Pantoro Limited is among the Best Gold Mining Stocks presenting an investment proposition as the company remains on the verge of a significant expansion in production rates and sales beginning from 2025, along with excellent prospects of compelling long-term scalability. Additionally, Pantoro's fully closed hedge book provides it with beneficial exposure to the rallying gold prices
Pantoro Limited (ASX: PNR)
Pantoro Limited finds its place among the Gold Companies to Invest in as it is an Australia-based gold producer having 100% owned Halls Creek Gold Project in the Kimberley Region of Western Australia..
The company's Norseman Gold Project spans an extensive area of 800km2, with a 70km stretch along one of Australia's most prominent goldfields. Historically, the project has yielded approximately 6 million ounces of gold, supported by significant mineral resources of high grade. Additionally, the region between Norseman and Kambalda demonstrates strong prospectivity, having produced 34 million ounces of gold to date. Pantoro's dedicated focus on exploration has resulted in the discovery of several promising deposits, including Lake Cowan, as well as multiple other exploration targets exceeding 1 million ounces. These discoveries are characterised by limited systematic and modern exploration activities and show strong scope for future exploration. Furthermore, these exploration efforts have bolstered the company's production capabilities, with current mineral resources totaling 4.8 million ounces of contained gold and ore reserves amounting to 958 thousand ounces. Pantoro significantly increased its production rates with the recent completion of a 1 million tonnes per annum (Mtpa) processing plant, currently operating above its nameplate capacity.
This is evidenced by the company's fifth consecutive year of production growth at Norseman. Moreover, with substantial high-grade underground resources poised for access alongside the existing mines, the company is well positioned to sustain its production growth trajectory in the future.
Pantoro Limited announcing its operational updates for the June 2024 quarter reported that Production from the Norseman Gold Project had reached 20,805 ounces during the quarter, with a continuous increase in production and cashflow.
The Company had positive cashflow, with a $6.7 million boost in cash and gold position during the quarter, after adjusting for equity raise and debt repayment. Including the equity raise and debt repayment, the Company's cash and gold position increased by $57.1 million.
The Nebari term loan facility was fully paid in June 2024, with a total payment of $44.45 million, resulting in savings of approximately $11.4 million in interest over the next three years.
Significant growth expenditure was reported at the Scotia Underground Mine, with the portal being cut on 9 May 2024, and approximately 314 meters developed during May and June 2024. The Scotia Underground Mine is anticipated to produce ore in the current September 2024 quarter.
As of 30 June 2024, Pantoro maintained a closing cash and gold position of $103.9 million.
Pantoro is expected to make significant advancements with its growth program for FY25, with a planned expenditure of $25 million allocated towards incorporating additional high-grade underground feed for the Norseman processing plant.
The company continues to deliver substantial quarterly growth in its production rates and is expected to maintain this trajectory with further expansion initiatives underway. This production growth consistently translates into improving financial performance, with revenues increasing from $77 million in 2019 to $98 million in 2023. FY24 and future revenues are also expected to maintain and potentially enhance this growth trajectory
Source: Company’s Report
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