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 andUS$1,248 , respectively, in 2023 compared toUS$1,099 andUS$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 contributedUS$21 to AISC per ounce in 2023. Additionally, the 2023 nickel by-product credit wasUS$24 per ounce sold compared toUS$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 ofUS$1,100 –US$1,250 . - Cash operating costs1 and AISC1 per ounce sold for Q4 2023 averaged
US$1,272 andUS$1,435 , respectively, versusUS$1,034 andUS$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 contributedUS$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 wasUS$6 per ounce sold compared toUS$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 wasUS$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 atDecember 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.
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
- 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 theFletcher Shear Zone to extend up to 2 kilometres of strike and be the third major gold system in the Hunt Block after theWestern 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 inDecember 2023 and Kali began trading on theAustralian Securities Exchange (ASX) onJanuary 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 createdKali Metals Limited creating a new, separately run lithium-focused, ASX-listed exploration company. Karora owns an approximate 22% interest inKali 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 |
2. | Earnings before interest, taxes, depreciation and amortization |
Karora will host a call/webcast on
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
Our flagship Beta
Overall operating costs were impacted in Q4 2023 by temporary factors that added nearly
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
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
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
RESULTS OF OPERATIONS
Table 1. Results of Operations
Three Months Ended, | Twelve Months Ended, | |||||
|
|
|
|
| ||
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) | ||||||
Cash operating costs (US $/oz sold)2 | ||||||
All-in sustaining cost (AISC) (US $/oz sold)2 | ||||||
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 | ||||||
Gold ( | ||||||
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 |
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 |
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
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
Cash operating costs1 per ounce sold for the twelve months of 2023 averaged
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
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
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
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
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
For 2023, throughput at the
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 |
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 | 2023 | 2022 | 2023 | 2022 |
Revenue | ||||
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 | (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 |
For Q4 2023 December 31, 2023, the Company generated revenue of
For 2023, revenue totalled
Net loss for Q4 2023 totalled
Net earnings for the twelve months ended
Adjusted earnings1 for Q4 2023 totalled
For 2023, adjusted earnings1 totalled
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 |
Table 3. Highlights of Liquidity and Capital Resources
(in thousands of dollars) | Three months ended, | Twelve Months Ended, | ||
For the periods ended | 2023 | 2022 | 2023 | 2022 |
Cash provided by operations prior to changes in working capital | ||||
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. | 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
For 2023, cash provided by operating activities, prior to changes in working capital, was
The Company had cash of
OUTLOOK
GUIDANCE (2024)
The Company updated 2024 production, cost and capital guidance on
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$M) | 18 – 23 |
Nickel Production | (Ni Tonnes) | 200 – 300 |
1. | Production guidance is based on the |
2. | The Company expects to fund the capital investment amounts listed above with cash on hand, cashflow from operations and lease finance an additional up to |
3. | The material assumptions associated with the expansion of Beta Hunt mining production rate to 2.0 Mtpa during 2024 include the completion of ventilation and other infrastructure that is required to support these areas, and an expanded mining equipment and trucking fleet. |
4. | The Company's guidance assumes targeted mining rates and costs, availability of personnel, contractors, equipment and supplies, the receipt on a timely basis of required permits and licenses, cash availability for capital investments from cash balances, cash flow from operations, or from a third-party debt financing source on terms acceptable to the Company, no significant events which impact operations, an A$ 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 |
CONFERENCE CALL / WEBCAST
Karora will be hosting a conference call and webcast today,
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
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
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 | 2023 | 2022 | 2023 | 2022 |
Production and processing costs | ||||
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$) | ||||
General and administrative expense – | 4,632 | 3,552 | 16,897 | 10,157 |
Sustaining capital expenditures | 3,722 | 600 | 8,485 | 2,804 |
All-in sustaining costs (C$) | ||||
Ounces of gold sold | 37,439 | 39,900 | 157,034 | 132,098 |
Australian dollars per ounce sold | ||||
Cash operating costs | ||||
All-in sustaining costs 5 | ||||
Cash operating costs | ||||
All-in sustaining costs 5 | ||||
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 |
2. | Refer to Note 25 of the |
3. | By-product credits for the three and twelve months ended |
4. | General and administrative expense for the three and twelve months ended |
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 | 2023 | 2022 | 2023 | 2022 | |||||
Production and processing costs 1,2 | |||||||||
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$) | |||||||||
Ounces of gold sold | 31,818 | 22,342 | 104,820 | 78,377 | |||||
Australian dollars per ounce sold | |||||||||
Cash operating costs | |||||||||
Cash operating costs | |||||||||
Average exchange rate | |||||||||
C$: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 |
2. | Includes |
HGO
Three months ended, | Twelve months ended, | ||||||||||
For the periods ended | 2023 | 2022 | 2023 | 2022 | |||||||
Production and processing costs 1 | |||||||||||
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 | 3,573 | 3,747 | ||||||||
By-product credits 1 | (14) | (36) | (139) | (115) | |||||||
Operating costs (C$) | |||||||||||
Ounces of gold sold | 5,621 | 17,558 | 52,214 | 53,721 | |||||||
Australian dollars per ounce sold | |||||||||||
Cash operating costs | |||||||||||
Cash operating costs | |||||||||||
Average exchange rate | |||||||||||
C$: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 |
2. | Includes third party toll milling costs at Lakewood mill of $nil and |
3. | Relates to an adjustment to net realizable value for gold stockpiles in respect of prior periods. Refer to Note 6 of the |
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 | 2023 | 2022 | 2023 | 2022 |
Net earnings (loss) for the period - as reported | ||||
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 | ||||
Weighted average number of common shares - basic | 177,828,626 | 173,372,371 | 175,802,402 | 164,437,670 |
Adjusted EBITDA per share - basic |
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 | 2023 | 2022 | 2023 | 2022 | |
Net earnings for the period - as reported | |||||
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 | |||||
Weighted average number of common shares - basic | 177,828,626 | 173,372,371 | 175,802,402 | 164,437,670 | |
Adjusted earnings per share - basic |
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.
(in thousands of dollars) | 2023 | 2022 |
Current assets | ||
Less: Current liabilities | 78,023 | 77,837 |
Working Capital |
Compliance Statement (JORC 2012 and NI 43-101)
The technical and scientific information contained in this MD&A has been reviewed and approved by
About
Karora is focused on increasing gold production at its integrated
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
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
© Canada Newswire, source