Karora reports record gold production in Q3 2021, on track to double output by 2024

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(Kitco News) - Karora Resources (TSX: KRR) today announced record third quarter 2021 consolidated gold production of 30,365 ounces, an increase of 23% compared to third quarter 2020 (24,717 ounces).

The company added that its consolidated gold production of 84,889 ounces for the first three quarters of 2021 was ahead of budget, positioning the corporation to deliver on full year consolidated 2021 gold production guidance of 105,000 to 115,000 ounces.

Third quarter 2021 consolidated all-in-sustaining-costs ("AISC") of US$967 per ounce sold was a 7% reduction compared to third quarter 2020 AISC of US$1,044 per ounce sold.

Net earnings of $10.3 million, or $0.07 per share was down $24.6 million from $34.9 million compared to the third quarter of 2020. Net earnings during the third quarter of 2020 included an impairment reversal of mineral properties of $36.1 million, the company noted.

Importantly, Karora said that its adjusted earnings of $14.2 million, or $0.10 per share for the third quarter of 2021, was up $0.5 million compared to the third quarter of 2020.

Cash flow from operating activities of $27.9 million, is a $6.0 million, or 27%, increase compared to $21.9 million for the third quarter of 2020.

Chairman and CEO Paul Andre Huet commented, "At our operations, we continued the trend of strong operational performance in the third quarter, setting a second straight quarterly gold production record. Karora ended the third quarter with a strong cash balance of $86.7 million. With a very healthy balance sheet, we are well positioned to deliver our fully funded organic growth plan to double production from approximately 100,000 gold ounces in 2020 to approximately 200,000 ounces in 2024."

Karora is focused on doubling gold production to 200,000 ounces by 2024 compared to 2020 and reducing costs at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations in Western Australia. The company also owns the high grade Spargos Reward project which is anticipated to begin mining in 2021.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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