Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) beat its production guidance for full-year 2020 by 7% and expects a further lift in output for 2021.
The gold miner reported record gold production for the 12 months to end-December last year of 99,249 ounces from its Beta Hunt and Higginsville mines in Western Australia.
READ: Karora Resources announces 334% increase in 2P reserves at Beta Hunt and Higginsville operations, WA
In the middle of 2020, it had been guiding for between 90,000 and 95,000 ounces of the yellow metal.
For full-year 2021, the miner is targeting group production of between 105,000 and 115,000 ounces of gold - that's a 21% increase over the high-end of 2020's guidance.
Average all-in-sustaining-costs (AISC) are expected to be between US$985 and US$1,085 per ounce.
"I am extremely pleased to report full-year 2020 production of just under 100,000 ounces, beating the top end of our 2020 production guidance by a substantial margin in our first full year of production with our Higginsville mill," Paul Huet, Karora's chairman and CEO, told investors in a statement.
"I am also excited that we ended 2020 on a very strong note, producing 25,637 ounces which was our best quarterly result in 2020."
Gold sales for full-year 2020 totaled 98,646 ounces, while in the fourth quarter, production was 25,637 ounces, the strongest production quarter of the whole year.
Looking ahead to 2021, Karora noted: "We expect gold grades will increase over the course of the year as we begin to move into higher grade areas at Higginsville Central and with the anticipated start-up of mining at the high-grade Spargos project in the second quarter.
"As a result, the increase in 2021 gold production and grades are expected to be weighted towards the second half of the year."
Consolidated HGO, Beta Hunt and Spargos drilling and exploration expenditures for 2021 are targeted to be around A$20 million, double the initial 2020 guidance and 33% higher than revised 2020 drilling and exploration guidance, the company added.
Karora also noted that its consolidated cash balance had increased to C$79.5 million as at December 31, last year, which is an 18% increase from C$67.3 million on September 30, 2020.
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