CA - Karora Resources: Record Year Overshadowed By Softer Forward Guide
2023-03-26 03:10:52 ET
Summary
- Karora Resources was one of the better-performing gold producers from its September lows, increasing ~145% in 75 trading days, delivering an annualized return north of 2000% for patient shareholders.
- I attribute the strong outperformance to Karora's unique position as a top-10 growth story that continues to see exploration success with the potential for margin expansion (lower costs).
- However, while it delivered near flawlessly in 2022 regarding things it could control, forward guidance disappointed and suggests we have growth, but clawing back lost margins could be tough.
- With the stock trading at a reasonable valuation with a steady growth profile, I continue to see it as one of the top-10 names sector-wide, but I don't see a low-risk buying opportunity here at US$3.30.
For further details see:
Karora Resources: Record Year Overshadowed By Softer Forward Guide