Karora Resources Inc. (TSX: KRR) (“Karora” or the “Company”) today announced financial and operating results for the first quarter of 2023 (“Q1 2023”). The Company’s full unaudited condensed interim financial statements and management discussion & analysis (“MD&A) are available on SEDAR at www.sedar.com and on the Company’s website at www.karoraresources.com. All dollar amounts are in Canadian dollars, unless otherwise noted.
RECORD QUARTERLY PRODUCTION
- Production of 39,827 ounces exceeded target levels and increased 45% from the first quarter of 2022 (“Q1 2022”) reflecting growth of 27% in tonnes processed and a 13% improvement in average grade; Production ended the quarter on track to achieve full-year 2023 guidance of 145,000 – 160,000 ounces.
UNIT COSTS ON TRACK TO ACHIEVE 2023 GUIDANCE
- Cash operating costs1 and all-in sustaining costs (“AISC”)1 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; AISC1 per ounce sold was in line with full-year 2023 guidance of US$1,100 – US$1,250.
REVENUE MATCHES QUARTERLY RECORD SET IN Q4 2022
- Revenue totalled $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 the fourth quarter of 2022 (“Q4 2022”).
STRONG IMPROVEMENT IN OPERATING EARNINGS FROM Q1 2022 AND Q4 2022
- Operating earnings of $8.6 million improved from a Q1 2022 operating loss of $2.3 million and increased 31% from Q4 2022.
SOLID OPERATING CASH FLOW GENERATION
- Cash flow provided by operating activities before change in non-cash working capital of $28.6 million more than doubled from the Q1 2022 level of $12.2 million and increased 2% from $28.2 million in Q4 2022.
EARNINGS PERFORMANCE REFLECTS NON-CASH, OTHER EXPENSES
- Net loss of $2.9 million ($0.02 per share) improved from a net loss of $3.7 million ($0.02 per share) in Q1 2022 and largely reflected non-cash, unrealized losses of $6.2 million and $3.9 million related to derivatives3 and foreign exchange, respectively; Adjusted earnings totalled $4.8 million ($0.03 per share) versus $1.1 million ($0.01 per share) in Q1 2022 and $8.7 million ($0.05 per share) in Q4 2022.
CONTINUED PROGRESS WITH GROWTH PLAN
- Development of second (west) decline and first of three ventilation raises at Beta Hunt completed on schedule and budget in Q1 2023; Expansion of Beta Hunt remains on track to support growth to annualized production rate of 2.0 Mtpa during 2024.
ADDITONAL EXPLORATION SUCCESS HIGHLIGHTS FUTURE POTENTIAL OF BETA HUNT
- Drilling at Beta Hunt continued to extend mineralization at both Western Flanks and the A Zone and to demonstrate the significant potential of the Mason and Cowcill zones to emerge as important new mining opportunities; Subsequent to the end of Q1 2023, new high-grade gold intersections, including 6.5 g/t over 26 metres and 46.5 g/t over 7.0 metres, were released extending the drill-supported strike potential of the Fletcher Shear Zone by 900 metres for a total potential strike length of 1.4 km.
SOLID GROWTH IN RESERVES AND RESOURCES3
- Gold Mineral Reserves at Beta Hunt increased 12% to 538,000 ounces, with growth in gold Measured and Indicated Mineral Resources of 20% to 1.35 million ounces; Nickel Measured and Indicated Mineral Resources were increased 8% to 21,100 tonnes.
- Non-IFRS: the definition and reconciliation of these measures are included in the “Non-IFRS Measures” section of this news release and in the MD&A for the three months ended March 31, 2023.
- Relates to the Company’s Morgan Stanley royalty agreement (see Note 11 of the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2023 for more information).
- For a full review of the Mineral Reserve and Mineral Resource estimates at Beta Hunt released during Q1 2023 and effective as of September 30, 2022, please see the technical report filed at www.sedar.com.
