TORONTO, Aug. 14, 2023 /CNW/ - Karora Resources Inc. (TSX: KRR) ("Karora" or the "Company") today announced financial and operating results for the second quarter ("Q2 2023") and first six months ("YTD 2023") of 2023. The Company's full unaudited condensed interim financial statements and management discussion & analysis ("MD&A) are available on SEDAR at www.sedar.com and on the Company's website at www.karoraresources.com. All dollar amounts are in Canadian dollars, unless otherwise noted.

RECORD QUARTERLY AND YTD GOLD PRODUCTION
Record production of 40,823 ounces in Q2 2023 exceeded target levels and increased 33% from the second quarter of 2022 ("Q2 2022") and 3% from 39,827 ounces in the first quarter of 2023 ("Q1 2023" or "the previous quarter").
YTD 2023 production totalled 80,650 ounces, 39% higher than 58,141 ounces in the first six months of 2022 ("YTD 2022"), with the Company ending the second quarter on track to achieve full-year 2023 production guidance of 145,000 – 160,000 ounces.
IMPROVED UNIT COST PERFORMANCE – AISC ON TRACK TO ACHIEVE 2023 GUIDANCE
Cash operating costs1 and all-in sustaining costs ("AISC")1 per ounce sold averaged US$1,068 and US$1,160, respectively, in Q2 2023 compared to US$1,130 and US$1,190, respectively, in Q2 2022 and US$1,124 and US$1,213 the previous quarter.
Cash operating costs1 and AISC1 per ounce sold for YTD 2023 averaged US$1,094 and US$1,184, respectively, versus US$1,214 and US$1,285, respectively, for YTD 2022; YTD 2023 AISC1 per ounce sold in line with full-year 2023 guidance of US$1,100 – US$1,250.
RECORD QUARTERLY AND YTD REVENUE
Revenue in Q2 2023 of $110.6 million increased 50% and 14%, respectively, from Q2 2022 and Q1 2023 driven by record quarterly gold ounces sold of 42,172 ounces and a higher average gold price.
YTD 2023 revenue totalled $207.4 million, 49% higher than $138.9 million in YTD 2022 mainly reflecting a 38% increase in gold sales to 78,317 ounces.
SOLID OPERATING CASH FLOW GENERATION
Cash flow provided by operating activities in Q2 2023 of $34.4 million tripled from $11.2 million in Q2 2022 and increased 65% from $20.9 million in Q1 2023.
YTD 2023 cash flow provided by operating activities of $55.3 million more than doubled from $23.4 million in YTD 2022.
STRONG EARNINGS PERFORMANCE
Net earnings of $6.6 million ($0.04 per share) compared to net loss of $0.3 million ($0.00 per share) in Q2 2022 and net loss of $2.9 million (0.02 per share) in Q1 2023. Adjusted earnings of $13.9 million ($0.08 per share) more than doubled from $4.7 million ($0.03 per share) in Q2 2022 and $4.8 million ($0.03 per share) the previous quarter.
Net earnings for YTD 2023 of $3.7 million ($0.02 per share) compared to net loss of $4.0 million ($0.03 per share) for the same period in 2022; Adjusted earnings totalled $18.7 million ($0.11 per share), more than triple the $5.8 million ($0.04 per share) reported in YTD 2022.
CONTINUED PROGRESS WITH GROWTH PLAN
Following completion of a second (west) decline and first of three ventilation raises at Beta Hunt during the first quarter of 2023, the second ventilation raise was completed in Q2 2023, with the expansion project remaining on track to support growth to an annualized production rate of 2.0 Mtpa during 2024.
ADDITIONAL EXPLORATION SUCCESS HIGHLIGHTS FUTURE POTENTIAL OF BETA HUNT
Drilling at Beta Hunt continued to extend mineralization with new, high-grade gold intersections being released from the Fletcher Shear Zone ("FSZ"), which extended the drill-supported strike potential of the FSZ by 900 metres for a total potential strike length of 1.4 km; Key intersections included 6.5 g/t over 26.0 metres and 46.5 g/t over 7.0 metres. Additional drill results released on August 7, 2023, included the intersection of strong mineralization in targeted areas, which provided further confidence in the continuity of the FSZ mineralization.
KALI METALS LIMITED
On May 8, 2023, the Company announced an agreement with Kalamazoo Resources Limited (ASX: KZR) ("Kalamazoo") to create a lithium and critical metals exploration company to be called Kali Metals Limited ("Kali"); The Company will own a 45% interest in Kali, with both Karora and Kalamazoo to vend their lithium exploration projects into the new company with a goal of creating a new, jointly owned but separately run lithium-focused, ASX-listed exploration company to be led by an experienced board and management team (see news release dated May 8, 2023).
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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 June 30, 2023.



Karora will host a call/webcast on August 14, 2023 at 10:00 am (Eastern Time) to discuss the second quarter 2023 results. North American callers please dial: 1-888-664-6383; Local and international callers please dial: 416-764-8650. To join the conference call without operator assistance, you may register and enter your phone number at the Callback Link to receive an instant automated call back and be placed into the call. For the webcast of this event click

https://app.webinar.net/JA2m9q2blwj

(replay access information is provided below).

Paul Andre Huet, Chairman and CEO, commented: "I am delighted with our team's performance during the second quarter, which included achieving record gold production, gold ounces sold and revenue, as well as significantly improved earnings performance and strong growth in cash flow. We ended the first half of 2023 well positioned to achieve our full-year guidance for 2023. We also continued to advance our Beta Hunt expansion on schedule and budget, with the second decline and two of three planned ventilation raises completed during the first half of 2023. We will complete the final ventilation raise before the end of the year and remain on track to grow Beta Hunt's annualized production rate to 2.0 Mtpa during 2024.

"Looking at our operating performance in more detail, Beta Hunt had another excellent quarter, with production growing 34% from Q2 2022 and cash operating costs improving by 10%, to US$1,017. For the year to date, both production of 52,286 ounces and cash operating costs1 per ounce sold of $994 were considerably better than a year ago and outperformed target levels. At HGO, substantial improvement was achieved in the second quarter, with production growing 14% and cash operating costs1 per ounce sold improving 18% compared to the previous quarter. We commenced production from the Mouse Hollow open pit in the second quarter and will begin mining from the Pioneer pit during the third quarter, both of which will support solid operating performance over the balance of the year.

"Finally, in addition to generating strong results from our gold operations during the first six months of 2023, we also continued to make progress with our plans to significantly increase nickel production at Beta Hunt. Development work to fully integrate key nickel zones into our existing mining infrastructure continues to advance on schedule and we remain on track to grow nickel production to 600 – 800 tonnes by next year. Also, during Q2 2023 we entered into an agreement with Kalamazoo Resources to vend our respective lithium assets into a new company, Kali Metals, that will be self-funding and will be run by an independent and highly experienced management team and board. Our 45% interest in Kali provides an important new opportunity for value creation. Going forward, Karora Resources will be a highly competitive gold producer with a growing nickel mining operation that also offers exposure to the rapidly growing lithium market."

RESULTS OF OPERATIONS

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https://www.karoraresources.com/2023-08-14-KARORA-RESOURCES-REPORTS-RECORD-PRODUCTION,-SALES-AND-REVENUE,-STRONG-GROWTH-IN-EARNINGS-AND-CASH-FLOW-IN-SECOND-QUARTER-2023