July 16, 2021
Karora Resources Inc. (TSX:KRR, BUY, C$9.00 target, David A. Talbot) announced record quarterly gold sales of 30,412 ounces and record gold production of 29,831 ounces during Q2/21. Gold production in the quarter rose by 20% QoQ, which was slightly ahead of our production forecast of ~27,100 oz. The beat was largely driven by the Phase I HGO mill expansion, as well as significant investments in higher-grade mining areas at Higginsville Central and Spargos and the enhancement of its mining fleet. H1/21 production was reported at 54,525 oz which is on track with 2021 production guidance of 105,000-115,000 oz. We expect production to rise further in Q3 and Q4. As previously announced, plans are in place to more than double production from 99,239 oz in 2020 to 185,000 – 205,000 oz by 2024 (read more). The company also ended the second quarter with a consolidated cash balance of C$82.2M, an increase of C$5.4M relative to the first quarter. Read more