Tag: Karora Resources Inc.

Karora released updated Beta Hunt and Higginsville mine resources in Australia. Consolidated M&I gold resource increased by 8% to 2.7M oz net of depletion, which included the initial Larkin zone estimate at Beta Hunt. This statement represents the fourth estimate in a row since 2016 that shows growth net of mine depletion, highlighting the very strong organic growth potential and staying power of the grades of Karora’s assets. We view this news positively and believe that ongoing aggressive exploration should support plans to near double production to 185k-205k oz per year within two years. In addition to gold, a significant nickel resource upgrade is anticipated in Q2/22, which should help improve by-product credits, and lower operating costs as production rates rise. We are increasing our price target to C$7.50/sh (was C$6.60/sh) to reflect these improvements.

Karora provided updated 2022 production and cost guidance for Beta Hunt and Higginsville in Australia. It trimmed gold production guidance to 110k to 135k oz Au with all-in sustaining costs (AISC) of US$950/oz to US1,050/oz. While we modeled production in line with current guidance, our cost estimates were lower and had to be adjusted to account for the inflationary pressures and supply chain disruptions currently being experienced by mining companies across the industry. As a result of higher labour, material and consumable costs in 2022, we are decreasing our target price for Karora to C$6.60/sh (was C$7.25/sh).