Pantoro Gold Q3 FY2025 presentation: Production dips as cash position strengthens

Introduction & Market Context

Pantoro Gold (ASX:PNR) released its Q3 FY2025 quarterly results presentation on April 29, 2025, revealing a mixed performance characterized by declining gold production but strengthening financial position. The company’s shares fell 10.82% to A$2.72 on April 28, suggesting investors may have reacted negatively to some aspects of the results ahead of the formal presentation.

The gold producer, which recently changed its name from Pantoro Ltd following a shareholder vote on April 1, reported continued progress on its development projects despite operational challenges that impacted production volumes during the quarter.

Quarterly Performance Highlights

Pantoro Gold reported production of 18,334 ounces for Q3 FY2025, down from 19,438 ounces in Q2 and 21,374 ounces in Q1. The company attributed the reduction to stoping ramp-up challenges and operator absences at key mining operations. Despite lower production, the company maintained strong financial performance with EBITDA of $46.4 million.

As shown in the following operational summary table, while underground mining volumes increased quarter-over-quarter, declining grades impacted overall production:

The company’s All-in Sustaining Costs (AISC) rose slightly to $2,427 per ounce in Q3 from $2,356 per ounce in Q2, while C1 Cash Costs improved to $1,811 per ounce from $1,937 per ounce in the previous quarter. Major project capital expenditure decreased to $13.68 million from $19.18 million in Q2.

Despite production challenges, Pantoro’s cash position strengthened considerably during the quarter, as illustrated in this cash flow summary:

The company reported a cash and gold increase of $13.4 million, with 17,397 ounces of gold sold at an average price of A$4,540 per ounce. Significantly, Pantoro reduced its Nebari loan to US$6.26 million (A$9.8 million), strengthening its balance sheet position.

Operational Updates

The Scotia underground mine showed continued progress in development and production ramp-up, with 1,817 meters of development achieved during the quarter. Production increased to 64,474 tonnes compared to 43,944 tonnes in the previous quarter, as shown in the following schematic:

At the OK Underground Mine, production reached 7,949 ounces during the quarter, slightly below plan due to operator absences in January and February. Exploration drilling returned promising results, indicating ore bodies remain open in all directions:

Open pit mining operations commenced at Princess Royal in March 2025, with 162,400 BCM excavated during the quarter. The company retained 774 tonnes of ore at 2.25 g/t, with waste stripping planned to continue. Approximately 1,800 ounces are planned for mining with steady ore supply expected.

The Bullen Decline rehabilitation progressed rapidly with 2,758 meters advanced by March 31, 2025. Permanent underground power has been established from the main power station, and initial drilling in the Esperanto Reef has commenced.

Strategic Initiatives

Pantoro Gold implemented significant corporate changes during the quarter, with shareholders approving both a name change and share consolidation at a meeting on April 1, 2025. Shares and options/rights were consolidated at a ratio of 1:17, a move the company expects will reduce volatility and better reflect its market position.

The company reported that its current market valuation is higher than pre-consolidation, though the 10.82% share price drop on April 28 suggests investors may have concerns about operational performance.

Exploration activities continued across multiple sites, with drilling ongoing at underground mines and the Southern Mainfield. The company highlighted strong results from exploration drilling at Mainfield-Surface and initial drilling at Hinemoa (Polar Bear Peninsula).

Forward-Looking Statements

Looking ahead to the June 2025 quarter, Pantoro provided the following guidance and outlook:

The company expects Scotia to reach full run rate, with approximately 35,000 tonnes at 4.1 g/t to be mined. The OK underground mine is anticipated to produce in steady-state with production expected to exceed 10,000 ounces.

For Q4 FY2025, Pantoro provided specific production guidance:

The company expects to produce between 23,000 to 26,000 ounces in Q4, which would place it at the lower end of its annual guidance range of 85,000-95,000 ounces. Pantoro noted that the site is currently operating at expected levels, having produced 7,968 ounces in March 2025 alone.

Pantoro emphasized its strong leverage to the gold price, with only 1,000 ounces per month capped at $4,200 per ounce for 2025 and no hedging beyond this year. With its strengthened balance sheet and ongoing growth activities, the company appears positioned to benefit from favorable gold prices despite the production challenges experienced in recent quarters.

Full presentation:

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