Karora Resources (TSX: KRR) continues to see its guidance decline for 2024, with the company this morning indicating to the market that it expects its costs to be substantially higher in 2024 than previously guided, while cutting the upper end of gold production expectations.

Karora now expects to produce between 170,000 to 185,000 ounces of gold in 2024, with the production estimate reducing the upper end of prior guidance by 10,000 ounces. Guidance issued in March 2023 suggested Karora would produce between 170,000 to 195,000 ounces this year.

All-in sustaining costs meanwhile have ballooned from a range of $1,050 to $1,200 per ounce, to that of $1,250 to $1,375 per ounce. The increase amounts to a 17% increase in costing guidance based on midpoints.

Payable nickel production meanwhile is expected to nosedive from prior guidance, with the previously guided range of 600 to 800 tonnes of production now being cut to just a range of just 200 to 300 tonnes. The cut has been blamed on weak nickel prices, with mining of such mineralization said to be able to ramp up when market conditions warrant.

“Our updated guidance incorporates our ramp up to an annualized 2.0Mtpa production rate at Beta Hunt by end of year as well as contributions from Pioneer, Two Boys and stockpiles. The minor (5%) trim to the top end of our gold production guidance reflects a focus on prioritizing higher margin Beta Hunt ounces over slightly lower margin smaller open pit options at Higginsville,” commented Paul Andre Huet, CEO of Karora.

The ramp of Beta Hunt to an annual production rate of 2.0 million tonnes per annum follows a three year growth plan implemented in 2021. At the time of that growth plan being launched, Karora had expected to produce substantially more gold in 2024 – providing guidance at the time of 185,000 to 205,000 ounces of production – at all-in sustaining costs that were substantially lower, with guidance pointing to costs between $885 and $985 an ounce.

Karora Resources last traded at $4.76 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.