Karora will host a call/webcast on August 9, 2021 at 10:00
a.m. (Eastern Time) to discuss the second quarter 2021
results. North American callers please dial: 1-888-664-6392,
international callers please dial: (+1) 416-764-8659. For
the webcast of this event click
[here] (replay access information
below).
TORONTO, Aug. 9, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to
announce its financial results and review of activities for the
three and six months ended June 30,
2021. All amounts are expressed in Canadian dollars, unless
otherwise noted. For additional information please refer to
Karora's Management's Discussion & Analysis ("MD&A") and
unaudited condensed interim financial statements for the three and
six months ended June 30, 2021 and
2020.
Highlights
- Record second quarter 2021 consolidated gold production of
29,831 ounces and gold sales of 30,412 ounces was ahead of budget,
positioning the Corporation well to deliver 2021 guidance. Full
year consolidated 2021 gold production guidance of 105,000 to
115,000 ounces is maintained (assumes no significant interruption
to operations as a result of the COVID-19 virus).
- Second quarter 2021 consolidated all-in-sustaining-costs
("AISC")1 of US$996 per
ounce was on track with the full year 2021 guided range of
US$985-$1,085 per ounce and a 5% reduction, or
US$53 per ounce, compared to first
quarter AISC of US$1,049 per
ounce.
- Adjusted earnings1 of $14.3
million, or $0.10 per share
for the second quarter of 2021, up $11.6
million from $2.7 million in
the second quarter of 2020 and up $6.2
million (or $0.04 per share)
compared to the first quarter of 2021.
- Adjusted EBITDA1 was $29.5
million or $0.20 per share for
the second quarter of 2021, up $9.2
million from $20.3 million in
the second quarter of 2020 and up $8.3
million from $21.2 million in
the first quarter of 2021.
- Cash flow from operating activities of $26.4 million, an 18% increase compared to
$22.3 million for the second quarter
of 2020 and up $7.7 million (or
$0.05 per share) compared to the
first quarter of 2021.
- Karora ended the second quarter of 2021 with a strong cash
position of $82.2 million and working
capital of $64.8 million, higher by
$5.5 million and $1.6 million, respectively, from March 31, 2021.
- On June 28, 2021 the Corporation
announced a multi-year growth plan funded through operating cash
flows and current cash balance. Three-year production and cost
guidance will approximately double consolidated gold production to
185,000 – 205,000 ounces by 2024 at an AISC of US$885-US$985 per
ounce. The growth plan includes a significant expansion of Beta
Hunt to increase underground production to 2.0 million tonnes per
annum ("Mtpa") by 2024 through the addition of a second
decline.
- The three year growth plan includes a Phase II expansion of the
Higginsville processing plant, increasing throughput to 2.5 Mtpa by
2024. A Phase I expansion to 1.6 Mtpa from 1.4 Mtpa is currently
underway.
- Karora announced a new high grade nickel discovery at Beta
Hunt, the second in the last six months, known as the Gamma Zone -
50C, where 11.6% nickel over 4.6 metres, including 18.4% nickel
over 2.2 metres was intersected in hole G50-22-005E. Drilling also
intersected gold mineralization above and below the 50C trough and
indicates the Beta Hunt gold mineralized system extends for over
3.5 kilometres of strike from the northern end of the A Zone (See
Karora news release dated April 6,
2021). Follow up drilling is ongoing as part of a new
dedicated nickel exploration unit established at Beta Hunt during
the second quarter.
Paul Andre Huet, Chairman &
CEO, commented: "Karora's second quarter performance was very
impressive with record gold production of 29,831 ounces, record
gold sales of 30,412 ounces and AISC of US$996 per ounce sold. The strong second quarter
production was driven primarily by strong grade performance across
both operations and marked a 20% improvement over the prior seven
quarters, which averaged approximately 25,000 ounces per
quarter.
Our operations delivered an outstanding quarter despite
difficult weather conditions towards the end of the period which
have extended into the first part of the third quarter. The
Kalgoorlie area has seen record rainfall which has challenged
mining operations and ore haulage across the district. I am
extremely proud of our team's ability to prepare and adapt for
these conditions, as we did when faced with multiple obstacles
during 2020.
For the first six months of 2021 gold production was 54,524
ounces and AISC1 was US$1,020 per ounce sold, placing us in excellent
position to achieve our full year 2021 gold production guidance of
between 105,000 and 115,000 ounces and AISC1 of
US$985-$1,085 per ounce sold.
Karora delivered another solid financial performance in the
second quarter of 2021 with Adjusted EBITDA1 of
$29.5 million or $0.20 per share, operating cash flow of
$26.4 million or $0.18 per share and consolidated AISC1
of US$996 per ounce sold,
US$53 per ounce lower than the prior
quarter.
Net earnings of $5.4 million, or
$0.04 per share, were impacted by an
unrealized non-cash foreign exchange loss of $4.5 million, or $0.03 per share, and a non-cash derivatives loss
of $2.9 million, or $0.02 per share, primarily related to
intercompany loans and derivatives, respectively, which are subject
to valuation changes due to quarter over quarter currency
fluctuations. We reiterate that these are unrealized intercompany
loans as we do not transfer cash out of the Australian business
unit. Adjusted for these items among others, our Adjusted
earnings1 were $14.3
million or $0.10 per
share.
Overall, with Karora's strong cash balance of $82.2 million at the end of the second quarter we
are in a strong financial position to fully fund our recently
announced organic growth plan. As with the first quarter, we
continued to deploy capital into the preparatory work for this
expanded production base during the second quarter with new
equipment delivered to Beta Hunt and earthworks across
Higginsville. Over the coming months, using the growth plan as a
basis to provide additional financial flexibility, we also intend
to refinance our existing $30 million
debt facility to materially lower our interest costs."
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section 17 of Karora's MD&A dated August 9,
2021.
|
COVID-19 Protocols
In response to the global COVID-19 pandemic, Karora's protocols
and contingency plans have mitigated impacts of the pandemic.
Karora's operations continued to be consistent with the
Corporation's full year 2021 guidance for the second quarter of
2021. Karora's ongoing response to the COVID-19 pandemic continues
to prioritize the safety of its workforce and host communities
while mitigating potential operational impacts.
Results of Operations
Table 1 - Highlights of operational results for the periods
ended June 30, 2021 and 2020
|
Three months
ended
|
Six months
ended
|
For the periods ended
June 30,
|
2021
|
2020
|
2021
|
2020
|
Gold Operations
(Consolidated)
|
|
|
|
|
Tonnes milled
(000s)
|
345
|
326
|
716
|
640
|
Recoveries
|
94%
|
92%
|
93%
|
93%
|
Gold milled, grade
(g/t Au)
|
2.72
|
2.26
|
2.43
|
2.30
|
Gold produced
(ounces)
|
29,831
|
24,078
|
54,524
|
48,895
|
Gold sold
(ounces)
|
30,412
|
23,185
|
55,959
|
47,811
|
Average realized price
(US $/oz sold)
|
$1,823
|
$1,609
|
$1,793
|
$1,549
|
Cash operating costs
(US $/oz sold)1
|
$874
|
$935
|
$910
|
$950
|
All-in sustaining cost
(AISC) (US $/oz sold)1
|
$996
|
$1,065
|
$1,020
|
$1,084
|
Gold (Beta Hunt
Mine)
|
|
|
|
|
Tonnes milled
(000s)
|
221
|
186
|
454
|
372
|
Gold milled, grade
(g/t Au)
|
3.35
|
2.64
|
2.98
|
2.61
|
Gold
produced(ounces)
|
22,354
|
16,818
|
40,615
|
33,988
|
Gold sold
(ounces)
|
22,991
|
16,024
|
41,724
|
33,102
|
Cash operating cost
(US $/oz sold)1
|
$787
|
$982
|
$837
|
$963
|
Gold (HGO
Mine)
|
|
|
|
|
Tonnes milled
(000s)
|
124
|
140
|
262
|
268
|
Gold milled grade (g/t
Au)
|
1.99
|
1.75
|
1.77
|
1.87
|
Gold produced
(ounces)
|
7,477
|
7,260
|
13,909
|
14,907
|
Gold sold
(ounces)
|
7,421
|
7,161
|
14,214
|
14,709
|
Cash operating cost
(US $/oz sold)1
|
$1,141
|
$829
|
$1,120
|
$923
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section 14 of Karora's MD&A dated August 9,
2021.
|
Consolidated Operations
For the second quarter of 2021, Karora's gold operations milled
345,000 tonnes of material at an average grade of 2.72 g/t to
produce 29,831 ounces of gold. Tonnes milled were 7% lower than the
first quarter due to a planned maintenance shut down and the impact
of above average seasonal rains during the latter part of the
second quarter. Lower tonnes milled were more than offset by higher
gold milled grades which were 26% higher in the second quarter
compared to the first quarter primarily due to higher stope grades
mined at Beta Hunt.
The previously announced Phase I mill expansion is proceeding
ahead of schedule. Once completed, the Phase I expansion will
increase production capacity at our Higginsville mill by
approximately 15%, or 550 tonnes per day, to 1.6 million tonnes per
annum from the prior capacity. During the second quarter, the
mill feed was made up of approximately 64% material from the Beta
Hunt underground and 36% material from Higginsville Central open
pit, which was in line with the prior quarter.
Beta Hunt
Production for the second quarter of 2021 was 221,000 tonnes
milled at a grade of 3.35 g/t, a 5% decrease and 27% increase,
respectively, compared to the first quarter of 2021.
Beta Hunt's ongoing ramp up in production is a direct reflection
of improved mining techniques and a staged fleet replacement and
upgrade program. Two CAT R2900 underground loaders and two CAT AD60
trucks are planned for 2021. The first of these two new trucks
recently hauled its first load of ore at Beta Hunt while both CAT
R2900 loaders arrived in June
2021.
Nickel production is currently limited to remnant nickel
resources south of the Alpha Fault. Recent drilling has identified
a number of new areas including the 30C Nickel Trough where
production can potentially be increased as well as the new Gamma
Zone 50C discovery.
Higginsville ("HGO") Central
HGO material milled during the second quarter of 2021 was
124,000 tonnes at a grade of 1.99 g/t, a 10% decrease and 27%
increase, respectively, compared to the first quarter of 2021. The
second quarter saw an increase in mined tonnes from Hidden Secret
as two underground operations were prepared to come online in the
second half of 2021.
At Hidden Secret, 156,700 tonnes were mined compared to 141,078
tonnes for the first quarter. Metallurgical recoveries were aligned
with test work at 92-95%. At the nearby Mousehollow deposit, grade
control work continued during the quarter which will provide Karora
additional operational flexibility and mill feed optimization once
mining of the pit commences.
Pre-production works for the Aquarius underground mine commenced
in the second quarter of 2021 with the final box cut, portal
establishment, and commencement of decline development expected in
the third quarter of 2021. The box cut has been positioned to
intersect supergene ore close to the surface, which will be mined
as the box cut advances and will help offset overall development
costs. Development of the decline will continue throughout the
third and fourth quarter with initial level development ore
expected late in the fourth quarter of 2021 and stope production
starting shortly thereafter. The Aquarius deposit remains open
along strike and at depth with follow up drilling to be carried out
from lateral underground development which will provide optimal
drill bay locations.
Karora began mine re-entry works at the Two Boys underground in
the second quarter of 2021 following dewatering of the historical
operations. Rehabilitation will continue throughout the third
quarter of 2021 in conjunction with development to access remnant
and new ore blocks. A revised development and stope production plan
is currently being updated to include recent face samples (5-10
g/t), surface drilling and re-mapping of historic workings.
Drilling is also underway into surface mineralization adjacent to
Two Boys which could extend into the upper levels of Two Boys
underground, currently not considered in the mine plan.
Spargos Reward Gold Mine
Preparation of site infrastructure and mobilization of equipment
at Spargos progressed well during the second quarter and pre-strip
of the open pit commenced in June. Mining of lower grade ore in the
first bench at Spargos is underway, with higher grades from the
open pit anticipated to feed the HGO mill by mid fourth
quarter.
On June 28, 2021, Karora announced
its initial Spargos Mineral Resource. The new Mineral Resource
presents a 15% increase in ounces and also a higher confidence
basis from which to commence mining activities compared to the
historic Corona Resources Mineral Resource estimate (Corona
Resources news release "Resource Estimate Update for Spargos Reward
Project Eastern Goldfields Western Australia' dated on February 26, 2020"). The infill and resource
definition drilling efforts completed by Karora as part of the new
estimate, totaling 13,377 metres, were focused on delineating the
near-term open pit mining opportunity now underway.
Table 2 - Spargos Gold Deposit Mineral Resource Estimate as
at June 24, 2021
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Spargos
1.2.3.4.5
|
241
|
2.4
|
19
|
836
|
3.2
|
86
|
1,077
|
3.0
|
105
|
401
|
3.5
|
45
|
1.
|
Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the
Mineral Resources estimated will be converted into Mineral
Reserves.
|
2.
|
The Mineral Resource
estimates include Inferred Mineral Resources that are normally
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as Mineral Reserves. There is also no certainty that
Inferred Mineral Resources will be converted to Measured and
Indicated categories through further drilling, or into Mineral
Reserves once economic considerations are applied. Mineral resource
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding
|
3.
|
Gold Mineral
Resources are reported using a 0.5 g/t Au cut-off grade above
300mRL, and 1.6g/t Below 300mRL
|
4.
|
Mineral Resources
described here are based on information compiled by Graham de la
Mare, Principal Resource Geologist for Karora Resources. Graham de
la Mare is an employee of KRR and is a Fellow of the Australian
Institute of Geoscientists (FAIG, 1056).
|
5.
|
This Mineral Resource
estimate may be materially affected by legal, political,
environmental and other risks.
|
6.
|
Mineral Resource
Estimate as of June 24, 2021.
|
An extensive geological review completed by Karora exposed that
little drill testing exists for underground mineralization below
the 300mRL (150 metres below surface) outside of the Mineral
Resource. The northern margin is constrained by just three
historic holes (including two wedges). These holes are considered
to have missed the high grade plunging shoot positions which remain
open at depth down plunge. The southern margin of the Mineral
Resource is limited by a single historic hole and is considered
virtually untested. The northern and southern strike extensions of
the Spargos Mineral Resource are also poorly tested by historic
drilling and represent a significant underground growth
opportunity. As such, the Mineral Resource remains open in both
directions.
The next stage of exploration drilling will be focused on
extending high grade gold mineralization outside the margins of the
current Mineral Resource and at depth to further define the
potential for a high grade underground operation at Spargos.
Cash Operating Costs and AISC1
For the second quarter, consolidated cash operating
costs1 and AISC1 were US$874 and US$996
per ounce sold, respectively, which represents reductions of 8% and
5% compared to the first quarter of 2021, primarily due to higher
ounces sold and productivity improvements. The second quarter cost
performance is in line with full year 2021
AISC1 guidance range of US$985-$1,085 per
ounce.
Outlook
Karora is maintaining its previously announced full year
consolidated 2021 production guidance of between 105,000 - 115,000
ounces of gold at an AISC1 range of US$985 to US$1,085
per ounce.
On June 28, 2021, the Corporation
announced three-year consolidated production guidance as part of a
multi-year growth plan that is expected to see gold production
double from 99,249 ounces in 2020 to a range of 185,000 – 205,000
ounces in 2024, at an AISC1 of US$885 to US$985
per ounce sold. Table 3 below outlines production, cost and capital
investment guidance for 2021-2024.
Table 3 – Consolidated Multi-Year Guidance to 2024
Production &
Costs
|
|
2021
|
2022
|
2023
|
2024
|
Gold
Production
|
Koz
|
105 - 115
|
120 – 140
|
150 – 170
|
185 - 205
|
All-in sustaining
costs
|
US$/oz
|
985 -
1,085
|
900 – 990
|
890 – 990
|
885 - 985
|
Capital
Investments
|
Sustaining
Capital
|
A$ (M)
|
5 - 6
|
8 – 13
|
11 – 16
|
18 - 23
|
Growth
Capital
|
A$ (M)
|
40 - 46
|
45 – 55
|
47 – 57
|
30 - 40
|
Exploration &
Resource
Development
|
A$ (M)
|
20 - 23
|
21 – 24
|
22 –
25
|
20 – 23
|
(1)
|
2021 Guidance, which
was announced in January 2021 (see Karora news release dated
January 19, 2021), is unchanged. This production guidance
through 2024 is based on the 2020 year-end Mineral Reserves and
Mineral Resources announced on December 16, 2020.
|
(2)
|
The Capital
Investment amounts listed above, which the Corporation expects to
fund with cash on hand and cashflow from operations, includes the
capital required during the applicable periods to expand the
capacity of the Higginsville mill to 2.5 Mtpa. See below for
further detail regarding this expansion.
|
(3)
|
The material
assumptions associated with the expansion of Beta Hunt mining
production rate to 2.0 Mtpa in 2024 include the addition of a
second ramp decline system driven parallel to the ore body,
ventilation and other infrastructure that is required to support
these areas, and an expanded trucking fleet. The Capital Investment
amounts listed above, which the Corporation expects to fund with
cash on hand and cashflow from operations, include the capital
required during the applicable periods to fund this production
expansion. See below for further detail regarding this
expansion.
|
(4)
|
The Corporation's
guidance assumes targeted mining rates and costs, availability of
personnel, contractors, equipment and supplies, the receipt on a
timely basis of required permits and licenses, cash availability
for capital investments from cash balances, cash flow from
operations, or from a third-party debt financing source on terms
acceptable to the Corporation, no significant events which impact
operations, such as COVID-19, nickel price of US$16,000 per tonne,
as well as an A$ to US$ exchange rate of 0.78 and A$ to C$ exchange
rate of 0.91. Assumptions used for the purposes of guidance may
prove to be incorrect and actual results may differ from those
anticipated. See below "Cautionary Statement Concerning
Forward-Looking Statements".
|
(5)
|
Exploration
expenditures include capital expenditures related to infill
drilling for Mineral Resource conversion, capital expenditures for
extension drilling outside of existing Mineral Resources and
expensed exploration. Exploration expenditures also includes
capital expenditures for the development of exploration
drifts.
|
(6)
|
Capital expenditures
exclude capitalized depreciation.
|
(7)
|
AISC guidance
includes general and administrative costs and excludes share-based
payment expense.
|
(8)
|
See "Non-IFRS
Measures" set out at the end of this MD&A.
|
The growth plan will be driven by an expansion of Beta Hunt
underground mine production to 2.0 Mtpa by 2024, from 0.8 Mtpa
recorded in 2020. Increased production from Beta Hunt will be
complemented by ore from HGO Central and Spargos. The increased
tonnage will be processed by the Higginsville mill, which will be
expanded to a capacity of 2.5 Mtpa by 2024 (Phase II). This Phase
II expansion will follow the current Phase I expansion to 1.6 Mtpa
from 1.4 Mtpa. Advanced internal study work and detailed
engineering is progressing ahead of a formal construction decision
by the Board of Directors.
Further details on the growth plan can be found in Karora's news
release dated June 28, 2021, and the
second quarter MD&A.
Exploration and Resource Definition Drilling
Karora has identified multiple high priority exploration targets
for 2021 as part of its significantly expanded A$20 million exploration budget across its +1,900
km2 land package.
At Beta Hunt, underground drilling continues to extend and
upgrade both the Western Flanks and A Zone Mineral Resources. In
addition, the gold drilling program is scheduled to test parallel
mineralized zones to the Larkin Zone. June
2021 marked the commencement of a surface RC and diamond
drilling program targeting the northern extensions of the A Zone
and Western Flanks. A nickel drilling program has commenced
and is supported by a newly expanded nickel exploration team that
will be focused on extending both the 30C and 50C nickel
troughs.
At Higginsville, stage 2 aircore infill drilling of the Lake
Cowan Project area continued with 129 holes for 4,821 metres
completed. Incoming results from the program will be evaluated with
the aim of developing a follow-up drill program. Laboratory
turn-around of samples remains a regional issue with a substantial
back log across third party laboratories. Karora is mitigating the
impact through the use of multiple laboratories within the region,
including sending some samples to Perth for assays.
Exploration work at HGO for the remainder of the third quarter
of 2021 includes interpreting and ranking the results from the
approximate 36,000 metres of aircore drilling over Lake Cowan and
evaluating the results and drill targets from a new geological and
mineralization model completed over the highly prospective and
underexplored Sleuth Trend. This work is being completed by CSA
Global and is scheduled for completion in the third quarter.
Resource definition drilling re-commenced following
completion of the Model Earth 3D geological model used to assist in
targeting mineralized positions in the Higginsville Central area.
Initial targets to be tested include extensions to the Two Boys,
Aquarius and Spargos deposits. Currently, there are four drill
rigs on site with a fifth rig scheduled to commence on site before
the end of the third quarter.
Financial Highlights
Table 4 - Highlights of Second Quarter
(in thousands
of dollars except per share amounts)
|
Three months
ended
|
Six months
ended
|
For the periods ended
June 30,
|
2021
|
2020
|
2021
|
2020
|
Revenue
|
$69,570
|
$56,100
|
$128,854
|
$110,382
|
Production and
processing costs
|
29,570
|
25,775
|
58,871
|
53,061
|
Earnings before
income taxes1
|
10,200
|
17,242
|
20,536
|
18,126
|
Net
earnings
|
5,391
|
9,818
|
11,015
|
10,357
|
Net earnings per
share - basic
|
0.04
|
0.07
|
0.08
|
0.08
|
Net earnings per
share - diluted
|
0.04
|
0.07
|
0.07
|
0.07
|
Adjusted
EBITDA2
|
29,481
|
20,299
|
50,691
|
39,733
|
Adjusted EBITDA per
share - basic2
|
0.20
|
0.15
|
0.35
|
0.29
|
Adjusted
earnings1
|
14,270
|
2,731
|
22,357
|
13,386
|
Adjusted earnings per
share – basic1
|
0.10
|
0.02
|
0.15
|
0.10
|
Cash flow provided by
operating activities
|
26,371
|
22,328
|
45,029
|
34,532
|
Cash investment in
property, plant and
equipment and mineral property interests
|
(16,982)
|
(10,523)
|
(35,175)
|
(18,225)
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of Karora's MD&A dated August 9,
2021.
|
2.
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA").
|
Revenue for the second quarter of 2021 was $69.6 million, a 24% increase over the comparable
period in 2020. The increase in revenue in 2021 was the result of a
combination of higher gold ounces sold and higher realized prices
which increased by 31% and 13%, respectively.
Adjusted net earnings for the second quarter were $14.3 million (or $0.10 per share), an $11.5
million improvement over the same period in 2020. Net
earnings for the second quarter of 2021 were $5.4 million (or $0.04 per share) compared to net earnings of
$9.8 million (or $0.07 per share) for the comparable period in
2020. Second quarter net earnings were negatively impacted by a
non-cash unrealized foreign exchange loss of $4.5 million (or $0.03 per share) and a non-cash loss on
derivatives of $2.9 million (or
$0.02 per share) related to the
valuation of the Morgan Stanley participation payment
arrangement.
Adjusted EBITDA1 for the second quarter of 2021
was $29.5 million (or $0.20 per share) compared to $20.3 million (or $0.15 per share) in the second quarter of
2020.
Table 5 - Highlights of Karora's Financial Position
(in thousands of dollars):
|
|
|
For the period
ended
|
June 30,
2021
|
December 31,
2020
|
Cash and cash
equivalents
|
82,160
|
79,695
|
Working
capital1
|
64,750
|
56,835
|
PP&E &
MPI
|
249,643
|
239,044
|
Total
assets
|
364,239
|
350,099
|
Total
liabilities
|
145,171
|
142,895
|
Shareholders'
equity
|
219,068
|
207,204
|
1
|
Working capital is a
measure of current assets (including cash and cash equivalents)
less current liabilities.
|
Karora's cash position increased to $82.2
million as at June 30, 2021,
an increase of $5.5 million compared
to March 31, 2021 and $2.5 million higher than December 31, 2020. Karora had a working capital
surplus of $64.8 million as of
June 30, 2021.
For a complete discussion of financial results, refer to
Karora's MD&A and unaudited condensed interim financial
statements for the three and six months ended June 30, 2021 and 2020.
Conference Call / Webcast
Karora will be hosting a conference call and webcast today
beginning at 10:00 a.m. (Eastern
time). A copy of the accompanying presentation can be found
on Karora's website at www.karoraresources.com.
Live Conference Call and Webcast Access Information:
North American callers please dial: 1-888-664-6392
Local and international callers please dial: 647-764-8659
A live webcast of the call will be available through Cision's
website at:
Webcast Link
(https://produceredition.webcasts.com/starthere.jsp?ei=1483790&tp_key=a8e5683dcb)
A recording of the conference call will be available for replay
through the webcast link, or for a one-week period beginning at
approximately 1:00 p.m. (Eastern
Time) on August 9, 2021,
through the following dial in numbers:
North American callers please dial: 1-888-390-0541; Pass Code:
855682
Local and international callers please dial: 416-764-8677; Pass
Code: 855682
Compliance Statement (JORC 2012 and NI 43-101)
The disclosure of scientific and technical information contained
in this news release has been reviewed and approved by Stephen
Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a
Qualified Person for the purposes of NI 43-101.
About Karora Resources
Karora is focused on doubling gold production to 200,000 ounces
by 2024 compared to 2020 and reducing costs at its integrated Beta
Hunt Gold Mine and Higginsville Gold Operations ("HGO") in
Western Australia. The
Higginsville treatment facility is a low-cost 1.6 Mtpa processing
plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. At Beta Hunt, a robust gold Mineral Resource and Reserve is
hosted in multiple gold shears, with gold intersections along a 4
km strike length remaining open in multiple directions. HGO has a
substantial Mineral gold Resource and Reserve and prospective land
package totaling approximately 1,800 square kilometers. The Company
also owns the high grade Spargos Reward project which is
anticipated to begin mining in 2021. Karora has a strong Board and
management team focused on delivering shareholder value and
responsible mining, as demonstrated by Karora's commitment to
reducing emissions across its operations. Karora's common shares
trade on the TSX under the symbol KRR and also trade on the OTCQX
market under the symbol KRRGF.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the liquidity
and capital resources of Karora, production guidance and the
potential of the Beta Hunt Mine, Higginsville Gold Operation, the
Aquarius Project and the Spargos Gold Project, the commencement of
mining at the Spargos Gold Project and the completion of the
resource estimate.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
SOURCE Karora Resources Inc.