Pantoro Gold (PNR) H2 2024 earnings summary

Executive summary

• Achieved improved operational results each quarter since Norseman operations began, with cashflow positive performance in the second half of FY2024 despite ongoing capital projects.

• Major strategic shift at Scotia Mining Centre accelerated transition to underground mining, boosting economic outcomes and feed grade.

• Completed sale of lithium, nickel, and copper rights for $30 million, providing financial flexibility and enabling execution of revised mine plan.

• Raised $100 million in equity at a premium, repaid Nebari term loan, leaving only a $12.5 million convertible note maturing in June 2027.

• Ended the year with $104 million in cash and gold, positioning for further growth and development of additional underground mines.

Financial highlights

• Gold production doubled to 71,370 oz (2023: 35,791 oz), all from Norseman.

• Revenue rose to $229.4 million (2023: $98.5 million), but cost of goods sold increased to $280.3 million (2023: $152.8 million).

• Gross loss of $50.8 million (2023: $54.2 million); net loss after tax of $49.3 million (2023: $74.6 million).

• Net cash used in operating activities was $0.6 million (2023: $17.1 million); investing outflows $11.3 million; financing inflows $67.4 million.

• Cash and gold on hand at year-end totaled $103.9 million.

Outlook and guidance

• Growth strategy targets development of two additional underground mines over the next two years.

• FY2025 exploration budget set at $25 million, with drilling at Scotia and Butterfly area commencing September 2024.

• Aim to increase production to over 200,000 ounces per annum by replacing lower grade open pit feed with higher grade underground ore.