Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Karora Resources hails first quarter performance, which sets miner up for further growth

% of readers think this story is Fact. Add your two cents.

Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1), the western Australia-focused gold miner, has posted a solid set of first-quarter results, which it said positions the company well for further growth this year.

In the three months to end-March, 2021, the company – which runs the Beta Hunt and Higginsville mines - recorded net earnings of C$5.6 million, well up from C$539,000 seen in the first quarter of 2020 on revenue of  C$59.2 million, up from C$54.2 million in the same period a year earlier.

Cash flow used in operations for the quarter was C$18.6million, up from C$12.2 million a year earlier, while Karora ended the period with C$76.7 million in cash and working capital of C$63.2 million.

READ: Karora Resources delivers consistent 1Q gold production of nearly 25,000 ounces from its Western Australia operations 

In terms of output, the company generated 24,694 ounces of gold, which was its seventh consecutive quarter of consistent production of around 25,000 gold ounces since its key acquisition of the Higginsville mill in mid-2019. All-in-sustaining costs for the latest quarter came in at US$1,049 per ounce of gold sold, an improvement on the US$1,101 per ounce seen in Q1, 2020.

The performance places the company “on a very strong footing” to achieve its full-year 2021 gold production guidance of between 105,000 and 115,000 ounces and all-in-sustaining-costs (AISC) of between US$985 and US$1,085 per ounce sold,” Karora CEO Paul Andre Huet told investors.

“First quarter gold production of just under 25,000 ounces was right on budget as we prepared new higher grade mining areas at Higginsville Central. Over the course of 2021, as we have previously stated, we expect quarterly grade improvements resulting from Spargos and Two Boys to drive increased production towards the second half of the year,” he said.

Huet also highlighted that the Phase I mill expansion at Higginsville was proceeding “well ahead of schedule”.

“We have already achieved an annualized production rate of 1.5 million tonnes per annum. Once completed, as previously announced, the Phase I expansion will increase production capacity at our Higginsville mill in 2021 by approximately 15%, or 550 tonnes per day, to 1.6 million tonnes per annum from the prior capacity of 1.4 million tonnes per annum.”

He added: “With Karora’s strong cash balance of $76.7 million at the end of the first quarter, and much of the ground work to bring on higher grade mining areas over the balance of 2021 completed, we are in a very strong position to deliver on our 2021 organic growth commitments.”

Highlights of the quarter included drilling at the 2020 Larkin Zone discovery, which hit 19 grams per ton (g/t) gold over 9 metres (m).

There was also the second new high grade nickel discovery at Beta Hunt in the last six months, known as the “Gamma Zone – 50C”, where 1.6% nickel over 4.6m, including 18.4% nickel over 2.2m was hit in one hole.

At the Spargos Reward gold project, more strong drilling results were reported, including 6.1 g/t over 14m in one hole, which confirmed the interpreted high grade gold plunging shoot thesis by extending the shoot to over 300m down-plunge, which remains open.

Contact the author at [email protected]

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.