Karora Resources announced its financial and operating results for the first quarter of 2024, highlighting record revenue and strong cash flow. The company reported quarterly revenue of $115.5 million, a 19% increase from the same period in 2023, driven by higher gold sales and favorable gold prices. Operating cash flow for the quarter was $42.6 million, compared to $20.9 million in the first quarter of 2023.
Gold production for Q1 2024 was 36,147 ounces, down 9% from 39,827 ounces in Q1 2023 and 10% from 40,295 ounces in the previous quarter. The decline in production was attributed to wet weather and a regional power interruption that impacted the Lakewood mill and Beta Hunt mine. Despite these challenges, gold sales increased to 40,343 ounces, up 12% from Q1 2023 and 8% from Q4 2023.
Cash operating costs averaged US$1,193 per ounce sold, a decrease from US$1,272 in Q4 2023. All-in sustaining costs (AISC) averaged US$1,285 per ounce sold, down from US$1,435 in the previous quarter. The reduction in costs was mainly due to higher nickel by-product credits.
Net earnings for Q1 2024 were $2.1 million ($0.01 per share), compared to a net loss of $2.9 million ($0.02 per share) in Q1 2023. Adjusted earnings were $13.3 million ($0.07 per share), up from $4.8 million ($0.03 per share) in the same period last year. Adjusted EBITDA was $40.5 million, a 42% increase from $28.6 million in Q1 2023.
Karora and Westgold Resources have agreed to merge, with Westgold acquiring all outstanding shares of Karora. This merger will create Australia’s largest unhedged gold producer and is expected to deliver synergies of $440 million. The combined entity will rank among the top five Australian gold producers based on market capitalization. 
