Pantoro Posts 19,438oz Gold Production, $119M Cash Position in Q2 FY25

Operational Performance and Production

Pantoro Limited (ASX: PNR) reported a robust operational quarter ending 31 December 2024, producing 19,438 ounces of gold, comfortably within its guidance range of 18,000 to 22,000 ounces. This marks the fourth consecutive quarter of positive cash flow generation at the Norseman Gold Project, underscoring the company’s operational resilience and effective cost management.

The company recorded an EBITDA of $37.5 million for the quarter, with all-in sustaining costs (AISC) at $2,356 per ounce, including stockpile adjustments. The processing plant maintained strong throughput, processing over 300,000 tonnes at a recovery rate near 95%, reflecting operational stability.

Scotia Underground Mine and Growth Initiatives

The Scotia Underground Mine, a key growth driver, achieved commercial production in December 2024 and is on track to reach steady state by the end of the March 2025 quarter. Development metres increased significantly to 1,558 metres, with ore haulage more than doubling quarter-on-quarter. While some stoping activities were deferred due to extended ore drives, this adjustment is expected to extend the mine’s life and add value over the medium term.

Meanwhile, the OK Underground Mine continued its strong performance, producing over 11,000 ounces of gold. Rehabilitation efforts at the Bullen Decline progressed well, setting the stage for drilling at Mainfield targets, which could unlock further resource potential.

Financial Position and Corporate Developments

Pantoro closed the quarter with a robust cash and gold position of $119.3 million, despite a one-off $6.9 million stamp duty payment related to the Tulla Resources merger. The company’s net cash and gold increased by $6.9 million during the quarter, reflecting strong operational cash flow generation.

Strategically, Pantoro completed the sale of its Halls Creek Project for $8 million, with staged payments over two years and a capped royalty agreement. Importantly, Pantoro retained a 15% free carried interest in nickel and platinum group elements, preserving upside exposure to these commodities.

Guidance and Outlook

Reflecting operational realities, Pantoro adjusted its FY2025 production guidance upward to 90,000 ounces (+5%) with an AISC of $2,200 per ounce (+10%). The revision accounts for deferred stoping at Scotia due to extended ore drives, which while temporarily impacting production, is expected to enhance resource longevity.

Looking ahead, the March 2025 quarter is forecast to deliver approximately 23,000 ounces of gold, driven by the ramp-up at Scotia and processing of low-grade stockpiles. The commencement of mining at the Princess Royal open pits is anticipated to further bolster production in the latter half of the year.

Exploration remains active with four drill rigs operating across key areas including Butterfly, Princess Royal, Scotia, and OK mines. Early drilling results at Scotia have been encouraging, suggesting potential for resource extensions.

Strategic Positioning

Pantoro’s recent mining agreement with the Ngadju Native Title Aboriginal Corporation secures tenure rights and supports sustainable growth at Norseman. This agreement strengthens Pantoro’s operational certainty as it approaches lease renewals and expands underground operations.

With a substantial mineral resource base of 4.8 million ounces and ore reserves nearing one million ounces, Pantoro is well positioned to scale production towards its medium-term target of over 200,000 ounces annually. The company’s disciplined capital allocation and strong balance sheet provide a solid foundation for this growth trajectory.