PNR – Pantoro Limited | Aussie Stock Forums

Given not much has been written on PNR, and given I think it has more potential than 99% of all ASX Specs at present, and given I own a lot of them, the info needs to be ramped (sorry, shared)

Seriously though, anyone interested in quality Gold Specs should be checking this company out …

Courtesy of a link posted by “Ormond” over at HC, here is a News item from http://www.news.com.au online today

Low cost producer with high grades and multiple targets around the same area
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Pantoro on track for Nicolsons expansion
January 10, 20172:20pm
Newsbites Finance

Shares in Western Australian based gold producer, Pantoro (ASX: PNR), were well supported on Monday after the company indicated that its production expansion strategy at the Nicolsons project was tracking well. Yesterday’s intraday high of 21 cents was an all-time high since the group acquired the Nicolsons Find mine located in Halls Creek in April 2014.

Production for the three months to December 31, 2016 of 9,600 ounces represented an increase of 30% on the previous corresponding quarter.

The company also achieved record monthly gold production in December of 4,627 ounces. On an annualised basis this implies production of more than 50,000 ounces.

Trevor Hoey of finfeed.com suggests Bell Potter is on the mark with its expectation of fiscal 2018 production of 55,000 ounces. The broker forecasts that this would generate a net profit of $32 million in that year, representing earnings per share of 4.2 cents, implying a PE multiple of 4.8 relative to yesterday’s closing price of 20 cents.

This appears conservative, particularly for a company that stands to benefit from a strong Australian dollar gold price.

Based on the current spot US dollar price of circa US$1,180 the Australian dollar gold price is in the order of $1,600. Given that Bell Potter is forecasting PNR’s all in sustaining costs to be in the order of $780 per ounce in fiscal 2018, this leaves a robust margin of $820 per ounce.

Bell Potter has a buy recommendation on the stock, and after increasing its earnings per share estimates for fiscal 2017 by 14%, the broker has lifted its price target from 24 cents to 26 cents, representing a 30% premium to yesterday’s closing price.