Karora Announces Gold Production Guidance Of 185,000 – 205,000 Ounces By 2024
Karora Resources Inc. (TSX: KRR) announced today its three-year production guidance, highlighting 185,000-200,000 ounces of gold production at an all-in sustaining cost of US$885-US$985 per ounce by 2024. This production guidance is based on the 2020 year-end mineral reserves and resources report on December 16, 2020.
This three-year production guidance is approximately double the company’s gold production in 2020 at 99,249 ounces.
Karora’s 2021 production guidance remains at the previously announced 105,000-115,000 gold ounces at an AISC of US$985-US$1,085 per ounce. The guidance for 2022 is 120,000-140,000 gold ounces at an AISC of US$900-US$990 per ounce while the guidance for 2023 is 150,000-170,000 gold ounces at an AISC of US$890-US$990 per ounce.
The company’s growth plan will be driven mainly by its Beta Hunt and Higginsville mines. Karora projects Beta Hunt to produce 2.0 million tonnes per annum by 2024. Currently, the mine’s run rate is 75,000-85,000 tonnes per month and is expected by the company to reach 160,000-170,000 tonnes per month by 2024.
On the other hand, Karora plans to launch the second phase of its Higginsville mill expansion, expecting the mine to reach a throughput rate of 2.5 million tonnes per annum by 2024. The company previously reported that this expansion phase would incur A$50.0 million in costs from mid-2022 through mid-2023. Currently, the mill is on its first phase of expansion to reach a throughput rate of 1.6 million tonnes per annum.
Karora CEO Paul Huet claims the company is in a position to deliver this guidance as supported by funds from a “current cash balance of almost $80 million and cash flow from operations during this period.” The company also intends to refinance its existing $30 million debt facility to provide flexibility.
Karora Resources Inc. last traded at $3.85 on the TSX.
Information for this briefing was found via Sedar and Karora Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.