TORONTO, March 22,
2024 /CNW/ - Karora Resources Inc. (TSX: KRR)
("Karora" or the "Company") today announced financial
and operating results for the fourth quarter ("Q4 2023") and
full-year ("2023") of 2023. The Company's audited condensed interim
financial statements and management discussion & analysis
("MD&A) are available on SEDAR at www.sedarplus.ca and on the
Company's website at www.karoraresources.com. All dollar amounts
are in Canadian dollars, unless otherwise noted.
RECORD 2023 GOLD PRODUCTION
- 2023 production was a record 160,492 ounces, increased 20% from
133,887 ounces for 2023, driven by a 37% increase gold produced
from the Beta Hunt Mine. The Company exceeded 2023 production
guidance of 145,000 – 160,000 ounces.
- Q4 2023 production of 40,295 increased 8% from 37,309 ounces in
the fourth quarter of 2022, was up 2% compared to production of
39,547 ounces in the third quarter of 2023 ("the previous quarter")
due to a 57% improvement in production from Beta Hunt partially
offset by lower production at HGO.
AISC INLINE WITH 2023 GUIDANCE
- Cash operating costs1 and all-in sustaining costs
("AISC")1 per ounce sold averaged US$1,128 and US$1,248, respectively, in 2023 compared to
US$1,099 and US$1,174, respectively, in 2022. Operating
costs1 in the second half of 2023 were impacted,
primarily, by a higher royalty expense due to higher gold realized
prices and a crusher bridge failure at HGO, resulting in the
temporary use of higher cost contract crushing services. Repair of
the crusher bridge was completed in the first quarter of 2024.
Specifically, the contract crushing required during the crusher
bridge remediation contributed US$21
to AISC per ounce in 2023. Additionally, the 2023 nickel by-product
credit was US$24 per ounce sold
compared to US$40 per ounce sold in
2022, reflecting reduced nickel sales during the second half of
2023. Full-year 2023 AISC1 per ounce sold in line with
full-year 2023 guidance of US$1,100 –
US$1,250.
- Cash operating costs1 and AISC1 per ounce
sold for Q4 2023 averaged US$1,272
and US$1,435, respectively, versus
US$1,034 and US$1,110, respectively, for Q4 2022. Higher
AISC1 in Q4 2023 were driven primarily by temporary
higher processing costs and lower grades at Higginsville offsetting
strong performance at Beta Hunt. Operating costs1 were
primarily impacted by the above noted higher royalty expense and
temporary factors, now resolved, including crusher bridge failure
resulting in the use of higher cost contract crushing for the
entire quarter. Specifically, the contract crushing required during
the crusher bridge remediation contributed US$51 to AISC per ounce. Repairs to the crusher
bridge were completed during the first quarter of 2024.
Additionally, the Q4 2023 nickel by-product credit was US$6 per ounce sold compared to US$56 per ounce sold for Q4 2022, reflecting
reduced nickel sales during the quarter.
RECORD 2023 REVENUE
- 2023 revenue was a record $416.3
million, 31% higher than $317.0
million in 2022 mainly reflecting a 19% increase in gold
sales and a realized gold price that was US$133 per ounce higher than in 2022.
- Revenue in Q3 2023 of $101.8
million increased 5% from Q4 2022 and was slightly lower
than the previous quarter due to timing of sales.
SOLID OPERATING CASH FLOW GENERATION
- Record 2023 cash flow provided by operating activities of
$132.7 million was a 50% increase
compared to $88.2 million in
2022.
- Q4 2023 cash flow provided by operating activities was
$32.1 million compared to
$36.5 million in Q4 2023.
- Cash at December 31, 2023 of
$82.5 million increased $13.7 million or 20% from $68.8 million at December
31, 2022.
EARNINGS PERFORMANCE
- Net earnings for 2023 of $8.9
million ($0.05 per share)
compared to net earnings of $9.9
million ($0.06 per share) for
2022 reflecting the impact of a non-cash impairment charge and
foreign exchange loss.
- Adjusted earnings1 for 2023 totalled $36.1 million ($0.21 per share), a 71% increase from
$21.1 million ($0.13 per share) for 2022. The main differences
between net earnings and adjusted net earnings in 2023 was the
exclusion from adjusted earnings1 of non-cash
share-based payments, $9.2 million
impairment charges (on the carrying value of a small HGO mine),
non-cash losses on derivatives, unrealized losses on the
revaluation of marketable securities and the impact of foreign
exchange losses.
- Adjusted EBITDA1,2 for 2023 was $129.3 million, 41% higher than $91.5 million in 2022 reflecting the 19% increase
in gold sold and 7% increase in the USD realized gold price.
- Net loss for Q4 2023 of $1.7
million ($0.01 per share)
compared to net earnings of $9.6
million ($0.06 per share) in
Q4 2022 and net earnings of $6.9
million (0.04 per share) in Q3 2023. Q4 2023 was impacted by
a non-cash $9.2 million impairment
charge and a $3.1 million NRV
adjustment to historic stockpiles.
- Adjusted earnings for Q4 2023 of $3.3
million ($0.02 per share)
compared to $8.7 million
($0.05 per share) in Q4 2022 and
$14.0 million ($0.08 per share) the previous quarter.
- Adjusted EBITDA1,2 for Q4 2023 was $24.9 million, 15% lower than $29.2 million in Q4 2022.
GROWTH PLAN HIGHLIGHTS
BETA HUNT EXPANSION TO 2.0 MTPA
- The expansion project at Beta Hunt continued to advance during
the final quarter of 2023 with significant improvements to the
mine's primary ventilation circuit to accommodate the increasing
mining fleet. Orders were placed for the supply, installation and
commissioning of new permanent primary ventilation fans late in the
third quarter of 2024. The current temporary primary fan
arrangement successfully incorporated the three completed
ventilation raises during Q4 2023. The expansion of the new mining
fleet continued with the delivery of five underground trucks and
three underground loaders in 2023, with further fleet expansion
planned in 2024. Once completed, the Beta Hunt expansion project is
expected to increase the mine's annualized production run-rate to
2.0 Mtpa by the end of 2024.
ROBUST MINERAL RESOURCE AND MINERAL RESERVE GROWTH
- The Annual Mineral Resource and Reserve update was highlighted
by strong increases in the Beta Hunt Gold Mineral Resource and
Reserves. On November 21, 2023, the
Company reported an 18% increase to the Beta Hunt Gold Measured and
Indicated to 1.6 million ounces and a 12% increase in grade from
2.6 g/t to 2.9 g/t at Western Flanks, Beta Hunt's largest
Mineral Resource. Gold Proven and Probable Mineral Reserve
increased by 6% to 573,000 ounces. Consolidated (Beta Hunt plus
Higginsville) Gold Measured and Indicated Mineral Resource
inventory increased by 9% to 3.2 million ounces. Consolidated
Proven and Probable Mineral Reserves now total 1.3 million
ounces.
DEVELOPMENT COMMENCED TOWARDS STRONG DRILL RESULTS FROM
FLETCHER SHEAR ZONE
- Drill results from Beta Hunt's Fletcher zone continue to
support the existence of a large mineralized system west of Western
Flanks. The first set of assay results from the Stage 2 infill
program were released on February 22,
2024. Assays from four drill holes were released which
included intersections of strong mineralization in targeted areas.
Significant results included 3.8 g/t over 33.0 metres, 15.2 g/t
over 3.3 metres and 34.6 g/t over 2.0 metres and reinforce the
existence of a significant mineralized system west of Western
Flanks with potential for the Fletcher Shear Zone to extend up to 2
kilometres of strike and be the third major gold system in the Hunt
Block after the Western Flanks and A Zone.
- Development of an exploration drive towards the Fletcher Shear
Zone has commenced, with initial cuts into the zone anticipated in
2H24.
NEW HIGH GRADE NICKEL INTERCEPTS FROM BETA HUNT
- High grade results from the 50C Nickel infill and extensional
drill program were reported on February 26,
2024. The first six drill holes of the 50C infill drill
program delivered some of the highest-grade nickel intersections
recorded from this area to date, highlighting the potential to
upgrade and extend the existing Nickel Mineral Resource.
Significant results included 8.2% Ni over 5.1 metres, including
13.7% Ni over 2.6 metres and 12.0% Ni over 2.9 metres.
KALI METALS LITHIUM SPIN-OFF
- The Kali Metals lithium transaction was completed in
December 2023 and Kali began trading
on the Australian Securities Exchange (ASX) on January 4, 2024 following its successful Initial
Public Offering (see www.kalimetals.com.au for more details).
Karora and Kalamazoo Resources Limited vended certain lithium
exploration projects into the newly created Kali Metals Limited
creating a new, separately run lithium-focused, ASX-listed
exploration company. Karora owns an approximate 22% interest in
Kali Metals Limited.
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
"Non-IFRS Measures" section of this news release and in the
MD&A for the three and twelve months ended December 31,
2023.
|
2.
|
Earnings before
interest, taxes, depreciation and amortization
|
Karora will host a call/webcast on
March 22, 2024 at
10:00 am (Eastern
Time) to discuss the 2023 results. North American callers
please dial: 1-888-664-6383; Local and
international callers please dial: 416-764-8650. To join the
conference call without operator assistance, you may register and
enter your phone number at the Callback Link to receive an
instant automated call back and be placed into the call. For the
webcast of this event click the Webcast
Link
https://app.webinar.net/qd49m96K08v
(replay access information is
provided below).
LONG TERM POWER PURCHASE AGREEMENT, CRITICAL STEP IN REDUCING
GREENHOUSE GAS
Subsequent to year end, on January 16,
2024, the Company signed a long-term Power Purchase
Agreement, a critical first step in achieving its initial target to
reduce Scope 1 & 2 greenhouse gas emissions by 20% by 2030,
compared to a 2024 forecasted business-as-usual baseline. The
agreement involves the development of a power line to Higginsville
and facilitate reduced carbon emissions from the site from early
2025.
Paul Andre Huet, Chairman and
CEO, commented: "I am pleased with our 2023 performance, during
which we produced over 160,000 gold ounces, achieving a new record
and exceeding our full-year guidance range of 145,000 to 160,000
ounces for gold production. The strong production drove strong
financial results including adjusted earnings1 of
$36.1 million ($0.21/sh) and cash flow from operations of
$132.7 million, beating our
performance in 2022. 2023 AISC costs were US$1,248 per ounce sold, within our guidance
range of US$1,100 to US$1,250 per ounce for 2023 despite a crusher
bridge failure during the second half of the year which has now
been repaired and is back online. I would like to say well done to
our team in getting this work done as quickly and as safely as
possible.
Our flagship Beta Hunt Mine continues to be the engine room
powering our growth in both production and Mineral Resources.
Outstanding production results during the fourth quarter, totaling
almost 35,000 ounces, drove continued strong cost performance at
our flagship operation. At Higginsville, where the third quarter
delivered strong production results at Aquarius, the fourth quarter
production result of just under 6,000 ounces was in line with our
mine plan as we set up the next phase of the Pioneer pit to deliver
in Q2 2024.
Overall operating costs were impacted in Q4 2023 by temporary
factors that added nearly US$100 per
ounce to AISC. While our flagship Beta Hunt mine continued to
deliver very strong results, the planned lower tonnes and grade at
Higginsville were compounded by the crusher bridge failure. As
previously mentioned, costs were impacted by the use of higher cost
temporary mobile crushing during the quarter which increased AISC
by US$51 per ounce. The main HGO
crushing unit underwent repairs throughout Q4 2023 following the
bridge failure in Q3 2023. The repairs were completed earlier this
month and normal crushing operations have resumed at HGO.
Additionally, reduced nickel sales in Q4 2023 lowered nickel
by-product credits, which had a negative impact of US$50 per ounce on consolidated AISC costs
compared to Q4 2022. This was a result of renegotiating our
improved nickel sales contract and we expect this situation to
normalize in line with full year 2024 AISC guidance of between
US$1,250 to US$1,375 per ounce sold.
Our 2023 drilling campaign was a big success. At Beta Hunt our
drilling campaign resulted in significant additions to our resource
base, net of mining depletion, of 249,000 ounces (or an 18% to gold
M&I Resources). Also significant was the 8% improvement in the
Beta Hunt M&I Mineral Resource grade and an 8% improvement to
the Mineral Reserve grade. Karora's Beta Hunt Mineral Resource now
totals 1.4Moz in the M&I category and a further 1.1Moz in the
Inferred category. We expect Beta Hunt to continue its rapid growth
trajectory with very promising results being delivered from the new
Fletcher Shear Zone, which we anticipate to be the next area added
to our Mineral Resource inventory towards the end of this year. In
the meantime, we have commenced development of an exploration drive
towards the Fletcher Shear Zone and expect to take first
exploration cuts in the second half of the year. We are certainly
looking forward to the potential of this area as part of our 2024
mine plan, providing additional flexibility with new working faces
as the mine ramps up towards 2.0 Mtpa.
As we execute the final year of our growth plan in 2024, we are
encouraged by several ongoing cost reduction initiatives including
expected lower power costs at HGO beginning in 2025. Early next
year, we will transition away from onsite diesel power generation
at HGO to grid power through a Power Purchase Agreement we
announced in January 2024. This
transition provides a dual benefit: reducing our cost per kWh while
tackling the largest source of our GHG emissions on site, all part
of our goal to reduce emissions by 20% by 2030. We are also
advancing work to increase by-product nickel production in the
coming years, particularly in the new Gamma area as we transition
away from mining in historic remnant nickel areas. Both gold and
nickel production are poised to benefit from the investments in our
growth plan that have upgraded all aspects of Beta Hunt's
infrastructure, including the completion in 2023 of a new second
decline, three new ventilation raises and mining equipment
additions.
2023 was a year of strategic growth and investment in which we
either delivered against or exceeded our target objectives,
including overcoming several challenges along the way. I am proud
to say we ended the year in a very robust financial position with a
cash balance of $82.5 million,
placing us well to deliver on our aggressive growth objectives in
2024. We expect to reach our goal of a 2.0 Mtpa production rate at
Beta Hunt before the end of 2024, with significant opportunities
and levers for continued production growth emerging ahead of us.
2024 will certainly be another exciting year for Karora
Resources."
RESULTS OF OPERATIONS
Table 1. Results of Operations
|
|
Three Months
Ended,
|
Twelve Months
Ended,
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Sep 30,
2023
|
Dec 31,
2023
|
Dec 31,
2022
|
Gold Operations
(Consolidated)
|
|
|
|
|
|
|
Tonnes milled
(000s)
|
485
|
522
|
516
|
2,039
|
1,925
|
|
Recoveries
|
94 %
|
94 %
|
95 %
|
95 %
|
94 %
|
|
Gold milled, grade (g/t
Au)
|
2.75
|
2.37
|
2.51
|
2.59
|
2.30
|
|
Gold produced
(ounces)
|
40,295
|
37,309
|
39,547
|
160,492
|
133,887
|
|
Gold sold
(ounces)
|
37,439
|
39,900
|
41,278
|
157,034
|
132,098
|
|
Average exchange rate
(C$/US$) 1
|
0.73
|
0.74
|
0.75
|
0.74
|
0.77
|
|
Average realized price
(US $/oz sold)
|
$1,988
|
$1,737
|
$1,931
|
$1,926
|
$1,793
|
|
Cash operating costs
(US $/oz sold)2
|
$1,272
|
$1,034
|
$1,062
|
$1,128
|
$1,099
|
|
All-in sustaining cost
(AISC) (US $/oz sold)2
|
$1,435
|
$1,110
|
$1,196
|
$1,248
|
$1,174
|
Gold (Beta
Hunt)
|
|
|
|
|
|
|
Tonnes milled
(000s)
|
363
|
250
|
333
|
1,314
|
1,084
|
|
Gold milled, grade (g/t
Au)
|
3.13
|
2.76
|
2.17
|
2.71
|
2.40
|
|
Gold produced
(ounces)
|
34,486
|
20,870
|
21,926
|
108,698
|
79,125
|
|
Gold sold
(ounces)
|
31,819
|
22,342
|
23,595
|
104,821
|
78,377
|
|
Cash operating cost (US
$/oz sold)2
|
$1,123
|
$992
|
$1,233
|
$1,088
|
$1,045
|
Gold (HGO
Mine)
|
|
|
|
|
|
|
Tonnes milled
(000s)
|
123
|
273
|
183
|
726
|
841
|
|
Gold milled, grade (g/t
Au)
|
1.61
|
2.01
|
3.13
|
2.36
|
2.18
|
|
Gold produced
(ounces)
|
5,809
|
16,439
|
17,621
|
51,794
|
54,763
|
|
Gold sold
(ounces)
|
5,620
|
17,558
|
17,683
|
52,213
|
53,721
|
|
Cash operating cost (US
$/oz sold)2
|
$2,112
|
$1,088
|
$832
|
$1,209
|
$1,179
|
1.
|
Average exchange rate
refers to the average market exchange rate for the
period.
|
2.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
"Non-IFRS Measures" section of this news release and in the
MD&A for the three and twelve months ended December 31,
2023.
|
3.
|
Numbers may not add due
to rounding.
|
Consolidated Operations
Consolidated gold production in the fourth quarter of 2023 was
40,295 ounces, an 8% increase from the fourth quarter of 2022
(37,309 ounces) and 2% increase over the 39,547 ounces in the
previous quarter. The increase from Q4 2022 resulted primarily from
the 45% increase in tonnage and 14% higher grade from Beta Hunt
offsetting lower tonnes and grade from HGO. Consolidated tonnage
was 7% and 6% down on the comparative period in 2022 and prior
quarter respectively due to a number of maintenance shut downs at
the two plants during the last quarter of 2023. Despite higher
production versus comparable quarters, sales volume was 37,439
ounces for the quarter being 6% lower than the fourth quarter of
2022 and 9% lower than the prior quarter.
Cash operating costs1 per ounce sold for the fourth
quarter of 2023 averaged US$1,272
compared to US$1,034 for the same
period in 2022 and US$1,062 the
previous quarter. The increase from the comparable quarters largely
reflects temporary higher processing costs during the quarter due
to three months contract crushing following the crusher bridge
failure at HGO and continued slightly elevated cost pressures in
areas such as labour, contractors, power and fuel. Crusher bridge
repairs were completed in March 2024.
In addition, due to a planned renegotiation of nickel sales
agreements, nickel produced in the fourth quarter 2023 was held
back and not sold during the quarter, reducing nickel by-product
credits to US$6/oz compared to
US$56/oz in the same period in 2022.
AISC1 per ounce sold in the fourth quarter of 2023
averaged US$1,435 compared to
US$1,110 in the fourth quarter of
2022 and US$1,196 the previous
quarter due to the lower comparable sales volume, impact of the
higher cash operating costs per ounce sold, and planned higher
proportional sustaining capital for the final quarter of 2024.
For the twelve months of 2023, gold production totalled 160,492
ounces, 20% higher than 133,887 ounces in the twelve months of 2022
reflecting a 6% increase in tonnes milled and a 12% improvement in
the average grade. Higher tonnes milled reflected an increase in
milling capacity following the acquisition of the Lakewood Mill in
August 2022 and its subsequent ramp
up to maintaining a 1.0 Mtpa processing rate. This result
represents an annual production record for the Company and exceeded
the top end of the 145,000 – 160,000 ounces gold production
guidance range for 2023.
Cash operating costs1 per ounce sold for the twelve
months of 2023 averaged US$1,128
compared to US$1,099 for the same
period in 2022 with volume and grade improvements offset by higher
operating costs, particularly the additional costs incurred around
contract crushing due to the HGO crusher bridge failure, now
repaired. AISC1 per ounce sold averaged US$1,248 for 2023, within the cost guidance range
of US$1,100 – US$1,250 per ounce sold, compared to US$1,174 in 2022 reflecting cash operating costs
per ounce and planned higher sustainable capital for the year
comprised primarily of engine replacement and rebuilds for Beta
Hunt mining equipment.
Beta Hunt
During Q4 2023, 360,300 tonnes were mined at an average grade of
3.05 g/t containing 35,286 ounces of gold. This represented a 43%
improvement compared to Q4 2022, reflecting progress in the ongoing
production ramp up at the Beta Hunt mine. Gold mined was 52% higher
than Q4 2022 (252,500 tonnes at 2.84 g/t for 23,100 contained
ounces) and 54% higher than the prior quarter (357,200 tonnes at
2.00 g/t for 22,912 contained ounces) reflecting the mining of a
planned higher-grade section of Beta Hunt during the fourth
quarter. Most of the mined tonnes during Q4 2023 came from the
central and southern section of Western Flanks and scheduled higher
grade areas from A Zone during December.
Gold production from Beta Hunt in Q4 2023 totalled 34,486
recovered ounces based on milling 362,500 tonnes at an average
grade of 3.13 g/t and 94.4% plant recovery. The higher mined grade
contributed to 65% higher gold production for the quarter compared
to Q4 2022 (20,870 ounces) and 57% higher than the prior quarter
(21,926 ounces).
Cash operating costs1 per ounce sold at Beta Hunt
averaged US$1,123 in Q4 2023, which
compared to US$992 in Q4 2022, and
US$1,233 the previous quarter. The
reduction in cash operating costs from the previous quarter of 2023
reflects the impact of higher grade more than offsetting the higher
final quarter operating costs. The increase compared to the 2022
fourth quarter reflects higher 2023 costs and a reduction in
by-product credits of US$88 per Beta
Hunt ounce from lower comparable nickel sales for the quarter
compared to 2022 (no nickel production was sold in the final
quarter of 2024 as a new nickel sales arrangement was
negotiated).
For 2023, 1,314,600 tonnes were mined at an average grade of
2.69 g/t containing 113,726 ounces of gold, compared to 1,081,500
tonnes mined at an average grade of 2.45 g/t containing 85,208
ounces of gold in 2022. Full year 2023 gold production from Beta
Hunt totalled 108,698 ounces, a 37% increase from production
of 79,125 ounces in 2022, which resulted from 21% higher Beta Hunt
ore mill throughput and 13% higher grade for the full year. Cash
operating costs1 per ounce sold averaged US$1,088 broadly in line with US$1,045 in 2022.
In addition to gold production, Beta Hunt mined 5,253 tonnes of
nickel ore at an estimated grade of 2.3% nickel during Q4 2023
compared to 5,755 tonnes of nickel ore mined at an estimated grade
of 2.0% nickel for the same period in 2022 and 5,193 tonnes of
nickel ore at an estimated grade of 1.7% nickel the previous
quarter. For 2023, 23,288 tonnes of nickel ore were mined at an
estimated grade of 2.2% nickel, which compared to 24,604 tonnes
mined at an estimated average grade of 1.7% nickel a year
earlier.
Higginsville Mining Operations ("HGO")
During Q4 2023, 90,400 tonnes were mined at an average grade of
1.76 g/t containing 5,129 ounces, which compared to 106,000 tonnes
mined at an average grade of 3.34 g/t containing 11,370 ounces in
the fourth quarter of 2022 and 96,400 tonnes at an average grade of
5.16 g/t containing 15,994 ounces the previous quarter. During Q4
2023, mining at the Pioneer open pit continued and mining commenced
at the Two Boys underground mine.
Gold production at HGO in Q4 2023 totalled 5,809 ounces (122,800
tonnes milled at an average grade of 1.61 g/t), 65% lower compared
to 16,439 ounces in Q4 2022 (272,600 tonnes milled at 2.01 g/t),
reflecting 55% lower tonnes processed and 20% lower grade
processed, and was 67% lower than the previous quarter (182,500
tonnes at 3.13 g/t for 17,621 ounces), again reflecting the 33%
lower tonnes processed and 49% lower grade compared to the previous
quarter where final stoping from the Aquarius underground mine was
completed. Tonnes processed were lower in both comparisons due to
mill maintenance down time, reduced crusher throughput resulting
from the crusher bridge failure and reduced satellite feed sources
with increased reliance on the ramp up tonnes from Beta Hunt.
Cash operating costs1 per ounce sold at HGO averaged
US$2,112 in Q4 2023 versus
US$1,088 for Q4 2022, with the
increase reflecting the previously discussed temporary higher
contract crushing costs, higher operating costs incurred on new
short term mining projects, lower processing grade and ounces sold
for the period. Cash operating costs1 per ounce sold in
Q4 2023 increased from US$832 the
previous quarter, which had benefitted from higher grade Aquarius
ore and associated higher produced and sold ounces. Pioneer open
pit commenced in Q4 2023 to contribute to production particularly
in Q2 2024. Early development at Two Boys underground contributed
to higher operating costs in Q4 2023 with ounces to be delivered
into 2024. At 31 December 2023,
nickel stocks were 10,871t at 2% with sale of this material
expected to be completed in Q1 2024.
For 2023, HGO mined 437,100 tonnes at an average grade of 3.27
g/t containing 45,854 contained ounces of gold, which was 7% lower
than the 469,800 tonnes mined at an average grade of 3.09 g/t
containing 46,767 ounces of gold in 2022. 2023 production totalled
51,794 ounces from 725,800 tonnes processed at an average grade of
2.36 g/t versus gold production of 54,763 ounces from 841,200
tonnes at an average grade of 2.18 g/t for 2022. Cash operating
costs1 per ounce sold in 2023 averaged US$1,209 compared to US$1,179 in 2022 with the higher cash costs
largely due to the crusher bridge failure and associated contract
crushing costs incurred in the Q4.
Processing Operations
A total of 485,300 tonnes were milled at an average grade of
2.75 g/t with average recoveries of 94% for production of 40,295
ounces during Q4 2023.
Beta Hunt contributed 100% of the throughput at the Lakewood
Mill during Q4 2023, totalling 211,100 tonnes at an average grade
of 3.46 g/t. Recovered gold during the quarter totalled 22,352
ounces. The balance of Beta Hunt was dedicated to the Higginsville
processing plant with Beta Hunt contributing 55% of the mill
throughput and HGO providing the remaining 45%. At Higginsville,
274,200 tonnes of material were processed at an average grade of
2.18 g/t for a recovered gold of 17,944 ounces.
For 2023, throughput at the Lakewood Mill totalled
759,7002 tonnes (98% from Beta Hunt and 2% from HGO) at
an average grade of 2.39 g/t. Recovered gold during the
twelve-month period totalled 55,344 ounces. 1,279,700 tonnes were
milled at the Higginsville (with 45% of mill feed coming from Beta
Hunt and 55% from HGO) at an average grade of 2.70 g/t. Recovered
gold totalled 105,428 ounces.
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
"Non-IFRS Measures" section of this news release and in the
MD&A for the three and twelve months ended December 31,
2023.
|
2.
|
Lakewood – there was no
toll treatment during Q4, the twelve month throughput excludes
external toll treatment ore processed during 2023.
|
FINANCIAL REVIEW
Table 2. Financial Overview
(in thousands of
dollars except per share amounts)
|
Three Months
Ended,
|
Twelve Months
Ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
$101,782
|
$96,835
|
$416,319
|
$317,042
|
Production and
processing costs
|
61,609
|
54,306
|
228,094
|
179,265
|
(Loss) Earnings before
income taxes
|
(4,525)
|
9,804
|
20,117
|
16,650
|
Net (loss)
earnings
|
(1,705)
|
9,560
|
8,920
|
9,901
|
Net (loss) earnings per
share - basic
|
(0.01)
|
0.06
|
0.05
|
0.06
|
Net (loss) earnings per
share - diluted
|
(0.01)
|
0.05
|
0.05
|
0.06
|
Adjusted EBITDA
1
|
24,854
|
29,196
|
129,314
|
91,511
|
Adjusted EBITDA per
share - basic 1
|
0.14
|
0.17
|
0.74
|
0.56
|
Adjusted earnings
1
|
3,330
|
8,699
|
36,084
|
21,121
|
Adjusted earnings per
share - basic 1
|
0.02
|
0.05
|
0.21
|
0.13
|
Cash flow provided by
operating activities
|
32,064
|
36,538
|
132,675
|
88,224
|
Cash investment in
property, plant and equipment and
mineral property interests
|
(32,428)
|
(21,454)
|
(103,143)
|
(171,144)
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in
the" Non-IFRS Measures" section of this news release and the
MD&A for the three and twelve months ended December 31,
2023.
|
For Q4 2023 December 31, 2023, the Company generated revenue of
$101.8 million, a $4.9 million or 5% increase from the fourth
quarter of 2022. Gold revenue totalled $101.4 million, $7.7
million or 8% higher than the 2022 fourth quarter, with the
increase reflecting $13.5 million
from rate factors, including the impact of a stronger US dollar as
well as a 15% increase in the average US$ realized gold price,
partially offset by the lower gold volume sold for the
quarter. Beta Hunt contributed $86.2
million of total gold revenue in the fourth quarter of 2023,
with HGO contributing $15.2 million.
During the comparable period in 2022, Beta Hunt contributed
$52.5 million of gold revenue, with
the remaining $41.2 million coming
from HGO.
For 2023, revenue totalled $416.3
million, $99.3 million or 31%
higher than $317.0 million for the
same period in 2022. Gold revenue for the twelve months of 2023
totalled $408.3 million, a
$98.9 million or 32% increase from a
year earlier. Of the increase, $58.4
million related to a 19% increase in gold ounces sold, with
rate factors contributing the remaining $40.5 million of revenue growth reflecting the 7%
improvement in the average realized US$ gold price and the impact
of a significantly stronger US dollar. Beta Hunt contributed
$273.2 million of 2023 gold revenue,
with HGO contributing $135.1 million.
During 2022, Beta Hunt contributed $183.7
million of gold revenue, with $125.7
million coming from HGO.
Net loss for Q4 2023 totalled $1.7
million ($0.01 per basic
share) compared to $9.6 million
($0.06 per basic share) for the three
months ended December 31, 2022. The
net earnings performance compared to the fourth quarter of 2022 is
impacted by a non-cash $9.2 million
impairment charge and $3.1 million
inventory adjustment related to the non-cash write down of historic
stockpiles along with the impact of higher production and
processing costs (particularly in relation to contract crushing
while the HGO crusher bridge is repaired), general and
administrative, depreciation and amortisation, royalty, other and
income tax expenses.
Net earnings for the twelve months ended December 31, 2023, was $8.9 million ($0.05
per basic share) compared to net earnings of $9.9 million ($0.06
per basic share) in the twelve months of 2022, despite a 37% of
$44.4 million increase in operating
margin more than offsetting the impact of higher general and
administrative, depreciation and amortisation, royalty, other and
income tax expenses.
Adjusted earnings1 for Q4 2023 totalled $3.3 million ($0.02
per share) versus $8.7 million
($0.05 per share) in the fourth
quarter of 2022. The difference between net earnings and adjusted
earnings1 in the fourth quarter of 2023 resulted from
the exclusion from adjusted earnings1 of the after-tax
impact of $3.2 million related to
non-cash share-based payments, $9.2
million impairment charges, $2.6
million related to loss on derivatives, offset by the
exclusion of $7.8 million foreign
exchange gains.
For 2023, adjusted earnings1 totalled $36.1 million ($0.21 per share) versus $21.1 million ($0.13 per share) in the same period in 2022. The
difference between net earnings and adjusted earnings1
in the fourth quarter of 2023 largely resulted from the exclusion
from adjusted earnings1 of the after-tax impact of
$10.0 million related to non-cash
share-based payments, $9.2 million in
impairment charges, $7.8 million
related to loss on derivatives, and $5.5
million in unrealized foreign exchange loss. The increase in
adjusted earnings1 compared to the full year of 2022
mainly reflected the 37% increase in operating margin, driven by
$98.9 million or 32% higher gold
revenue.
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in
the" Non-IFRS Measures" section of this news release and the
MD&A for the three and twelve months ended December 31,
2023.
|
Table 3. Highlights of Liquidity and Capital
Resources
(in thousands of
dollars)
|
Three months
ended,
|
Twelve Months
Ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Cash provided by
operations prior to changes in working capital
|
$24,188
|
$28,211
|
$127,942
|
$89,962
|
Changes in non-cash
working capital
|
7,930
|
8,406
|
4,841
|
(739)
|
Asset retirement
obligations
|
-
|
-
|
-
|
(441)
|
Income taxes
paid
|
(54)
|
(79)
|
(108)
|
(558)
|
Cash provided by
operating activities
|
32,064
|
36,538
|
132,675
|
88,224
|
Cash used in investing
activities
|
(32,292)
|
(21,247)
|
(102,736)
|
(170,333)
|
Cash provided by (used
in) financing activities
|
(3,879)
|
(4,216)
|
(15,591)
|
59,279
|
Effect of exchange rate
changes on cash and cash equivalents
|
2,486
|
1,630
|
(596)
|
611
|
Change in cash and cash
equivalents
|
$(1,621)
|
$12,705
|
$13,752
|
$(22,219)
|
1.
|
Working capital is
calculated as current assets (including cash and cash equivalents)
less current liabilities.
|
For Q4 2023, cash provided by operating activities, prior to
changes in working capital, totalled $24.2
million compared to $28.2
million for the same period in 2022. The decrease compared
to the fourth quarter of 2022 largely reflected lower sales volume
due to year end gold shipment timing, and increased processing
costs related to the HGO contract crushing costs, general and
administrative and royalty expenses. Changes in working capital
represented a net source of cash totalling $7.9 million during the three months ended
December 31, 2023, reflecting a
$6.1 million increase in accounts
payable due to increased operating and ongoing growth capital
activity particularly in December
2023.
For 2023, cash provided by operating activities, prior to
changes in working capital, was $127.9
million compared to $90.0
million for the same period in 2022, with the increase
mainly reflecting higher gold revenue and operating margin in the
twelve months more than offsetting increases in royalty and general
and administration expenses. Changes in working capital represented
a $4.8 million net source of cash
during the twelve months ended December 31,
2023 of which $3.4 million
relates to reduced trade and other receivables reflecting no Q4,
2023 nickel production sold for the final half. Changes in working
capital in the twelve months of 2022 used $0.7 million, mainly represented by a
$8.1 million increase in inventories
and $2.7 million increase in trade
and other receivables substantially offset by a $8.7 million increase in accounts payable and
accrued liabilities.
The Company had cash of $82.5
million as at December 31,
2023 compared to $68.8 million
as at December 31, 2022.
OUTLOOK
GUIDANCE (2024)
The Company updated 2024 production, cost and capital guidance
on March 11, 2024. This outlook
includes forward-looking information about the Company's operations
and financial expectations and is based on management's
expectations and outlook as of the date of this MD&A. This
outlook, including expected results and targets, is subject to
various risks, uncertainties and assumptions, which may impact
future performance and the Company's ability to achieve the results
and targets discussed in this section. The Company may update this
outlook depending on changes in metal prices and other factors.
Table 4. Guidance (2024)
|
|
2024
|
Gold
Production
|
(Koz)
|
170 – 185
|
All-in Sustaining
Costs
|
(US$/oz
sold)
|
1,250 –
1,375
|
Sustaining
Capital
G
|
(A$M)
|
11 – 16
|
Growth
Capital
|
(A$M)
|
80 – 90
|
Exploration &
Resource Development
|
(A$M)
|
18 – 23
|
Nickel
Production
|
(Ni Tonnes)
|
200
– 300
|
1.
|
Production guidance is
based on the September 30, 2023 Mineral Reserves and Mineral
Resources announced on November 21, 2023.
|
2.
|
The Company expects to
fund the capital investment amounts listed above with cash on hand,
cashflow from operations and lease finance an additional up to A$8
million of heavy equipment.
|
3.
|
The material
assumptions associated with the expansion of Beta Hunt mining
production rate to 2.0 Mtpa during 2024 include the completion of
ventilation and other infrastructure that is required to support
these areas, and an expanded mining equipment and trucking
fleet.
|
4.
|
The Company's guidance
assumes targeted mining rates and costs, availability of personnel,
contractors, equipment and supplies, the receipt on a timely basis
of required permits and licenses, cash availability for capital
investments from cash balances, cash flow from operations, or from
a third-party debt financing source on terms acceptable to the
Company, no significant events which impact operations, an A$ to
US$ exchange rate of 0.67 in 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 Regarding Forward-Looking
Information".
|
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 and equipment leases.
|
7.
|
AISC calculations are
for the Australian operations only, and exclude non-cash
share-based payments expense, derivative settlements, and net
realizable value adjustments to prior period stockpiles. The
Company acquired the Lakewood mill in 2022 and embarked on an
expansion program to grow the Beta Hunt gold mine to 2.0 Mtpa
mining rate during 2024. Mine development for projects with greater
than 1 year mine life and equipment acquisition are being
attributed to growth capital during this growth phase.
|
8.
|
See "Non-IFRS Measures"
set out at the end of this news release and in the MD&A for the
year ended December 31, 2023.
|
CONFERENCE CALL / WEBCAST
Karora will be hosting a conference call and webcast today,
March 22, 2024, 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: 1-888-664-6383:
Local and international callers please dial: 416-764-8650
A live webcast of the call will be available through Cision's
website at: https://app.webinar.net/qd49m96K08v
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 22, 2024,
through the following dial in numbers:
North American callers please dial: 1-888-390-0541; Pass Code:
706165#
Local and international callers please dial: 416-764-8677; Pass
Code: 706165#
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
Cash Operating and All-in Sustaining Costs
Consolidated
|
Three months
ended,
|
Twelve months
ended,
|
For the years ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Production and
processing costs
|
$61,609
|
$54,305
|
$288,094
|
$179,265
|
Inventory adjustment
1
|
(2,582)
|
-
|
(5,023)
|
-
|
Royalty
expense
|
6,206
|
5,039
|
24,016
|
17,987
|
By-product credits
2,3
|
(367)
|
(3,105)
|
(8,013)
|
(7,642)
|
Operating costs
(C$)
|
$64,866
|
$56,239
|
$239,074
|
$189,610
|
General and
administrative expense – Australia 3,4
|
4,632
|
3,552
|
16,897
|
10,157
|
Sustaining capital
expenditures
|
3,722
|
600
|
8,485
|
2,804
|
All-in sustaining costs
(C$)
|
$73,220
|
$60,391
|
$264,456
|
$202,571
|
Ounces of gold
sold
|
37,439
|
39,900
|
157,034
|
132,098
|
Australian
dollars per ounce sold
|
|
|
|
|
Cash operating
costs
|
$1,954
|
$1,573
|
$1,699
|
$1,589
|
All-in sustaining costs
5
|
$2,206
|
$1,690
|
$1,879
|
$1,698
|
United States
dollars per ounce sold
|
|
|
|
|
Cash operating
costs
|
$1,272
|
$1,034
|
$1,128
|
$1,199
|
All-in sustaining costs
5
|
$1,435
|
$1,110
|
$1,248
|
$1,174
|
Average exchange
rate
|
|
|
|
|
C$:A$
|
0.89
|
0.89
|
0.90
|
0.90
|
A$:US$
|
0.65
|
0.66
|
0.66
|
0.69
|
1.
|
Relates to an
adjustment to net realizable value of gold stockpiles. Refer
to note 6 of the December 31, 2023, audited consolidated financial
statements
|
2.
|
Refer to Note 25 of the
December 31, 2023, audited consolidated financial
statements
|
3.
|
By-product credits for
the three and twelve months ended December 31, 2023, include
external toll treatment revenue of $nil and $2,527 respectively
(same periods in 2022 - $141 and $460)
|
4.
|
General and
administrative expense for the three and twelve months ended
December 31, 2022, periods exclude amounts related to research and
development and due diligence expenses of $900 and $3,100
respectively
|
5.
|
AISC calculations are
for the Australian operations only, exclude non-cash share-based
payments expense, derivative settlements, and net realisable value
adjustments to prior period stockpiles. The Company acquired the
Lakewood mill in 2022 and embarked on an expansion program to grow
the Beta Hunt gold mine to 2.0 Mtpa mining rate during 2024. All
mine development, equipment acquisition, and growth leases are
being attributed to growth capital during this growth
phase.
|
Beta Hunt
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Production and
processing costs 1,2
|
$43,315
|
$29,562
|
$138,784
|
$99,586
|
Royalty expense
1
|
5,730
|
3,445
|
20,443
|
14,240
|
By-product credits
1
|
(353)
|
(2,929)
|
(5,347)
|
(7,067)
|
Operating costs
(C$)
|
$48,692
|
$30,078
|
$153,880
|
$106,759
|
Ounces of gold
sold
|
31,818
|
22,342
|
104,820
|
78,377
|
Australian
dollars per ounce sold
|
|
|
|
|
Cash operating
costs
|
$1,726
|
$1,509
|
$1,638
|
$1,509
|
United States
dollars per ounce sold
|
|
|
|
|
Cash operating
costs
|
$1,123
|
$992
|
$1,088
|
$1,045
|
Average exchange
rate
|
|
|
|
|
C$:A$
|
0.89
|
0.89
|
0.90
|
0.90
|
A$:US$
|
0.65
|
0.66
|
0.66
|
0.69
|
1.
|
Refer to Note 25 of the
December 31, 2023 audited consolidated financial
statements
|
2.
|
Includes $16,070 and
$49,151 cost of processing the Betta Hunt ore at the HGO mills,
respectively for the three and twelve months ended December 31,
2023 ($9,540 and $32,067 respectively, for same periods in
2022).
|
HGO
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
|
Production and
processing costs 1
|
$34,364
|
$34,284
|
$138,461
|
$111,746
|
|
Adjustment for
intercompany and toll milling costs 1, 2
|
(16,070)
|
(9,681)
|
(51,678)
|
(32,527)
|
|
Inventory adjustment
3
|
(2,582)
|
-
|
(5,023)
|
-
|
|
Royalty expense
1
|
476
|
$1,594
|
3,573
|
3,747
|
|
By-product credits
1
|
(14)
|
(36)
|
(139)
|
(115)
|
|
Operating costs
(C$)
|
$16,174
|
$26,161
|
$85,194
|
$82,851
|
|
Ounces of gold
sold
|
5,621
|
17,558
|
52,214
|
53,721
|
|
Australian
dollars per ounce sold
|
|
|
|
|
|
Cash operating
costs
|
$3,246
|
$1,655
|
$1,821
|
$1,706
|
|
United States
dollars per ounce sold
|
|
|
|
|
|
Cash operating
costs
|
$2,112
|
$1,088
|
$1,209
|
$1,179
|
|
Average exchange
rate
|
|
|
|
|
|
C$:A$
|
0.89
|
0.89
|
0.90
|
0.90
|
|
A$:US$
|
0.65
|
0.66
|
0.66
|
0.69
|
|
1.
|
Refer to Note 25 of the
December 31, 2023 audited consolidated financial
statements.
|
2.
|
Includes third party
toll milling costs at Lakewood mill of $nil and $2,527,
respectively for the three and twelve months ended December 31,
2023 (same periods in 2022 $141 and $160).
|
3.
|
Relates to an
adjustment to net realizable value for gold stockpiles in respect
of prior periods. Refer to Note 6 of the December 31, 2023 audited
consolidated financial statements.
|
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; derivatives and foreign exchange loss;
sustainability initiatives.
(in thousands of
dollars except per share amounts)
|
Three months
ended,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Net earnings (loss) for
the period - as reported
|
$(1,705)
|
$9,560
|
$8,920
|
$9,901
|
Finance expense,
net
|
2,024
|
1,761
|
7,950
|
5,533
|
Income tax expense
(recovery)
|
(2,820)
|
244
|
11,197
|
6,749
|
Depreciation and
amortization
|
19,919
|
18,169
|
68,165
|
55,585
|
EBITDA
|
17,418
|
29,734
|
96,232
|
77,768
|
Adjustments:
|
|
|
|
|
Non-cash share-based
payments 1
|
3,235
|
4,497
|
10,020
|
7,647
|
Impairment charge
1
|
9,204
|
-
|
9,204
|
-
|
Unrealized loss (gain)
on revaluation of marketable securities 2
|
304
|
(6)
|
207
|
2,032
|
Other expense (income),
net 2
|
(26)
|
573
|
3
|
772
|
Loss on derivatives
2
|
2,576
|
3,073
|
7,841
|
4,405
|
Foreign exchange loss
3
|
(7,832)
|
(8,675)
|
5,521
|
(2,294)
|
Rehabilitation cost
adjustment for closed sites 2
|
(112)
|
-
|
(1,044)
|
-
|
Sustainability
initiatives 4
|
87
|
-
|
1,330
|
1,181
|
Adjusted
EBITDA
|
$24,854
|
$29,196
|
$129,314
|
$91,511
|
Weighted average number
of common shares - basic
|
177,828,626
|
173,372,371
|
175,802,402
|
164,437,670
|
Adjusted EBITDA per
share - basic
|
$0.14
|
$0.17
|
$0.74
|
$0.56
|
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.
|
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,
|
Twelve months
ended,
|
For the periods ended
December 31,
|
2023
|
2022
|
2023
|
2022
|
Net earnings for the
period - as reported
|
$(1,705)
|
$9,560
|
$8,920
|
$9,901
|
Non-cash share-based
payments 1
|
3,235
|
4,497
|
10,020
|
7,647
|
Impairment charge
1
|
9,204
|
-
|
9,204
|
-
|
Unrealized loss (gain)
on revaluation of marketable securities 2
|
304
|
(6)
|
207
|
2,032
|
Loss on derivatives
2
|
2,576
|
3,073
|
7,841
|
4,405
|
Foreign exchange loss
3
|
(7,832)
|
(8,675)
|
5,521
|
(2,294)
|
Rehabilitation cost
adjustment for closed sites 2
|
(112)
|
-
|
(1,044)
|
-
|
Sustainability
initiatives 4
|
87
|
-
|
1,330
|
1,181
|
Tax impact of the above
adjusting items
|
(2,427)
|
250
|
(5,915)
|
(1,751)
|
Adjusted
earnings
|
$3,330
|
$8,699
|
$36,084
|
$21,121
|
Weighted average number
of common shares - basic
|
177,828,626
|
173,372,371
|
175,802,402
|
164,437,670
|
Adjusted earnings per
share - basic
|
$0.02
|
$0.05
|
$0.21
|
$0.13
|
1.
|
Primarily non-recurring
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-recurring environmental initiatives.
|
Working Capital
Working capital is calculated as current assets (including cash
and cash equivalents) less current liabilities.
|
December
31,
|
December 31,
|
(in thousands of
dollars)
|
2023
|
2022
|
Current
assets
|
$131,454
|
$115,857
|
Less: Current
liabilities
|
78,023
|
77,837
|
Working
Capital
|
$53,431
|
$38,020
|
Compliance Statement (JORC 2012 and NI 43-101)
The technical and scientific information contained in this
MD&A 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 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 5 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. 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 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, consolidated
production guidance and the potential of the Beta Hunt Mine,
Higginsville Gold Operation, the Spargos Gold Mine, 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.sedarplus.ca.
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.