Canada's K92 Mining hits record Q4 adjusted profit on production jump

Overview

• Canada gold miner's Q4 revenue rose 47% yr/yr, slightly missing analyst expectations

• Record quarterly adjusted net earnings of US$88.5 mln

• Company completed commissioning of Stage 3 Expansion Process Plant

Outlook

• K92 expects to ramp-up production through 2026 and beyond

• Company plans to increase exploration budget by over 50% to US$31–35 mln in 2026

• Stage 4 Expansion projects are being accelerated

Result Drivers

• RECORD PRODUCTION - K92 achieved record quarterly ore processed and mined, supported by the new Stage 3 Expansion Process Plant

• HIGH RECOVERIES - Strong metallurgical recoveries in Q4 of 94.3% for gold and 93.9% for copper, exceeding feasibility study parameters

• PLANT COMMISSIONING - Completion of Stage 3 Expansion Process Plant commissioning contributed to operational efficiency

Company press release: ID:nGNX9BCV0s

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for K92 Mining Inc is C$34.00, about 3.4% above its February 27 closing price of C$32.88

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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