Pantoro Ltd (ASX:PNR, OTC:PNTOF) is paving a golden path at the Norseman Gold Project in Western Australia with production growing each quarter and cashflow continuing to build.
During the June quarter, the company produced 20,805 ounces, representing another quarter-on-quarter increase.
Cashflow positive
Encouragingly, with closing cash for the quarter of $98.1 million and gold in safe and GIC of $5.8 million for a total of $103.9 million, the company was cashflow positive after normalisation for the equity raise and debt repayment.
Pantoro’s cash and gold position increased by $6.7 million during the quarter while including the equity raise and debt repayment, the company was able to increase its cash and gold position by $57.1 million.
“Substantial recapitalisation”
Managing director Paul Cmrlec said: “The June quarter saw another solid production improvement for the site, as well as a substantial recapitalisation of the company.
"Pantoro’s financial position now allows us to accelerate growth of the Norseman asset with resources at a level that has been rarely, if ever seen during the project’s long and rich history.”
The Nebari term loan facility was paid in full in June taking total payment to $44.45 million. This has saved Pantoro approximately $11.4 million in interest over the next three years.
An equity placement of $95 million (net of fees) was completed in May 2024.
Accelerating growth
Operationally, the company continues to progress further initiatives that are set to deliver more gold production and more cashflow.
There has been substantial growth expenditure at the Scotia Underground Mine with the portal cut on May 9, 2024.
Approximately 314 metres was developed during May and June 2024 and the underground mine is expected to generate ore during the current quarter.
The company has developed a major growth program for the 2024 financial year including planned expenditure of $25 million during the year focused on additional high-grade underground feed for the Norseman processing plant.
Work is also underway to re-enter the Bullen Underground Mine at the Norseman Mainfield and this represents another potential source of ore.