Weather and Contractor Shift Force Pantoro to Cut 2026 Gold Production Forecast

Robust First Half Performance

Pantoro Gold Limited has delivered a standout first half for FY2026, with gold production reaching 41,623 ounces and EBITDA soaring to $135.5 million, more than doubling the previous year’s result. Revenue climbed to $238.6 million, supported by strong operational execution at the Norseman Gold Project in Western Australia. The company’s cash and gold holdings increased to $216.5 million, underpinning a solid financial position with no debt and no hedging exposure.

Operational Progress and Challenges

Operationally, Pantoro has made substantial progress in advancing underground mining activities, particularly at the Bullen Underground Mine, where dewatering and rehabilitation efforts are well underway. Planning for new underground production areas is highly advanced, with a final investment decision imminent for mining the O’Briens and Crown South orebodies. Meanwhile, open pit mining continues at the Gladstone Mining Centre, with potential extensions to pit life under active consideration.

However, the company has faced headwinds in the second half of the year. A significant rain event linked to ex-Tropical Cyclone Mitchell caused flooding and operational delays in February, while equipment and personnel availability during the January school holidays further impacted production. Additionally, the transition to a new underground mining contractor at the OK Underground Mine is expected to cause short-term disruptions.

Revised Guidance and Strategic Contractor Shift

Reflecting these challenges, Pantoro has revised its full-year production guidance downward to between 86,000 and 92,000 ounces. Despite this, the company remains focused on maximising cash flow from current operations while advancing its growth pipeline. A key strategic move is the appointment of Redpath Australia as the sole underground contractor from 1 May 2026. Redpath, already the principal contractor at other Norseman mines, brings extensive operational expertise, a large workforce, and advanced safety systems.

This consolidation is expected to deliver operational synergies, including flexible personnel and equipment deployment across sites and cost savings through shared management roles. Pantoro’s Managing Director, Paul Cmrlec, highlighted that Redpath’s capabilities align well with the company’s ambitions to ramp up production and develop additional mining centres starting in FY2027.

Looking Ahead

Exploration remains a cornerstone of Pantoro’s strategy, with nearly 92,000 metres drilled and $63.4 million invested in exploration and capital projects during the half. Activities are focused on defining new underground mines, including at Princess Royal, where mining recently concluded, and at Gladstone, where grade control drilling is underway for future stages.

While the revised production outlook tempers near-term expectations, Pantoro’s strong financial footing and strategic contractor alignment position it well to capitalise on its high-grade Norseman assets. Investors will be watching closely how the contractor transition unfolds and how exploration results translate into sustained production growth.