Argonaut attended a site visit to PNR’s Norseman operations. The acquisition was announced in May 2019 and work has rapidly progressed after taking ownership in early July, with a 40km drill program due to commence targeting near mine Resources with the aim of infill and extension of existing lodes. We see this as a simple and effective way of rapidly building a Reserve base. The remainder of 2019-2020 will be newsflow rich with a strong pipeline of drill results from infill and extension drilling. Nicolsons will see a strong bounce in Sept Q production as Wagtail ramps up production from open pit and underground ore sources. PNR trades at 0.6x NAV vs the remainder of the gold coverage universe which trades at >1.2x. We maintain our BUY recommendation and target price of $0.30ps.
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