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Karora Resources Inc T.KRR

Alternate Symbol(s):  KRRGF

Karora Resources Inc. is a Canada-based multi-asset mineral resource company. The Company’s portfolio includes the Beta Hunt Underground Mine, Higginsville Gold Operations and Lakewood Mill. It owns 100% of Beta Hunt, a gold-producing mine located approximately 600 kilometers from Perth in Kambalda, Western Australia. It owns and operates HGO, which is located approximately 75 kilometers south of the Beta Hunt Mine in Higginsville, Western Australia. HGO has a mineral gold resource and reserve and prospective land package totaling approximately 1,900 square kilometers. The operation includes a 1.6 million tons per annum (Mtpa) processing plant, 192 mining tenements, including the Aquarius, Hidden Secret, Mousehollow, Two Boys, Baloo, Pioneer, Fairplay North, Mitchell, Wills, Challenge and Mount Henry deposits. The Lakewood Gold Mill is located just outside Kalgoorlie, Western Australia and approximately 60 kilometers from the Beta Hunt Mine, has a processing capacity of 1.0 Mtpa.


TSX:KRR - Post by User

Post by Farquaron May 23, 2021 12:18am
646 Views
Post# 33254900

Here's a possible production amount starting in July

Here's a possible production amount starting in JulyLet's assume that the mill has been upgraded to 1.6 million tons by July 1st. Let's also assume that Spargos is ready to rumble July 1st ,2021........So for Q3 , here's a possible scenario.....Krr could blend 200,000 tons of ore from Beta Hunt at 2.7 g/t and 200,000 tons of ore from Spargos at 4.5 g/t to get an average of 3.6 g/t ore feed. At 90% recovery , you get 400,000 tons x 3.24 g = 1,296,000 grams or 41,806 ounces of gold produced ( 167,000 ounces/yr ).. If AISC is 900$ and the gold price average is say 2100$ for Q3 , you get 41,806 x 1200$ US = $ 50,167, 741.00 US profit or $ 64,892,740.00 Australian or $60,544,000.00 cdn profit for quarter 3..This is a yearly profit of 242 million $cdn...........or a profit of about 1.51 /share (242 million 160 million shares ) A P/E of 10 gives us a share price of 15.10 cdn..........Now this does not even factor in any coarse gold nor does it factor in that there will be higher grades available that will be blended with the Spargos ore later like Larkin which will come online I think later in the second half... .... Anyway, it is clear that Karora is on the cusp of really ramping up production and we should see a significant re-rating of the share price very soon...imho...Don't forget, that at anytime, they could surprise the market with stupendous drill results or a whole slew of other potential good developments that could really light a fire under the share price....Not too much longer to wait, we should continue to see great share price action for the foreseeable future...This stock is still way undervalued...all prices to 6.50 could be considered low-hanging fruit...imho
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