Karora Production Guidance on Track After Strong Second Quarter — Commodity Comment

By Robb M. Stewart

Karora Resources Inc. said it remains on track to hit its production target for the year after a rise in gold output during the second quarter.
On guidance:

The mining company said that after a strong second quarter, output over the first half of the year remains in line with its full-year guidance despite challenging conditions experienced during the first quarter associated with Covid-19-related effects. Guidance for the year is weighted to the second half, it said.
Karora has forecast full-year production of 110,000 to 135,000 troy ounces, assuming no significant interruption to its operations due to the pandemic.
On production:
The company reported consolidated gold production of 30,652 ounces for the second quarter from its Beta Hunt and Higginsville mines in Western Australia, and gold sales of 30,398 ounces for the three months. For the first quarter of the year, Karora logged gold output 27,489 ounces and a rise in costs thanks to labor and supply shortages in Western Australia caused by the Covid-19 pandemic and the need for additional contract labor.
Karora is focused on increasing gold production to range of 185,000 to 205,000 ounces by 2024 at its integrated Beta Hunt gold mine and Higginsville gold operations in Australia, supported by a second decline at Beta Hunt and plans to buy the Lakewood Mill in Western Australia which will initially add 1 million tons a year capacity.
Write to Robb M. Stewart at robb.stewart@wsj.com