The following is a summary of the Karora Resources Inc. (KRRGF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Karora Resources reported a record-breaking year in 2023, with gold production, tons milled, ounces sold, revenue, and operating cash flow.
The company exceeded its 2023 production guidance of 145,000 - 160,000 ounces, and costs remained within the guided range of US$1,100 - US$1,250 per ounce sold.
Karora generated a record revenue of $416 million in 2023, a 31% increase from 2022.
Adjusted earnings for 2023 were at $36 million or $0.21 per share, a 71% improvement from the previous year.
2023 saw cash flows from operating activities at $133 million or $0.75 per share, a $44 million or $0.25 per share increase from 2022.
Business Progress:
The Fletcher zone within the Beta Hunt mine shows potential for a new major production area, with exploration set to begin in the second half of 2024.
Karora has secured a new, improved nickel contract to counter the temporary increase in costs and decreased nickel sales in Q4 2023.
After investing over $400 million in its operations, the company is prepared for a strong performance in 2024, backed by a current cash balance of $83 million and an undrawn $40 million revolving credit facility.
The company is planning to mitigate a potential shutdown of a nearby BHP concentrator for nickel mining by trucking to Leinster, a contingency plan it has previously implemented.
A Power Purchase Agreement (PPA) for Higginsville is expected to reduce carbon emissions and power costs, operational by the beginning of 2025.
Karora is exploring hybrid power solutions as part of its commitment to reduce its carbon footprint by 20% by 2030.
More details: KARORA RESOURCES INC IR
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