Pantoro Gold Ltd (ASX:PNR, OTC:PNTOF, FRA:RKN) earlier this week outlined solid financial performance alongside plans to expand mining operations at its Norseman Gold Project in Western Australia during an interview with Proactive.

Managing director Paul Cmrlec said the company delivered a strong first half result, highlighting a significant build in the company’s balance sheet as operations at Norseman continue to mature.

Cmrlec said the company ended the most recent quarter with just under $220 million in cash and gold, while the half-year position stood at about $135 million. He noted that operating costs remained competitive relative to the broader industry.

According to Cmrlec, the Norseman operation remains in a strong position operationally and financially, providing a foundation for further development across the historic goldfield.

The company recently updated production guidance, revising expectations from around 100,000 ounces per annum to a range of between 86,000 and 92,000 ounces. Cmrlec said the revision reflects several operational factors during the most recent quarter as well as the planned transition to a single contract mining provider across the site.

Pantoro intends to appoint Redpath Mining as the sole contractor at Norseman from May, expanding its existing role at the Scotia and Dimboola mines. Cmrlec said the move is expected to deliver operational synergies across the project, although the company has allowed for potential short-term disruption during the transition.

“We’re going to bring Redpath Mining across the whole site, and I think that’s a really positive change for Norseman as we move forward,” Cmrlec told Proactive.

Alongside operational updates, Pantoro is progressing a growth strategy focused on expanding underground mining across the Norseman Mainfield.

The company announced in September 2024 that it would undertake a major drilling campaign aimed at identifying additional underground mining opportunities to increase mill feed grades. Over the past year, Pantoro has completed approximately 40,000 metres of drilling from underground positions at the Bullen decline.

Cmrlec said the drilling has provided sufficient confidence for the company to begin development toward the Bronze and Cramers South lodes.

Development is expected to commence mid-year, with first ore targeted before the end of the year. The additional underground production is expected to provide higher-grade feed to supplement existing ore sources.

Cmrlec added that Pantoro’s all-in sustaining cost during the last quarter was just over $2,500 per ounce, which compares favourably with peers undertaking similar narrow-vein underground mining operations.

Interview Highlights

Pantoro Gold reported a strong first half financial performance.

The company ended the last quarter with just under $220M in cash and gold.

Half-year balance sits at approximately $135M.

Production guidance revised from ~100,000 oz to 86,000–92,000 oz annually.

Revision partly reflects operational events and transition to Redpath Mining as a single contractor across the Norseman site.

Redpath already operates at Scotia and Dimboola mines within the project.

Pantoro is advancing a growth strategy focused on new underground mines.

Around 40,000 metres of drilling completed in the Norseman Mainfield.

Development planned toward the Bronze and Cramers South lodes.

First ore expected before the end of the year once development begins.

All-in sustaining costs just over $2,500/oz, competitive compared with industry peers.

Proactive: Welcome back to Proactive Investors. I'm your host Kerry Stephenson. I've asked Pantoro Gold managing director Paul Cmrlec to join us today. The ASX code is PNR and the company operates the Norseman Gold Project in Western Australia. Lots of news to get through. Paul, good to see you.

Paul Cmrlec: Kerry, good to see you.

Proactive: You’ve just released higher revenue and earnings for the first half of this financial year. Give us an overview.

Paul Cmrlec: The first half of the year has been fantastic. We’ve really built the cash balance there to just under $220 million of cash and gold at the end of the last quarter, sitting at about $135 million for the half year. Our all-in sustaining costs are looking really good relative to the industry overall. Norseman is in a great position and will continue to advance as we move forward.

Proactive: There was a slight production downgrade. Could you provide some colour on that?

Paul Cmrlec: The market probably reacted a little harder than we expected this morning. The downgrade relates to production guidance rather than results. Analysts covering the company remain positive on the stock. We’ve adjusted our forecast from around 100,000 ounces per annum down to between 86,000 and 92,000 ounces based on specific events in the last quarter.

We’re also planning a change in contract mining at the site from 1 May. We will bring Redpath Mining across the whole site, where it already mines at Scotia and Dimboola. That will give us a single contractor across the site. It’s a positive change, although there may be some minor disruption during the transition.

Proactive: I’d like to talk about the new mine in the Mainfield.

Paul Cmrlec: We’ve had a growth program running for some time. In September 2024 we announced a major drilling campaign focused on opening additional underground mines to grow production by increasing the mill feed grade at Norseman.

The Mainfield has been a major focus of drilling from underground at Bullen. Over the last year we’ve completed nearly 40,000 metres of drilling. We now have enough confidence to kick off development toward the Bronze lode and the Cramers South lode.

Development is expected to start mid-year, with first ore expected before the end of this year. That provides high-grade feed to replace some of the open-pit feed. The growth strategy we outlined a couple of years ago is now coming together.

Proactive: Finally, could you update us on all-in sustaining costs?

Paul Cmrlec: The all-in sustaining cost last quarter was just over $2,500 per ounce. As production rises those unit costs come down because total costs remain fairly fixed. Compared with peers doing similar underground narrow-vein mining, we’re typically $400–$500 per ounce better than many of them.

Proactive: The operation appears to be in a strong position.

Paul Cmrlec:  Yes, I think the operation is in a great position to continue generating strong cash flow as it has in the last half.