Pantoro to bunker-down in the Kimberley region

GOLD producer Pantoro is pulling out all stops so as to enjoy the stellar Australian dollar gold price by basing most of its workforce in the Kimberley region of Western Australia to ensure government travel restrictions don’t close the Nicolsons mine.
Pantoro to bunker-down in the Kimberley region Pantoro to bunker-down in the Kimberley region Pantoro to bunker-down in the Kimberley region Pantoro to bunker-down in the Kimberley region Pantoro to bunker-down in the Kimberley region

Pantoro's strategy of basing workforce regionally means Nicolsons won't be unduly impacted by coronavirus-fuelled travel restrictions

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"The majority of Pantoro's staff and contractors have agreed to base themselves within the Kimberley region for an extended period of time if necessary to ensure continuity of operations," Pantoro said.

"By containing its workforce inside the broader Kimberley region operations can continue largely unaffected by regional travel restrictions."

Pantoro will become unhedged in April, with its current 2000 ounce per month hedging realising a price of A$1800 per ounce - versus a recent gold price $2700/oz.

Pantoro said it was "buoyed" by the current strong gold price, but wouldn't be providing guidance on the basis it would be "imprudent" in the current volatile environment.

In any case the market will be keen to see improved operational performance given the 9403oz produced last quarter were at all in sustaining costs of about $2000/oz.

Meanwhile exploration is continuing at the company's planned second operation at Norseman, also in WA.

Debt-free Pantoro had cash and bullion at the start of the current quarter of $31.7 million.

Shares in Pantoro were down 4.5% to 8.2c, capitalising the company at $96 million.          

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