STRONG QUARTERLY AND YTD GOLD PRODUCTION
- Production of 39,547 gold ounces increased 3% from 38,437 ounces in the third quarter of 2022, down slightly compared to record production of 40,823 ounces in the second quarter of 2023 ("the previous quarter").
- YTD 2023 production of 120,197 ounces increased 24% from 96,578 ounces for the same period in 2022, with the Company ending the third quarter well positioned to achieve full-year 2023 production guidance of 145,000 – 160,000 ounces.
AISC ON TRACK TO ACHIEVE 2023 GUIDANCE
- Cash operating costs1 and all-in sustaining costs ("AISC")1 per ounce sold averaged
US$1,062 andUS$1,196 , respectively, in Q3 2023 compared toUS$991 andUS$1,069 , respectively, in Q3 2022 andUS$1,068 andUS$1,160 the previous quarter. Previous quarter 2023 cash operating cost per ounce included by-product credits ofUS$38 per ounce. No nickel by-product credits were recorded in the third quarter of 2023 due to timing of sales, however 5,193T at 1.6% of nickel was mined during the quarter (approximatelyUS$22 per ounce). - Cash operating costs1 and AISC1 per ounce sold for YTD 2023 averaged
US$1,083 andUS$1,188 , respectively, versusUS$1,128 andUS$1,202 , respectively, for YTD 2022; YTD 2023 AISC1 per ounce sold in line with full-year 2023 guidance ofUS$1,100 –US$1,250 .
ROBUST QUARTERLY AND YTD REVENUE
- Revenue in Q3 2023 of
$107.1 million increased 32% from Q3 2022 and was slightly lower than Q2 2023 which was driven by record quarterly gold ounces sold of 42,172 ounces. For Q3 2023 41,278 gold ounces were sold at an average realized gold price ofUS$1,931 per ounce. - YTD 2023 revenue totalled
$314.5 million , 42% higher than$220.2 million in YTD 2022 mainly reflecting a 30% increase in gold sales and a realized gold price that wasUS$89 per ounce higher than comparable period in 2022.
SOLID OPERATING CASH FLOW GENERATION
- Cash flow provided by operating activities in Q3 2023 of
$45.3 million , up 60% from$28.3 million in Q2 2022 and 32% from$34.4 million in Q2 2023. - YTD 2023 cash flow provided by operating activities of
$100.6 million was almost double from$51.7 million in YTD 2022.
STRONG EARNINGS PERFORMANCE
- Net earnings of
$6.9 million ($0.04 per share) compared to net earnings of$4.4 million ($0.03 per share) in Q3 2022 and net earnings of$6.6 million (0.04 per share) in Q2 2023. Adjusted earnings of$14.0 million ($0.08 per share) compared to$6.6 million ($0.04 per share) in Q3 2022 and$13.9 million ($0.08 per share) the previous quarter. - Net earnings for YTD 2023 of
$10.6 million ($0.06 per share) compared to net earnings of$0.3 million ($0.00 per share) for the same period in 2022; Adjusted earnings totalled$32.8 million ($0.19 per share), a 164% increase from$12.4 million ($0.08 per share) reported for YTD 2022.
CONTINUED PROGRESS ON GROWTH PLAN
- Following completion of a second (west) decline the final ventilation raise (number three of three planned) has been completed. Primary ventilation fans have been procured and are expected to be installed and commissioned towards the end of 1H24. In the interim, temporary ventilation vans are operational. During the quarter, Karora continued expansion of the mining fleet with delivery of two new underground trucks and one underground loader. Further expansion of the fleet is planned in 2024. With the expected significant improvements to the mine's primary ventilation circuit to accommodate the increase in mining fleet, the expansion project remains on track to support growth to an annualized production rate of 2.0 Mtpa by the end of 2024.
FLETCHER ZONE EXPLORATION SUCCESS AT BETA HUNT
Fletcher Shear Zone ("FSZ") drilling results reported during Q3 from Beta Hunt (KRR news releases ofAugust 7 andSeptember 12 ) continued to extend mineralization with new high-grade gold intersections. Results from a nine-hole FSZ drill program designed to test over 500 metres of strike north of the Alpha Island Fault were highlighted by broad, high-grade intersections from the most northern infill line which indicate the strike of the FSZ within 250 metres of the Western Flanks Mineral Resource.
KALI METALS LITHIUM SPIN-OFF AND MANAGEMENT CHANGES
- The
Kali Metals lithium spin-off transaction, originally announced during the second quarter, remains on track for completion by year end. OnNovember 3, 2023 , Kali announced that it had lodged a prospectus for its initial public offering on the ASX (see www.kalimetals.com.au for more information). The new lithium vehicle involves Karora and a third party vending their lithium exploration projects into a new entity,Kali Metals Limited , with a goal of creating a new, separately run lithium-focused, ASX-listed exploration company to be led by an experienced board and management team. - During the quarter Mr.
Tony Makuch joined the Company as a Director, Mr.Barry Dahl retired as the Company's Chief Financial Officer, replaced by Mr.Derek Humphry , and Mr.Peter Ganza joined Karora's Australian operations as Chief Operating Officer,Australia .
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 nine months ended |
Karora will host a call/webcast on
https://app.webinar.net/qxL4W2Gb1mY
(replay access information is provided below).
"Comparing our performance year to date with last year, we've delivered strong improvements year-over-year with production growing 24%, average milled grade up 11% and cash operating costs improving by 4%. At the
"We ended the third quarter in a very strong financial position with a cash position of
RESULTS OF OPERATIONS
Table 1. Results of Operations
Three Months Ended, | Nine Months Ended, | |||||
|
|
|
|
| ||
Gold Operations (Consolidated) | ||||||
Tonnes milled (000s) | 516 | 547 | 536 | 1,554 | 1,403 | |
Recoveries | 95 % | 94 % | 95 % | 95 % | 94 % | |
Gold milled, grade (g/t Au) | 2.51 | 2.33 | 2.50 | 2.54 | 2.28 | |
Gold produced (ounces) | 39,547 | 38,437 | 40,823 | 120,197 | 96,578 | |
Gold sold (ounces) | 41,278 | 35,513 | 42,172 | 119,595 | 92,198 | |
Average exchange rate (C$/US$) 1 | 0.75 | 0.77 | 0.74 | 0.74 | 0.78 | |
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) | 333 | 306 | 319 | 951 | 834 | |
Gold milled, grade (g/t Au) | 2.17 | 2.36 | 2.62 | 2.55 | 2.30 | |
Gold produced (ounces) | 21,926 | 21,977 | 25,709 | 74,212 | 58,254 | |
Gold sold (ounces) | 23,595 | 20,767 | 26,330 | 73,002 | 56,035 | |
Cash operating cost (US $/oz sold)2 | ||||||
Gold ( | ||||||
Tonnes milled (000s) | 183 | 241 | 217 | 603 | 569 | |
Gold milled, grade (g/t Au) | 3.13 | 2.29 | 2.31 | 2.52 | 2.26 | |
Gold produced (ounces) | 17,621 | 16,460 | 15,114 | 45,985 | 38,324 | |
Gold sold (ounces) | 17,683 | 14,746 | 15,842 | 46,593 | 36,163 | |
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 six months ended |
3. | Numbers may not add due to rounding. |
Consolidated Operations
Consolidated gold production in the third quarter of 2023 was 39,547 ounces, a 3% increase from the third quarter of 2022 and 3% lower than the record 40,823 ounces in the previous quarter. The increase from the third quarter of 2022 resulted primarily from an 8% improvement in the average grade reflecting final stoping at the Aquarius underground gold mine at the Higginsville gold operation. Tonnage was 6% down on the comparative period in 2022 due to crushing interruptions at the Higginsville gold operation. Contract crushers were utilized while crusher bridge repairs continue and expected to be concluded during the final quarter of the year.
Cash operating costs1 per ounce sold for the third quarter of 2023 averaged
For the first nine months of 2023, gold production totalled 120,197 ounces, 24% higher than 96,578 ounces in the first nine months of 2022 reflecting a 11% increase in tonnes milled and a 11% improvement in the average grade. Higher tonnes milled reflected an increase in milling capacity following the acquisition of
Cash operating costs1 per ounce sold for the first nine months of 2023 averaged
Beta Hunt
During the third quarter of 2023, Beta Hunt mined 357,204 tonnes at an average grade of 2.00 g/t containing 22,912 ounces of gold. This represented a 14% improvement on the third quarter of 2022, and a 20% improvement on the prior quarter ore tonnes reflecting progress in the ongoing production ramp up at the Beta Hunt mine. Contained gold was 5% lower than the third quarter of 2022 (313,000 tonnes at 2.40 g/t for 24,188 contained ounces) and 19% lower than the prior quarter (297,100 tonnes at 2.97 g/t for 28,416 contained ounces) reflecting the mining of a planned lower grade section of Beta Hunt during the current quarter with improved grade planned in the final quarter. The majority of the scheduled mined tonnes during the third quarter came from the central section of Western Flanks with fewer scheduled higher grade ore zones.
Gold production from Beta Hunt in the third quarter of 2023 totalled 21,926 recovered ounces based on milling 333,311 tonnes at an average grade of 2.17 g/t and 94% plant recovery. The lower mined grade contributed to 0.2% lower gold production for the quarter (21,977 ounces) compared to the third quarter of 2022 and 15% lower than the prior quarter (25,709 ounces).
Cash operating costs1 per ounce sold at Beta Hunt averaged
For the first nine months of 2023, Beta Hunt mined 954,304 tonnes at an average grade of 2.56 g/t containing 78,439 ounces of gold, which compared to 828,984 tonnes mined at an average grade of 2.33 g/t containing 62,152 ounces of gold in the first nine months of 2022. Year-to-date gold production in 2023 totalled 74,212 ounces, a 27% increase from production of 58,254 ounces in the first nine months of 2022, which resulted from 14% higher mill throughput and 12% higher grade. Cash operating costs1 per ounce sold averaged
In addition to gold production, Beta Hunt mined 5,193 tonnes of nickel ore at an estimated grade of 1.66% nickel during the third quarter of 2023 compared to 5,915 tonnes of nickel ore mined at an estimated grade of 1.76% nickel for the same period in 2022 and 6,071 tonnes of nickel ore at an estimated grade of 2.47% nickel the previous quarter. For the first nine months of 2023, 18,035 tonnes of nickel ore were mined at an estimated grade of 2.14% nickel, which compared to 18,851 tonnes mined at an estimated average grade of 1.66% nickel a year earlier.
Higginsville Mining Operations ("HGO")
During the third quarter of 2023, HGO mined 96,367 tonnes at an average grade of 5.16 g/t containing 15,994 ounces, which compared to 171,000 tonnes mined at an average grade of 3.05 g/t containing 16,742 ounces in the third quarter of 2022 and 178,100 tonnes at an average grade of 2.76 g/t containing 15,806 ounces the previous quarter. The quantity of tonnes mined during the third quarter of 2023 largely reflected the completion of stoping activities at the Aquarius underground mine in the quarter as the Pioneer open pit mine was brought into production.
Production at HGO in the third quarter of 2023 totalled 17,621 recovered ounces based on milling 182,489 tonnes at an average grade of 3.13 g/t. Production in the third quarter of 2023 increased 7% from 16,460 ounces in the third quarter of 2022 (241,000 tonnes at 2.29 g/t for 16,460 ounces), reflecting the 37% higher grade processed, and was 17% higher than the previous quarter (216,894 tonnes at 2.31 g/t for 15,114 ounces), again reflecting the 36% higher grade in the current quarter driven by final stoping from the Aquarius underground mine.
Cash operating costs1 per ounce sold at HGO averaged
For the first nine months of 2023, HGO mined 346,667 tonnes at an average grade of 3.65 g/t containing 40,727 contained ounces of gold, which compared favourably to the 363,853 tonnes mined at an average grade of 3.03 g/t containing 35,397 ounces of gold in the first nine months of 2022 reflecting ore source timing in accordance with the mine plan. Year-to-date gold production in 2023 totalled 45,985 ounces resulting from processing 602,932 tonnes at an average grade of 2.52 g/t versus gold production of 38,324 ounces based on processing 568,581 tonnes at an average grade of 2.26 g/t for the same period a year earlier. Cash operating costs1 per ounce sold averaged
Processing Operations
A total of 515,800 tonnes were milled at an average grade of 2.51 g/t with average recoveries of 95% for production of 39,547 ounces during the third quarter.
Beta Hunt contributed 100% of the throughput at the Lakewood Mill during the third quarter of 2023, totalling 217,347 tonnes at an average grade of 1.92 g/t. Recovered gold during the quarter totalled 12,297 ounces. The balance of Beta Hunt was dedicated to the Higginsville mill with Beta Hunt contributing 39% of the mill throughput and HGO providing the remaining 61% with the higher-grade Aquarius ore prioritized. At Higginsville mill, 298,453 tonnes of material were processed at an average grade of 2.95 g/t for a recovered gold of 27,250 ounces.
For the first nine months of 2023, throughput at the Lakewood Mill totalled 548,590 tonnes (97% from Beta Hunt and 3% from HGO) at an average grade of 1.98 g/t. Recovered gold during the nine-month period totalled 32,712 ounces. 1,005,466 tonnes were milled 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 six months ended |
FINANCIAL REVIEW
Table 2. Financial Overview
(in thousands of dollars except per share amounts) | Three Months Ended, | Nine Months Ended, | ||
For the periods ended | 2023 | 2022 | 2023 | 2022 |
Revenue | ||||
Production and processing costs | 55,525 | 42,430 | 166,485 | 124,959 |
Earnings before income taxes | 13,536 | 7,946 | 24,642 | 6,846 |
Net earnings | 6,923 | 4,378 | 10,625 | 341 |
Net earnings per share - basic | 0.04 | 0.03 | 0.06 | 0.00 |
Net earnings per share - diluted | 0.04 | 0.03 | 0.06 | 0.00 |
Adjusted EBITDA 1 | 37,012 | 27,510 | 104,460 | 62,315 |
Adjusted EBITDA per share - basic 1 | 0.21 | 0.16 | 0.60 | 0.39 |
Adjusted earnings 1 | 14,049 | 6,640 | 32,754 | 12,422 |
Adjusted earnings per share - basic 1 | 0.08 | 0.04 | 0.19 | 0.08 |
Cash flow provided by operating activities | 45,345 | 28,294 | 100,611 | 51,686 |
Cash investment in property, plant and equipment and mineral property interests | (26,950) | (89,822) | (70,715) | (149,690) |
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 nine months ended |
For the three months ended
gold revenue in the third quarter of 2023, with HGO contributing
For the nine months ended
Net earnings for the three months ended
Net earnings for the nine months ended
Adjusted earnings1 for the three months ended
For the nine months ended
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 nine months |
Table 3. Highlights of Liquidity and Capital Resources
(in thousands of dollars) | Three months ended, | Nine 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 | 9,220 | 547 | (3,089) | (9,145) |
Asset retirement obligations | - | - | - | (441) |
Income taxes paid | - | (151) | (54) | (479) |
Cash provided by operating activities | 45,345 | 28,294 | 100,611 | 51,686 |
Cash used in investing activities | (26,988) | (89,612) | (70,444) | (149,086) |
Cash provided by (used in) financing activities | (4,285) | 3,170 | (11,712) | 63,495 |
Effect of exchange rate changes on cash and cash equivalents | (739) | 135 | (3,082) | (1,019) |
Change in cash and cash equivalents |
1. Working capital is calculated as current assets (including cash and cash equivalents) less current liabilities. |
2. Financial liabilities include long-term debt and lease obligations. |
For the three months ended
For the nine months ended
The Company had cash of
OUTLOOK
TWO-YEAR GUIDANCE (2023 – 2024)
The Company is maintaining its 2023 and 2024 production and cost guidance. The targets included in the Company's outlook relate only to the 2023 to 2024 period. 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 news release. 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 its outlook depending on changes in metal prices and other factors. The Company expects to announce updated Mineral Resources and Mineral Reserves during
Table 4. Two-Year Guidance (2023 – 2024)
2023 | 2024 | ||
Gold Production | (Koz) | 145 – 160 | 170 – 195 |
All-in Sustaining Costs | (US$/oz sold) | 1,100 – 1,250 | 1,050 – 1,200 |
Sustaining Capital | (A$M) | 10 – 15 | 15 – 20 |
Growth Capital | (A$M) | 57 – 68 | 63 – 73 |
Exploration & Resource Development | (A$M) | 18 – 22 | 20 – 25 |
Nickel Production | (Ni Tonnes) | 450 - 550 | 600 – 800 |
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 through the financing 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 addition of a second ramp decline system driven parallel to the ore body, 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, such as COVID-19, nickel price of |
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. |
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 2Mtpa mining rate during 2024. All mine development, equipment acquisition, and growth leases 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 the MD&A for the three and nine months 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/qxL4W2Gb1mY
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: 571836 #
Local and international callers please dial: 416-764-8677; Pass Code: 571836 #
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, | Nine months ended, | |||
For the periods ended | 2023 | 2022 | 2023 | 2022 |
Production and processing costs | ||||
Inventory adjustment 1 | (2,441) | - | (2,441) | - |
Royalty expense | 5,915 | 5,128 | 17,810 | 12,948 |
By-product credits 2,3 | (218) | (1,670) | (7,646) | (4,538) |
Operating costs (C$) | ||||
General and administrative expense – | 3,431 | 2,465 | 12,265 | 6,605 |
Sustaining capital expenditures | 4,035 | 1,186 | 4,763 | 2,203 |
All-in sustaining costs (C$) | ||||
Ounces of gold sold | 41,278 | 35,513 | 119,595 | 92,198 |
Australian dollars per ounce sold | ||||
Cash operating costs | ||||
All-in sustaining costs 5 | ||||
Cash operating costs | ||||
All-in sustaining costs 5 | ||||
Average exchange rate | ||||
C$:A$ | 0.88 | 0.89 | 0.90 | 0.91 |
A$:US$ | 0.65 | 0.68 | 0.67 | 0.71 |
1. | Relates to an adjustment to net realizable value of gold stockpiles. Refer to note 5 of the |
2. | Refer to Note 19 of the |
3. | By-product credits for the three and nine month ended |
4. | General and administrative expense for the three and nine 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, | Nine months ended, | |||||||
For the periods ended | 2023 | 2022 | 2023 | 2022 | ||||
Production and processing costs 1,2 | ||||||||
Royalty expense 1 | 14,713 | 10,795 | ||||||
By-product credits 1 | (160) | (1,326) | (4,994) | (4,140) | ||||
Operating costs (C$) | ||||||||
Ounces of gold sold | 23,595 | 20,767 | 73,002 | 56,035 | ||||
Australian dollars per ounce sold | ||||||||
Cash operating costs per ounce sold | ||||||||
Cash operating costs per ounce sold | ||||||||
Average exchange rate | ||||||||
C$:A$ | 0.88 | 0.89 | 0.90 | 0.91 | ||||
A$:US$ | 0.65 | 0.68 | 0.67 | 0.71 | ||||
1. | Refer to Note 19 of the |
2. | Includes |
HGO
Three months ended, | Nine months ended, | |||||||||||
For the periods ended | 2023 | 2022 | 2023 | 2022 | ||||||||
Production and processing costs 1 | ||||||||||||
Adjustment for intercompany and toll milling costs 1 2 | (12,137) | (10,073) | (35,608) | (22,846) | ||||||||
Adjustment for inventory for net realizable value 3 | (2,441) | - | (2,441) | - | ||||||||
Royalty expense 1 | 1,182 | 3,097 | 2,153 | |||||||||
By-product credits 1 | (58) | (25) | (125) | (79) | ||||||||
Operating costs (C$) | ||||||||||||
Ounces of gold sold | 17,683 | 14,746 | 46,593 | 36,163 | ||||||||
Australian dollars per ounce sold | ||||||||||||
Cash operating costs | ||||||||||||
Cash operating costs | ||||||||||||
Average exchange rate | ||||||||||||
C$:A$ | 0.88 | 0.89 | 0.90 | 0.91 | ||||||||
A$:US$ | 0.65 | 0.68 | 0.67 | 0.71 | ||||||||
1. | Refer to Note 19 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 5 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; acquisition costs; derivatives and foreign exchange loss; sustainability initiatives.
(in thousands of dollars except per share amounts) | Three months ended, | Six Months Ended, | ||
For the periods ended | 2023 | 2022 | 2023 | 2022 |
Net earnings (loss) for the period - as reported | ||||
Finance expense, net | 2,049 | 1,657 | 5,926 | 3,772 |
Income tax expense | 6,613 | 3,568 | 14,017 | 6,505 |
Depreciation and amortization | 13,864 | 14,973 | 48,246 | 37,416 |
EBITDA | 29,449 | 24,576 | 78,814 | 48,034 |
Adjustments: | ||||
Non-cash share-based payments 1 | 3,865 | 1,218 | 6,785 | 3,150 |
Unrealized loss (gain) on revaluation of marketable securities2 | 914 | 511 | (97) | 2,038 |
Other expense (income), net 2 | 2 | (29) | 29 | 199 |
Loss on derivatives 2 | 40 | 1,044 | 5,265 | 1,332 |
Foreign exchange loss 3 | 2,431 | 190 | 13,353 | 6,381 |
Rehabilitation cost adjustment for closed sites 2 | (932) | - | (932) | - |
Sustainability initiatives 4 | 1,243 | - | 1,243 | 1,181 |
Adjusted EBITDA | ||||
Weighted average number of common shares - basic | 176,199,462 | 171,809,550 | 175,086,173 | 161,426,709 |
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, | Nine Months Ended, | ||
For the periods ended | 2023 | 2022 | 2023 | 2022 |
Net earnings for the period - as reported | ||||
Non-cash share-based payments 1 | 3,865 | 1,218 | 6,785 | 3,150 |
Unrealized loss (gain) on revaluation of marketable securities2 | 914 | 511 | (97) | 2,038 |
Loss on derivatives 2 | 40 | 1,044 | 5,265 | 1,332 |
Foreign exchange loss 3 | 2,431 | 190 | 13,353 | 6,381 |
Sustainability initiatives 4 | (932) | - | (932) | - |
Tax impact of the above adjusting items | 1,243 | - | 1,243 | 1,181 |
Adjusted earnings | (435) | (701) | (3,488) | (2,001) |
Weighted average number of common shares - basic | ||||
Adjusted earnings per share - basic | 176,199,462 | 171,809,550 | 175,086,173 | 161,426,709 |
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 | 65,765 | 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.
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