Karora Resources posts net loss in first quarter while gold production up 11%
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(Kitco News) - Karora Resources (TSX: KRR) said yesterday that its Q1 2022 consolidated gold production of 27,489 ounces was 11% higher compared to Q1 2021 (24,694 ounces) and in line with the mine plan and budget.
According to a press-release, the company’s Q1 2022 gold production was higher than a year ago despite a number of temporary challenging COVID-19 related conditions, including lower labor availability, higher absenteeism due to isolation requirements and supply chain constraints.
Karora added it remains on track to deliver on full year consolidated 2022 gold production guidance of 110,000 to 135,000 ounces at an all-in sustaining costs ("AISC") range of US$950 to US$1,050 per ounce, assuming no significant interruption to operations as a result of the COVID-19 virus and improved operating conditions in the second half of 2022.
Consolidated AISC in Q1 2022 were US$1,396 per ounce sold, which is a 33% increase compared to Q1 2021. The company noted that Q1 2022 AISC was negatively impacted by a number of cost pressures, many of which are expected to be temporary in nature.
Revenue for the first quarter of 2022 was $65.3 million, a 10% increase over the comparable period in 2021. The increase in revenue in 2022 was the result of a higher gold ounces sold (3% increase) and a higher realized gold price (8% increase).
The net loss for the first quarter of 2022 was $3.7 million, or $0.02 per share, compared to net earnings of $5.6 million, or $0.04 per share, for the comparable period in 2021, a decrease of $9.3 million.
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The company explained that Q1 2022 net loss was largely due to third-party toll milling, higher operating costs, and a number of temporary challenging COVID-19 related conditions, including lower labor availability, higher absenteeism, and supply chain constraints.
Karora added its cash position remained strong at $78.1 million as at March 31, 2022, after planned capital deployment to prepare new mining areas at Higginsville, accelerated exploration programs and planned growth plan expenditures.
Karora indicated it is focused on doubling gold production to 200,000 ounces by 2024 compared to 2020 and reducing costs at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations in Western Australia. The company also owns the high grade Spargos Reward project which is anticipated to begin mining in 2021.