Karora Resources Inc. (TSX: KRR) announced this morning its operational and financial results for Q2 2021, recording gold production of 29,831 ounces. This is an increase from Q2 2020’s gold production of 24,078 ounces.
The mining firm also sold during the quarter 30,412 gold ounces at an all-in sustaining cost of US$996 per ounce, compared to last year’s 23,185 gold ounces with US$1,065 AISC per ounce.
Corollary, the company’s revenue for the quarter increased to $69.6 million from last year’s $56.1 million. However, the quarterly net earnings dropped to $5.4 million from $9.8 million for the same quarter last year. This translates to $0.04 earnings per share.
The company attributes this decline to an unrealized non-cash foreign exchange loss of $4.5 million and a non-cash derivatives loss of $2.9 million. Adjusting these line items among other financial calibrations, adjusted EBITDA for the quarter came in at $29.5 million compared to last year’s $20.3 million.
The gold producer’s cash inflow from operations for the quarter ended at $26.4 million vis-a-vis last year’s $22.3 million. The company also ended the quarter with $82.2 million in cash and cash equivalents, up from the December 31, 2020 balance of $79.7 million.
In June 2021, the company shared its growth plan guided by annual production guidance of 185,000-200,000 gold ounces by 2024, with a 2021 annual guidance of 105,000-115,000 gold ounces. To date, the company has produced 54,524 gold ounces for the year.
Haywood Capital Markets also recently reiterated their 12-month price target of $6.00 based on Karora’s annual production guidance announcement.
Karora Resources last traded at $3.61 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.