Pantoro Q4 FY2025 presentation: Record gold output drives debt elimination

Published 21/07/2025, 02:46
Pantoro Q4 FY2025 presentation: Record gold output drives debt elimination

Introduction & Market Context

Pantoro Ltd (ASX:PNR) released its Q4 FY2025 quarterly results presentation on July 20, 2025, showcasing a significant turnaround from earlier quarters. The gold producer reported record production figures, substantial cash generation, and complete elimination of debt, marking a transformative period for the company. Pantoro shares responded positively to the results, with the stock rising 5.17% to $3.155 following the announcement.

The strong quarterly performance comes after a challenging Q2 2025, when the company reported production shortfalls of 18,500 ounces against guidance. This latest presentation demonstrates Pantoro’s successful execution of its operational strategy at its Norseman project.

Quarterly Performance Highlights

Pantoro delivered exceptional operational and financial results for the June 2025 quarter, with gold production reaching 25,417 ounces at an All-in Sustaining Cost (AISC) of $1,991 per ounce. This production level successfully met the company’s previously stated guidance range of 23,000-26,000 ounces for the quarter.

The strong production figures translated into impressive financial outcomes, with quarterly EBITDA of $80.4 million and a substantial increase in cash and gold holdings of $43.3 million. The company sold 24,803 ounces of gold at an average price of A$5,017 per ounce and 4,621 ounces of silver at A$53 per ounce during the period.

As shown in the following quarterly highlights summary:

Operational Updates

The Scotia Underground Mine emerged as a significant contributor to Pantoro’s production growth, with ore volumes increasing dramatically throughout FY2025. Quarterly ore production from Scotia grew from just 3,954 tonnes in Q1 to 112,758 tonnes in Q4, demonstrating the successful ramp-up of this operation.

The mine plan below shows the development progress and production areas at Scotia:

Meanwhile, the OK Underground Mine continued its strong performance, producing 56,570 tonnes of ore at an impressive grade of 5.78 g/t for 10,504 ounces during the quarter. The company noted that the mine is expected to maintain production of approximately 40,000 ounces per annum.

Open pit mining activities also progressed well, with 982,000 BCM excavated during the quarter, including 30,523 tonnes of ore and low-grade material at 1.79 g/t. The company has prepared the Desirables open pit for mining commencement in the September 2025 quarter and is advancing preparatory work at Gladstone Everlasting for mining to begin at the end of calendar year 2025.

The comprehensive quarterly operational summary below provides detailed metrics across all mining operations:

Financial Position

Pantoro’s financial position strengthened considerably during the quarter, with cash and gold holdings increasing by $43.3 million to reach $175.9 million by the end of June 2025. For the full fiscal year, the company generated a $72 million increase in cash and gold holdings.

A major financial milestone was achieved with the complete prepayment of Nebari loan facilities approximately two years ahead of schedule, making Pantoro debt-free. This represents significant progress from the Q2 2025 position when the company still carried approximately $6.26 million in debt.

The following cash flow summary illustrates the substantial financial improvement during Q4:

Forward Guidance and Growth Strategy

Looking ahead to FY2026, Pantoro has provided production guidance of 100,000 to 110,000 ounces of gold at an AISC of $1,950 to $2,250 per ounce. This represents a substantial increase from the previous year’s production levels.

The company has outlined an ambitious growth strategy aimed at reaching 200,000 ounces per annum in the medium term. To support this objective, Pantoro has allocated $55 million for exploration in FY2026, including $14 million for rehabilitation and development solely for exploration purposes. Additionally, $67 million has been budgeted for major project capital, primarily focused on underground and open pit mine development and expansion.

Exploration efforts will concentrate on near-term opportunities for additional underground mine development in the Mainfield and expansion opportunities at Scotia and OK. The company is also planning its first major regional exploration program in 30 years, focusing on new discoveries in salt lake and land areas.

The exploration drilling program below highlights the company’s focus areas:

Executive Summary

Pantoro has demonstrated a remarkable turnaround from its Q2 2025 performance challenges, delivering record production, eliminating debt, and building a substantial cash reserve. The company’s successful execution across its mining operations has positioned it for continued growth, with ambitious plans to potentially double production in the medium term.

With a debt-free balance sheet, significant cash reserves of $175.9 million, and clear operational momentum, Pantoro appears well-positioned to pursue its growth strategy. Investors will be watching closely to see if the company can maintain its operational performance while successfully executing its extensive exploration and development programs in FY2026.

As summarized in the company’s closing slide:

Full presentation:

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