TORONTO, March 23,
2023 /CNW/ - Karora Resources Inc. (TSX: KRR)
("Karora" or the "Company") today announced unaudited
financial and operating results for the fourth quarter ("Q4 2022")
and full-year ("2022") 2022. All dollar amounts are in Canadian
dollars, unless otherwise noted.
![KARORA RESOURCES REPORTS RECORD REVENUE, STRONG EARNINGS GROWTH IN FOURTH QUARTER 2022 (CNW Group/Karora Resources Inc.) KARORA RESOURCES REPORTS RECORD REVENUE, STRONG EARNINGS GROWTH IN FOURTH QUARTER 2022 (CNW Group/Karora Resources Inc.)](https://mma.prnewswire.com/media/2038839/Karora_Resources_Inc__KARORA_RESOURCES_REPORTS_RECORD_REVENUE__S.jpg)
- SOLID FINANCIAL PERFORMANCE IN Q4 2022
Record revenue of $96.8 million,
45% increase from Q4 2021; net earnings growth of 56% to
$9.6 million ($0.06 per share); Operating cash flow increased
30% over Q3 to $36.5 million
- RECORD GOLD PRODUCTION AND SALES IN 2022
133,887 ounces of gold produced in 2022, 19% increase from 2021
and in line with top end of 2022 guidance (120,000 – 135,000
ounces); Gold sales increased 16% to 132,098 ounces
- STRONG GROWTH IN ORE MINED AT BETA HUNT
Record mine production at Beta Hunt in 2022, with 1.1 million
tonnes mined, a 23% increase from 2021
- EXCELLENT PROGRESS WITH GROWTH PLAN
Processing capacity increased 63% with acquisition of Lakewood
Mill; Beta Hunt expansion advancing on schedule and budget with
development of second decline completed in Q1 2023; PEA for nickel
resources at Beta Hunt highlights potential for profitable,
high-return nickel mining operation
- CONTINUED EXPLORATION SUCCESS
Drilling at Beta Hunt extends gold mineralization 250 metres and
150 metres below known resources at Western Flanks and A Zone,
respectively, identifies new gold mining opportunity (Mason Zone)
and discovers 4C Offset nickel zone
- SOLID GROWTH IN RESERVES AND RESOURCES
Gold Mineral Reserves at Beta Hunt increased 12% to 538,000
ounces, with growth in gold Measured and Indicated Mineral
Resources of 20% to 1.35 million ounces; Nickel Measured and
Indicated Mineral Resources increased 8% to 21,100 tonnes
- CARBON NEUTRALITY ACHIEVED
IN 2022
Carbon neutrality achieved for
second consecutive year in 2022 following the purchase and
retirement of 95,000 tonnes of verified carbon offset
credits
Paul Andre Huet, Chairman and
CEO, commented: "I am very pleased with Karora's performance in
2022, including our solid results during the fourth quarter. For
the year, we achieved record production driven by strong growth in
mined tonnes at Beta Hunt and increased processing capacity. During
the fourth quarter, we generated record revenue and gold sales as
well as our best net earnings performance of the year. I am also
proud of the way our team managed external factors in 2022 such as
disruptions caused by record COVID-19 cases in Western Australia early in the year,
sector-wide inflationary pressures and volatile commodity markets.
Our unit costs showed marked improvement in the second half of
2022, which positioned us to achieve our guidance for AISC of
US$1,100 – US$1,200 per ounce sold.
We have refreshed our 2023 and 2024 production, cost and capex
guidance to tighten up ranges and reflect the reality of
inflationary cost pressures since we originally provided the
guidance in mid-2021 alongside our original growth plan
announcement. Since then, we have materially de-risked our growth
plan with the addition of the 1.0 Mtpa Lakewood Mill in 3Q22 as
well as the completion of the second decline at Beta Hunt ahead of
schedule earlier this year. With these two critical components of
our plan delivered, we remain on the path to ramp up production
over 2023 and 2024 to deliver gold production growth into a range
of 170,000 to 195,000 ounces at AISC of US$1,050 – US$1,200
per ounce sold by 2024.
During 2022, we significantly advanced plans to grow our nickel
business, with the release of our Nickel PEA outlining the
potential to grow low-cost nickel production that delivers
attractive returns, increased price leverage and higher nickel
by-product credits to further improve our gold unit costs. We
expect to ramp up nickel production meaningfully during 2H24 and
2025 once our development of the 50C/Gamma Zone is in place –
enabled by the increased ventilation capacity to be installed
during 2023.
Exploration was another key area of success, with drilling at
Beta Hunt resulting in new discoveries, major extensions of
mineralization and, as recently announced, significant growth in
gold Mineral Reserves and both gold and nickel Mineral
Resources.
We are also very proud to have achieved Scope 1 and 2 carbon
neutrality for the second straight year in 2022. In 2021, we were
one of the first gold producers globally to become carbon neutral
and, as we execute our growth plan, we will continue to work
diligently to further reduce emissions with the goal of ultimately
achieving a net zero mining future."
Karora will host a call/webcast on March 23, 2023 at 10:00
a.m. (Eastern Time) to discuss the unaudited fourth quarter
and full year 2022 results. North American callers please
dial: 1-888-204-4368, international callers please dial: (+1)
647-794-4605. For the webcast of this event click [here] (replay
access information below).
The Company's audited financial statements and management's
discussion and analysis will be will be filed on SEDAR at
www.sedar.com and posted to the Company's website at
www.karoraresources.com on Tuesday, March
28, 2023.
SUMMARY OF PERFORMANCE
Q4 2022
- Strong production growth to 37,309 ounces of gold, 34%
higher than Q4 2021; Q4 2022 production compared to record
quarterly production of 38,437 ounces the previous quarter.
- Record gold sales of 39,900 ounces, a 39% increase from
Q4 2021 and 12% higher than the previous quarter.
- Production and processing costs of $54.3 million compared to $32.5 million in last year's fourth quarter and
$42.4 million the previous quarter,
with the increase from a year ago mainly reflecting increased input
costs due largely to sector-wide inflationary pressures,
particularly for diesel, as well as supply chain pressures, tight
labour markets and COVID-19 impacts during the first half of
2022.
- Cash operating costs1 and AISC1 per
ounce sold averaged US$1,031 and
US$1,100, respectively, compared to
US$961 and US$1,042, respectively, for the same period in
2021 and US$991 and US$1,069, respectively, the previous
quarter.
- Net earnings of $9.6
million ($0.06 per share)
increased 55% from $6.1 million
($0.04 per share) in Q4 2021 as a 45%
increase revenue, driven by record gold sales, and the favourable
impact of a foreign exchange gain more than offset higher
production and processing, depreciation and amortization and
general and administrative costs; Q4 2022 net earnings increased
from $4.4 million ($0.03 per share) in Q3 2022.
- Adjusted earnings1 of $8.7 million ($0.05
per share) compared to $12.0 million
($0.08 per share) for the same period
in 2021 and $6.6 million
($0.04 per share) in Q3 2022; The
main differences between net earnings and adjusted earnings in Q4
2022 included the exclusion from adjusted earnings of the foreign
exchange gain as well as non-cash share-based payments and losses
on derivatives.
- Adjusted EBITDA1,2 of $29.2 million, an 17% increase from $25.0 million a year earlier and 6% higher than
$27.5 million the previous
quarter.
- Cash flow from operating activities totaled $36.5 million, a 9% increase from the fourth
quarter of 2021 and 29% higher than $28.3
million in the third quarter of 2022.
Full-Year 2022
- Record gold production of 133,887 ounces achieved the
top end of the Company's guidance range of 120,000 – 135,000 ounces
and increased 19% from 2021 driven by higher tonnes processed
following the acquisition of the Lakewood Mill in July 2022.
- Production and processing costs of $179.3 million compared to $121.9 million in 2021, with the increase largely
reflecting higher processing volumes, record tonnes mined at Beta
Hunt, the ramp up of new mining areas at HGO as well as the impact
of COVID-19 disruptions and sector-wide inflationary
pressures.
- Cash operating costs1 and
AISC1 per ounce sold averaged US$1,099 and US$1,171, respectively, compared to US$917 and US$1,012, respectively, in 2021 with the
increases due to higher production and processing costs and the
impact of a lower average grade, largely reflecting a lower-grade
production profile at Beta Hunt in 2022 as well as the utilization
of increased available milling capacity to process material from
lower grade stockpiles.
- Net earnings of $9.9
million ($0.06 per share)
compared to net earnings of $27.5
million ($0.18 per share) as a
20% increase in revenue, driven by record gold sales of 132,047
ounces, was more than offset by higher production and processing,
depreciation and amortization and general and administrative
costs.
- Adjusted earnings1 of $21.1 million ($0.13 per share) versus $48.6 million ($0.33 per share) in 2021; The main differences
between net earnings and adjusted net earnings in 2022 included the
exclusion from adjusted net earnings of of non-cash share-based
payments, losses on derivatives, unrealized losses on marketable
securities and the impact of a foreign exchange gain.
- Adjusted EBITDA1,2 totaled $91.5 million compared to $104.3 million a year earlier.
- Cash flow from operating activities totaled $88.2 million versus $106.5 million in 2021.
- Cash at December 31, 2022
totaled $68.8 million, a $12.7 million increase from September 30, 2022 and compared to $91.0 million at December
31, 2021; The year-over-year reduction reflected significant
capital investment during 2022 in support of the Company's growth
plan, including $64.2 million of cash
consideration paid for the Lakewood Mill acquisition. Total
liquidity at December 31, 2022
totaled $108.8 million comprised of
cash as well as $40.0 million related
to an undrawn revolving credit facility.
- Working capital of $38.0
million at December 31, 2022
versus $64.4 million at December 31, 2021, with the reduction mainly due
to the change in cash year over year related to growth plan
deployments as well as higher levels of accounts payable and
accrued liabilities.
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of this news release for the three and
twelve months ended December 31, 2022.
|
2.
|
Earnings before
interest, taxes, depreciation and amortization
("EBITDA").
|
2022 Growth Highlights
- Acquisition of Lakewood Mill: Fully permitted and
operating 1.0 Mtpa Lakewood Mill acquired in July 2022, increasing processing capacity by 63%,
to 2.6 Mtpa; Additional capacity in 2022 from Lakewood Mill was
used to optimize feed from Beta Hunt, Spargos and Higginsville
mines and process additional material from lower grade surface
stockpiles.
- Expansion of Beta Hunt: Development of a second (west)
decline and related ventilation access commenced in the first
quarter of 2022, with the decline being completed ahead of schedule
and on budget to a length of 1,020 metres during the first quarter
of 2023. In addition, the first of three ventilation raises, also
critical to the mine's growth plans, was completed during the first
quarter of this year, with two additional ventilation raises to be
completed during the 2023. The project remains on track to support
the mine reaching an annualized production level of 2.0 Mtpa by the
end of 2024.
- Preliminary Economic Assessment ("PEA") for Nickel Resources
at Beta Hunt: After announcing robust growth in nickel mineral
resources early in 2022, a positive PEA for nickel resources at
Beta Hunt was released on August 12,
2022, which included solid growth in low-cost production,
robust economics, including attractive returns and a low capital
investment requirement, and attractive by-product credit potential
from nickel production.
- Excellent exploration success at Beta Hunt: Drilling in
2022 resulted in new discoveries as well as major extensions to
existing zones. Highlights of the 2022 resulted include:
-
- The discovery of a new gold zone, the Mason Zone, running
parallel to, and west of the Larkin Zone; The Mason Zone has the
potential to be an important new source of gold production south of
the Alpha Island Fault with a strike length of up to 700
metres;
- The extension of known mineralization to depth, including
extending shear mineralization at Western Flanks up to 250 metres
below current Mineral Resources as well as extending gold
mineralization at the A Zone up to 150 metres below current Mineral
Resources, with both zones remaining open to depth;
- The discovery of a new high-grade nickel zone, the 4C Offset
zone, including an intercept of 6.5% nickel over 11.9 metres; The
new zone is located in the Hunt Block above Western Flanks and
situated within 25 metres of existing and actively used mine
development.
- Solid growth in Mineral Reserves and Mineral Resources at
Beta Hunt: On February 13, 2023,
new gold Mineral Reserve and Mineral Resource estimates were
announced at Beta Hunt dated as of September
30, 2022. The new estimates included a 12% increase in
Proven and Probable Mineral Reserves to 538,000 ounces, a 20%
increase in Measured and Indicated Mineral Resources to 1.35
million ounces and a 34% increase in Inferred Mineral Resources to
1.05 million ounces. On March 7,
2023, the Company announced an 8% increase in Beta Hunt
nickel Measured and Indicated Mineral Resources to 21,100 nickel
tonnes.
Other Corporate Highlights
- Carbon Neutrality: After becoming one of the world's
first carbon neutral gold producers in 2021, carbon neutrality was
achieved for the second consecutive year in 2022 for the Company's
own operations (Scope 1 emissions) and purchased electricity
consumption (Scope 2 emissions) through the purchase and retirement
of 95,000 tonnes of verified carbon offset credits. Karora will
provide further updates on emissions reduction efforts underway in
its 2022 ESG Report to be released in early Q2 2023.
- Inaugural Environmental Social and Governance (ESG)
Report: Inaugural ESG Report published in April 2022 for the year 2021, outlines a
comprehensive ESG strategy that serves as a key foundation for
integrating critical ESG factors into the Company's governance and
risk management systems and introducing key metrics and targets for
internal monitoring and external reporting.
- Effective capital management During a period of
extensive capital investment in support of future growth, important
steps were taken in 2022 to ensure adequate capital strength and
liquidity:
-
- Senior secured $80 million
Credit Agreement with Macquarie Bank Limited was
completed in July, providing a $40
million term loan (fully drawn on July 14, 2022) and $40
million revolving credit facility, both with a term to
June 28, 2024 and an option to renew.
Proceeds of the term loan were used to refinance the Company's
existing $30 million credit facility,
and for general working capital purposes
- Over-subscribed bought deal financing closed in June
resulting in receipt of $69.0 million
of gross proceeds ($65.1 million of
net proceeds) through the issuance of 14,375,000 common shares. The
financing was used for the acquisition of the Lakewood Mill, a
significant step in de-risking the Company's growth plan.
- Normal course issuer bid ("NCIB") renewed on
July 15, 2022, through which the
Company can purchase up to 8,492,971 common shares (representing 5%
of total issued and outstanding common shares) between July 20, 2022 and July 19,
2023; During the second half of 2022, 157,660 common shares
were acquired and cancelled through the NCIB at an average price of
$3.12 per share.
COVID-19 Protocols
In response to the global COVID-19 pandemic, Karora's protocols
and contingency plans have helped mitigate impacts of the pandemic
but did not eliminate them. Karora's ongoing response to the
COVID-19 pandemic continues to prioritize the safety of its
workforce and host communities. The Australian government
officially brought Australia's
emergency response to COVID to an end on October 14, 2022 by removing the COVID-19
mandatory isolation requirements and the majority of rules for
wearing face masks.
RESULTS OF OPERATIONS (Unaudited)
Table 1.
Results of Operations
|
Three months
ended,
|
Twelve months
ended,
|
|
Dec.
31
2022
|
Dec. 31
2021
|
Sept. 30,
2022
|
Dec. 31
2022
|
Dec. 31
2021
|
Gold Operations
(Consolidated)
|
|
|
|
|
|
Tonnes milled
(000s)
|
522
|
367
|
547
|
1,925
|
1,441
|
Recoveries
|
94 %
|
94 %
|
94 %
|
94 %
|
94 %
|
Gold milled, grade
(g/t Au)
|
2.37
|
2.53
|
2.33
|
2.30
|
2.60
|
Gold produced
(ounces)
|
37,309
|
27,925
|
38,437
|
133,887
|
112,814
|
Gold sold
(ounces)
|
39,900
|
28,734
|
35,513
|
132,098
|
113,628
|
Average exchange rate
(CAD/USD)
|
0.74
|
0.79
|
0.77
|
0.77
|
0.80
|
Average realized price
(US $/oz sold)
|
$1,737
|
$1,802
|
$1,717
|
$1,793
|
$1,792
|
Cash operating costs
(US $/oz sold)1
|
$1,031
|
$961
|
$991
|
$1,099
|
$917
|
All-in sustaining cost
(AISC) (US $/oz sold)1
|
$1,100
|
$1,042
|
$1,069
|
$1,171
|
$1,012
|
Gold (Beta Hunt
Mine)
|
|
|
|
|
|
Tonnes milled
(000s)
|
250
|
206
|
306
|
1,084
|
884
|
Gold milled, grade
(g/t Au)
|
2.76
|
2.61
|
2.36
|
2.40
|
2.95
|
Gold produced
(ounces)
|
20,870
|
16,120
|
21,977
|
79,125
|
78,476
|
Gold sold
(ounces)
|
22,342
|
16,372
|
20,767
|
78,377
|
78,810
|
Cash operating cost
(US $/oz sold)1
|
$987
|
$944
|
$953
|
$1,044
|
$840
|
Gold (HGO
Mine)
|
|
|
|
|
|
Tonnes milled
(000s)
|
273
|
161
|
241
|
841
|
557
|
Gold milled grade (g/t
Au)
|
2.01
|
2.43
|
2.29
|
2.18
|
2.05
|
Gold produced
(ounces)
|
16,439
|
11,805
|
16,460
|
54,763
|
34,338
|
Gold sold
(ounces)
|
17,560
|
12,362
|
14,746
|
53,721
|
34,818
|
Cash operating cost
(US $/oz sold)1
|
$1,088
|
$984
|
$1,043
|
$1,179
|
$1,092
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of this news release for the three and
twelve months ended December 31, 2022
|
Consolidated Operations
Consolidated gold production in the fourth quarter of 2022
totalled 37,309 ounces, a 34% increase from the fourth quarter of
2021 and compared to record quarterly production of 38,437 ounces
the previous quarter. The increase from the fourth quarter of 2021
resulted from a 42% increase in tonnes milled, which more than
offset a reduction in the average grade.
Full-year 2022 production was a record 133,887 ounces, a 19%
improvement from 2021 and in line with the top end of the Company's
2022 production guidance. The increase in production from 2021
reflected significantly higher tonnes processed as the Company
utilised increased milling capacity following the acquisition of
Lakewood Mill, which more than offset a reduction in the average
grade due mainly to the transition to a lower-grade production
profile at Beta Hunt as well as the impact of utilising increased
mill capacity to process material from low-grade stockpiles. These
stockpiles were processed to generate additional positive cashflow
for the Company while expansion of the Beta Hunt mine to 2.0 Mtpa
progressed.
Cash operating costs1 per ounce sold for the fourth
quarter of 2022 averaged US$1,031 per
ounce sold compared to US$961 for the
same period in 2021 and US$991 the
previous quarter. The increase from the fourth quarter of 2021 was
driven by higher inputs costs and the impact of a lower average
grade. AISC1 per ounce sold in the fourth quarter of
2022 averaged US$1,100 versus
US$1,042 in the fourth quarter of
2021 and US$1,069 the previous
quarter, with the increases mainly reflecting higher cash operating
costs.
Cash operating costs1 per ounce sold for the year
2022 averaged US$1,099 compared to
US$917 in 2021, with the increase
reflecting higher input costs, disruptions caused by COVID-19
restrictions in the first half of the year as well as the impact of
a lower average grade compared to the prior year. AISC1
per ounce sold in 2022 averaged US$1,171 versus US$1,012 in 2021 as higher cash operating
costs1 per ounce sold more than offset the impact of
lower sustaining capital expenditures.
Beta Hunt
During the fourth quarter of 2022, Beta Hunt mined 252,500
tonnes at an average grade of 2.84 g/t containing 23,100 ounces of
gold. Mine production during the fourth quarter of 2022 increased
13% from 223,000 tonnes mined in the fourth quarter of 2021 at an
average grade of 2.48 g/t and compared to 313,000 tonnes the
previous quarter at an average grade of 2.40 g/t. The majority of
the scheduled mined tonnes during the fourth quarter came from the
A Zone and central section of Western Flanks with the 14% increase
in grade compared to the previous quarter mainly reflecting mining
in the high-grade ore from the A Zone 17 Level.
Gold production from Beta Hunt in the fourth quarter of 2022
totalled 20,871 ounces based on milling 250,000 tonnes at an
average grade of 2.76 g/t.
Beta Hunt mined 5,755 tonnes of nickel ore at an estimated
nickel grade of 2.01% during the fourth quarter of 2022. Nickel
production was sourced from remnant nickel resources or extensions
to previously mined stopes.
For full-year 2022, Beta Hunt mined a record 1,081,500 tonnes at
an average grade of 2.45 g/t with ore mainly drawn from Western
Flanks and the A Zone in line with the mine plan for the year. Gold
production in 2022 totalled 79,125 ounces compared to 78,476 ounces
in 2021 as the favourable impact of higher tonnes milled was offset
by a slight reduction in the average grade consistent with the 2022
mine plan.
Cash operating costs1 per ounce sold at Beta Hunt
averaged US$987 in the fourth quarter
of 2022 compared to US$944 in the
fourth quarter of 2021 and US$953 the
previous quarter as higher input costs more than offset the
favourable impact of an increase in the average grade and a
stronger US dollar compared to the Canadian dollar. Cash operating
costs1 for full-year 2022 averaged US$1,044 versus US$840 in 2021, with the increase largely due to
higher processing volumes, increased input costs, business
disruptions early in the year due to COVID-19 and the impact of a
lower average grade.
Higginsville Mining Operations ("HGO")
During the fourth quarter of 2022, HGO mined 106,000 tonnes at
an average grade of 3.34 g/t, which compared to 317,000 tonnes
mined in the fourth quarter of 2021 at an average grade of 1.66 g/t
and 171,000 tonnes the previous quarter at an average grade of 3.05
g/t. The reduction in tonnes mined from both prior periods
largely reflected the completion of mining from the Spargos open
pit early in the fourth quarter of 2022 and ramp up of new
underground mining areas, primarily Aquarius and Two Boys. Mine
production from Aquarius totalled 51,230 tonnes at an average grade
of 3.33 g/t during the fourth quarter, representing 48% of total
mine production during the quarter. An additional 46,050 tonnes at
an average grade 3.16 g/t were mined from Spargos during the first
half of the quarter.
During the fourth quarter of 2021, Hidden Secret was the primary
ore source for mining and processing, accounting for close to 60%
of total tonnes mined, with initial mine production and development
material from the Spargos open pit accounting for most of the
remaining production for the quarter. Mine production from Hidden
Secret was completed in the first quarter consistent with the mine
plan, with an extensional drilling program being completed over the
balance of the year.
Production at HGO in the fourth quarter of 2022 totalled 16,438
ounces based on milling 272,600 tonnes at an average grade of 2.01
g/t.
For the full-year 2022, a total of 469,800 tonnes were mined at
an average grade of 3.09 g/t, with the Spargos open pit accounting
for approximately two-thirds of total mined tonnes (at an average
grade of 3.25 g/t). Gold production at HGO totalled 54,763 ounces
(841,200 milled tonnes at an average grade of 2.18 g/t), 59% higher
than the previous year. Increased tonnes mined and milled during
2022 reflected the ramp up of the Spargos open pit operation and
the commencement of stope production at Aquarius, the combined
contribution from which far exceeded the reduction in tonnes from
the completion of mining at Hidden Secret in the first quarter of
2022. The average grade of 2.18 g/t compared to an average grade of
2.05 g/t in 2021.
Cash operating costs1 per ounce sold at HGO averaged
US$1,088 in the fourth quarter of
2022 versus US$984 for the same
period in 2021 and US$1,043 the
previous quarter with the increase from the fourth quarter of 2021
largely reflecting increased input costs, the impact of mine
sequencing to higher-cost areas and a lower average grade. For the
full-year 2022, cash operating costs1 per ounce sold
averaged US$1,179 compared to
US$1,092 in 2021 with higher input
costs and disruptions caused by COVID-19 restrictions early in the
year largely accounting for the year-over-year increase.
Processing Operations
A total of 377,800 tonnes were milled at the Higginsville mill
during the fourth quarter of 2022 (with 33% of mill feed coming
from Beta Hunt and 67% from HGO) at an average grade of 2.53 g/t.
Recovered gold was 28,836 ounces. For full-year 2022, 1,503,100
tonnes were processed (48% from Beta Hunt and 52% from HGO) at an
average grade of 2.46 g/t for a total of 111,944 recovered
ounces.
Throughput at the Lakewood Mill during the fourth quarter of
2022 totalled 144,400 tonnes (87% from Beta Hunt and 13% from HGO)
at an average grade of 1.93 g/t. Recovered gold during the quarter
totalled 8,473 ounces. During 2022, following the acquisition of
Lakewood Mill in July, a total of 422,200 tonnes were processed
(84% from Beta Hunt and 16% from HGO) at an average grade of 1.72
g/t for 21,943 recovered ounces.
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of this news release for the three and
twelve months ended December 31, 2022.
|
FINANCIAL REVIEW (Unaudited)
Table 2. Financial Overview
(in thousands of
dollars except per share amounts)
|
|
Three Months
Ended
|
Year Ended
|
For the periods ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Revenue
|
|
$96,835
|
$66,972
|
$317,042
|
$264,186
|
Production and
processing costs
|
|
54,306
|
32,514
|
179,265
|
121,893
|
Earnings before income
taxes
|
|
9,804
|
9,523
|
16,650
|
46,064
|
Net earnings
|
|
9,560
|
6,112
|
9,901
|
27,467
|
Net earnings per share
basic
|
|
0.06
|
0.04
|
0.06
|
0.18
|
Net earnings per share
diluted
|
|
0.06
|
0.04
|
0.06
|
0.18
|
Adjusted EBITDA
1
|
|
29,196
|
25,048
|
91,511
|
104,280
|
Adjusted EBITDA per
share - basic 1
|
|
0.17
|
0.16
|
0.56
|
0.70
|
Adjusted earnings
1
|
|
8,699
|
12,042
|
21,121
|
48,639
|
Adjusted earnings per
share - basic 1
|
|
0.05
|
0.08
|
0.13
|
0.33
|
Cash flow provided by
operating activities
|
|
36,538
|
33,515
|
88,224
|
106,460
|
Cash investment in
property, plant and
equipment and mineral property interests
|
|
(21,454)
|
(25,791)
|
(171,144)
|
(92,016)
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures of this news release for the three and twelve
months ended December 31, 2022.
|
For the three months ended December 31,
2022, the Company generated revenue of $96.8 million, a $29.9
million or 45% increase from the fourth quarter of 2021. Of
total revenue in the fourth quarter of 2022, $93.7 million was gold revenue, which compared to
$65.6 million in the fourth quarter a
year earlier. Contributing to the increase in gold revenue was a
$25.5 million favourable impact from
a 39% increase in gold sales, to 39,900 ounces. Rate factors
contributed an additional $2.6
million to revenue growth as a $3.3
million reduction due to a lower US dollar average realized
gold price was more than offset by the impact of a significantly
stronger US dollar compared to the Canadian dollar. Beta Hunt
contributed $52.5 million of total
revenue in the fourth quarter of 2022, with HGO contributing
$41.2 million. During the comparable
period in 2021, Beta Hunt contributed $37.5
million of total revenue, with the remaining $28.1 million coming from HGO.
For the year ended December 31,
2022, the Company generated revenue of $317.0 million, $52.9
million or 20% higher than revenue of $264.2 million in 2021. Of total revenue in 2022,
$309.4 million ($256.5 million in 2021) represented revenue from
gold sales, with the remainder mainly related to the sale of nickel
mined at Beta Hunt. A 16% increase in gold sales, to 132,098
ounces, was the key driver of growth in gold revenue year over
year, having a $41.7 million
favourable impact, with rate factors contributing an additional
$11.2 million of revenue growth,
almost all of which resulted from a stronger US dollar in 2022
versus 2021. Of the $317.0 million of
revenue in 2022, Beta Hunt accounted for $190.6 million, with HGO contributing
$148.3 million.
Net earnings for the three months ended December 31, 2022 totalled $9.6 million ($0.06
per basic share), a 56% increase from $6.1
million ($0.04 per basic
share) for the three months ended December
31, 2021. The change in net earnings compared to the final
quarter of 2021 reflected significantly higher revenue and the
favourable impact of a foreign exchange gain, partially offset by
increased production and processing costs and deprecation and
amortization expense.
Net earnings for the twelve months ended December 31, 2022, was $9.9 million ($0.06
per basic share) compared to net earnings of $27.5 million ($0.18 per basic share) for the comparable period
in 2021 as the favourable impact of higher revenue was more than
offset by increased production and processing costs and higher
depreciation and amortisation and general and administrative
expenses.
Adjusted earnings for the three months ended December 31, 2022 totalled $8.7 million versus $12.0
million in the fourth quarter of 2021. The difference
between net earnings and adjusted earnings in the fourth quarter of
2022 resulted form the exclusion from adjusted earnings of
after-tax amounts related to the $8.7
million foreign exchange gain, as well as $4.5 million of non-cash share-based payments and
a $3.1 million loss of derivatives.
Adjusted earnings in the fourth quarter of 2021 excluded the
after-tax impact of $4.0 million of
non-cash share-based payments, a $2.6
million loss on derivative as well as an unrealized loss on
the revaluation of marketable securities of $0.6 million and a $0.4
million foreign exchange gain.
For the year ended December 31,
2022, adjusted earnings totalled $21.1 million compared to $48.6 million in 2021. Excluded from adjusted
earnings in 2022 were the after-tax impact of $7.6 million of non-cash share-based payments, a
$4.4 million loss on derivatives, a
$2.3 million foreign exchange gain, a
$2.0 million unrealized loss on the
revaluation of marketable securities and $1.2 million of costs related to sustainability
initiatives. The difference between net earnings and adjusted
earnings in 2021 mainly reflected the after-tax impact of an
$11.0 million foreign exchange loss,
$8.3 million of non-cash share-based
payments and a $3.9 million loss on
derivatives.
Table 3. Highlights of Financial Position
|
December
31,
|
December
31,
|
December
31,
|
(in thousands of
dollars)
|
2022
|
2021
|
2020
|
Cash and cash
equivalents
|
$68,786
|
$91,005
|
$79,695
|
Working capital
1
|
38,020
|
64,447
|
56,835
|
Property, plant and
equipment and mineral property interests
|
426,962
|
300,680
|
239,044
|
Total assets
|
557,112
|
436,333
|
350,099
|
Current liabilities
excluding current portion of financial liabilities
2
|
73,597
|
64,570
|
48,295
|
Non-current liabilities
excluding non-current portion of financial
liabilities 2
|
86,222
|
78,762
|
55,650
|
Financial liabilities
(current and non-current) 2
|
48,650
|
41,636
|
38,950
|
Total
liabilities
|
208,469
|
184,968
|
142,895
|
Shareholders'
equity
|
348,643
|
251,365
|
207,204
|
1.
|
Working capital is
calculated as current assets (including cash and cash equivalents)
less current liabilities.
|
2.
|
Financial liabilities
include long-term debt and lease obligations.
|
Karora's cash position increased 23% to $68.8 million as
at December 31, 2022 compared to $56.1 million at September
30, 2022. Cash at the end of 2022 compared to cash of
$91.0 million as
at December 31, 2021, with the reduction mainly reflecting
significant capital investment during the year in support of the
Company's growth plan, including $64.2
million of cash consideration paid for the Lakewood Mill
acquisition.
OUTLOOK
The outlook and financial targets only relate to the 2023 to
2024 period. This outlook includes forward-looking information
about the Company's operations and financial expectations and is
based on management's expectations and outlook as of the date of
this new release. This outlook, including expected results and
targets, is subject to various risks, uncertainties and
assumptions, which may impact future performance and our
achievement of the results and targets discussed in this section.
The Company may update the outlook depending on changes in metal
prices and other factors.
On March 23, 2023, the Company
announced a tightening of the ranges for its previously announced
production guidance for 2023 and 2024. The minor adjustment
(<5%) to the upper end of the 2024 guided production ounce range
is primarily due to a shift in production startup of the Spargos
underground operations to mid-2024, vs. mid-2023 in prior guidance.
The shift was driven by a reallocation of capital priorities to
accelerate the nickel project at Beta Hunt, resulting in deferral
of a portion of Spargos ounces into 2025.
AISC cost guidance and capital expenditure guidance was also
updated to adjust for extensive sector-wide cost inflationary
pressures, planned mine development, equipment additions,
processing plant upgrades, tailings storage expansions and other
growth related expenditures. The prior guidance for 2023 and 2024
was provided on June 28, 2021 with
the new guidance more reflective of the currently elevated global
cost environment.
Table 4. Two-Year Guidance (2023 – 2024)
|
|
2023
|
2024
|
Gold
Production
|
Koz
|
145 – 160
|
170 - 195
|
All-in sustaining
costs
|
US$/oz
|
1,100 –
1,250
|
1,050 –
1,200
|
Sustaining
Capital
|
A$ (M)
|
10 – 15
|
15 – 20
|
Growth
Capital
|
A$ (M)
|
57 – 68
|
63 - 73
|
Exploration &
Resource
Development
|
A$ (M)
|
18 - 22
|
20 - 25
|
Payable
Nickel
|
Ni
Tonnes
|
450 – 550
|
600
– 800
|
|
|
(1)
|
2023 and 2024 guidance
was announced in June 2021 (see Karora news release June 28, 2021),
and updated on March 23, 2023. This production guidance through
2024 is based on the September 2022 Mineral Reserves and Mineral
Resources announced on February 13, 2023.
|
(2)
|
The Company expects to
fund the capital investment amounts listed above with cash on hand
and cashflow from operations.
|
(3)
|
The material
assumptions associated with the expansion of Beta Hunt mining
production rate to 2.0 Mtpa during 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.
|
(4)
|
The Company'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
Company, no significant events which impact operations, such as
COVID-19, nickel price of US$22,000 per tonne, as well as an A$ to
US$ exchange rate of 0.70 in 2023 and 2024 and A$ to C$ exchange
rate of 0.90. 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
Australian general and administrative costs and excludes
share-based payment expense.
|
(8)
|
See "Non-IFRS Measures"
set out at the end of this news release and Karora's MD&A for
the three and twelve months ended December 31, 2022.
|
CONFERENCE CALL / WEBCAST
Karora will be hosting a conference call and webcast today,
March 23, 2023, beginning at
10:00 a.m. (Eastern time). The
accompanying presentation can be found on Karora's website,
www.karoraresources.com.
Live Conference Call and Webcast Access Information:
North American callers please dial: 1-888-204-4368
Local and international callers please dial: 647-794-4605
A live webcast of the call will be available through Cision's
website at: https://app.webinar.net/98VakoD16Lg
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 March 23, 2023,
through the following dial in numbers:
North American callers please dial: 1-888-203-1112; Pass Code:
9611891
Local and international callers please dial: 647-436-0148; Pass
Code: 9611891
Non-IFRS Measures
This news release refers to cash operating cost, cash operating
cost per ounce, all-in sustaining cost, EBITDA, adjusted EBITDA and
adjusted EBITDA per share, adjusted earnings, adjusted earnings per
share and working capital which are not recognized measures under
IFRS. Such non-IFRS financial measures do not have any standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other issuers.
Management uses these measures internally. The use of these
measures enables management to better assess performance trends.
Management understands that a number of investors and others who
follow the Corporation's performance assess performance in this
way. Management believes that these measures better reflect the
Corporation's performance and are better indications of its
expected performance in future periods. This data is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
In November 2018, the World Gold
Council ("WGC") published its guidelines for reporting all-in
sustaining costs and all-in costs. The WGC is a market development
organization for the gold industry and is an association whose
membership comprises leading gold mining companies. Although the
WGC is not a mining industry regulatory organization, it worked
closely with its member companies to develop these non-IFRS
measures. Adoption of the all-in sustaining cost and all-in cost
metrics is voluntary and not necessarily standard, and therefore,
these measures presented by the Corporation may not be comparable
to similar measures presented by other issuers.
The following tables reconcile these non-IFRS measures to the
most directly comparable IFRS measures:
MINING OPERATIONS (Unaudited)
Cash Operating and All-in Sustaining Costs
The Company uses these measures internally to evaluate the
underlying operating performance of the Australian Operations.
Management believes that providing cash operating cost data allows
the reader the ability to better evaluate the results of the
underlying operations.
CONSOLIDATED
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
20225
|
20215
|
20225
|
20215
|
Production and
processing costs
|
$57,819
|
$38,855
|
$201,112
|
$146,941
|
Royalty
expense
|
5,039
|
3,656
|
17,987
|
16,418
|
By-product
credits
|
(3,095)
|
(1,359)
|
(7,313)
|
(7,725)
|
Adjustment
1
|
(3,883)
|
(6,341)
|
(22,492)
|
(25,048)
|
Operating costs
(C$)2
|
$55,880
|
$34,811
|
$189,294
|
$130,586
|
General and
administrative expense – Australia 3,4
|
3,133
|
2,503
|
9,738
|
8,302
|
Sustaining capital
expenditures
|
600
|
422
|
2,804
|
5,215
|
All-in sustaining costs
(C$)
|
$59,613
|
$37,737
|
201,836
|
$144,103
|
Average exchange rate
(C$1 – US$1)
|
0.74
|
0.79
|
0.77
|
0.80
|
Operating costs (US$)
|
$41,155
|
$27,621
|
145,139
|
$104,189
|
All-in sustaining costs (US$)
|
$43,905
|
$29,943
|
154,742
|
$114,998
|
Operating costs (A$)
|
$62,632
|
$37,910
|
209,782
|
$138,844
|
All-in sustaining costs (A$)
|
$66,816
|
$41,096
|
223,697
|
$153,186
|
Ounces of gold
sold
|
39,900
|
28,734
|
132,098
|
113,628
|
Cash operating costs per ounce sold
(US$)
|
$1,031
|
$961
|
$1,099
|
$917
|
All-in sustaining cost per ounce sold
(US$)
|
$1,100
|
$1,042
|
$1,171
|
$1,012
|
Cash operating costs per ounce sold
(A$)
|
$1,570
|
$1,319
|
$1,588
|
$1,222
|
All-in sustaining cost per ounce sold
(A$)
|
$1,675
|
$1,430
|
$1,693
|
$1,348
|
1.
|
Negative adjustment for
intercompany tolling transactions.
|
2.
|
Operating costs for the
three months and twelve months ended December 31, 2022 exclude $0.4
million and $0.6 million, respectively, of third-party tolling
costs at the Lakewood Mill.
|
3.
|
G&A costs were
reduced with R&D and Due Diligence costs.
|
4.
|
G&A: share-based
payments were excluded in calculating AISC.
|
5.
|
Numbers may not add to
totals due to rounding.
|
BETA HUNT
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
20221
|
20211
|
20221
|
20211
|
Production and
processing costs
|
$29,562
|
$18,027
|
$99,586
|
$76,660
|
Royalty
expense
|
3,445
|
2,777
|
14,240
|
13,882
|
By-product
credits
|
(3,059)
|
(1,320)
|
(7,198)
|
(7,630)
|
Operating costs
($)
|
$29,948
|
$19,484
|
$106,62
|
$82,912
|
Average exchange rate
(C$1 – US$1)
|
0.74
|
0.79
|
0.77
|
0.79
|
Operating costs
(US$)
|
$22,057
|
$15,460
|
$81,819
|
$66,176
|
Operating costs
(A$)
|
$33,566
|
$21,218
|
$11
|
$87,9
|
Ounces of gold
sold
|
22,342
|
16,372
|
78,377
|
78,810
|
Cash operating costs
per ounce sold (US$)
|
$987
|
$944
|
$1,044
|
$840
|
Cash operating costs
per ounce sold (A$)
|
$1,502
|
$1,296
|
$1,507
|
$1,117
|
1.
|
Numbers may not add to
totals due to rounding.
|
HGO
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
September 30,
|
20222,3
|
20212,3
|
20222,3
|
20212,3
|
Production and
processing costs
|
$28,257
|
$20,828
|
$101,526
|
$70,281
|
Royalty
expense
|
1,594
|
879
|
3,747
|
2,536
|
By-product
credits
|
(36)
|
(37)
|
(115)
|
(98)
|
Adjustment1
|
(3,883)
|
(6,341)
|
(22,49)
|
(25,048)
|
Operating costs
($)2
|
$25,932
|
$15,328
|
$82,666
|
$47,671
|
Average exchange rate
(C$1 – US$1)
|
0.74
|
0.79
|
0.77
|
0.80
|
Operating cost
(US$)
|
$19,099
|
$12,162
|
$63,320
|
$38,010
|
Operating cost
(A$)
|
$29,065
|
$16,692
|
$91,640
|
$50,847
|
Ounces of gold
sold
|
17,558
|
12,362
|
53,721
|
34,818
|
Cash operating costs
per ounce sold (US$)
|
$1,088
|
$984
|
$1,179
|
$1,092
|
Cash operating costs
per ounce sold (A$)
|
$1,655
|
$1,350
|
$1,706
|
$1,460
|
1.
|
Negative adjustment for
intercompany tolling transactions.
|
2.
|
Operating costs for the
three months and twelve months ended December 31, 2022 exclude $0.4
million and $0.6 million, respectively, of third-party tolling
costs at the Lakewood Mill.
|
3.
|
Numbers may not add due
to rounding.
|
Adjusted EBITDA and Adjusted Earnings
Management believes that adjusted EBITDA and adjusted earnings
are valuable indicators of the Company's ability to generate
operating cash flows to fund working capital needs, service debt
obligations, and fund exploration and evaluation, and capital
expenditures. Adjusted EBITDA and adjusted earnings exclude the
impact of certain items and therefore is not necessarily indicative
of operating profit or cash flows from operating activities as
determined under IFRS. Other companies may calculate adjusted
EBITDA and adjusted earnings differently.
Adjusted EBITDA is a non-IFRS measure, which excludes the
following from comprehensive earnings (loss); income tax expense
(recovery); interest expense and other finance-related costs;
depreciation and amortization; non-cash other expenses, net;
non-cash impairment charges and reversals; non-cash portion of
share-based payments; acquisition costs; derivatives and foreign
exchange loss; sustainability initiatives.
(in thousands of
dollars except per share amounts)
|
Three Months
Ended
|
Year Ended
|
For the periods ended
December 31,
|
2022
|
2021
|
2022
|
2021
|
Net earnings for the
period - as reported
|
$9,560
|
$6,112
|
$9,901
|
$27,467
|
Finance expense,
net
|
1,761
|
871
|
5,533
|
4,021
|
Income tax
expense
|
244
|
3,411
|
6,749
|
18,597
|
Depreciation and
amortization
|
18,169
|
7,860
|
55,585
|
29,250
|
EBITDA
|
29,734
|
18,254
|
77,768
|
79,335
|
Adjustments:
|
|
|
|
|
Non-cash share-based
payments 1
|
4,497
|
3,952
|
7,647
|
8,258
|
Unrealized loss (gain)
on revaluation of marketable
securities 2
|
(6)
|
545
|
2,032
|
902
|
Other expense , net
2
|
573
|
100
|
772
|
223
|
Loss on derivatives
2
|
3,073
|
2,644
|
4,405
|
3,921
|
Foreign exchange loss
(gain) 3
|
(8,675)
|
(447)
|
(2,294)
|
11,028
|
Sustainability
initiatives 4
|
-
|
-
|
1,181
|
613
|
Adjusted
EBITDA
|
$29,196
|
$25,048
|
$91,511
|
$104,280
|
Weighted average number
of common shares - basic
|
173,372,371
|
153,245,430
|
164,437,670
|
148,698,289
|
Adjusted EBITDA per
share - basic
|
$0.17
|
$0.16
|
$0.56
|
$0.70
|
1.
|
Non-operating items
which do not impact cash flow.
|
2.
|
Non-operating in nature
which does not impact cash flows.
|
3.
|
Primarily related to
intercompany loans for which the loss is unrealized.
|
4.
|
Primarily related to
non-operating environmental initiatives.
|
Adjusted earnings is a non-IFRS measure, which excludes the
following from comprehensive earnings (loss): non-cash portion of
share-based payments; revaluation of marketable securities;
derivatives and foreign exchange loss; tax effects of adjustments;
sustainability initiatives.
(in thousands of
dollars except per share amounts)
|
Three Months
Ended
|
Year Ended
|
For the periods ended
December 31,
|
2022
|
2021
|
2022
|
2021
|
Net earnings for the
period - as reported
|
$9,560
|
$6,112
|
$9,901
|
$27,467
|
Non-cash share-based
payments 1
|
4,497
|
3,952
|
7,647
|
8,258
|
Unrealized loss (gain)
on revaluation of marketable
securities 2
|
(6)
|
545
|
2,032
|
902
|
Loss on derivatives
2
|
3,073
|
2,644
|
4,405
|
3,921
|
Foreign exchange loss
(gain) 3
|
(8,675)
|
(447)
|
(2,294)
|
11,028
|
Sustainability
initiatives 4
|
-
|
-
|
1,181
|
613
|
Tax impact of the above
adjusting items
|
250
|
(764)
|
(1,751)
|
(3,550)
|
Adjusted
earnings
|
$8,699
|
$12,042
|
$21,121
|
$48,639
|
Weighted average number
of common shares - basic
|
173,372,371
|
153,245,430
|
164,437,670
|
148,698,289
|
Adjusted earnings per
share - basic
|
$0.05
|
$0.08
|
$0.13
|
$0.33
|
1.
|
Primarily non-operating
items which do not impact cash flow.
|
2.
|
Non-operating in nature
which does not impact cash flows.
|
3.
|
Primarily related to
intercompany loans for which the loss is unrealized.
|
4.
|
Primarily related to
non-operating environmental initiatives.
|
Working Capital
Working capital is calculated as current assets (including cash
and cash equivalents) less current liabilities.
|
|
December
31,
|
December 31,
|
December 31,
|
(in thousands of
dollars)
|
|
2022
|
2021
|
2020
|
Current
assets
|
|
$115,857
|
$135,426
|
$109,857
|
Less: Current
liabilities
|
|
77,837
|
70,979
|
53,022
|
Working
Capital
|
|
$38,020
|
$64,447
|
$56,835
|
Compliance Statement (JORC 2012 and NI 43-101)
The technical and scientific information contained in this news
release has been reviewed and approved by Steve Devlin, Group Geologist, Karora Resources
Inc., and a qualified person for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 170,000-195,000 ounces by 2024 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, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. In July 2022, Karora acquired
the 1.0 Mtpa Lakewood Mill in Western
Australia. At Beta Hunt, a robust gold Mineral Resource and
Reserve are hosted in multiple gold shears, with gold intersections
along a 4 km strike length remaining open in multiple directions.
HGO has a substantial gold Mineral Resource and Reserve and
prospective land package totaling approximately 1,900 square
kilometers. The Company also owns the high-grade Spargos Reward
project, which came into production 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, full year
consolidated 2023 and 2024 production guidance and the potential of
the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius
Project, the Spargos Gold Project, the Lakewood Mill, and the
completion of the second Beta Hunt decline system.
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.
www.karoraresources.com
SOURCE Karora Resources Inc.