KRRGF - Karora Resources: An Upgrade To The Investment Thesis

• Karora announced that it would be acquiring the Lakewood Mill this week, giving it a second mill and an immediate boost to 2.6-2.8 million tonnes per annum of processing capacity.
• This is a brilliant move by Karora's CEO, Paul Huet, providing potential haulage cost savings, de-risking the growth plan, and beefing up the company's long-term potential.
• While the medium-term growth outlook is the same with Lakewood, assuming HGO's reserves can support an expansion, Karora has 250,000-ounce potential long-term with a mill expansion down the road.
• Given that Karora has a rare mix of growth combined with likely margin expansion, I would view sharp pullbacks as buying opportunities.

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