K92 Mining Inc.

Thank you, Operator, and thanks everyone for attending K92 Mining's second quarter 2023 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 Blanchett, 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 two 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.

Thank you, David, and welcome, everyone. In the second quarter, Cananto delivered strong operating performance, increasing gold equivalent production by 43% from the first quarter, 18% from Q2 2023. Cash costs, all in sustaining costs, for the quarter was significantly lower than our annual guidance range. Our cash balance notably strengthened during the quarter, even after near-record capital spend and expiration spend. We also made considerable progress on multiple growth initiatives, including the completion of the Stage 2a plant expansion, the discovery of a high-grade zone at the J2 vein at Judd South, potentially outlining yet another productive vein within the Cora, Cora South, Chad, Chad South vein systems. And subsequent to quarter end, the board of directors approved the award of stage three expansion process plant lump sum EPCM contract, which significantly de-risks the majority of our growth capital for the expansion. We look forward to discussing all of this in more further detail in the course of the presentation. They were very proud of the company's performance highlighted in the 2022 sustainability report, which was released in late July. The report details our key sustainability initiatives, demonstrating our commitment to socially responsible mining. K92 has a workforce of approximately 1,500 people with a major focus on local hiring. Approximately 94% of our workforce is from Papua New Guinea and the majority from our local communities with a large focus, obviously, on training development. Enantu has a low environmental footprint with a traditional tailings environment, no cyanide and low greenhouse gas emissions profile. We're currently focused on multiple long-term social and economic development initiatives in Papua New Guinea through joint ventures, education, infrastructure, service programs, agricultural programs, and investing in female empowerment programs, among many others. K92 has been recognized by ISS as having peer-leading corporate governance, and we are the second largest corporate taxpayer in Papua New Guinea's mining industry. We encourage you to read the report, which is available on our website. While the report covers the 2022 fiscal year, we are deeply saddened to report two tragedy incidents which resulted in multiple fatalities during the quarter, as previously disclosed via press release. The health and safety of our workforce has been and always will be our highest priority, and we are committed to providing further disclosures on these incidents and the steps we've taken to reinforce our safety culture in our 2023 sustainability report. In June, K92 was very pleased to announce our 2030 greenhouse gas emissions target to reduce our scope one and two emissions by 25% on a business-as-usual basis. K92 is already one of the lower emission gold mines globally, and we're committed to further improving our energy and GHG emissions performance.

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