Karora Resources Inc. - Chairman & CEO, Paul Andre Huet.
Chairman & CEO, Paul Andre Huet.
Source: Karora Resources Inc.
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  • Karora Resources Inc. (KRR) has announced strong preliminary economic assessment results for its Beta Hunt Mine
  • It expects an eight-year mining plan to produce 9,435 payable nickel tonnes
  • The mine would have a net all-in sustaining cost of AU$16,946 per tonne of nickel sold
  • Total capital investment would be approximately AU$18.7 million
  • It expects an initial return rate of 105 per cent (base case) and 232 per cent (upside case)
  • Karora Resources Inc. (KRR) is up 2.18 per cent trading at $3.28 per share as of 11:51 a.m. ET

Karora Resources (KRR) announced strong preliminary economic assessment results at its Beta Hunt Mine in Australia.

The company stated its assessment highlighted the investment and by-production credit potential for the mine.

“The initial results from the PEA are tremendous, outlining a very low capex project with strong leverage to nickel prices in a macro environment potentially poised for price appreciation in the coming years as electric vehicle demand scales,” Paul Andre Huet, Chairman and CEO of Karora, said.

Based on the company’s January 31st resource, the assessment supported an eight-year mining plan to produce 9,435 payable nickel tonnes at a net all-in sustaining cost of AU$16,946 per tonne of nickel sold.

Karora stated the total capital investment would be approximately AU$18.7 million, with AU$7 million used in the first year. It expects to see an initial return rate of 105 per cent for the base case and 232 per cent for the upside case.

“In my view, the [preliminary economic assessment] is an excellent starting point for realizing the full potential for a revitalized nickel production plan at Beta Hunt. I believe we are just scratching the surface of what I expect will be a growing by-product credit contribution from nickel production at Beta Hunt for many years to come,” Huet said.

Karora Resources Inc. (KRR) is up 2.18 per cent trading at $3.28 per share as of 11:51 a.m. ET.


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