Pantoro Gold launches on-market buyback as Norseman cash flows roll in Proactive uses images sourced from Shutterstock

Pantoro Gold Ltd (ASX:PNR, OTC:PNTOF, FRA:RKN) has announced a 12-month on-market share buyback program covering up to 10% of its issued capital, signalling growing confidence in the Western Australian gold producer's financial position.

The company will target a maximum of 38,344,473 shares under the program, with all purchases to be made through the ASX in compliance with Australian securities laws. Because the buyback stays within the 10% threshold, no shareholder approval is required under the Corporations Act.

Pantoro attributed the move to strong positive cashflow generated over the past year from its 100%-owned Norseman Gold Project, with profitability expected to continue climbing as operations at the site are scaled up. Management said current cash generation is sufficient to fund ongoing growth initiatives and mine expansions alongside the buyback program.

The pace and volume of purchases will be left to the company's discretion, guided by prevailing market conditions and share price levels. Pantoro will not pay more than 5% above the five-day volume-weighted average price for any shares acquired.

The buyback is the latest signal of maturation at Norseman, where Pantoro has been steadily building output after years of development work at the historic goldfield southeast of Kalgoorlie.

“Pantoro Gold remains focused on maximising operating margins while responsibly deploying growth capital at Norseman. Since September 2024, growth drilling has delivered strong results and we expect to convert this success into additional underground mines in line with our growth strategy which targets an aspirational increase in annual production to 200,000 ounces of gold," Pantoro managing director Paul Cmrlec said.

“The combination of a strong gold market and our focus on maintaining production margins has resulted in an exceptional balance sheet position which enables us to implement a capital management policy in parallel with the growth program. The buy-back will be executed diligently to ensure that Pantoro Gold is well positioned to finance organic and inorganic growth opportunities as they arise while continuing to deliver shareholder value.”

Building on a big quarter

The buyback, will enable Pantoro to build on its strong December quarter, with its cash and gold position swelling by $35 million, as production, margins and exploration all gathered pace at the Norseman Gold Project in Western Australia.

The company poured 22,071 ounces during the three months to December, selling 22,473 ounces at an average realised price of $6,077 per ounce. With all-in sustaining costs held at $2,571 per ounce, Pantoro generated EBITDA of $83.6 million for the period — a margin that underlines the project's growing profitability at current gold prices.

Operating cashflow came in at $39.2 million after the company ploughed $32.1 million back into exploration and project capital, a dynamic that highlights Pantoro's capacity to self-fund its growth ambitions without tapping equity markets.

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