Pantoro Gold reported a solid Q1 FY2026 with 19,551 ounces produced despite operational hiccups, reaffirming full-year guidance and unveiling promising high-grade exploration results at Norseman.
- Q1 production of 19,551 ounces at $3,139/oz AISC
- EBITDA of $53.9 million amid operational challenges
- Full-year guidance maintained at 100,000–110,000 ounces
- Exploration spend of $15.5 million with high-grade drill results
- Cash and gold balance increased to $181.5 million
Quarterly Performance and Operational Challenges
Pantoro Gold Limited, the Western Australia-based gold producer, has released its quarterly report for the period ending 30 September 2025, highlighting a production tally of 19,551 ounces of gold. This output, while solid, was affected by unforeseen operational issues at the Scotia and OK underground mines, which led to temporarily lower ore grades. Notably, these challenges have been addressed, and production levels returned to expected ranges by September, with October’s output already trending at the upper end of guidance.
The company reported an All-in Sustaining Cost (AISC) of $3,139 per ounce for the quarter, higher than the full-year target, reflecting the temporary disruptions. Despite this, Pantoro generated an EBITDA of $53.9 million, underscoring the underlying strength of its operations.
Reaffirmed Guidance and Growth Outlook
Importantly, Pantoro reaffirmed its full-year production guidance of 100,000 to 110,000 ounces at an AISC range of $1,950 to $2,250 per ounce. The company expects production from the Scotia mine to increase as northern sections are progressively brought into operation. This growth trajectory aligns with Pantoro’s broader strategy to scale its Norseman Gold Project, which boasts a substantial mineral resource base and a recently commissioned 1.2 million tonnes per annum processing plant.
Exploration Success and Capital Investment
Exploration remains a key pillar of Pantoro’s growth, with $15.5 million invested during the quarter. The company reported encouraging high-grade drill results from multiple targets, including the Princess Royal open pit and the Mainfield underground areas. Noteworthy intercepts at the Slippers open pit revealed exceptionally high gold grades, some exceeding 100 grams per tonne, which bodes well for future underground development potential.
Alongside exploration, Pantoro committed $15.8 million to major project capital, totaling $31.3 million in growth and exploration expenditure for the quarter. This investment supports ongoing underground development, infrastructure upgrades, and the expansion of mining fronts.
Financial Position and Corporate Updates
The company’s financial position remains robust, with a combined cash and gold balance rising to $181.5 million by quarter-end. Pantoro also closed out its convertible loan facility with Nebari Partners ahead of schedule, strengthening its balance sheet further. On the governance front, Non-Executive Director Kevin Maloney announced his retirement at the upcoming AGM, with the board maintaining its current composition and skills set.
Looking Ahead
As Pantoro navigates the remainder of FY2026, the focus will be on sustaining production recovery, advancing underground development, and capitalizing on its rich exploration pipeline. The company’s ability to manage operational setbacks while maintaining financial discipline and exploration momentum will be critical to achieving its ambitious growth targets.
Bottom Line?
Pantoro’s resilience through operational challenges and strong exploration results set the stage for a pivotal year at Norseman.
Questions in the middle?
- Will Pantoro maintain its cost guidance as production ramps up at Scotia?
- How quickly will the high-grade exploration results translate into new mining zones?
- What impact will the board changes have on strategic direction and investor confidence?