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#Risks
stale
Last edited one year ago

30-Nov-2022: Halls Creek Gold was probably best viewed as providing the cashflow to keep the company going until they got Norseman up and running, which they now have. Norseman is going to be a much bigger operation and generate much more revenue, even though Pantoro only hold 50% of Norseman and they own 100% of Halls Creek. The interesting bit about Halls Creek is their recent PGE (platinum group elements) discovery - and whether they sell that off or try to develop that themselves.

Chalice Mining (CHN) were a gold miner and then they unearthed the largest PGE discovery in Australian history at their Gonneville deposit within the Julimar nickel-copper-PGE project in Western Australia. Now Chalice is all about Julimar and is no longer regarded as a gold company - which is why I removed them from my Gold Sector (Gold ETFs and Miners) watchlist over in the Gold as an Investment thread.

Further Reading: https://www.australianmining.com.au/features/is-australia-about-to-go-platinum/ [April 2022]

"As part of a maiden indicated and inferred mineral resource estimate published in November 2021, the Julimar discovery contains 10 million ounces of palladium, platinum and gold – collectively called 3E (3 elements) – plus more than 900 thousand tonnes of base metals, paving the way for the emergence of a new world-class critical minerals industry." - from that Australian Mining (.com.au) article linked to above.

Now Pantoro's Halls Creek PGE discovery is not even close to being in that league, but I'm just saying they could go off in that direction, which certainly seemed to pay off for CHN - particularly in 2021 when their SP went from around $4 to almost $10.

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But of course I would not expect that sort of upside with PNR anyway, because they haven't found very much up there yet.

But, yes, I certainly regard their Halls Creek Gold operation to be at risk of being put on care and maintenance (C&M) or being sold off, possibly sold off along with the Halls Creek PGE tenements, now that Norseman is up and running.

In one respect, I think Pantoro is probably de-risked somewhat now that they are producing gold at Norseman, despite what happens up at Halls Creek. However, they are a small producer with just two production centres, and probably soon to be just the one, and they only own half of Norseman. Probably the best comparison is GOR - Gold Road, who only own half of one gold producing mine (Gruyere), however Gruyere is a lot bigger than the Norseman gold project, and they've been producing there for a few years now. Also, GOR own a massive amount of land in that area, especially to the east of Gruyere, which is mostly desert but could easily contain more decent gold deposits. I do hold some GOR shares in my SMSF. They're a longer term play. I think they will either (a) get bought out by their JV partners (Gold Fields Ltd, listed on the JSE in South Africa) or (b) they'll make another decent discovery of their own. Of course the other possible outcome is (c) neither - they just keep on making money from Gruyere until the gold runs out and then they eventually get wound up if they don't buy something else first.

I have sold out of Pantoro because I have previously identified this time as being one of the riskier times to be a shareholder of a gold miner - when they are commissioning and ramping up a new mill, and ironing out any problems or bottlenecks they encounter. The share price spikes tend to come:

  • When they make a decent discovery, especially if the gold grades are high, even better if it's close to surface and easy to get to and process., or
  • When they get their finance sorted and are building a mill to process that ore to get at that gold, or
  • When the mill is running at or above nameplate capacity and they are upgrading production guidance, or
  • When they become the focus of M&A activity, i.e. someone wants to buy them out.


And of course if they keep finding more gold, that's always good too. And if they start paying dividends and then keep paying them, that can move them up into a new level of interest from the market as well and give their SP some support.

But those periods in-between those milestones I mention there above tend to be times when the share price tends to head south east rather than north east, until the next milestone is achieved and they get a little rocket under the SP again. The underlying gold price will of course make a huge difference as well. If the gold price is rising strongly, people only seem to see the positives about gold miners, but when the gold price is falling, very little can prop up their falling share prices.

In the last little while, the A$ gold price hasn't been moving around too much, so we get to see that usual gold project development cycle with the associated share price spikes on positive announcements and the fall-backs in-between.

Apart from identifying this as a riskier period in which much can go wrong, I also sold Pantoro because I felt I was spreading my gold sector investments a little too thinly - so holding too many different companies, and having tried to work out a risk vs potential upside scenario for each of them, the ones I kept stacked up better (on paper at least) than Pantoro (PNR), Capricorn Metals (CMM), Emerald Resources (EMR) and Alkane Resources (ALK). I sold ALK a while back and the other three (from my real life portfolios) more recently. PNR and CMM are still in my Strawman.com virtual portfolio, for now, but not ALK or EMR (were previously, but not anymore). I prefer the larger more diversified gold producers, plus CAI and BGL as my two speculative project developers/emerging producers.

I still think Pantoro is OK, just not one of the best available options in my opinion at this point in time.

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Yeah @Gprp , I tend to agree that sort of thing is probably an Orange light, or an orange flag. Not a red flag (or red light), but cause for caution. I don't mind companies prioritising ESG and embracing sustainability, but I want to see the evidence, or the actual progress rather than this sort of thing. I think they're trying to cast a wide net, we got gold, we got PGE, we got Lithium! And we're clean and green too! OK, good for you. But you're not one of the best options on the market for any one of those things right now, in my opinion.

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#First Gold at Norseman
stale
Added one year ago

14-Oct-2022: First gold poured at the Norseman Gold Project

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Disclosure: I did hold Pantoro (PNR) shares, but sold them earlier this month for reasons I disclosed at the time (to consolidate the number of individual exposures I have to gold).

PNR closed at $0.175 today (Tues 18th October 2022), being lower than where they closed on each of the five trading days last week (a range of 18c to 19c/share), so pouring first gold is not a milestone that causes a share price spike generally speaking. What will be more important is how quickly they can ramp up their plant to nameplate production, and what issues they encounter along the way.

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#ASX Announcements
stale
Added 2 years ago

It's the day for gold mining capital raises it seems. PNR in a trading halt to try and raise $45M. Placement priced at $0.29, just below 15% discount to last close.

"Potential investors were told Pantoro would use the proceeds for its Norseman Gold to Project to bring forward mining, to accelerate its platinum group elements (PGE) Halls Creek project and for general working capital."

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#ASX Announcements
stale
Added 2 years ago

PNR up nearly 10% this morning on the announcement of exploratory drilling results at Scotia. It's nice to have at least one line of green amid the sea of red this morning. The results are positive and indicate an extended mine life and expanded resource.

Summary Highlights:

  • Step out drilling to the North of the currently planned Scotia pit continues to support northern extension potential.
  • Results from the Scotia Deeps continue to confirm the continuity of high grade mineralisation outside of the current Ore Reserve giving confidence that mine life extensions will be achieved.
  • Mineral Resource and Ore Reserve update on schedule for release by the end of the March 2022 quarter. 55,800 additional metres drilled since the last update.
  • Extensional drilling at Scotia and Green Lantern is ongoing with drilling also planned to recommence at Mainfield in the near term.


Commenting on the results Pantoro Managing Director Paul Cmrlec said: “ The Scotia Mining centre was picked as Pantoro’s priority target at the time that we acquired our interest in the Norseman Gold Project. Results from the area have been nothing short of spectacular since drilling commenced back in 2019.”

“Based on the results received during this major drill out of the Scotia Deeps area, a significant Ore Reserve upgrade is expected when modelling is completed later this month.”



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#ASX Announcements
stale
Added 2 years ago

Further to @Bear77 excellent straw below. PNR announced today that preliminary results show a significant extension to the Lamboo PGE find they announced last year and which Bear so thoughtfully discussed. The PNR SP has held up close to it's recent highs since the November spike, consolidating up > 4% today.

Disc: Held in my SMSF


The Lamboo PGE project forms part of Pantoro’s Halls Creek operations, and is only five kilometres south of Nicolsons gold mine and processing plant, allowing access to substantial mine infrastructure and road networks.

Pantoro announced discovery of a large PGE bearing ultramafic system during September 2021, with follow up drilling since that time confirming that mineralisation is widespread within the basal contact of the unit. Nickel and Cobalt are noted to be coincident with the PGE mineralisation.

Significant Lamboo PGE strike extension

Pantoro Limited (ASX:PNR) (Pantoro) is pleased to advise of strong PGE, nickel and coblat assays received from drilling undertaken approximately three kilometres north of existing results on the Lamboo ultramafic basal contact, at the Halls Creek Project (PNR 100%).

Highlights

The new drilling results include nickel and cobalt assays approximately three kilometres north of previous drilling on the West Limb of the Lamboo ultramafic basic contact and include:

• 30 m @ 1.03 g/t Pt +Pd +Au (3E); 0.54% Ni and 0.033% Co from 3 m.

  • Results confirm a strong correlation between PGE and Ni + Co mineralisation. The correlation between PGE and Ni + Co has been noted in previous holes where these metals have been assayed for.
  • Assays for all previously announced holes have been submitted for Ni + Co assays with results pending.
  • Additional drilling undertaken prior to end of December was highly productive with a further 2,659 metres completed and results pending.
  • Results support the potential for mineralisation over the +20 km basal contact target.


Commenting on the results, Managing Director Paul Cmrlec said

“This result confirms that PGE mineralisation along with coincident nickel and cobalt is widespread throughout the basal contact of the Lamboo Ultramafic System.

We eagerly await additional results from the December 2021 drilling campaign. Field mapping and sampling in the ensuing period will ensure that drill targeting is as efficient as possible in the 2022 drill season where Pantoro intends to cover the majority of the system with first pass drilling.”


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#More high grade gold hits
stale
Added 3 years ago
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#High Au Grades Found
stale
Added 4 years ago
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#High Grade Drilling Results
stale
Added 4 years ago

16-June-2020:  High Grade Results Continue from OK Underground Mine

I hold PNR Shares.  Overnight (during Monday in the US) gold threatened to fall below US$1700 an ounce in a volatile session.  The US dollar rallied early, which saw gold futures drop as low as $1705/oz.  The price has since recovered back to $1733/oz, only a few dollars lower than this time yesterday, after the Federal Reserve announced it would start buying corporate bonds.  US stocks were also volatile, opening lower but finishing 0.8% higher after the Fed announcement.  Our market is set to start on a positive note today after a couple of days of falls.

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#High Grade Drilling Results
stale
Added 4 years ago

23-Apr-2020:  Princess Royal/Slippers Drilling Confirms Multiple Ore Zones

Up to 20.37 grams per tonne Gold.  Nice!!  I hold PNR shares.  The NGP is shaping up nicely.

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#High Grade Drilling Results
stale
Added 4 years ago

17-Apr-2020:  High Grade (Gold) Results from OK Underground Mine Drilling

They're getting some VERY high grades there at the OK mine.  [I hold PNR shares]

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#Company Reports/Presentations
stale
Added 4 years ago

20-Feb-2020:  Pantoro (PNR): RIU Explorers Conference Presentation - February 2020

I do have a small holding in PNR - they are not only explorers and developers, but they are also already gold producers at Halls Creek (100% PNR), and are now developing their 50%-owned Norseman Gold Project (NGP).  Slide 6 shows that they have some of the highest grades of both underground mineral resources and surface (open pit-able) mineral resources of any Australian gold producer, including the big ones.  As long as the geology is friendly and the processing is relatively straightforward, high grades generally translate into lower costs, which means higher profits, so it bodes well for their future.  However, they are very small, so still much higher risk than the bigger companies who have years of production already under their belts.  For that reason, my PNR holding is a lot smaller than my holdings in NST, EVN, SAR and/or SBM.  However, for those with a higher risk appetite, PNR might be worth keeping an eye on.

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