Karora Resources 2Q Gold Output Reaches Record High; Upgrades Bottom End of 2022 Guidance — Commodity Comment

By Adriano Marchese


Karora Resources Inc.’s gold production hit a company high in the second quarter and the company saw a significant reduction in costs. The company also upgraded its guidance as a result of its positive momentum.


On production:

“Our second quarter gold production of 30,652 ounces represents a new quarterly production record since the acquisition of the Higginsville mill [in Western Australia] in 2019 and our AISC costs were much improved at US$1,190 per ounce sold, a tremendous 15% reduction compared to the prior quarter when we faced significant Covid-related costs.”

“Gold production of 30,652 ounces was the highest total since the acquisition of the Higginsville Mill in 2019 and a 12% improvement compared to 27,489 ounces produced in the first quarter.”

“Record tonnage performance at Beta Hunt with 290,000 metric tons mined during the second quarter. Tonnes mined through the single decline have been steadily increasing as productivity and operational performance improve in advance of the commissioning of the second decline in the first quarter of 2023, despite challenges with Covid related interruptions and tight labour market conditions.”


On future production:

“The purchase of the Lakewood mill increases tolling capacity of the group to approximately 2.6 million tons per year, significantly de-risking growth plans to increase gold production to between 185,000 and 205,000 ounces by 2024 given the current significant cost pressures experienced in new capital projects across the industry.”

“Karora has increased the lower end of its previously announced full year consolidated 2022 production guidance to a range of between 120,000 to 135,000 ounces of gold (previously 110,000-135,000 ounces) following strong first half 2022 production of 58,141 ounces.”


Write to Adriano Marchese at adriano.marchese@wsj.com


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