Better December flagged after soft September quarter by Pantoro

PANTORO is reviewing its mining schedule while expecting a 10-25% improvement in output in the December quarter from its Halls Creek operation in Western Australia after a soft September period when 10,630 ounces were produced at all-in sustaining costs of $1526 per ounce.
Better December flagged after soft September quarter by Pantoro Better December flagged after soft September quarter by Pantoro Better December flagged after soft September quarter by Pantoro Better December flagged after soft September quarter by Pantoro Better December flagged after soft September quarter by Pantoro

Water shortage in September impacted processing at Halls Creek

Output in the current quarter is being put at 11,500-13,000oz, with targeted AISC costs understood to be circa $1150-1300/oz.

Pantoro is delivering 2000oz into a hedge book this month at $1731/oz and 2000oz per month at $1800/oz thereafter until April next year.

Output in the September quarter was impacted by the underperformance of the Wagtails orebody - where mineralisation widths have been narrower than expected - and water issues in the drought impacted Kimberley region that saw processing impacted.

However new bores have rectified the latter issue.

The mining review is expected to take 6-8 weeks and is focused on "optimising mine production levels, resources and most importantly profitability".

In the past Halls Creek has been promoted as being capable of a quarterly run-rate of 20,000-25,000oz per quarter.

Meanwhile, at the recent 50% Norseman project acquisition, three rigs are on site as Pantoro looks to identify ounces to potentially be mined in 2021.

A scoping study is expected to be completed in the current quarter.

Debt-free Pantoro started the December quarter with $42.4 million in cash and gold.

Shares in Pantoro were down 17% to 15c in midday trade, capitalising the company at $176 million.

The stock has dropped about 30% over the past couple of months.