A Member of Pat McKeough’s Inner Circle recently asked for his advice on a Vancouver-headquartered gold, copper, and silver producer that operates the high-grade Kainantu mine in Papua New Guinea.
Pat likes the rare exposure to a high-grade, low-cost underground gold-copper-silver mine with a multi-year, self-funded expansion pipeline. However, he notes the firm carries country and single-asset concentration risk.
K92 Mining Inc. (Symbol KNT on Toronto; www.k92mining.com) produces gold, copper and silver at its Kainantu gold mine in the Eastern Highlands province of Papua New Guinea. The company is also engaged in the exploration and development of mineral deposits near the mine, including the Blue Lake and Arakompa deposits.
K92 acquired the Kainantu Gold Mine from Barrick Gold Corp. in 2014, five years after Barrick closed the mine due to inflated costs. K92 restarted the mine in 2016, turning it into a rapidly growing producer.
K92 continues to drill at its Arakompa gold-copper-silver development project, plus its
Blue Lake copper-gold project, near the Kainantu mine processing plant. The company hopes to eventually bring the deposits into production and process their ore at the processing plant.
[ofie_ad]
K92 Mining’s political risk is a significant factor
In the three months ended June 30, 2026, K92’s revenue jumped 113.0%, to $205.25 million (all figures in U.S. dollars except share price and market cap) from $96.34 million a year earlier. Revenue rose due to record production and higher realized gold price.
K92 earned $84.6 million, or $0.34 a share, in the latest quarter. That was up 115.8% from $39.2 million, or $0.16 a share. Earnings were higher mostly due to the improved revenue generated from higher gold sales and mine throughput expansion.
The outlook for K92 is positive, and the company should be able to keep production rising as it further expands operations at its Kainat mine. This year, K92 forecasts its gold-equivalent production to reach between 190,000 and 225,000 ounces. That amounts to an increase of between 9.1% and 29.2% from its record annual production of 174,134 ounces in 2025. There’s also considerable room to expand reserves around the mine through exploration.
However, K92’s focus on Papua New Guinea carries above-average political risk. The company’s reliance on a single mine also adds uncertainty.
Recommendation in Pat’s Inner Circle: K92 Mining Inc. is okay to hold, but only for aggressive investors.
