Canada NewsWire
TORONTO, March 19, 2021
Karora will host a call/webcast on March 19, 2021 at 10:00 a.m. (Eastern Time) to discuss the 2020 results. North American callers please dial: 1-888-231-8191, international callers please dial: (+1) 647-427-7450. For the webcast of this event click [here] (replay access information below).
TORONTO, March 19, 2021 /CNW/ - Karora Resources Inc. (TSX: KRR) ("Karora" or the "Corporation") is pleased to announce its financial results and review of activities for the years ended December 31, 2020 and 2019. All amounts are expressed in Canadian dollars, unless otherwise noted. For additional information please refer to Karora's Management's Discussion & Analysis ("MD&A") and audited consolidated financial statements for the years ended December 31, 2020 and 2019.
Highlights
Paul Andre Huet, Chairman & CEO, commented: "Karora delivered an exceptionally strong financial and operating performance in 2020 with net earnings of $88.1 million and consolidated AISC1 of US$1,026 per ounce sold. The fourth quarter was also exceptional with net earnings of $42.9 million and consolidated AISC1 of US$912 per ounce sold, an improvement of US$132 per ounce over the prior quarter and a record since the acquisition of the Higginsville mill in mid-2019. Since the acquisition, we have demonstrated a strong commitment to achieving cost reduction targets and have now delivered six consecutive quarters of AISC cost reductions, including by beating our target of achieving AISC US$1,000 per ounce by the end of 2020.
After a strong year in 2020 with gold production that was just shy of 100,000 ounces, beating the high end of our 90,000 to 95,000 ounce guidance range, we are poised for further growth in 2021. This year, our production guidance range is 105,000 to 115,000 ounces, which represents an approximate 20% increase from 2020 guidance. Our AISC1 cost guidance represents an 8% improvement over 2020 to a range of US$985 to US$1,085 per ounce sold. It is important to note that targeted 2021 production increases are weighted to the second half of the year. We expect gold grades will increase over the course of the year as we begin to mine higher grades at Higginsville Central and after the anticipated start-up of mining at the high grade Spargos open pit project in the second quarter.
With Karora's record cash balance of over $79 million at the end of 2020, we are in a very strong position to deploy capital into our organic growth initiatives for 2021 and beyond. Plans are well underway to expand production capacity at our Higginsville mill in 2021 by approximately 15%, or 550 tonnes per day, to 1.6 million tonnes per annum.
We are off to a good start to 2021 with production tracking well to our plans. Deployment of capital into earth works at Spargos in preparation for mining by mid year is proceeding as planned, as are our other initiatives in preparation for our planned Phase I mill expansion. We are excited about our outlook beyond 2021 and we expect to announce our multi-year growth plan and guidance to the market during the second quarter."
1. | Non-IFRS: the definition and reconciliation of these measures are included in the Non-IFRS Measures section 17 of Karora's MD&A dated March 19, 2021. |
COVID-19 Protocols
In response to the global COVID-19 pandemic, Karora's protocols and contingency plans have mitigated impacts of the pandemic. All the Corporation's mines continued production during the year ended December 31, 2020, as Karora's ongoing response to the COVID-19 pandemic continued to maintain the safety of its workforce and host communities while mitigating operational impacts.
Results of Operations
Table 1 - Highlights of operational results for the periods ended December 31, 2020 and 2019
| | | ||
| Three months | Year ended, | ||
For the periods ended December 31, | 2020 | 2019 | 2020 | 2019 |
Gold Operations (Consolidated) | | | | |
Tonnes milled (000s) | 331 | 321 | 1,325 | 755 |
Recoveries | 93% | 90% | 93% | 91% |
Gold milled, grade (g/t Au) | 2.52 | 2.60 | 2.33 | 2.65 |
Gold produced (ounces) | 25,637 | 26,874 | 99,249 | 64,277 |
Gold sold (ounces) | 27,933 | 28,359 | 98,656 | 65,225 |
Average realized price (US $/oz sold) | $1,871 | $1,451 | $1,480 | $1,368 |
Cash operating costs (US $/oz sold)1 | $843 | $929 | $925 | $1,004 |
All-in sustaining cost (AISC) (US $/oz sold)1 | $912 | $1,131 | $1,026 | $1,155 |
Gold (Beta Hunt Mine)1 | | | | |
Tonnes milled (000s) | 182 | 133 | 745 | 475 |
Gold milled, grade (g/t Au) | 3.13 | 3.81 | 2.77 | 3.11 |
Gold produced(ounces) | 16,965 | 16,290 | 66,479 | 37,642 |
Gold sold (ounces) | 18,234 | 17,561 | 65,838 | 48,716 |
Cash operating cost (US $/oz sold)1 | $836 | $773 | $943 | $958 |
Gold (HGO Mine) | | | | |
Tonnes milled (000s) | 149 | 188 | 580 | 280 |
Gold milled grade (g/t Au) | 1.95 | 1.75 | 1.90 | 1.85 Werbung Mehr Nachrichten zur KETTLE RIVER RES LTD Aktie kostenlos abonnieren
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