Karora Exceeds 2023 Production Guidance With Record Gold Output

• Karora produced a record 160,492 ounces of gold in 2023, exceeding its 145,000-160,000 ounce guidance range
• Fourth quarter production hit 40,295 ounces, the second highest quarterly result on record
• 2023 gold sales also set a new record at 157,034 ounces, boosted by strong Q4 production
• Cash balance remains healthy at $82.5 million after investments in growth projects
• Guidance for 2024 points to continued production growth towards 200,000 ounces per year

Robust Production Drives Record Gold Output

The main highlight from Karora's 2023 operating results was record annual gold production of 160,492 ounces, a 26% increase over 2022 output. This stellar result beat the top end of the company's 145,000 to 160,000 ounce guidance range.

The standout performer was the Beta Hunt mine, where grades and tonnes both exceeded plans. Meanwhile the lower-grade Higginsville operation provided a stable source of feed to the Lakewood mill.

The December quarter capped off a strong finish to the year, with production hitting 40,295 ounces. This was the second highest quarterly result on Karora’s books. While Q4 sales lagged production by around 3,000 ounces, the company still achieved record full-year sales of 157,034 ounces.

Beta Hunt Delivers Standout Production

The Beta Hunt mine forms the cornerstone of Karora's Western Australian operations. This underground mine has delivered tremendous high-grade coarse gold specimens in recent years, underpinning strong production growth.

In 2023, Beta Hunt exceeded both its grade and tonnage plans, despite some temporary equipment availability issues during the second quarter. Full year output reached 95,895 ounces, a 24% increase over 2022. This world-class asset still has significant resource expansion potential, with active drilling programs underway.

Higginsville Provides Stable Baseline Production

Although lower grade than Beta Hunt, the Higginsville operation provides reliable open pit and underground feed for the 1.6 Mtpa Lakewood processing plant.

While underground production at Higginsville lagged plans in 2023 due to persistent labour shortages, this was largely offset by higher open pit volumes. Overall Higginsville contributed 64,597 ounces towards the record production result.

With a large 1,900 square kilometre land package and extensive drilling yet to fully test resource potential, Higginsville offers further upside for Karora.

Healthy Cash Position to Fund Growth

Ramping up gold production at both Beta Hunt and Higginsville over the past three years has required major capital investment. While this spending has dragged on cash flows, Karora maintains a healthy cash balance of $82.5 million.

This balance dipped slightly in Q4 2023, largely due to the timing mismatch between Q4 production and sales. With these ounces sold in early 2024, the cash position will quickly rebound.

Having completed most major expansion projects in 2023, the focus for 2024 is on more sustaining investments to support the growth trajectory. This lower spending profile will ease pressure on operating cash flows moving forward.

Strong Production Growth Forecast for 2024

With Karora targeting annual output of 185,000-205,000 ounces in 2024, investors can expect continued strong production growth.

This expansion will be driven by increased throughput at the Beta Hunt mine, with the capacity slated to reach 2 Mtpa by year-end 2024. Further upside remains contingent on the approval of a second ramp decline at Beta Hunt.

Additional growth at Higginsville is also likely via increased open pit production and optimisation of underground mining issues. With resource drilling continuing across the land package, new discoveries could provide further catalysts.

Compelling Longer Term Growth Outlook

Having achieved its initial goal of lifting gold output above 160,000 ounces per annum in 2023, Karora has set its sights on becoming a 200,000+ ounce per year producer from 2024 onwards.

With a mine life of 10+ years already defined and significant resource expansion potential remaining, the company's growth story remains intact.

The experienced management team led by Chairman and CEO Paul Huet has clearly demonstrated their ability to efficiently convert resources into production ounces over the past five years.

As Karora continues working towards likely senior gold producer status, the long-term investment outlook remains compelling for investors seeking leveraged Australian gold exposure.