Impact: Mildly Positive
Karora released solid Q2/20 financial results that were roughly in line with our estimates and demonstrates to us that the company is sustaining the momentum generated by its turnaround. Despite the ongoing challenges and costs associated with COVID-19, the company has been able to maintain steady gold production and execute numerous strategic corporate initiatives to unlock additional potential for H2/20. In our view, with corporate improvements complete, investors can focus on operating results and exploration success, which we believe should continue to drive Karora’s share price higher and close the valuation gap with peers.
