Key Highlights

•  Norseman produced 21,164 ounces in the quarter, a 21 per cent increase, and sold 22,834 ounces at an average realised price of A$6,067 an ounce.

•  An operating table in the same material lists 21,864 ounces, a discrepancy that investors may wish to check against the formal quarterly report.

•  The update also detailed high-grade drilling at Racetrack, where grades come from a limited number of holes.

Pantoro Gold (ASX:PNR) has reported a 21% increase in gold production from its Norseman operation in Western Australia for the September 2026 quarter, alongside lower unit costs and a larger cash and gold balance. The update, released last week with the company's quarterly presentation, also detailed high-grade drilling at the Racetrack prospect near its OK underground mine.

Quarterly numbers

Pantoro produced 21,164 ounces of gold in the quarter, according to the headline figure in its presentation, and sold 22,834 ounces at an average realised price of A$6,067 an ounce. An operating table in the same material lists 21,864 ounces, a discrepancy that investors may wish to check against the formal quarterly report.

All-in sustaining costs (AISC) fell 8% to A$3,860 an ounce, from A$4,107 an ounce in the June quarter. EBITDA rose 43% to A$63.1 million. Head grade improved to 2.74 g/t from 2.32 g/t, and metallurgical recovery reached 95.1%, up from 93.8% in the previous quarter.

Cash and gold at 30 September stood at A$240.0 million, up A$16.6 million over the quarter. The company has no debt and no hedging, giving it full exposure to the gold price in both directions. That position provides flexibility to fund exploration and growth projects from existing resources, provided operating margins hold. Spending on exploration and major projects totalled A$36.3 million.

Mine-by-mine progress

The OK underground mine produced 6,497 ounces, up from 4,890 ounces in the June quarter, with contractor Redpath's workforce now at full capacity. OK carries an ore reserve of about 123,000 ounces, equivalent to roughly four years of mining. The Scotia underground contributed 10,211 ounces.

Mining is under way at the Green Lantern open pit, with ore being delivered to the mill, while Stage 3 ore production at Gladstone is expected to resume late in the December quarter. Partner Mega Resources recommenced mining at the Rama open pit, adding 580 ounces from third-party ore. Pantoro said elution circuit upgrades were complete and that it expects throughput to rise through the year.

Pantoro reaffirmed FY27 guidance of 90,000 to 105,000 ounces, with 40% to 45% expected in the first half. The September result therefore leaves meaningful growth required in the second half to reach the range.

Racetrack drilling

Drilling at Racetrack, about 600 metres north of Star of Erin, has averaged 3.58 metres at 18.59 g/t gold across 43 holes. Standout intercepts include 4.94 metres at 349.14 g/t gold from 603.02 metres and 20.36 metres at 15.55 g/t gold from 576.29 metres. The announcement does not state whether the depths and intervals are downhole, and true widths were not given.

Racetrack is not included in Pantoro's mineral resources or ore reserves. The company has approved an exploration decline, with underground drilling planned from late in the March 2027 quarter and a maiden mineral resource targeted for the first half of calendar 2027. Three diamond rigs are operating, with three more approved for the second half of FY27.

Resources and outlook

Pantoro's annual update put total mineral resources at 43.1 million tonnes at 3.4 g/t gold for 4.7 million ounces, and ore reserves at 13.0 million tonnes at 2.2 g/t for 0.9 million ounces. An 80,000-metre air core programme covering Lake Cowan and the Polar Bear Peninsula was about half complete at Lake Cowan at quarter end.

Key uncertainties remain. AISC remains well above the A$2,573 an ounce recorded in the December 2025 quarter, several ore sources are only now ramping up, and Racetrack's grades come from a limited number of holes. Next steps include the Gladstone restart, decline development at Racetrack and delivery against second-half-weighted guidance, together with the planned maiden Racetrack resource next year.