11:17 AM EDT, 07/16/2020 (MT Newswires) -- Karora Resources Inc. (KRR.TO), up nearly 5% on last look, on Thursday reported consolidated gold production of 24,078 gold ounces for the second quarter of 2020 from its Beta Hunt and Higginsville mines in Western Australia. Gold sales for the second quarter were 23,185 ounces. The difference in ounces sold vs. produced was sold during the first week of the third quarter.

Karora's consolidated cash balance increased to $50.2 million as at June 30, 2020, a 31% increase from the prior quarter's $38.4 million. As of June 30, 2020, Karora is completely unhedged and will have full exposure to spot gold prices going forward, the company said.

Production for the first half of 2020 was 48,894 ounces. Karora maintained its 2020 gold production guidance of 90,000-95,000 ounces and AISC of US$1,050-$1,200 per ounce sold.

The company also reported "significant progress" in its efforts to lower AISC costs to US$1,000/oz by the end of 2020 -- Karora has negotiated almost 10% in reductions to its royalty burden on Western Australian operations, achieved significant savings in phase one of its initiatives with vendors, increased workforce productivity and is also on track to achieve G&A savings.

"We expect to see continued AISC cost reductions despite the costs of the temporary measures we have in place to mitigate the risks of the COVID-19 pandemic," Paul Huet, Chairman & CEO, said.

Price: 0.67, Change: +0.03, Percent Change: +4.69