Good morning, ladies and gentlemen, welcome to the Karora Resources' second quarter conference call and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. I would now like to turn the conference over to Mr. Oliver Turner, Executive Vice President, Corporate Development. Please go ahead, sir. Thank you, operator. Good morning, everyone. I would like to welcome you to Karora Resources' second quarter 2023 conference call. I'm sitting in today for Paul Huet, our Chairman and CEO. Please note, we will be talking to a slide deck, which is available on the homepage of our website, as well as throughout this webcast. On slides 3 and 4. Before I begin my presentation, I would like to remind you to please review our cautionary statements regarding forward-looking information and non-IFRS measures. These statements can be found in our second quarter MD&A news release and in our presentation slides. Over to slide 5. On the call with me today is Leigh Junk, our Managing Director for Australia. Leigh is joining us on the call from Perth, down in Australia. Just last week, Lee represented Karora at the Diggers & Dealers Mining Forum in nearby Kalgoorlie. Lee will take us through the operational highlights from our record second quarter. First, I will cover some recent achievements and review our financial results. Following on our record first quarter, we set another new record with gold production of over 40,000 ounces for the first time in our history. For the first half of 2023, we produced a record 80,650 gold ounces. The key to our rapid ounce production growth over the last few quarters has been the increased milling capacity resulting from our strategic acquisition of Lakewood last July. Turning over to slide 6, I'll now go over our financial highlights. This morning, we issued a news release with our second quarter financial results. Our unaudited financial statements and MD&A for the period ended June 30th, 2023, have also been filed and are available on our website and under Karora's profile on SEDAR. As I outlined at the beginning of the call, the 1st half of 2023 was very strong, with record consolidated gold production, putting us in an excellent position to achieve our full-year guidance of 145,000-160,000 ounces. All-in sustaining costs for the 1st half were $1,184 per ounce sold, well within our 2023 guidance range of $1,100-$1,250 per ounce sold. Headline financial results for the 2nd quarter included record revenue of $111 million, up 50% compared to Q2 of 2022, and up 14% compared to the 1st quarter. The increased revenue is the result of Karora enjoying increased sales and higher gold prices compared to prior periods. Second quarter adjusted earnings were $13.9 million or $0.08 per share, an improvement of $9.1 million, or $0.05 per share from the prior quarter. Adjusted EBITDA was $38.8 million, or $0.22 per share, which is an improvement of $16 million from the prior quarter. Our cash balance at the end of the second quarter was a very strong $71 million, and with our undrawn $40 million revolving credit facility, we continue to have a very strong and flexible financial position. Looking ahead, we are poised to generate solid cash flow over the balance of the year as we continue to execute operationally in the current favorable gold price environment. With that, I'll turn the call over to Leigh Junk to take you through our operating highlights. Thank you, Oliver. Good morning, everyone. I'm excited to be reporting to you today on the strongest operating result in Karora's history. As I did last quarter, I'll start off by recognizing our operations team for their commitment to working safely and buying into our culture of strong operational discipline. We continue to see improvement across the business, which I believe reflects good engagement from our team members to maintain the safest possible work environment while executing the plan. Operationally, our team continues to meet or exceed our expectations, as demonstrated by the record results we've been achieving as we deliver on our growth plan for gold and by-product nickel production. Now, referring to slide 8. On a consolidated basis, gold production for the second quarter was a record 40,823 ounces, from 536,000 tons milled at an average grade of 2.5 grams per tonne. The gold production increase from the prior quarter of almost 1,000 ounces was driven by higher tons milled. Consolidated mill recoveries improved slightly to 95% from 94% in Q1, remaining strong and consistent as a result of our strategy to optimize feed blend from Beta Hunt and Higginsville. Consolidated cash operating costs were U.S. $1,068 per ounce sold, a 5% improvement compared to the prior quarter, driven by higher grades and lower costs at Higginsville relative to Q1. For the first half of 2023, we milled just over 1 million tons of material at an average grade of 2.56 grams per tonne to 80,650 ounces of gold at an average cash operating cost of $1,094 per ounce sold. Turning over to slide 9 now. Before I get into the numbers, let me briefly bring your attention to the cat truck shown in the lower right-hand corner of the slide. This truck was delivered to our Beta Hunt Mine late last week and illustrates the ongoing fleet expansion and upgrade that's been underway for some time. The new equipment's more efficient than the models they replaced, so it's always an exciting time from a productivity standpoint when we add new equipment to our mining fleet. Once again, we attended the Diggers & Dealers Mining Forum in Kalgoorlie last week, and we're proud to have our new truck on display at the main entrance to Australia's largest mining event prior to its delivery to site. Certainly created some exciting discussion around our booth to reinforce how far Karora has come in the last few years. Turning to Quarter Two, at Beta Hunt, we mined 297,100 tons, which is flat when compared to the prior quarter. Similar to the first quarter, mining was focused in the central Western Flanks and A Zone areas. The average mine grade for Q2 was 2.97 g per tonne, consistent with the mine plan for the year. Switching to processing, 390,000 tonnes of Beta Hunt material was milled at an average grade of 2.62 grams per tonne, for production of 25,709 ounces of gold. For the first half of 2023, we milled 618,000 tonnes of Beta Hunt material at an average grade of 2.77 g per tonne for the production of 52,286 ounces. Now looking at slide 10, Higginsville Mines contributed 15,114 ounces of gold in Q2, produced from 217,000 tonnes of material milled at an average grade of 2.31 grams per tonne. Higginsville Mine material was 178,100 tonnes at an average grade of 2.76 grams per tonne. Mining commenced in April 2023 at Mouse Hollow, which contributed 115,300 tonnes of mined material through the quarter. First half production from Higginsville Mines was 28,364 ounces from 420,000 tonnes milled at an average grade of 2.25 grams per tonne. Higginsville production is scheduled to come from a combination of Mouse Hollow and Pioneer open pits and the Aquarius underground for the balance of the year. With respect to our growth plan progress, our overall plan is moving forward well. During the second quarter, we progressed work on the second bank raise and underground development of Beta Hunt, planning storage facilities at Higginsville and Lakewood, and mill upgrade work at Lakewood. We do note that there's been some delay in the capital spend schedule due to particularly wet weather at both sites, as well as continued contract labor force availability in the region. We remain well on track to deliver our capital program during 2023, where we previously forecast a total of approximately AUD 105 million in capital during the year. However, we now anticipate a back-half weighted spend as we move these projects forward. During the first half, we spent approximately AUD 45 million on our planned 2023 and three capital program. We want to be clear that we do not expect the minor delay in capital outlay to impact any of our production targets or guidance. Turning to slide 11. One area from Beta Hunt that I'd like to highlight is our most recent exploration results from the Fletcher Shear Zone. In June, we began a 9-hole drill program at Fletcher to follow up on significant results we reported in April this year, which included an intercept of 46.5 g per tonne over 7 m and 6.5 g per tonne over 26 m at the southern end of Fletcher, near the Alpha Island Fault. Assays from 4 of the 9 follow-up holes received to date all intersected strong mineralization and have further increased our confidence in the continua of Fletcher mineralization. The results from the latest drill holes are highlighted in yellow on this slide and include intercepts of 4.7 g per tonne over 11 m, 11 g per tonne over 2.9 m, and a very wide intercept of 2.8 g per tonne over 52 m. We look forward to receiving more outstanding results for the remaining five holes from the follow-up campaign before the end of this quarter. As a reminder, Fletcher is considered a structural analog to Western Flanks, Beta Hunt's largest and most prolific gold zone. Fletcher is positioned west and parallel to Western Flanks in the Hunt Block and extends to the Alpha Island Fault. The most recent drilling in Fletcher South is only 230 m from existing nickel infrastructure in the Beta Block and 150 m from the Larkin mineral reserve to the south. Fletcher remains open along strike, with the potential to extend for up to 2 km and is open at depth. Overall, Fletcher looks very exciting and is certainly an area with high potential to be converted into new mineral resources. We'll be updating our mineral resource before the end of the year. With that, I'll turn the call back to the operator to poll for questions. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. Again, that's star followed by the number one. If you would like to withdraw your request, please press star followed by the number two. Please stand by while we compile the Q&A roster. Your first question comes from the line of John Kladnick from BMO. Please go ahead. Hey, thanks, guys. Yeah, great quarter. Nice to see costs coming in slightly ahead of expectations as well. The one outlier versus my model is the top line. I'm just curious if you can comment at all on the average realized gold price, which was a bit below spot over the quarter? Yeah, thanks, John. I can, I can take that one. Yeah, so minor, minorly below the, the, the spot price there. We did have some internal contracts during the quarter while we had some of the capital outlay that we had planned, just to lock in some, some of that period. Rolling forward to the third quarter, we're, we're fully exposed there. Okay, perfect. No, appreciate that. I guess over to Fargo. Just curious, I think you guys are working on some underground development. Just curious on what we could expect for production and grade ranges there and when that could come in? Yes, I might as well grab that, John. Yeah, we're still working on that. We haven't started underground development yet. A decision will be made this year and potentially get going next year. It'll be reasonably small, but high margin, probably 15,000 ounces a year or something like that, but good grade and high margin. We'll make a decision on that later this year. Perfect. Yeah. No, it's good to have a, a little sweetener in the mill there. I guess looking over to another, potential sweetener down the road, Fletcher, just curious on, you know, maybe timing for, for a resource, in that area and, just how much drilling might be required there? Yeah. We, With these results, we will continuously be drilling to the north. The idea was to earmark a section of 500 m-600 m at the southern end and drill that to at least an inferred resource, which will probably need a few more holes after this program to get a few more holes on each section. This was a bit of a pattern drill out, and we'll probably require a few more holes to have a few on the same section, and then we can get a resource out. It, it won't take long to get a resource out, so, yeah, it, we, it could potentially get one towards the end of this year or early next year. That. Okay, yes. there's so much of Fletcher to go. Yeah. No, fair enough. That makes sense, and exciting to see what you guys get there. Last one for me before freeing up the line. Just curious, you guys are tracking to the top end of guidance, I think 56% of the midpoint through the year to date. Just curious how third quarter is going and kind of how you see the rest of the year evolving. Yeah, the rest of the year will be very similar to the first half. That we're pretty fortunate that we are not relying on coming home with a huge production quarter in the last quarter. Each of our quarters this year will be pretty similar. Yeah, we, what we've done to date for the first half, we'll, yeah, we'll be looking to replicate that in the second half. We, we've made good progress in this quarter, and certainly our ramp up at Beta Hunt is going well. We have had a bit of downtime with our crusher over at Higginsville for about a week, while we're doing some repairs on the connection with the ROM pad there. We won't see much impact on production. There'll be a slight impact on cost, but we could see that coming through in this quarter. But, but, the production, as I said, should be pretty similar to what we're seeing in the first half, aiming for the, you know, top end of guidance. Perfect. Okay, that's great. Yeah, nice you don't have to rely on a massive Q4 like some many mining companies out there. Yeah, no, that's great. You guys are really well positioned and great first half. That's it for me. Thanks, guys. Great. Thanks, John. Your next question comes from the line of Matthew O'Keefe from Cantor Fitzgerald. Please go ahead. Thanks, operator. Good morning. Another great quarter, so thanks for that. Just a couple of operational questions here. One on, on beta, or actually on, on both, on all operations. Your, your production was, your throughput was, I think, record on both Beta Hunt and Higginsville, largely on Beta Hunt, too. What, what are we looking at from the, driving that? I mean, you've got a second decline. Is that, is that operational, and, and what are the, what's the outlook for the rest of the year on throughput? We are using the second decline, so it's operational now. We are, you know, we are beginning, you know, beginning to be more efficient with our trucking, which will help us, you know, going forward. That is helping where we're still doing our third of our three primary event raises to go into predominantly Western Flanks. That will help us towards the end of the year when our third one is in and all links up. We've got a, we've got a few things to go until we are fully, fully going there, but we're, we've certainly started the, the, the ramp-up is going well. That's great. Okay, thanks. Then with respect to that, I guess a follow-on there would be on, with respect to, CapEx. The range this year was, I think, AUD 85 million-AUD 105 million. So is that, is that still what we're expecting for, for 2023? What are the items to, to fall into that for the remainder of the year? Yeah, we'll be looking at delivering the top end of that at about 105. We've, we're going well with the, with gold price and cash, so we'll, we'll deliver at the top end of that to... For our capital. One of the bigger buckets, there's some mill upgrades at Lakewood. Silt dams, TSF facilities there, some equipment at Beta Hunt, the primary fan to put on top of those raise bores, I just said, a bit of surface infrastructure and more equipment, and some months of work to do on the Higginsville processing plant as well. Okay. Development, of course, ongoing. at Lakewood, you're, you're so far happy, no, no surprises there or anything? You're pretty happy with the operation? Yeah, Lakewood's going great. Yeah. It was, it was in far better, far, far, much better condition than, than I was even hoping for when I started. Lakewood's going really well. Okay. That's it for me. Thanks, thanks a lot, and keep up the great work. Thanks, Matthew. Ladies and gentlemen, just a reminder, should you have a question, please press star followed by one on your touchtone phone. Your next question comes from the line of Jeremy Hoy from Canaccord Genuity. Please go ahead. Hi, good morning, Lee and Oliver. Thanks for taking my questions. Just wanted to start, revisit the reserve and resource update that you guys said is coming out later this year. It sounds like there's potential that some of Fletcher could, could make its way in. What else are we expecting to contribute to that? Yeah, we'll put out our... Yeah, like you say, reserves towards the end of the year. I don't, yeah, I don't, I don't think we'll bank on Fletcher coming in. It could happen depending on our drilling that we do between now and then. We have, we'll have a new zone just in the south of the Alpha Island Fault, Mason, which is next to Larkin. We'll be bringing Mason in for its first resource. Castle, which sits right beside Larkin, will be splitting. Last year, we had Larkin sort of encompass both, but we'll be splitting Castle out of Larkin. Just south the Alpha Island Fault, there'll be Larkin, Mason, and Castle down there. Just, yeah, and the big ones of Western Flanks and A Zone. Okay, sounds good. Then I guess just one more quick one from me. Are you seeing any limitations or easing of, of some of the pressures you've seen in terms of, labor and supply chain at your operations? You, you did mention, contractor labor there. Yeah, a little on the, on the contractor, but it's not across the board in all things. We have a full labor force that, you know, all our, all our positions are, are full. Like, like I, I said, with the, with the new truck, we are getting all our equipment right on schedule. The big, the big pieces of equipment that we really need to arrive and arrive on time for us to deliver that growth, they're all turning up right on time. Yeah, all the, all the bigger, bigger things. It's not all across the board that it's slowing every, absolutely everything down. Maybe we've seen the peak of, of the supply chain issues, but touch wood. Yeah, it, we're, we're coping okay. Okay, well, great to hear. Thanks for taking my questions. I'll, I'll pass the line. Thanks, Jeremy. Thank you. There are no further questions at this time. I'd now like to turn the call back over to Mr. Turner for any closing remarks. Yeah, thank you very much, operator. Thanks to everyone who took the time this morning or this evening, if you're over in Australia, to listen to our call. We appreciate the support and look, it's been a great first half of the year, operationally, outstanding job by Australian operations. We're excited to deliver into this guidance for the second half of the year. Once again, thank you for the time. Operator, you can close the line. Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.
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