Karora Resources Sees Costs Fall In Q1 As Production Hits 39,827 Ounces
Karora Resources (TSX: KRR) is on track to meet full year 2023 production guidance of 145,000 to 160,000 gold ounces following the firms performance in the first quarter. The company managed to produce 39,827 ounces in the the first quarter.
Revenue was flat on a quarter over quarter basis, with Karora posting revenues of $96.8 million, in line with the fourth quarter of 2022, which saw record figures posted. On a year over year basis, revenue improved 48%, a direct result of gold ounces sold increasing 38%, as well as the rising value of the yellow metal.
At the same time, the company managed to bring down its costs on a per ounce basis, with cash operating costs falling from US$1,310 to US$1,124 on a year over year basis. All in sustaining costs meanwhile dropped from US$1,396 to $1,213 on a year over year basis, meeting guidance for 2023 of AISC’s of US$1,100 to US$1,250 per ounce.
The improvements on a year over year basis are said to be a result of the Beta Hunt mine, which accounted for over 65% of gold production at 26,577 ounces, while also posting lower costs than other mines operated by Karora with AISC per ounce coming in at $967.
READ: Karora Reduces 2023 Gold Production Guidance As It Increases Focus On Nickel
“We are off to a strong start in 2023, with record quarterly production exceeding target levels driven by grade outperformance and higher than expected tonnes mined and processed,” commented CEO and Chairman Paul Andre Huet.
With the sustained revenues, the company managed to improve to $8.6 million. This however was not enough for Karora to post positive net earnings, with the firm reporting a net loss of $2.9 million for the three month period. Cash flow from operating activities improved to $28.6 million during the quarter, before changes in non-cash working capital.
The company meanwhile maintained its 2023 and 2024 guidance, expecting gold production for the year to be between $145 – 160 koz, growing to 170 – 195 koz next year.
Karora Resources last traded at $5.17 on the TSX.
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