April 8, 2024
Karora Resources Ltd. (TSX:KRR, BUY, C$7.30 target, David A. Talbot) reported quarterly gold production of 36,147 oz for Q1/24, slightly below our estimate of 45,481 oz Au. Gold production was negatively impacted by two weeks of extreme wet weather in the region that reduced ore deliveries to the mills and a two-week regional interruption to grid power that impacted throughput at the Lakewood mill, while primary crushing was restored at the Higginsville mill. Gold sales were 40,343 oz and when combined with higher Q1/24 gold prices, should drive economics and offset the impact of lower production. Karora remains confident it will meet FY24 production guidance of 170-185k oz Au and we currently forecast 182k oz Au. The AISC guidance range remains at US$1,250-US$1,375/oz (read note). Development continues on the exploration drive toward the new Fletcher zone where encouraging exploration drill results have been reported (read here, here, and here), with initial cuts expected in H2/24. Additionally, Karora reported a cash balance of C$87.3M as of March 31, 2024, which increased C$4.8M from the previous quarter. Read more
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Karora Resources Inc. – TSX:KRR – 7
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