Karora increases gold output 54%, generates record net earnings of $88M in 2020
(Kitco News) - Karora Resources (TSX: KRR) announced Friday that the company’s net earnings for the year ended December 31, 2020, were a record $88.1 million compared to a net loss of $6.9 million for the comparable period in 2019.
The company said that net earnings were positively impacted by the profits associated with increased revenues of $111.1 million and an impairment reversal of property, plant and equipment which resulted in profit of $36.1 million which are discussed below.
Adjusted EBITDA for the year ended December 31, 2020, was a record $89.8 million compared to $13.4 million in 2019.
Karora finished 2020 with a strong cash position of $79.7 million, an increase of $45.0 million compared to December 31, 2019. As at December 31, 2020, Karora had a working capital surplus of $56.8 million.
For the full-year 2020, Higginsville gold operations milled 1,325 kt of material at an average grade of 2.33 g/t. Total gold production was 99,249 ounces, 54% higher than 2019. Cash operating costs for 2020 were US$925 per ounce.
Karora is focused on growing gold production and reducing costs at its integrated Beta Hunt gold mine and Higginsville gold operations ("HGO") in Western Australia. HGO has a substantial gold Mineral Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The company also owns the high grade Spargos Reward project which is anticipated to begin mining in 2021.