11:15 AM EST, 01/23/2025 (MT Newswires) -- (Adds analyst comment and updates shares.)

K92 Mining ( KNTNF ) on Thursday released a production outlook of 160,000 to 185,000 ounces gold equivalent for 2025 from it Kainantu mine in Papua New Guinea, an increase from the record 149,515 ounces produced last year.

The increase will be driven by the commissioning and ramp-up of the new 1.2-million tonnes per year Stage 3 Expansion process plant scheduled to begin operating in the second half of the second quarter.

The company forecast all-in sustaining costs of US$1,460 to US$1,560 per ounce of gold.

K92 has planned a large exploration program, with US$17 million to US$20 million projected for 2025.

Growth capital is forecast to be US$105 million to US$110 million in 2025, up from US$102 million spent in 2024.

"There is tremendous enthusiasm internally, amongst our various stakeholders including in Papua New Guinea for the year ahead as K92 transforms into a Tier 1 Mid-Tier Producer with the delivery of the Stage 3 Expansion," said K92 CEO John Lewins.

National Bank Financial reiterated its sector-perform rating and $11.00 price target following the news.

"It is one of the few remaining single-asset companies and with visibility for production over 400,000 ounces, a wheelhouse of interest to seniors, tempered by jurisdiction and development risk," National Bank said.

K92 shares were last seen down $0.14 to $9.62 on the Toronto Stock Exchange.

Price: 9.62, Change: -0.15, Percent Change: -1.49