08/07/2019 - 15:28

Pantoro shares sink on update

08/07/2019 - 15:28

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Pantoro has announced it missed production targets for the June quarter, just a month after fellow local gold producers Dacian Gold and Gascoyne Resources announced adverse news to investors.

Pantoro shares sink on update
Pantoro experienced production issues at its Halls Creek project.

Pantoro has announced it missed production targets for the June quarter, just a month after fellow WA gold producers Dacian Gold and Gascoyne Resources announced adverse news to investors.

Shares in Pantoro fell up to 27.3 per cent to trade at 16 cents each at 11am AEST.

The company told the ASX it produced 9,557 ounces of gold at its Halls Creek project, compared with 11,280oz the quarter prior.

Pantoro said costs for the June quarter were still being finalised.

It said its Nicholsons underground mine was affected by underground loader availability issues during May and June, after major components required repairs and replacement machines did not arrive on site until mid-June.

It also said there were issues at its Wagtail North underground pit, due to issues in accessing primary ore veins.

Managing director Paul Cmrlec said total production for the quarter and the planned ramp-up to increased production rates by the end of the June quarter was below Pantoro’s expectation due to a number of factors.

“The primary driver to the lower production was the slower than anticipated ramp up in mining at Wagtail North in the latter part of the quarter,” he said.

“As a result, lower-grade material mined from Nicolsons was processed to assist in gold output.”

In May, Pantoro acquired a 50 per cent stake in the Central Norseman gold project from Norseman Gold in a cash-and-scrip deal worth $45 million, and raised $43 million via a share placement to fund the transaction.

Today, Pantoro said it expected to start extensional and infill drilling programs at the project later this month.

Last month, Dacian shares plunged up to 68 per cent in one day after a significant downgrade of June quarter production guidance from its flagship Mt Morgans operation.

Earlier in the month, Gascoyne Resources went into administration, as it consistently failed to meet production targets at its flagship Dalgaranga project.

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