Pantoro Gold Approves Third Underground Mine as Q3 Production Hits 17,757 Ounces

Production Holds Steady Despite Weather Challenges

Pantoro Gold Limited (ASX:PNR) navigated a challenging quarter ending 31 March 2026 with 17,757 ounces of gold produced and an EBITDA of $88.4 million. While wet weather and flooding at the Scotia Underground Mine disrupted operations, the company maintained a robust output and sold 20,016 ounces at an average price of $6,916 per ounce. The All-in Sustaining Cost (AISC) rose to $3,204 per ounce, reflecting operational headwinds and increased sustaining capital expenditure.

The Scotia Underground Mine, despite a flooding event linked to Cyclone Mitchell and equipment downtime, progressed with 2,142 metres of development and mined 84,347 tonnes at 2.49 g/t gold. This included the establishment of three independent ore sources within the mine for the first time, enhancing production flexibility. Meanwhile, the OK Underground Mine produced 5,052 ounces from 40,997 tonnes at 3.83 g/t, with development reaching the 680 Level to enable full end access to the orebody. The transition to RedPath Australia as the sole underground contractor from May 2026 aims to streamline operations across Norseman’s underground assets, a move foreshadowed in earlier quarters.

Growth Accelerates with New Underground Mine and Exploration Success

In a significant development, Pantoro announced approval for a third underground mine targeting the O’Briens and Crown South reefs, to be accessed via the Bullen Decline. Development is slated to commence following dewatering and rehabilitation, expected in the first half of the September 2026 quarter, with ore anticipated to contribute to production by late 2026. This expansion aligns with Pantoro’s broader strategy to scale production beyond 100,000 ounces annually and potentially double that figure over time.

Exploration drilling continued to deliver high-grade results, notably in the Butterfly area of the Mainfield, accessed through a dedicated exploration decline. Initial results revealed spectacular grades, including 1.5 metres at 81.23 g/t gold and 0.5 metres at 223.65 g/t, underscoring the area’s potential as a second independent mining zone within the Mainfield. Additional drilling at Scotia confirmed further high-grade extensions, supporting ongoing mine life growth and flexibility. These exploration outcomes build on the company’s extensive drilling program, which is expected to total approximately 250,000 metres in FY2026.

Open Pit Advancements and Stockpile Management

Open pit operations saw the completion of mining at the Princess Royal centre, leaving around 42,000 tonnes of ore stockpiled for blending due to its high clay content. The Gladstone open pit progressed well despite weather-related delays, with no ore mined during the quarter but initial ore blocks expected from April 2026. Stage 3 pit planning is underway, with grade control drilling returning strong results that could extend mine life by about a year, subject to final approvals.

Capital Management and Share Buy-Back

Pantoro’s balance sheet remains solid with a cash and gold position of $250.3 million as at 31 March 2026, up $37.8 million pre-buyback during the quarter. The company actively repurchased 1,322,730 shares at an average price of $3.50, reinvesting $4 million under its ongoing share buy-back program. This move reflects confidence in the underlying asset base and a commitment to returning value while preserving financial flexibility for growth projects.

Looking ahead, Pantoro is on track to meet its FY2026 production guidance of 86,000 to 92,000 ounces. Budgeting for FY2027 is underway, incorporating production from Scotia, OK, Mainfield underground mines, and open pit operations at Gladstone and Daisy South. A new five-year operational plan is expected early in FY2027, integrating recent exploration successes and new underground zones.

The company’s strategic shift to consolidate underground contracting with RedPath Australia, combined with a stepped-up exploration program and new mine development, positions Pantoro for potential production scaling. However, the lingering effects of weather disruptions and equipment reliability remain factors to monitor as operations ramp up.

These developments follow a series of operational and growth updates, including the recent high-grade mineralisation at Scotia and drilling success in the Butterfly area, reinforcing Pantoro’s growth narrative at Norseman.