Pantoro Ltd (PNR) released its March Q report with production of 11koz at an All-in sustaining cost of $1,217/oz. The report contained few surprises given the bulk of the data was pre-released in early April. Mined tonnes from Nicolsons fell to 47kt @ 7.32g/t Au for 11koz plus an additional 11kt @ 1.7g/t of low-grade stockpiles. The lower tonnes aren’t surprising given PNR is transitioning from single to dual declines to include Wagtail development. Free cashflow increased to $1.9m after major capital, and exploration costs. PNR trades on undemanding metrics of ~3x FY20 EV/EBITDA and 5x PE which is roughly half compared to its peer group of domestic gold producers. We see potential for the stock to re-rate as production builds sharply in the late June Q as Wagtail underground and open pit ore sources come into play. BUY, TP $0.34ps.
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