Karora hits Q1 gold targets despite weather, power disruptions
Karora Resources Inc. [KRR-TSX, KRRGF-OTCQX] said it met its first quarter 2024 gold production targets in Australia in spite of wet weather and a regional interruption of the power grid.
The company reported first quarter consolidated gold production of 36,147 ounces and sales of 40,343 ounces from its Beta Hunt and Higginsville operations.
“Beta Hunt and Higginsville operations delivered within range despite two weeks of extreme wet weather conditions that impacted all producers in the region,’’ said Karora Chairman and CEO Paul Andre Huet. “Additionally, there was a regional two-week interruption to grid power that impacted the Lakewood mill resulting in approximately two weeks of processing being lost, with power subsequently being restored.’’
Karora is focused on increasing gold production to a targeted range of 170,000 to 185,000 ounces in 2024 at its integrated Benta Hunt Gold Mine and Higginsville Gold Operations in Western Australia, approximately 60 kilometres from Kalgoorlie, along the prolific Norseman-Wiluna Greenstone Belt.
The Higginsville treatment facility is a low-cost 1.6 million tonne-per-annum processing plant, which is fed at capacity from Karora’s underground Beta Hunt and Higginsville mines. In July, 2022, Karora acquired the 1.0 million tonne-per-year Lakewood mill in Western Australia.
The company was recently working to complete a second decline at Beta Hunt gold mine. In its latest press release, the company said the Beta Hunt production ramp up remains on track. It said it remains confident in its full year 2024 gold production guidance target of 170,000 to 185,000 ounces. The company is guiding investors to anticipate all-in-sustaining costs (AISC) of between US$1,250 and US$1,375 per ounce sold.
“Our first quarter sales performance was boosted by shipment timing and strong gold prices, resulting in an increase in our cash position of $4.8 million to $87.3 million at the end of he first quarter compared to December, 31, 2023, continuing to strengthen the balance sheet,’’ the company said.
The second decline has been integral to Karora’s production growth plan to double throughput at Beta Hunt to 2.0 million tonnes per annum and increase gold production of up to 185,000 by 2024. The company previously said that target was expected to be achieved via a self-funded growth plan. The company has said the growth capital required is carefully phased over a 3.0-year period to allow for consistent free cash flow generation during the expansion.
By the end of 2024, Karora’s three-year growth plan will have been executed to deliver a 2.0 million tonne per year operation at Beta Hunt feeding two upgraded mills alongside contributions from Higginsville Gold Operations, the company said.
Karora shares advanced on the news, rising 2.3% or 12.5 cents to $4.55. The shares trade in a 52-week range of $5.62 and $3.60.