Pantoro Gold Ltd (ASX:PNR, OTC:PNTOD) delivered a mixed but ultimately constructive September quarter at its 100%-owned Norseman Gold Project, producing 19,551 ounces for underlying earnings (EBITDA) of $53.9 million while unforeseen issues at the OK and Scotia underground mines temporarily lifted all-in sustaining cost (AISC) to $3,139/oz before performance rebounded in September and into October.
The company reaffirmed FY2026 guidance of 100,000–110,000 ounces at $1,950–$2,250/oz AISC, accelerated growth and exploration spending ($31.3 million in total), and strengthened its balance sheet to $181.5 million in cash and gold at quarter-end, aided by Nebari option exercises.
Operational overview
Pantoro delivered a productive September 2025 quarter at its 100%-owned Norseman Gold Project, producing 19,551 ounces of gold and generating $53.9 million in EBITDA.
Despite temporary operational challenges early in the quarter — including equipment breakdowns and ventilation issues at the OK and Scotia underground mines — performance improved strongly in September and into October.
This recovery supports the company’s reaffirmed FY2026 guidance of 100,000–110,000 ounces at an AISC of $1,950–$2,250/oz, indicating confidence in production consistency and cost control going forward.
Summary physicals and cost metrics for the quarter.
Mining and production performance
The quarter’s output came from a mix of underground ore and open-pit operations, processed through the Norseman processing plant.
While the early part of the quarter was affected by unplanned downtime and lower-than-expected stoping rates, the company reported a steady ramp-up in throughput and head grade by quarter-end. Processing performance remained strong with improved mill availability, and both the Scotia and OK mines have now resumed normal operations.
Pantoro noted that September production alone demonstrated the expected operating potential of the Norseman operations, reinforcing its ability to sustain higher run rates into FY2026.
Financial position and cashflow
Pantoro exited the quarter with a cash and gold balance of $181.5 million, a substantial increase supported by the exercise of Nebari options, which added approximately $34 million to its bank. The company reported group EBITDA of $53.9 million, reflecting robust financial performance despite the elevated AISC of $3,139/oz caused by the early-quarter disruptions.
Operating cash flow was bolstered by strong gold sales and cost discipline, while growth and exploration investments totalled $31.3 million, including mine development, resource drilling, and exploration at regional targets.
Exploration and growth activities
The company continued to advance its growth and near-mine exploration programs at Norseman, focusing on resource extension drilling at the Scotia Deeps and Maybell areas, as well as early-stage regional exploration across the highly prospective tenement package. Drilling results have highlighted extensions to known mineralised systems, paving the way for an updated resource model later in FY2026.
Meanwhile, mine development activities continued to open new stoping fronts at Scotia and OK, aimed at improving operational flexibility and grade control in coming quarters.
Corporate highlights
Pantoro maintained a strong balance sheet and continued to benefit from its fully-owned Norseman Project, having completed the acquisition earlier in the year. During the quarter, management reaffirmed its commitment to shareholder value through disciplined capital management and cost focus, while continuing to strengthen the operational foundations of Norseman for sustainable long-term production growth.
The company’s capital structure was further enhanced through the Nebari transaction, which simplified the balance sheet and provided additional liquidity without introducing debt, leaving Pantoro in a solid financial position to fund ongoing expansion and exploration.
Outlook
Pantoro heads into the December quarter with positive operational momentum, supported by improving production consistency and robust cash generation. The company expects lower unit costs as mine development progresses and plant throughput stabilises.
Upcoming catalysts include:
- Sustained production growth at the OK and Scotia underground mines.
- Updated resource estimates incorporating results from recent drilling.
- Exploration updates from new regional targets.
- Continued strengthening of the balance sheet and capital position.
With production rates now trending toward guidance and strong financial reserves, Pantoro is well placed to deliver a stronger December quarter and continue advancing its long-term growth strategy at Norseman.