PNR - Pantoro Limited

Pacific Niugini Ltd (PNR), formerly Chrome Corporation Limited (CCI), is a Perth-based mining company, focusing on mineral exploration, evaluation and development.

Previous discussion of this company can be found in the CCI thread: https://www.aussiestockforums.com/forums/showthread.php?t=4228

Re: PNR - Pacific Niugini

MC - $52m
SP - 21c
Shares - 251m
Options - 25m
Cash - $10.7m

Bulolo Project – Morobe Province:
• Excavation and processing of 40 bulk samples and two drill holes completed within EL1616. Test pits were excavated in both virgin gravel areas and previously dredged areas. Samples were dispatched to Burnie Research Laboratories in Tasmania with results pending.
• Results from the initial bulk sampling program at Widubosh were received. An infill test program is planned to be undertaken at Widubosh.
• Major structural and processing components for the PNR owned processing plant are near completion, with finalisation of the plant awaiting government approval processes and assay results.

Garaina Project
• Detailed interpretation of magnetic and radiometric data at Kusi identifies a favourable large magnetic high zone with a non-magnetic core and coincident potassium high radiometric data, suggesting the presence of an intrusive body which has been intensely altered.
• Magnetic anomalies identified at the Sim and Kasuma prospects are indicative of underlying intrusive bodies prospective for discovery of major ore deposits with porphyry deposit potential around the large magnetic anomaly areas, and epithermal mineralisation potential in structural features persistent in the tenement area.
• Step out mapping, soil sampling and trenching continues to expand the footprint of known mineralisation at Kusi. Initial reconnisance exploration at Sim is underway.

Gusap Project
• Munambe Prospect on newly granted Mutzing tenemnet accessed, with a large zone of argillic to advanced argillic alteration identified with presence of copper and gold mineralisation confirmed (up to 3.5% Cu and 8% Zn returned). Systematic ridge and spur and costean sampling is underway.
• Infill heli-magnetic and radiometirc survey completed over Munambe prospect. Data suggests structural features radiating from an intrusive body. The central intrusive body is still to be accessed.
• Exploration at Yanangon continues to expand the footprint of known mineralisation. First phase of reconnisance exploration is completed and data review is underway.

Re: PNR - Pacific Niugini

PNR announce $21m farm-out agreement over Garaina Prospect. The buy v sell supply tends to suggest the gradual decline in SP over a long period may be over. Continued consolidation or indeed value increase looks to be on the cards.

MGL to earn up to 70% by spending up to $21m on exploration.

Pacific Niugini Limited (“PNR”) is pleased to advise that it has agreed terms with MGL Limited (“MGL”) to enable MGL to earn up to a 70% interest in it’s Garaina Prospect by spending up to $21m on exploration. MGL is a privately owned company lead by successful Australian mining executives with extensive experience in exploration for copper-gold porphyry systems, and recent operational experience in PNG.

Pacific Niugini has completed extensive reconnaissance exploration at Garaina, which has resulted in the project being rapidly advanced from a green fields exploration prospect to a drill ready target. During the past two years, PNR has completed extensive geochemical sampling, manual trench sampling, ground and airborne geophysical surveys and reconnaissance drilling. The work has resulted in the delineation of an outstanding “WafiGolpu” style epithermal gold and porphyry copper-gold target. MGL has reviewed the exploration programs completed by PNR to date, and has formulated an exploration strategy aimed at discovery of a major mineral system, with drilling planned to commence in the near term.

Under the terms of the farm-in agreement:
-MGL will spend $6 million on exploration to earn 50.1% of the project.
-A minimum of $3,000,000 and 2,500 metres of diamond drilling are required to be completed before MGL can withdraw from the Farm-in. Further, MGL is required to pay PNR any shortfall in expenditure in the event that MGL wish to exit early.
-Once MGL has earned 50.1% interest, PNR can elect to either contribute to maintain its 49.9% interest and a Joint Venture will be formed.
-PNR can elect to further dilute to a 30% interest. IF this occurs MGL must carry the next $15m of exploration expenditure over a further 3-year period to earn a further 19.9% interest (70% total interest).
-Once MGL has earned a 70% interest a Joint Venture will be formed.
The agreed terms are intended to be binding on both parties, and formal farm-in and joint venture documentation is being finalised.

Pacific Niugini has agreed to provide it’s highly experienced team of PNG geologists and field staff to implement MGL’s work programs. MGL has advised it expects to undertake further project assessment and planning for a one to two month period ahead of drilling.

On December 8th, 2015, Pacific Niugini Limited changed its name to Pantoro Limited.

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.

PNR recently tested the breakout area above previous highs but has retraced since given the price of Gold has been wobbly. Gold still looks like it has further to fall to me but current SP on PNR is holding very well considering. The sell side is looking thin and they will likely have a resource upgrade on the way which I expect to be excellent yet again. Likely more consolidation for now but Id rather be in than out if the POO starts to rise. Management are real doers and very happy to hold this little goldmine

Link to a recent CommSec Interview with Managing Director Paul Cmrlec …… He simply gets on with business and gets things done …. brilliant Manager

PNR has been in the doldrums last couple of months with the share price tumbling 50%. Apart from Goldies in general being belted, PNR have struck a few issues with the stoping/drilling at the southern end of the current drill site which has resulted in a short term cost blow out.

Share price is currently holding ok considering but management will be looking to improve the profit margins substantially before the rot sets in …. Will update thread as it pans out.

On the positive side, they continue to drill up excellent grades etc from the ongoing exploration so the longer term outlook is still strong.
ps. A couple of posts ago I typed the POO when I meant the POG .. just correcting myself

PNR looks to have found its current lows assuming the Stoping problems/profit margins have been improved.

Back above the recent Cap Raise level which was always on the cards given the Sophisticated Investors don't generally like taking losses

Company is still well placed for the future ….. Tidy drilling results from their recent acquisitions will add to their resource base and Nicolsons is still expanding.

PNR is my major pick in the 2019 Yearly Tipping Comp … Quick update since last post ..

Price as suggested early in December has held at the lows and is currently consolidating in the 18.5-20.5 cent region.

Major Shareholder Robmar Investments continue to increase their stake in the Company with more on market buying during November-December and now hold 20.7% of the Company.

Recent drilling showed more good grades in their recently acquired Grants Creek Project. 5 metres at 9.25 g/t gold from 38 metres at the Perseverance prospect and 2 metres at 11.04 g/t gold from 46 metres at the Star of Kimberley prospect.

Hopefully they've sorted out the Stoping problems encountered over the past couple of months at South Nicolsons and can get the short term balance sheet back into the black.

barney said:

Hopefully they've sorted out the Stoping problems encountered over the past couple of months at South Nicolsons and can get the short term balance sheet back into the black.

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Almost on queue …. PNR announced Quarterly production back to 12,657 ounces with an AISC of around $1140/ounce

More high grade shoots discovered from 450 mtrs at Nicolsons and high grade shoots at the current open pit at Wagtails means they will now open up a second underground access.

Share price hasn't reflected the news, but this is exactly what they needed to get operations back on track …… Happy holder again after a few nerves last 2months

barney said:

Almost on queue …. PNR announced Quarterly production back to 12,657 ounces with an AISC of around $1140/ounce

More high grade shoots discovered from 450 mtrs at Nicolsons and high grade shoots at the current open pit at Wagtails means they will now open up a second underground access.

Share price hasn't reflected the news, but this is exactly what they needed to get operations back on track …… Happy holder again after a few nerves last 2months

Click to expand...

Since my last post PNR SP has actually risen around 20% so the market eventually caught up to what was positive news for their bottom line profits. Chart is looking much healthier.

Been consolidating within a small range since last post. Looking ok but a break above 27 cents would be more convincing.

The latest drilling results announced early this week show Nicolsons ore continuing deeper which will increase the resource and mine life substantially.

Some of those veins are extra rich ….

Latest Results:

• 3.55 m @ 95.89 g/t Au inc 1 m @ 317.0 g/t Au.

• 2.43 m @ 53.64 g/t Au inc 0.75 m @ 114.0 g/t Au.

• 4.60 m @ 49.52 g/t Au.

• 2.23 m @ 11.47 g/t Au.

• 1.5 m @ 19.62 g/t Au.

• 1.13 m @ 44.44 g/t Au inc 0.7 m @ 70.1 g/t Au.

• 2.22 m @ 33.45 g/t Au inc. 0.3 m @ 80.8 g/t Au.

• 4.90 m @ 12.19 g/t Au inc. 1.05 m @ 51.27 g/t Au.

• 1.65 m @17.69 g/t Au

• 3.85 m @ 11.10 g/t Au inc.1.2 m @ 25.63 g/t Au.

Quarterly out. Co. spent a lot of cash getting Wagtails ready to mine and still managed to bank nearly $2 million for the Quarter.

SP has been fairly stagnant but stable …… Management doing a great job however. Happy to hold for the foreseeable future

Things can change quickly in the Small cap/Spec area ……. Since my last post in April, PNR share price has been kicked to the curb a few times, and todays Quarterly Update showed a few more issues with production targets …..

Even in this great Gold climate PNR SP was down well over 20% today and looking weak. I still have high hopes for the Company but they need to sort out their production issues and start making profit again to get Investors back on side or I will be working till I'm 80

Fickle bunch of shareholders or maybe a better word impatient. It's funny that the gold is not going anywhere and still requires to be mined safely and efficiently as possible. PNR have declared some delays but does this correlate with a +20% SP drop ??

Surely not. Hang in there mate and this will be a good turnaround story for 2019

barney said:

Things can change quickly in the Small cap/Spec area ……. Since my last post in April, PNR share price has been kicked to the curb a few times, and todays Quarterly Update showed a few more issues with production targets …..

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Looks like an overreaction barney. It's a short term hit, bit if the bigger picture is still ok then it looks a bit of a knee jerk.

1. Commenting on the quarterly results, Managing Director Paul Cmrlec said:
   
   “Total production for the quarter and the planned ramp up to increased production rates by the end of the June quarter was below Pantoro’s expectation due to a number of factors as set out in this announcement. The primary driver to the lower production was the slower than anticipated ramp up in mining at Wagtail North in the latter part of the quarter. As a result, lower grade material mined from Nicolsons was processed to assist in gold output.

I hope the H&S doesn't play out through...

Trav. said:

Hang in there mate and this will be a good turnaround story for 2019

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kennas said:

Looks like an overreaction barney.

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I love you guys …… in a tough macho guy kind of way that is

Seriously, I appreciate the support ……. PNR have always been my Spec of the year pick …… I'm just not quite sure of the exact year now lol …. Cheers

Seems like the next 12 months for PNR will be a developmental stage rather than a full production stage. They've got to dig further to get to the high gold zones in their underground mine and start a drilling program in their recently 50% acquisition of a CNG gold resource. The drilling program will provide data so they can plan a cost effective mining solution. Weekly variations in the POG won't influence PNR's share price much. Results of the drilling program will have more influence on the share price IMO.

Although PNR was one of my 2019 selections and the share price fall has been disappointing, PNR deserves to be included in my "spec" watch list.