Karora reports record quarterly gold production, posts Q2 net loss due to rising costs
(Kitco News) - On Friday, Karora Resources (TSX: KRR) announced Q2 2022 consolidated gold production of 30,652 ounces, which was the highest total since the acquisition of the Higginsville Mill in 2019.
The company said that H1 2022 production of 58,141 ounces places Karora well on track to deliver on improved full year consolidated 2022 gold production guidance of 120,000 to 135,000 ounces (previously 110,000 - 135,000 ounces), assuming no significant interruption to operations as a result of the COVID-19 virus in the second half of 2022.
For the second quarter of 2022, the company’s consolidated cash operating costs and all-in sustaining costs (AISC) were US$1,130 and US$1,190 per ounce sold, decreases of 14% and 15%, respectively compared to the prior quarter.
Karora noted that full year 2022 AISC guidance has been increased to a range of US$1,100 - US$1,200 per ounce sold (previously US$950 – US$1,050 per ounce sold) to adjust for the increased input costs driven largely by COVID-19 disruptions in the first quarter of 2022, in addition to elevated sector-wide inflationary impacts during 2022.
The company’s revenue for the second quarter of 2022 was $73.6 million, a 6% increase over the comparable period in 2021. The increase in revenue was mainly the result of higher average realized prices on ounces sold which increased by 6%.
Karora also reported net loss for the three months ended June 30, 2022 of $0.3 million compared to net earnings of $5.4 million for the comparable period in 2021, a decrease of $5.7 million.
The company explained that the decrease was mainly attributable to increases in production and processing costs, general and administrative costs, COVID-19 related costs and depreciation and amortization.
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Adjusted net earnings for the second quarter of 2022 were $4.7 million, or $0.03 per share, a 67% decrease compared to the same period in 2021, primarily due to higher costs associated with the current operating environment, the company said.
Karora added it continues to expect stronger second half cost performance when compared to the first half driven by improved grades and reduced cost pressures as experienced during first quarter of 2022.
Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations in Western Australia.