Karlawinda Gold Project Reports Q3 Production Decline Amidst Weather Challenges

The Karlawinda Gold Project (KGP) experienced a decline in gold production during the March 2024 quarter (Q3), producing 26,017 ounces compared to 30,399 ounces in the previous quarter. This reduction was largely due to significant rainfall in January and March 2024 that disrupted open-pit mining activities, as reported to the ASX on March 11, 2024.

Despite the lower production, KGP achieved a significant milestone this quarter, having poured ten tonnes of gold since operations began in June 2021. The All-in Sustaining Cost (AISC) for Q3 rose to $1,515 per ounce, up from $1,333 per ounce in Q1, impacted by the lower output and a higher strip ratio due to the adverse weather.

Looking ahead, gold production for the June 2024 quarter is anticipated to range between 26,000 and 29,000 ounces, with the fiscal year 2024 (FY24) total expected to reach between 112,000 and 115,000 ounces. Despite the challenges, the year-to-date AISC of $1,382 per ounce remains slightly above the upper end of the FY24 guidance range of $1,270 to $1,370 per ounce.

Financially, KGP maintained strong cash flow generation, recording $39.0 million in Q3, slightly down from $41.8 million in Q2. The project also saw a robust build-up of cash and gold reserves, with $177.8 million on hand at the end of Q3, up from $160.1 million at the end of December 2023. This includes the payment of $9.9 million for the accommodation village at the Mt Gibson Gold Project (MGGP).

Gold sales during the quarter amounted to 22,286 ounces at an average price of $3,171 per ounce, generating $70.7 million in revenue. Additionally, 4,859 ounces of gold were held in inventory at the end of Q3, valued at approximately $16.9 million.