Topic: How To Invest

Q: As an Inner Circle member, I would like your thoughts on Karora Resources.

Article Excerpt

A: Karora Resources Inc., $3.61, symbol KRR on Toronto (Shares outstanding: 144.2 million; Market cap: $516.1 million; www.karoraresources.com), is focused on expanding gold production and reducing costs at its integrated mines and processing facility in Western Australia. Those operations centre on the company’s underground Beta Hunt gold mine and its nearby open-pit Higginsville gold mine. Both feed their ore to Karora’s Higginsville treatment facility. Formerly known as RNC Minerals, the company changed its name in May 2020. With a 100% interest in Beta Hill, that mine is Karora’s main asset. In June 2019, it bought the nearby Higginsville gold operations from Westgold Resources for $16.8 million U.S. in cash and $1.4 million in Karora shares. The deal included a gold treatment mill that can process 1.4 million tonnes per annum, plus the Baloo open-pit mine. The mill, still in operation, was built in 2009 for $67.4 million U.S. Karora returned Baloo to production in August 2019. Meanwhile, the company has agreed to sell…