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(Kitco News) – Karora Resources (TSX: KRR) today reported it produced 39,547 gold ounces in Q3 2023, up 3% from 38,437 ounces in Q3 2022, primarily due to higher average gold grade at the Higginsville operation.
The company’s cash operating costs and all-in sustaining costs (AISC) per ounce sold averaged US$1,062 and US$1,196, respectively, in Q3 2023 compared to US$991 and US$1,069, respectively, in Q3 2022.
Karora said that the increase in costs from the third quarter of 2022 largely reflected the impact of higher processing costs during the quarter and continued cost pressures in areas such as labor, contractors, power and fuel. In addition, nickel produced in the third quarter 2023 was not sold during the quarter.
For the three months ended September 30, 2023, the company generated revenue of $107.1 million, a $25.8 million or 32% increase from the third quarter of 2022, resulting from higher gold ounces sold, the impact of a stronger US dollar as well as higher average US$ realized gold price.
Net earnings for the three months ended September 30, 2023 totalled $6.9 million ($0.04 per basic share) compared to $4.4 million ($0.03 per basic share) for the three months ended September 30, 2022.
The company explained that the improvement in net earnings performance compared to the third quarter of 2022 mainly reflected a 33% increase in operating margin (revenue less production and processing costs), to $51.6 million, offsetting the impact of higher general and administrative, depreciation and amortisation, royalty, other and income tax expenses.
Karora also reported that the company is maintaining its 2023 full-year guidance ranges of between 145,000 to 160,000 ounces for gold production and AISC costs of between US$1,100 to US$1,250.
Commenting on the growth projects, the company said that at the Beta Hunt mine, it continued to advance its expansion on schedule and on budget.
“The third and final ventilation raise installation is now complete, which will facilitate the ongoing expansion of our mining equipment fleet, putting us on track to grow Beta Hunt’s annualized production rate to 2.0 Mtpa by the end of 2024,” it added.
Karora is focused on increasing gold production at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (HGO) in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, which is fed at capacity from Karora’s underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia.