Consolidated gold production from the Beta Hunt and Higginsville mines in the Eastern Goldfields was 27,489 ounces, just ahead of sales of 26,286oz.
Its cash balance at March 31 was C$78 million, lower than December after its growth capital allocation of $13 million.
Executive chairman Paul Andre Huet said the 2022 mine plan was unfolding as expected, despite the fact it was experiencing the same challenges as its peers in the WA mining sector.
Full-year guidance remains unchanged between 110,000oz and 135,000oz at all-in sustaining costs of US$950-1050/oz.
The company's guidance also includes nickel production of between 450-550t, however its pricing assumptions were based around a $16,000/t nickel price, around half where the metal is currently trading.
The second half of the year is expected to be improved with higher production and lower costs as the impacts of COVID-19 and staffing issues reduce.
Karora is targeting production of between 185,000-205,000ozpa by 2024, underpinned by new production and a staged expansion of the Higginsville mill from 1.6Mtpa to 2.5Mtpa.
Overnight, Canaccord Genuity analyst Michael Fairbairn said the quarter looked good, despite the COVID wave crashing over the WA gold sector.
"Production and sales were squarely in line with our estimates, and relatively stable quarter-on-quarter despite the company reporting challenging operating conditions associated with state-mandated COVID-19 protocols," he noted.
"We view the company's ability to maintain production levels in spite of operating challenges as positive."
However, sales and cash balance lagged his expectations.
He predicts full year production will land within guidance at 126,000oz at $985/oz.
"We reiterate our ‘buy' rating and C$7.25 target price," Fairbairn said.
Karora shares were steady at $7.34 overnight, valuing it at $1.15 billion.
The company touched an all-time high of $7.55 earlier this month after it increased total measured and indicated resources to 2.71Moz and inferred to 1.21Moz, net of mining depletion.
An updated nickel resource for Beta Hunt is due later this quarter.
The company produced 112,81oz, at the upper end of its 105,000-115,000oz guidance in 2021.
