lower grade.

Yes, that makes sense. Okay. And then the last question, maybe just on your balance sheet. Obviously, very strong, $183 million. Free cash flow is obviously going to start to pick up even more next year. What's your plan? You've got $60 million in debt outstanding, I would assume that gets kind of the easy one to repay first? Or I'm just trying to understand -- make sure I understand that your plans for your good free cash flow you're going to be generating next year?

So certainly, the repayment of debt is something that will be prioritized. However, it will fit into an overall picture of what we're doing as a company. We don't have a high level of debt as I think was noted. And I think we're certainly not in a position where we need to repay that debt in order to meet any requirements or anything else. As you say, depending on gold price, which we'd obviously like to see sitting where it is for some time going into the future, we will be generating a large amount of free cash flow going forward basically, as you say, all of next year and going beyond that. But the whole thing of dividends, buybacks, et cetera, et cetera, which is something that as a company, we are in the process of discussing internally.

[Operator Instructions]. And our next question comes from Andrew Mikitchook with BMO Capital Markets.

John, congrats on the -- you and the team on the massive progress here towards Stage 3. There's already been a lot of detail given in the Q&A about ramp-up rates and development rates. Any sense that you could comment on how Q3 is going so far, like or maybe where you would like to see Q3 exit, maybe I think the market is probably watching development meters, but maybe also even kind of annualized tonnes per day?

Okay. Andrew, I mean, we're obviously early in -- well, actually, we're not early, I guess we're almost halfway through Q3. So it's not that early in Q3. I think it'd be fair to say that Q3 is fairly much on budget for us in relation to our production. We are developing reasonable stockpile. I think we're in excess of 24,000 to 25,000 tonnes. So stockpile wise, we're probably marginally ahead actually of where we anticipated being. So from the context of the stockpile, I think we're in a fairly good position. In terms of the enablers, we really only just commissioned those now. So I think in meters, we would expect to see an improvement from second quarter, not perhaps as high as we want in terms of we want to get to by the end of the year. So if that answers your question.

And just overall, the trajectory and the time line is preserved to be blunt to fill the Stage 3 once this thing is turned on?

Yes. I mean if you look at -- I'm trying to think we're -- I think the sign the IDP has something like 1 million tonnes being mined in process next year. And at this point in time, we're comfortable with the numbers that are in the IDP.

The next question is from Michael Gray with Agentis Capital. .

It's exciting Kora Deeps is going to be tested below the twin incline. John, you said 450 meters below. Can you give us a little bit of color on scope of drilling, spacing and drilling at this point, if you can?

Mike, thanks for that. Yes, look, this is -- it's obviously early days at this point in time. So we're at the first stage of that, which is drilling very much from existing development. We do intend longer term to put a couple of development drives further out from where we are, so we can get a better angle into Kora and Judd at depths. So we're limited to those 2 sort of boxes as the area that we can reasonably access without coming in to acute an angle. Generally speaking, when we've been looking at these areas, we've been drilling in the 50 to 100-meter centers.

And that would be the intent of its initial drilling that we're doing. We've got one rig currently drilling there. I don't see us getting heavily into that -- more heavily focused into that until next year. We can't do any -- we don't really want to do any additional development to set up better drill cuddies for that area. At this point in time because all of our focus on that -- on the development meters is obviously in the upper part of the mine, opening the mine. It will really be, I would say, second half of next year before we see that program pick up to where I personally would like to see it. I'm pretty excited by what we've seen, for instance, in that Judd Deep hole. So that I think, for me, is fairly exciting.

Okay. Congratulations on the progress this quarter.

And this concludes today's question-and-answer session. I would now like to turn the conference back over to John Lewins for any closing remarks.

Thanks for that, Chris. Well, thanks, everyone, for joining us for this conference call. It's approaching 11:15 here. I'm in Papua New Guinea, as some would have seen, I was hosting the Mining Minister on site on Friday. We made the local news and media here including video from underground with our Minister, Mining Minister. one of the things that we got from the Minister was that he was excited by not only the -- what he was -- what the project is and the production that we have, the fact that we've paid PGK 300 million in tax this year, but the sheer scale of what he saw underground, for instance, in the vent fan chamber.

The new plant, especially when he could compare it to the old plant and realize that, that old plant had produced 150,000 ounces a year. In fact, you may comment surely, John, if that little plant could make 150, you're going to make a lot more than 300 with this plant, which, of course, directed into our Stage 4. The other thing that impressed him was that we took him up in the chopper and took him around showing in our exploration activities and direct exploration areas. And again, being the largest explorer in the country, we were commended for our investment in the future of not only K92, but as he saw it PNG.

And I think those thoughts and those statements are reflective of where we're sitting at this point in time. We have a relatively old smallish plant, which last year did 150,000 ounces. And we've got this phenomenal new plant, which is going to take us to an entirely different level. Underground, you can see the massive amount of work that's gone in both in the context of the infrastructure. They were impressed, for instance, that you could be underground at the fan chamber and you could connect with your office in Vancouver and receive an e-mail, send a photograph, et cetera, et cetera.

And that you could operate equipment from the surface while there was effectively no one underground. All of those things have happened in the last 12 months and a lot of them are now coming to an incredible culmination towards the end of this year. And as I think many of you would be aware, in watching K92, it's also coming to a culmination just as the country itself is celebrating its 50th anniversary of Independence next month.

So this really is incredibly transformative. I mean it is a statement we use on our slides on the first page of the slides. But I continue to see that as one -- is how things are happening right now, every time that I go to site. So this is an exciting time for K92. It's not without its challenges. Anybody who's ever built a mine, commissioned a plant or whatever else will obviously attest to the fact that it is also a challenging time but with challenges come opportunities.

We'll be having an Analyst-Investor tour early in Q4. And so some of you at least will have an opportunity to see things on the ground. And I think especially, I know that we've got some people who've been out before I think you're going to be incredibly impressed with the changes that occurred both on the surface and underground.

So with that, I'd just like to say thank you all for attending early in the morning in your case, later in the evening in mine. And thank you for your continued interest in the company and what we're trying to achieve. Thanks, everyone.

This concludes today's conference call. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Good afternoon and welcome to the Annual General Meeting of K92 Mining Inc. I would like to introduce Anne Giardini, Chair of the company, Ms. Giardini, the floor is yours.

Thank you. Good afternoon. It's now 12:00 p.m., the scheduled start time of the meeting. My name is Anne Giardini, Chair of K92 Mining Inc., and I will chair today's meeting.

I welcome you to the company's Annual General Meeting of Shareholders. We are pleased to host the meeting in person in Vancouver and through a virtual meeting platform accessible to all of our shareholders regardless of physical location to participate, submit questions and vote. I officially call the meeting now to order, and I appoint Nancy La Couvee, Corporate Secretary of the company, to act as secretary of the meeting; and Deanna Guilfoyle, of TSX Trust Company to act as the scrutineer of the meeting.

Only registered shareholders who held shares in their name as of April 23, 2025, and the record date of the meeting, or their validly appointed proxy holders are entitled to vote at this meeting. To expedite the meeting, we will deal with the formal business of the meeting first. And afterwards, I will invite David Medilek, K92's President and Chief Operating Officer, to give you a presentation. David will be available to answer any questions that you may have. I will now commence the formal business of the meeting.

On May 9, 2025, the notice of meeting, notification of notice and access form of proxy and request for annual and interim financial statements of the company were mailed to all of the shareholders of record as of the close of business on April 23, 2025. The affidavit as to such mailing was prepared by TSX Trust Company and is available for inspection by any interested party. In view of this having been done, unless there is an objection, I will dispense with the calling for reading of the notice, and I will take the notice of meeting as read. The declaration as to mailing will be filed with the minutes of this meeting and will be retained by the secretary with the records of this meeting. As such, proper notice of the meeting has been given.

I'm going to talk about voting procedures. If you voted before the meeting by proxy, you do not need to cast your vote at this meeting unless you wish to change your vote. As specified in the notice of the meeting, the items of business for the meeting are: to receive the audited financial statements of the company for the year ended December 31, 2024, to fix the number of directors at 6; to elect 6 directors for the ensuing year; to appoint the auditor for the ensuing year and to authorize the directors to fix the auditor's remuneration; and to approve a nonbinding advisory resolution accepting the company's approach to executive compensation.

All resolutions must be approved by a simple majority of votes cast either in person or by proxy as ordinary resolutions. We will conduct the votes on each of the matters by a poll. On a poll, every shareholder entitled to vote on the matter has 1 vote in respect of each share entitled to be voted on the matter and held by that shareholder. The poll will be opened for all resolutions at the same time. This will allow you to vote on each resolution immediately or you can choose to wait until the conclusion of discussion on each resolution before casting your vote. Registered shareholders and their duly appointed proxy holders who attend the meeting virtually will have the ability to vote at the meeting if they have not voted by proxy or to change their vote if they have voted by proxy. Once voting has been declared open, please click the voting button the left of your screen.

The text and voting choices will be displayed on the pop-up window. To vote, simply select your voting direction and click submit to cast your vote. If you have already submitted your votes by proxy and don't wish to change your votes, again, no further action is required. For registered shareholders and their duly appointed proxies only, there will be an opportunity to ask questions by text for each resolution in turn. [Operator Instructions].

Once discussion on all items of business have concluded, I will give you a short period of time to enter your votes online and then declare voting closed on all resolutions. Preliminary voting results will be provided during the meeting, and final detailed voting results will be provided after conclusion of the meeting. The final results of the meeting will be announced in a news release and will also be available on our website after the meeting. We will run through each of the items on the agenda in turn, responding to questions on that item of business while it is before the meeting. In order to expedite the formal business of today's meeting, I will make all motions, a seconder is not required.

I now declare the polls open to all resolutions. I was advised by our scrutineer that there is a quorum present, being 2 persons present or represented by proxy who in the aggregate hold at least 25% of the issued shares of the company. I direct the final report of scrutineer be filed with the minutes of this meeting. The notice of the meeting [ has ] been given as required by the articles and by the Business Corporations Act British Columbia and a quorum being present, I declare this meeting to be both duly called and constituted for the transaction of business. The last meeting of shareholders was held on June 27, 2024.

I confirm that the minutes from the 2024 Annual General and Special Meeting reflect a true record of the proceedings. The minutes of that meeting are available for review by any shareholder. Unless anyone wishes to have them read, I will dispense with the reading of the minutes of the last Annual General and Special Meeting, and the minutes will be taken as read and approved and adopted as tabled. The initial item of business today is consideration of the audited financial statements of the company and the report of the auditor. It is customary to have the meeting acknowledge receipt of the financial statements.

A copy of the financial statements and auditors' report for the year ended December 31, 2024, is available on the company's website and the SEDAR website as well by request to the company, if any shareholder wishes to see them. Therefore, the audited financial statements of the company for the year ended December 31, 2024, and the auditor's report on those statements will be acknowledged as having been received. Is there any discussion? Hearing no discussion, I acknowledge the financial statements as having been received.

I will turn to the setting up a number of directors. The first item of business is the approval of an ordinary resolution setting the number of directors of the company at 6 for the forthcoming year. I now move that the number of directors for the ensuing year be fixed at 6. Is there any [ discussion ]? As I see no questions, I ask that you please cast your votes on item 1 by hitting the voting button before we move on to item 2. Please vote now.

[Voting]

The second item of business is the election of directors of the company. The directors elected at this meeting will hold office until their successors are elected or appointed, subject to the company's articles and the Business Corporations Act at British Columbia. Each of Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John Lewins have informed the company that they will stand for election at this meeting and they are management's nominees for election to the Board for the forthcoming year.

I therefore nominate the following individuals as directors of the company to hold office until the next annual meeting of the company or until their successors are duly elected or appointed, subject to the provisions of the company's articles. Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John D. Lewins. Are there any other nominations for directors? Seeing no further nominations, I move that the nominations be closed. Are there any questions on the motion? As there are no questions, I ask that you kindly cast your votes on item 2 before we move on to item 3. Please vote now.

[Voting]

I am advised that a majority of the votes cast is in favor of election of the nominees. And accordingly, I declare the motion carried and the persons nominated are elected as directors of the company by acclamation to hold office until the next Annual General Meeting of the company subject to the articles of the company and the Business Corporations at British Columbia.

I will now turn to the appointment of our auditor. The third item of business is the appointment of the auditor of the company for the ensuing year and authorization of the company's directors to fix the remuneration for the auditor. I now move that PricewaterhouseCoopers LLP chartered professional accountants be appointed as the auditor of the company for the ensuing year and that the directors of the company be authorized to fix the remuneration of the auditor still appointed. Is there any discussion? There are no discussion and no questions, I ask that you please cast your votes on item 3 before we move on to item 4. Please vote now.

[Voting]

The fourth item of business is to approve an advisory resolution on the company's approach to executive compensation as more particularly set out in the company's management information circular for the meeting. The text of the resolution to approve the company's approach to executive compensation is set out on Page 21, the Management Information Circular.

I now move that the nonbinding advisory resolution on executive compensation set out on Page 21 of the information circular be approved, which, unless a shareholder present desires the reading of that I will not repeat. Is there any discussion or questions? Seeing no discussion or questions, I ask that you cast your votes on item 4. Please vote now.

[Voting]

For those who have not yet voted on all of the resolutions, which are open for voting, I ask that you do so now if you intend to vote as we will shortly close the poll. I will close the polls on all resolutions after another 30 seconds to allow any online viewers to catch up and make their elections.

[Voting]

I confirm that the polls are now closed. I ask that the scrutineers provide their preliminary report on the results of voting. I ask the secretary to confirm receipt of the scrutineer's report and confirm that all resolutions are carried.

I confirm receipt, Anne.

It appears that all resolutions are passed. That note will be put on the online screen. And as I said, those matters will be reported fully in a press release and on our website. On the matter of setting the number of directors, I am advised that greater than a majority of the votes cast have been voted in favor of setting the number of directors at 6. Therefore, I declare that this motion is carried.

On the matter of election of directors, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of the election of all of the nominees, being: Mark Eaton, Anne Giardini, Saurabh Handa, Cyndi Laval, Nan Lee and John Lewins, Therefore, I declare that this motion is carried.

On the matter of appointment of auditors, I am advised by the scrutineer that greater than a majority of the votes cast have been voted in favor of the appointment of PricewaterhouseCoopers LLP, chartered professional accountants. Therefore, I declare that this motion is carried. On the matter of approval of the advisory resolution on executive compensation, I'm advised by the scrutineer that greater than a majority of votes cast have been voted in favor of the advisory resolution. Therefore, I declare that this motion is carried. A news release disclosing the voting results will be issued and filed online on the SEDAR website and will be available on our own website shortly.

This is now a conclusion of the formal business of the meeting. Is there any other business that anyone in attendance wishes to bring to the attention of the meeting? If there's no other business to be brought before the meeting, I declare that the formal part of this meeting is concluded.

I would like to introduce you to David Medilek, President and CEO of K92 who will now give a corporate update presentation. Following this, David will be available to answer any questions you may have. [Operator Instructions]. David.

Thank you, Anne. Just bear with me. I'm just in the process of screen sharing the presentation. Okay. Thank you. Can everyone hear me and can they see the screen? I just want to do a sound check. Can everyone hear me?

Yes, David, we can hear you. Go ahead.

Okay. Thank you, Anne. I will proceed. Thank you, Anne, and thank you, everyone, for joining us for our Annual General Meeting and presentation. As always, we ask you refer to our forward-looking and cautionary statements as shown, which can be found on our website in the latest corporate presentation.

On Slide 3, we provide an overview of the unique Tier 1 precious metals investment opportunity that is K92. The company has achieved and is continuing to achieve a path of rapid growth and value creation in terms of both production, as shown on the chart on the bottom right, and mineral resources, as shown on the bottom left chart. This growth has been mostly self-funded through reinvesting our cash flow. And importantly, we are now on the cusp of our biggest expansion yet, the Stage 3 expansion, which plans to increase production to 300,000 ounces of gold equivalent per annum commissioning of the new process plant is scheduled to start this month.

The Board of Directors has also approved the low CapEx stage 4 expansion to increase throughput a further 50% and which plans to increase production to over 400,000 ounces of gold equivalent per annum. The vein system we mine is high grade, is thick and is effectively mined and processed, making K92 a low-cost producer operating at one of the higher grades in the mining industry. With this combination of large-scale production and low cost, K92 is poised to become a Tier 1 mid-tier gold producer. We also hold a large 830-kilometer square land package. Papua New Guinea is known for its phenomenal geology with several world-class deposits, including ours, and we see the potential for additional elephant systems on our property.

The team at K92 has experience with a proven track record, including extensive experience in Papua New Guinea, where we've been operating for some time now. On our corporate structure, the balance sheet is strong, ending Q1 with $182 million in cash, cash equivalents and term deposits. $60 million of debt drawn and up to $90 million of additional liquidity from our credit facilities. We are actively covered by 12 analysts and have a very strong institutional share register. This slide presented has been provided to us by BMO, highlighting that K92 has one of the best growth profiles over the next few years.

In addition to trading at a very attractive valuation for rerating, which has been starting to materialize in our recent share price performance. Last week, K92 was proud to announce our 2024 sustainability report. At the end of the year, at Kainantu, we had a total workforce of over 1,800 people, of which approximately 92% are from PNG, with a large portion from our local communities. This is contemplated -- I'm sorry, this is complemented by a strong focus on training and skills development. Our community programs are impactful, and we were honored to be awarded for the third consecutive year in industry ESG awarded by PNG CORE.

Kainantu has a low environmental footprint with a traditional tailings impoundment, no cyanide and a low greenhouse gas emissions profile. Our focus on safety is relentless. And at the end of Q1 2025, we recorded 643 consecutive days lost time injury free. Q2 is also a proud taxpayer in PNG, paying $62.6 million in corporate tax and royalties in 2024, which made us the second highest payer of corporate tax in PNG's mining industry. We encourage you to visit our website at k92mining.com to view the latest sustainability report. The company's strategy for Kainantu has been and continues to be expand, expand and expand.

We've delivered the Stage II and Stage III expansions and are on the cusp of our most transformative expansion to date, Stage III. Commissioning of the Stage III process plant is scheduled for this month, a brand-new stand-alone 1.2 million tonne per annum plant, providing capacity for production to approximately 300,000 ounces for equivalent per annum. The plan has also been designed to be expandable. And following Stage III, we plan to complete low capital cost upgrades to the back end of the plant to increase throughput to 1.8 million tonnes per annum and production to over 400,000 ounces of gold equivalent per annum. This is called Stage IV.

In terms of recent operating performance, 2024 delivered record production of 150,000 ounces or equivalent, exceeding the top end of the production guidance range by 7%. We also delivered production at an all-in sustaining cost of $1,066 per ounce, well below the bottom end of our guidance range of $1,440 per ounce. Our production guidance for 2025 is $160,000 to $185 -- sorry, $185,000 ounces for equivalent and an all-in sustaining cost of $1,490 to $1,590 ounces fold equivalent or $1,460 to $1,560 ounces gold on a net of byproduct credit basis.

As shown on the bar chart, we have had a strong start to 2025, producing 48,000 ounces gold equivalent in Q1. Our second highest quarterly production on record and our highest Q1 on record. This has been driven by very strong grades. And as noted on our Q1 conference call, we expect normalized grades in Q2 was production to be the strongest in the second half of the year, benefiting from higher throughput rates.

We will now provide an update on the construction progress for the Stage 3 expansion, starting with the underground. The two is complete.

The first ore pass has been developed and is expected to be fully operational in Q3. The Puma Incline breakthrough planned for late Q3. Upon breakthrough of the Puma, we expect an additional 50 meters cube per second of airflow with a further 15 meters per second of air float forecasted upon development of the next ventilation raises, representing a combined 60% increase in airflow from current levels. Due to the previously conservatively modeled mine resistance factors, we now expect to not only need the primary event fans to meet the Stage III event requirements. These fans are needed for Stage 4, with plans to opportunistically install them in 2026 to minimize disruptions. On pastefill commissioning is targeting commencing in late 2024.

And while the infrastructure is being transformed, so is the number of mining fronts with a significant increase underway to drive the ramp-up. In terms of surface construction works, as shown in the photo taken last week, the Stage 3 expansion process plant is nearly complete in terms of the construction and commissioning is planned to commence imminently. In terms of ancillary buildings, the interim power station and warehouse are complete. The new 160 En-suite room Kumian Creek Camp is complete and occupation has already begun. The final outstanding project is the kitchen and dining facilities which are scheduled for completion later this month. The primary power station is progressing well. Stage 1 commissioning is planned for June. In terms of the new maintenance facilities, all structural steel and buildings are on site. The main workshop is progressing well with the foundations and footings poured as shown in the image.

On the [ Pastefill ] project -- on the pastefill plant project, all long lead time items have been awarded. The underground paste construction contract has been self-awarded the tailings filtration plant and circuit storage system construction contracts are being finalized and planned for awards shortly.

On surface, tailings filtration plant and surface storage system earthworks are progressing and being completed by K92. This is ahead of handover to the construction contractor as shown in the 2 images. In the first quarter, we were honored to host delegations from the Morobian Eastern Highlands provincial governments where our various licenses and leases are located. In February, we welcomed the delegation by the Governor of Morobe Province, the Honorable Luther Wenge as shown on the left. And in March, a delegation led by the Governor of Eastern Highlands province, the honorable Simon Sia, shown on the right. Both received strong media coverage and included tumors of the underground process plant stage construction and helicopter tour of our exploration areas. These businesses also underscore our strong commitment to transparent stakeholder engagement and responsible mining.

In terms of exploration, we are drilling the Kora, Kora South and Judd, Judd South Vein Systems from underground plus the Air comp advance system from surface. Last week, we announced drilling results at Kora and Judd totaling 90 holes with all holes intersecting mineralization and highlights from the release include: number one, significantly expanding and interpreted dilution on updip, returning broad, high-grade intercepts in areas previously interpreted as [indiscernible] vein including 12.8 meters true thickness at 32 grams per tonne gold equivalent and 10 meters true thickness at 16 grams per tonne gold equivalent.

Importantly, this tile zone is located near mine infrastructure offering meaningful near-term bulk mine potential to support the Stage 3 expansion wrap-up. Number two, continuing to expand high-grade updip of the main mine at the K1 and K2 veins; and number three, delineating a significant copper zone in 2 over a 300-meter vertical extent as shown in the far left ellipse. Copper zone at K2 to the south is substantial, as shown in this long section. Magenta represents over 4% copper grades and the high-grade copper zone remains open to the south. At Judd, drilling has continued to extend high-grade mineralization up dip above the main mine and also down dip. Judd has delivered exceptional grades during the last 3 quarters. So extending these high-grade areas is particularly impactful.

For the second half of this year, drilling below the resources at both Judd and Kora will become a larger focus, which we are particularly excited about. The big exploration story for 2024 for the company certainly was Arakompa. In late 2023, we commenced drilling the deposit for the first time in 32 years. Previous drilling was limited. Only 1.8 kilometers over 18 holes and mostly shallow drilling. Our drilling uncovered multiple high-grade veins in a bulk system. We started our program with 1 rig. And in the next few weeks, we plan to have 5 rigs operating. We believe Arakompa has significant potential.

Results from 43 holes reported by K92 to date have confirmed 2 significant high-grade veins, AR1 and AR2, which recorded a considerable average true thickness of approximately 3 meters. Over large strike lengths up over 675 and 775 meters for AR1 and AR2, respectively. The vans have a strong high-grade drilling hit rate, plus 5-gram per tonne gold equivalent of 50% for AR1 and 42% for AR2 and plus 10-gram per tonne gold equivalent of 28% for AR1 and 21% for AR2. To date, step out drilling has focused towards the South, and we are nearing a major milestone in our exploration capabilities with the arrival of a compact [ heli ] portable rig this month. This rig will enable drilling the Northern Extension Arakompa, which is shown in the ellipse is large, highly prospective target area that also features a strong vector from [indiscernible] workings.

We see high potential for underground mining at Arakompa. Drilling results reported to date have defined an interpreted bulk tonnage zone with a total strike length of 900 meters. vertical depth of 650 meters and average true thickness recorded from drilling of 48 meters. The bulk zone remains open in multiple directions and will also be targeted from our Northern extensional drilling as shown in the ellipse. We view it as a longer-dated project with a high grade of the priority for near-term mining.

Arakompa's growth over the past year has been exceptional. The image on the far left shows drilling as of February 2024, while the far right highlights our latest reported results, just 1 year later. Lastly, we highlight the significant pipeline of highly prospective exploration targets. The colored icons indicate where we are currently drilling and the black icons indicate where we plan to drill in the next 24 months. Upon delivery of the Stage III expansion. We expect not only a major inflection in terms of our production and free cash flow, but also a significant ramp-up in our exploration budget, aiming to target many of these highly prospective targets concurrently, and recently, we ordered an additional 2 surface rigs. Thank you for attending our AGM presentation.

I will now turn it over for any questions. As there are no questions asked, this concludes the presentation. Thank you.

Thank you for attending the 2025 AGM of K92 Mining. The meeting is now terminated.

Ladies and gentlemen, thank you for attending today's meeting. You may now disconnect.