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(Kitco News) - Karora Resources (TSX: KRR) announced today that its Q1 2023 gold production of 39,827 ounces exceeded target levels and increased 45% from Q1 2022 reflecting growth of 27% in tonnes processed and a 13% improvement in average grade.
In a press release, the company said that production ended the quarter on track to achieve full-year 2023 guidance of 145,000 – 160,000 ounces.
Cash operating costs and all-in sustaining costs (AISC) per ounce sold averaged US$1,124 and US$1,213, respectively, compared to US$1,310 and US$1,396, respectively, for same period a year earlier.
The company added that AISC per ounce sold was in line with full-year 2023 guidance of US$1,100 – US$1,250.
Karora also reported that its Q1 2023 revenue totalled C$96.8 million, 48% higher than in Q1 2022 reflecting a 38% increase in gold ounces sold, to 36,145 ounces, and was largely unchanged from the quarterly record set in Q4 2022.
Importantly, the company said Q1 2023 cash flow provided by operating activities before change in non-cash working capital of C$28.6 million more than doubled from the Q1 2022 level of C$12.2 million and increased 2% from C$28.2 million in Q4 2022.
Karora noted that Q1 2023 net loss of C$2.9 million (C$0.02 per share) improved from a net loss of C$3.7 million (C$0.02 per share) in Q1 2022 and largely reflected non-cash, unrealized losses of C$6.2 million and C$3.9 million related to derivatives and foreign exchange, respectively.
The company's adjusted earnings totalled C$4.8 million (C$0.03 per share) versus C$1.1 million (C$0.01 per share) in Q1 2022 and C$8.7 million (C$0.05 per share) in Q4 2022.
Chairman and CEO Paul Andre Huet commented, "We are off to a strong start in 2023, with record quarterly production exceeding target levels driven by grade outperformance and higher than expected tonnes mined and processed. Our unit costs are tracking in line with our 2023 plan and guidance and improved 14% from last year's first quarter.
"We also continued to advance our capital programs on schedule and budget, with the second decline and first of three ventilation raises at Beta Hunt completed during the quarter. Overall, the expansion project remains on track to support the mine's growth to an annualized production rate of 2.0 Mtpa over the course of 2024 and we sit well positioned to achieve all of our production, cost and capital expenditure guidance for full-year 2023."
Karora is focused on increasing gold production to a targeted range of 170,000-195,000 ounces by 2024 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 came into production in 2021.
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