en.Wedoany.com Reported - Pantoro Gold Ltd (ASX:PNR, OTC:PNTOF, FRA:RKN) has raised its FY2027 gold production target, as operational changes, new mine sources coming online, and continued investment at its wholly owned Norseman Gold Project in Western Australia begin to show results.
The company has set its FY2027 production guidance at 90,000 to 105,000 ounces, with all-in sustaining costs of A$2,800 to A$3,400 per ounce. For comparison, FY2026 production was 77,408 ounces, including 18,028 ounces in the June quarter.
Pantoro said FY2026 underground production fell short of expectations, primarily due to delivery issues from the main mining contractor at the OK and Scotia underground mines, as well as a tight labor market in Western Australia.
Since then, the company has completed an operational review and implemented several measures: strengthening contractor staffing, expanding recruitment beyond Western Australia, enhancing middle management capabilities, and optimizing the linkage between contractor incentives and productivity outcomes.
Recruitment efforts are progressing, with target staffing levels expected to be achieved by the end of the September 2026 quarter.
Pantoro's FY2027 plan shows the first half as a stabilization period, with stronger production growth in the second half as new mine sources come online. The first half is expected to account for 40% to 45% of annual production, with the second half contributing 55% to 60%.
The company has approved the restart of mining at the Green Lantern open pit from the September quarter, while the Gladstone mine continues operations. Development of a new underground mine in the O'Briens Reef area will also commence in the September quarter.
Additional mine sources expected in FY2027 include Gladstone, Daisy South, Green Lantern, and ore from the Mega Resources partnership, which is expected to contribute approximately 16,000 ounces of gold during the fiscal year.
Despite operational challenges, Pantoro said it achieved key corporate targets in FY2026. Cash and gold reserves increased from A$175.8 million to A$223.4 million, and the company remains debt-free. Pantoro also invested approximately A$14.8 million in on-market share buybacks, spent A$54 million on exploration, and incurred A$67 million in major project capital expenditure.
In FY2027, Pantoro plans exploration expenditure of A$45 million and major project and growth capital expenditure of A$101 million, reflecting continued investment in new underground mines and pre-stripping costs for the third stage of the Gladstone open pit.
The Norseman Gold Project is transforming from a historical mining center into a diversified, multi-source gold mining operation.
Pantoro plans to operate five underground rigs and three surface rigs throughout FY2027, with a focus on building the mining pipeline. The Racetrack discovery and the potential underground mine beneath the Princess Royal open pit are seen as opportunities to provide new ore reserves and mining fronts within the next 12 to 24 months.
An updated five-year production plan is expected to be released in the September 2026 quarter alongside the annual mineral resource and ore reserve report.
Managing Director Paul Cmrlec said FY2026 was "operationally challenging," but the long-term opportunity at Norseman remains compelling. "Importantly, the view has not changed—the long-term opportunity at Norseman remains compelling, and the board continues to view Norseman as a unique Tier 1 growth asset," Cmrlec said. "The growth drilling program is delivering results, new mines are coming online, and the Racetrack discovery adds to the pipeline, supporting the board's ongoing target of long-term growth to 200,000 ounces per year."
Pantoro is a Western Australian gold producer committed to unlocking the full potential of its wholly owned Norseman Gold Project, one of Australia's highest-grade goldfields. The company is pursuing long-term growth through operational improvements, new mine development, and strategic exploration across the Norseman district.
