Click to edit Master title style Annual General Meeting 2017 15 November 2017 ASX:PNR
Disclaimer & Competent Click Person s to edit Master Statement title style General Disclaimer This presentation has been prepared by Pantoro Limited ( Pantoro or the Company ). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation may contain forecasts and forward looking statements. Certain statements in this report relate to the future, including forward looking statements relating to Pantoro s financial position and strategy. These forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements of Pantoro to be materially different from future results, performance or achievements expressed or implied by such statements. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement and deviations are both normal and to be expected. Other than required by law, neither Pantoro, their officers nor any other person gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements will actually occur. You are cautioned not to place undue reliance on those statements. Pantoro has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Pantoro makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from any information, statement or opinion contained in this presentation. This overview of Pantoro does not purport to be all-inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Compliance Statements Halls Creek Project Exploration Targets, Exploration Results The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Scott Huffadine (B.Sc. (Hons)), a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Huffadine is a Director and full time employee of the company. Mr Huffadine is eligible to participate in short and long term incentive plans and holds shares, options and performance rights in the Company as has been previously disclosed. Mr Huffadine has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Huffadine consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Halls Creek Project Mineral Resources & Ore Reserves The information relating to Mineral Resources and Ore Reserves is extracted from a report entitled Nicolsons Project Mineral Resource and Ore Reserve Update created on 1 June 2017 and is available to view on Pantoro s website (www.pantoro.com.au). The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement 4
Corporate Click Overview to edit Master of Pantoro title style Share Price cps 30 25 20 15 10 5 0 Board Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Mike Jefferies Independent Chairman Paul Cmrlec Managing Director Jun 17 For personal use only Volume Share Price Jul 17 Aug 17 Sep 17 Oct 17 25 20 15 10 Scott Huffadine Operations Director Kyle Edwards Independent Director 5 - Millions Capital Structure Share Price (14/11/17) Ordinary Shares Listed Options Other options and rights Fully Diluted Market Capitalisation Cash and gold (30/9/17) Debt (14/11/17) Major Shareholders Bell Potter Nominees 23.4% JP Morgan Nominees Australia 13.3% Citicorp Nominees 11.6% HSBC Custody Nominees 3.8% Top 20% 66.5% Total Holders 2,414 19 cps 783 million Nil 26 million 809 million $149 million $14.6 million 3,000 oz Au 5
For personal use only Click to edit Master titlemine style Nicolsons Gold 6
2017 Operational Click Goals to edit and Master Outcomes title style Commence open pit mining at wagtail to facilitate ramp up in production Upgrade plant to 25tph (approx. 200Ktpa) Open pit mining commenced on time and has continuously provided ore to the processing plant since December 2016. Due for completion in December 2017, however large ore stockpiles are held on surface at site and open pit blending feed will be utilised for much of 2018. Continued production ramp-up saw targeted throughput rates achieved in the month of March 2017 as planned. Processing plant has exceeded expectations and has operated at an average rate of approximately 230,000 tonnes per annum throughout the last six months. Mineral Resource and Ore Reserve Update Major Mineral Resource and Ore Reserve increase in May 2017, effectively doubling gold inventory. Approximately 4 years of Ore Reserves defined, and +7 years in Mineral Resource at 50,000 Oz pa. Sustainably operate at 50 koz pa production rate Average gold production over last 6 months annualises at +50Koz pa. Planned to continue at that rate until next processing plant upgrade. In-mine and Regional Exploration ramp-up Increased revenue has allowed a major expansion in exploration effort, funded by cashflow from the operation. Aero-magnetic surveys completed over entire tenure position. Currently 4 drill rigs working on site two underground and two on surface. Drilling out underground target at Wagtail and Rowdies. Continuing to expand Nicolsons. First pass testing of a number of new targets. Design and costing for further plant expansion Assess acquisition opportunities Completed metallurgical testwork required for expansion to 80-100 Koz per annum. Completed scoping studies to expand production capacity and operate at 80-100 Koz per annum. Ready to commence final engineering and construction once Ore Reserves are expanded to a satisfactory level through exploration. Acquired the Grants Creek Project approximately 60km North of Halls Creek from a private holder. Acquired E80/5054 from a private holder. Pegged additional contiguous zones and other prospective areas proximal to Nicolsons Reduce outstanding gold pre-pay facility Reduced outstanding pre-pay from 8172 Oz to 3,000. Scheduled to close out facility in April 2018, adding $2.5m cashflow per quarter at $1670 gold price. 7
Click Financial to edit Master Outcomes title style 8
Ore Reserve Click and to Production edit Master title Growth style ü ü ü Nicolsons Mineral Resource and Ore Reserve almost doubled year on year, with approximately 4 years in Ore Reserve Life, 7 years in Mineral Resource. Target annualised throughput of 200Ktpa achieved in accordance with schedule in March 17. Now producing above targeted rate (Jun/Sept 17Q annualised throughput 230Ktpa). Drilling underground mining targets at Wagtail with outstanding early results released during past three quarters. 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q3 2015 Q4 2015 Q1 2016 Gold Produced Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 ü Regional exploration is well underway with exciting results at Paddock Well and Western Reef. First pass and follow up programs planned on 8 targets during FY18. ü Finalising Grants Creek Acquisition.
For personal use only Click toresource edit Master title style Nicolsons Growth Johnston Lode May 2016 Johnston Lode May 2017 Mineral Resource 1.58Mt @ 7.43g/t for 376.7 KOz 83% Measured and Indicated 119% increase year on year after depletion Hall/Anderson Lode May 2016 Ore Reserve 733Kt @ 7.35g/t for 182.8KOz 62% Increase after depletion >50 Koz fully developed ready for production at Nicolsons Project Gold Endowment Current Mineral Resource plus previous production now >450,000 Oz Hall/Anderson Lode May 2017 10
Click to Large edit Developed Master title Stocks style Johnston Ore Reserve 4 new stoping levels to commence Hall/Anderson Ore Reserve Open at Depth with high grade drilling below Ore Reserve Johnston Strike Extending with high grade drilling north of Ore Reserve boundary Production now approaching full milling capacity. Immediate ability to double production when required Hall Lode Production to date primarily from Hall/Anderson Lode Only Drilling shows Johnston Lode has high grade intercepts as good or better than current mined lodes. Bobby Lode is a new high grade splay zone in the south of the mine. 11
For personal use only edit Master title style RowdiesClick andtowagtail Open Pits Nearing completion due to be finished in December 2017 Reserve 96.5kt @ 5.55g/t. At end of September 2017 reconciled mined 74.2Kt @ 5.44 g/t of high grade and 25Kt @ 1.30g/t low grade. Expect to complete open pits with upside on Ore Reserve. Now focussing on transition to underground mining. Ore stockpiles of 70kt @ 3.1g/t on site at the end of September 2017 and growing. 12
Rowdies and Click Wagtail to edit Master long Section title style 13
Regional Click Exploration to edit Master Underway title style Large number of advanced targets outside of current operating mines. Plans in place to complete first pass and follow up drill programs on 9 targets within the current tenement package during FY18. Recent reconnaissance drill programs completed at Midnight, Edison, Springvale, Western Reef. Majority of new targets have limited historical drilling completed with very encouraging results. Acquired additional tenement areas contiguous with existing tenure during 2017. Continuing to grow land holding position as prospective areas in the region become available. Only gold plant within 300km. 14
Growing Click to edit Tenure Master Position title style New acquisition consolidates the historic Grants Patch goldfield. Known high grade mineralisation with high grade results in Perseverance, Star of the Kimberley, Moody s and Wilsons Reef deposits. 14 hole drilling program by Metminco in 2008 returned high grade hits including*: Ø Ø Ø Ø Ø 15m @ 4.2g/t inc. 1m @ 17.8g/t 3m @ 7.88g/t inc. 1m @ 15.25g/t 6m @ 6.13g/t inc. 1m @ 12.8g/t 5m @ 5.87g/t inc. 1m @ 20.7g/t 3m @ 5.96g/t inc. 1m @ 15.4g/t Drill programs completed in 1983, 1984, 1986, 1998, and 1994 are detailed in open file WAMEX reports, with numerous high grade intercepts reported. Precious Metals Australia lodged a Notice of Intent to Mine with the Western Australian Government in 1995, but ceased its operations prior to commencement. More than doubles Pantoro s Halls Creek tenure position and provides near term potential for additional mining areas. * Refer to PNR ASX Release on 16/10/2017 titled Pantoro Acquires Grants Creek Project near Halls Creek 15
Click to edit Master title style