Karora Resources Inc. (TSX: KRR) announced this morning its operational and financial results for Q3 2021, recording gold production of 30,365 ounces. This is an increase from Q2 2021’s gold production of 29,831 ounces and Q3 2020’s gold production of 24,717 ounces.
The mining firm also sold during the quarter 28,935 gold ounces at an average realized price of US$1,778 per gold ounce, while recognizing an all-in sustaining cost of US$967 per ounce.
The company’s revenue for the quarter dipped to $68.4 million from last quarter’s $69.6 million but increased from last year’s $56.1 million. However, the quarterly net earnings increased to $10.3 million from $5.4 million last quarter, but declined from $34.9 million for the same quarter last year. This translates to $0.07 earnings per share.
The company attributes this decline to an unrealized non-cash foreign exchange loss of $2.4 million and a non-cash derivatives loss of $1.2 million. Adjusting these line items among other financial calibrations, adjusted EBITDA for the quarter came in at $28.5 million compared to last quarter’s $29.5 million and last year’s $24.7 million.
The gold producer’s cash inflow from operations for the quarter ended at $27.9 million vis-a-vis last quarter’s $26.4 million and last year’s $23.8 million. The company also ended the quarter with $86.7 million in cash and cash equivalents, up from the previous quarter’s ending balance of $82.2 million and 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 84,889 gold ounces for the first nine months of the year.
Karora Resources last traded at $4.70 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.
The Grocery Grift: Why Toronto and New York Are About to Light Taxpayer Money on Fire