Karora Resources Delivers Record Production, Revenue, & Cash Flow in 2023

• Karora Resources reported record gold production of 160,492 ounces in 2023, exceeding its guidance range and increasing 20% from 2022.
• The company generated record revenue of $416.3 million, a 31% increase from the previous year, driven by higher gold sales and realized prices.
• Adjusted EBITDA for 2023 was $129.3 million, a 41% increase from 2022, reflecting strong operational performance.
• Karora is focused on expanding the Beta Hunt mine to 2.0 Mtpa by the end of 2024 and delivered robust mineral resource and reserve growth in 2023.
• With a strong financial position and promising exploration results, Karora Resources is well-positioned for continued growth and value creation for investors.

About Karora Resources

Karora Resources Inc. (TSX: KRR) is a growing gold producer focused on increasing production at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (HGO) in Western Australia. The company operates a low-cost 1.6 Mtpa processing plant at Higginsville, which is fed at capacity from the underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia, further expanding its processing capacity. The company boasts a strong board and management team committed to delivering shareholder value and responsible mining practices.

Record Gold Production & Revenue

Karora Resources achieved record gold production of 160,492 ounces in 2023, a remarkable 20% increase from the 133,887 ounces produced in 2022. This impressive growth was driven by a 37% increase in gold production from the flagship Beta Hunt mine. The company's performance exceeded its 2023 production guidance range of 145,000-160,000 ounces, highlighting the effectiveness of its operational strategies and the quality of its assets.

The record production led to equally impressive financial results, with Karora generating record revenue of $416.3 million in 2023, a 31% increase from the $317.0 million reported in 2022. This significant growth was primarily attributable to a 19% increase in gold sales and a realized gold price that was US$133 per ounce higher than the previous year.

Strong Profitability and Cash Flow GenerationKarora's strong operational performance translated into robust profitability and cash flow generation in 2023. Adjusted EBITDA for the year was $129.3 million, a substantial 41% increase from the $91.5 million reported in 2022. This growth reflects the company's ability to capitalize on higher gold sales and realized prices while effectively managing costs.

The company also reported record cash flow from operating activities of $132.7 million in 2023, a 50% increase compared to $88.2 million in 2022. This strong cash flow generation enabled Karora to end the year with a cash balance of $82.5 million, a 20% increase from the $68.8 million held at the end of 2022.

Growth Initiatives & Exploration Success

Karora Resources is actively pursuing growth initiatives to further expand its production profile and extend the mine life of its key assets. The company is currently focused on expanding the Beta Hunt mine to 2.0 Mtpa by the end of 2024. This expansion project involves significant improvements to the mine's ventilation circuit, the expansion of the mining fleet, and the development of new mining areas.

In addition to the Beta Hunt expansion, Karora delivered robust mineral resource and reserve growth in 2023. The company reported an 18% increase in the Beta Hunt Gold Measured and Indicated Resource to 1.6 million ounces, with a 12% increase in grade. Gold Proven and Probable Mineral Reserves increased by 6% to 573,000 ounces. These results underscore the company's ability to organically grow its resource base and support its long-term production goals.

Karora also made significant progress in exploring the Fletcher Shear Zone at Beta Hunt, with drill results continuing to support the existence of a large mineralized system west of the Western Flanks area. The company has commenced the development of an exploration drive towards the Fletcher Shear Zone, with initial exploration cuts anticipated in the second half of 2024. This new zone has the potential to become the third major gold system at Beta Hunt, further enhancing the mine's production profile and longevity.

Conclusion

Karora Resources delivered exceptional results in 2023, achieving record gold production, revenue, and cash flow. The company's strong operational performance, combined with its robust growth initiatives and exploration success, positions it well for continued value creation in the years ahead.

Investors looking at Karora Resources should be encouraged by the company's ability to consistently exceed production targets, generate strong cash flows, and organically grow its resource base. The ongoing expansion of the Beta Hunt mine to 2.0 Mtpa and the promising exploration results from the Fletcher Shear Zone provide a clear pathway for future growth and value creation.

Moreover, Karora's strong financial position, with $82.5 million in cash at the end of 2023, gives the company ample flexibility to fund its growth initiatives and pursue further value-accretive opportunities. The company's commitment to responsible mining practices and shareholder value creation, backed by an experienced board and management team, further enhances its appeal as an investment opportunity in the gold mining sector.In conclusion, Karora Resources' record-breaking performance in 2023, coupled with its compelling growth prospects and strong financial position, make it a company that investors should keep a close eye on. As the company continues to execute its strategy and unlock the full potential of its high-quality assets, it is well-positioned to deliver significant shareholder value in the years to come.