Impact: Mildly Positive
Karora announced Q3/20 production of 24,717 oz Au. Importantly, these solid results appear to have translated to the balance sheet with quarter ending cash balance up 34% QoQ to C$67.3M. In our view, this bodes well for the company’s upcoming financial results which we expect to deliver QoQ and YoY improvements for the most part. As Karora continues to demonstrate steady operations, the company is building a foundation for the next leg of growth, which we expect to be delivered via the drill bit. We believe the exploration success, which translates to resource growth has the potential to further re-rate Karora.