Karora Resources On Track to Meet 2023 Gold Guidance

• Karora Resources is a Western Australian gold producer targeting 145,000-160,000 ounces of gold production in 2023, with plans to continue growing output.
• The company has been deploying capital to expand production at its Beta Hunt mine, adding substantial gold and nickel resources and infrastructure.
• Karora aims to increase mining rates and drill more aggressively at Beta Hunt to grow resources further. New mining areas are being opened up.
• The company has gone from under 100,000 ounces of annual gold production to a targeted 160,000 ounces in 2023 over just three years, with plans for further growth.
• As gold output and company scale grows, Karora expects to move up the valuation multiple spectrum, ultimately benefiting shareholders through cash generation and potential dividends.

About Karora Resources

Karora Resources is a gold mining and exploration company focused on increasing production at its operations in Western Australia. Its key assets are the integrated Beta Hunt gold mine and Higginsville gold operations. The Higginsville treatment facility is a low-cost 1.6 million tonne per annum processing plant, fed by underground output from Karora's Beta Hunt mine and open pit mines at Higginsville. In July 2022, Karora acquired the 1.0 million tonne per Lakewood mill to expand its processing capacity. At Beta Hunt, Karora has a significant gold resource and reserve base hosted in multiple gold shear zones, with exploration potential remaining along a 5 kilometer strike length. The Higginsville properties also hold substantial gold resources and reserves, with a sizeable and prospective regional land package covering approximately 1,900 square kilometers. Karora has an experienced board and management team focused on delivering shareholder value through responsible mining, as demonstrated by the company's commitment to reducing emissions.

Karora has set a target of doubling 2020's gold production to 170,000-195,000 ounces by 2024.

Interview with Executive Vice President, Corporate Development, Oliver Turner

Ramping Up Output From Beta Hunt

A key growth driver for Karora is the continual investment into expanding production from Beta Hunt. Oliver Turner, Executive VP of Corporate Development, outlined that since unwinding royalties at Beta Hunt in 2020, the company has added substantial gold and nickel resources through aggressive drilling. Over the last four years, gold resources have grown from 400,000 ounces to 2.4 million ounces.

Significant infrastructure investment has also been made into Beta Hunt to open up new mining areas and facilitate increased production rates. Karora now has seven new shear zones slated to begin production. With this infrastructure in place, Karora aims to drill even more aggressively, with the plan to add further resources and mine life.

Delivering Operational Growth

An important aspect for investors is Karora's track record of delivering on operational growth plans. As Turner highlighted, the company has gone from producing under 100,000 ounces of gold in 2019 to a guidance range of 145,000-160,000 ounces for 2023 - substantial growth in just three years.

The ramp up to targeted 2024 production of 170,000-195,000 ounces appears achievable through expanded output from Beta Hunt, along with production from Higginsville and other regional deposits. Crucially, Karora has funded this growth through internal cash generation following the 2020 royalty changes.

Moving Up The Valuation Curve

Turner explained an important part of Karora's investment case is the potential expansion of its trading multiple as the company grows. As a junior producer, Karora currently trades at around 0.75 times net asset value (NAV) - inline with similar sized gold miners.

As the company steps into mid-tier producer status above 200,000 ounces per year, Turner expects Karora will migrate towards a 1 times NAV multiple, enjoying increased interest from investors attracted to larger, more liquid gold producers. Further growth could ultimately see substantial dividends paid in future.

Conclusion

For investors seeking gold leverage, Karora Resources presents an interesting opportunity to gain exposure to a growing Australian gold producer with clear near-term output expansion plans in place.

As the company invests capital into more than doubling production rates over coming years, Karora's emerging mid-tier producer status could shine through with a rerating to bring the share price more inline with underlying fundamental growth.