Pantoro Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Pantoro Limited (ASX: PNR) is an Australia-based gold producer. The Company’s projects include the Norseman Gold and Halls Creek Projects.     

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~32.46% of the total shareholding. Robmar Investments Pty Ltd and Franklin Advisers, Inc. hold a maximum stake in the company at ~11.33% and ~8.80%, respectively.

1.4 Key Metrics: PNR reported a high inventory turnover ratio of 13.9x in FY22 compared to industry median of 4.9x. Below is captured the trend of the cash & cash equivalents and asset-to-equity ratio:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Updates:

2.2 Insights of 1QFY23: During 1QFY23, the company completed the surface exploration programs, and the underground extension drilling campaign was undertaken by the company. In 1QFY23, the company reported underground ore mined of ~55,218 tonnes compared to 52,763 tonnes in 4QFY22.

2.3 Operational Update: Halls Creek project’s operational review has been completed, and the capital development is to be suspended owing to improvement in market operating conditions.  

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 17, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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