Pantoro Gold Ltd (ASX:PNR, OTC:PNTOF, FRA:RKN) is targeting a lift in gold production in FY2027 as operational changes, new ore sources and ongoing investment across its 100%-owned Norseman Gold Project in Western Australia begin to take effect.
The company has set FY2027 production guidance of 90,000 to 105,000 ounces at an all-in sustaining cost of $2,800 to $3,400 per ounce, following FY2026 production of 77,408 ounces, including 18,028 ounces in the June quarter.
Operational reset after challenging year
Pantoro said FY2026 was affected by weaker-than-expected underground production, mainly due to delivery issues from principal mining contractors at the OK and Scotia underground mines amid tight Western Australian labour market conditions.
The company has since completed an operational review, with actions underway to strengthen contractor staffing, broaden recruitment beyond WA, lift middle management capability and better align contractor rewards with productivity outcomes.
Recruitment is progressing, with target staffing levels expected by the end of the September 2026 quarter.
New ore sources to support production growth
Pantoro’s FY2027 plan reflects a stabilisation phase in the first half before stronger production growth in the second half as new ore sources come online. H1 is expected to account for 40% to 45% of annual production, with H2 contributing 55% to 60%.
The company has approved the restart of open pit mining at Green Lantern from the September quarter, alongside ongoing mining at Gladstone. Development of a new underground operation at O’Briens Reef will also begin in the September quarter.
Additional FY2027 ore sources are expected to include Gladstone, Daisy South, Green Lantern and ore from the Mega Resources partnership, which is forecast to deliver about 16,000 ounces during the year.
Balance sheet remains debt free
Despite the operational challenges, Pantoro said it had delivered on key corporate objectives during FY2026.
Cash and gold increased from $175.8 million to $223.4 million, while the company remained debt free. Pantoro also deployed about $14.8 million into an on-market share buyback, invested $54 million in exploration and $67 million in major projects capital.
For FY2027, Pantoro plans exploration expenditure of $45 million and major project and growth capital expenditure of $101 million, reflecting continued investment in new underground mines and pre-stripping costs for Stage 3 at the Gladstone open pit.
Norseman growth strategy
The Norseman Gold Project continues to transition from a group of historic mining centres into a diversified, multi-source gold operation.
Pantoro plans to run five underground drill rigs and three surface rigs throughout FY2027, with work focused on building the mining pipeline. The Racetrack discovery and potential underground mine beneath the Princess Royal open pits are viewed as opportunities to deliver new ore reserves and mining fronts over the next 12 to 24 months.
An updated five-year production plan is expected in the September 2026 quarter alongside the annual mineral resource and ore reserve statement.
Managing director Paul Cmrlec said FY2026 had been “operationally challenging” but the longer-term opportunity at Norseman remained compelling.
“Importantly, the view has not changed - the longer-term opportunity at Norseman remains compelling, with the Board continuing to view Norseman as a unique tier one growth asset,” Cmrlec said.
“The growth drilling program is delivering, with new mines coming online and the Racetrack discovery adding to the pipeline, supporting the Board’s continued target of long-term growth to up to 200,000 ounces per annum.”
About Pantoro Gold
Pantoro is a Western Australian gold producer focused on unlocking the full potential of its 100%-owned Norseman Gold Project, one of Australia’s highest-grade goldfields.
The company is pursuing long-term growth through operational improvement, new mine development and strategic exploration across the broader Norseman field.