Gold is currently over $2,000 an ounce in Australian dollars.
That’s high. In fact, gold’s bullish run this year has taken it into record highs. Many gold stocks have soared this year.
However, you always have to keep an eye on individual risks with any stock.
Gold miner Pantoro Limited [ASX:PNR] is a good example of that. It’s fallen 20% in the opening hours of today’s trade.
Read on as to why…
Who is Pantoro?
Pantoro is an Australian gold miner based in Western Australia. Its major operation is the Halls Creek Gold Project.
Over the last few years, Pantoro has been working to take this mine to 80,000-100,000 ounces in annual production.
Pantoro hit 12,657 ounces during the last quarter of 2018.
It hit 11,280 ounces in the first quarter of 2019. It also managed to reduce costs at the time.
With gold prices remaining strong, it’s fair to say the market expected the company to release another positive announcement this month.
Pantoro’s price increased from $0.165 on 19 June to $0.21 on 5 July.
That’s an increase of nearly 30%.
Then came today’s update…
Bad news: Production goes down
The Great Mining Collision
A huge ‘technological convergence’ is revolutionising mining operations all over the world. And a few key Australia-listed mining giants are playing a key role. Free report explains all. Plus, get a free subscription to Australia’s newest, most forward-looking daily investment email, Profit Watch. Enter your email address below and click ‘Send Me My FREE Report’.
In today’s announcement, Pantoro said it produced 9,557 ounces in the quarter just gone.
You can see that’s weaker than the previous two. It also means the company hasn’t been able to take advantage of the current high price of gold as much as possible — hence the selldown.
There was little reason to suspect Pantoro would have a dud quarter previous to this announcement. Sometimes that’s just the way it goes in the market.
Pantoro remains an interesting small gold stock. But it will likely take some time for it to shrug off this disappointing news.
This article is not a recommendation to buy or sell Pantoro. It’s an update only.