October 14, 2022
Karora Resources Inc. (TSX:KRR, BUY, C$7.50 target, David A. Talbot) announced record consolidated gold production of 38,437 ounces from its Beta Hunt and Higginsville mines in Western Australia in Q3/22, which beat our estimate of 34,762 oz Au by 11%. This marks a 25% increase from the previous production record set in Q2/22 of 30,652 oz Au (read more). About 2,500 oz can be considered an opportunistic processing of high grade course gold that management expects to happen from time to time. Production included material processed from the newly acquired Lakewood mill (read more), which began in August/22. The company also announced Q3 gold sales of 35,513 oz, and a cash balance of C$56M as at September 30, 2022. Management mentioned that it’s aggressive exploration budget of A$20M and robust balance sheet should help underpin its plans to organically grow production to 185k to 200k oz per annum by 2024. Moving forward, we believe several near-term catalysts should help drive the stock including drilling results from the Beta Hunt mine, along with a gold reserve and nickel resource update. Read more
Company Specific Disclosure Details
Karora Resources Inc. – TSX:KRR – 3,4,7
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