Pantoro Ltd (ASX:PNR) is looking forward to another productive year at Halls Creek Gold Operation and Norseman Gold Project, both in Western Australia.
FY21 has been an important year for Pantoro’s growth as it saw strong results across both projects - the Norseman Project with a 50% stake and its 100%-owned Halls Creek Project.
Halls Creek reliably met production forecasts throughout the period, with strong cash flow underpinned by stringent cost management and strong gold prices.
The success at Halls Creek has underwritten Pantoro’s aggressive exploration program and transition to mine construction at Norseman.
Pantoro looks forward to substantially completing its construction program at Norseman during the 2022 financial year.
Key financial highlights
In the financial year, the company turned in a gross profit of $17.91 million from a loss of $8.27 million the year before.
Net cash flows from operating activities rose to $33.62 million from $19.49 million the year before.
Pantoro also registered a pre-tax profit of $12 million from a loss of $29.17 million while its net assets rose by $66.22 million to $155.73 million.
Key operational highlights
The total mineral resource now stands at 22 million tonnes at 3.6 g/t for 2.6 million ounces, and the total ore reserve stands at 6.7 million tonnes at 2.1 g/t for 493,000 ounces.
Pantoro also noted the strongly profitable ongoing production from Nicolsons and Wagtail mines at Halls Creek, as well as the drilling results underpinning further growth at Norseman.
Operational cash flow from Halls Creek was strong due to the efficiency maintained at the mine, and aided by elevated gold prices.
There has also been the discovery of platinum group element (PGE) mineralisation at Halls Creek.
Norseman Gold Project
The Norseman Gold Project has proven a positive acquisition, with a large number of strong drilling results reported throughout the period, covering a number of different deposits.
Pantoro drilled some 125,336 metres throughout the period, and a positive Definitive Feasibility Study (DFS) was reported in October 2020.
The DFS met all of the goals and expectations that Pantoro set out to achieve when 50% of the project was acquired in July 2019.
With the unincorporated joint venture now in full effect, joint venture partner Central Norseman Gold Corporation is responsible for 50% of all project expenditure.
Pantoro remains the manager of the joint venture.
The DFS sets out a robust mine plan, sourcing ore from multiple mining centres over an initial seven-year life, and construction of a new Carbon-In-Leach (CIL) gold processing facility.
It is able to realise a low estimated capital of about $90 million through the use of the extensive existing infrastructure at the project.
Importantly, the DFS considered less than 30% of the existing mineral resource areas at Norseman, highlighting the likelihood of mine life and productivity improvements as ongoing drilling programs are finalised.
Pantoro understands that approval of construction is imminent, and processing plant construction will commence immediately upon receiving those approvals.
Green Lantern maiden resource
A maiden mineral resource and ore reserve are expected at Green Lantern, within the Scotia Mining Centre, in the very near future.
Additional high-grade results were also achieved at the Sailfish, Panda and Scotia SIF prospects during the period.
Each of these discoveries holds strong potential to provide future ore supply for the Norseman Gold Project processing plant.
Share price
Pantoro’s share price was relatively flat during the year but it has performed well compared to a number of peers during the recent period of relative weakness in the gold sector.
Pantoro is confident that strong growth will be achieved as development of the Norseman Gold Project comes to fruition.
Today the share price has been up to 22.5 cents while the company's market cap before opening was approximately $310 million.