PNR (ASX) Ann: AGM Presentation

Originally posted by speculator101: ↑

I won't take any credit, but... it would seem that someone at PNR is hoping to provide some breadcrumbs to those that look closely enough, that having Norseman back in production (profitably, albeit likely only just occurred) is just the beginning....

I like that they are better articulating how the issues they have faced directly affected profitability (but.... I guess I am asking to much for them to admit they should not have turned the plant on until perhaps 2-3 months ago... )

It has to be asked.... why did they ever decide to mine Green Lantern first, when Scotia has the higher grades.....?

The slight change in the details for the current debt is annoying, as.... there is no discussion about this in the quarterly... yet can it not be viewed as 'material' by the company and the ASX? First one is from the Capital raising presentation in August, yet the next one shows extra debt and a shorter timeframe for a first payment. My guess is the extra debt has simply been capitalized, which is fine, but... bringing the payment forward... I really hope PNR is looking to simply refinance the whole package, though simply being financially comfortable to pay the first payment amount is key.

If I put my logical hat on, the payments, over 3 years would be something like $5m AUD per quarter, which... should still be very achievable, albeit, it is clearly still a risk, unless we see an actual cash build in this quarter (could be only in December....). Risk/reward is still alive and well with PNR.

Interestingly, the contractor has enough staff for the U/G, but... still struggling to have experienced large open pit staff. Frustrating!

Onto... the upside.

Ok and Star are performing above expectations, which has already provided a increase in the reserve, which is great, but.... as I discussed in an earlier post, the mine plan is already changing (though this is the first tangible mention of such a change....) But as highlighted above, they already see opportunities to 'increase production' from what I assume is the suite of other U/G development ready deposits or....

They are basically admitting that not having access to Scotia ore (in quantity has put them in a fairly..... sh%t position). Though that seem pretty obvious considering what has occurred. The upside I mentioned.... yes, it looks like they are going to access U/G ore from Scotia earlier than planned.

Yet still have the benefit of the other section of Scotia high grade open pit. Below is just my guess, but... if the southern section is outperforming with grade, they are going to mine the hell out of it... and as a sort of benefit, it will enable earlier development of the U/G.
As they are saying that the Southern part of the pit is out performing, so.. they are going to mine the hell out of it over the next 18 months and as a 'bonus' of sorts, be in a position to develop a decline etc.

This will hopefully see Norseman plant receive even more U/G ore over time.

Nice to see they included the recovery rate

Strongly agree with this statement! Though of course.... if... things had gone differently, they would already be able to have proven through actual drilling that this was factually true.

PNR, if you can, fix this little bit up. Cheers.

Seriously.... this is the best slide. Just so much gold to be converted (not even discovered, just converted, yet alone new gold to be found.

I will respect the fact they are not exploring yet. As they are conserving cash, which is critical. Time enough to drill when they start making real profits.

Yet of course, the market only wants to know one thing... is production still increasing.... if so... just maybe PNR won't be a total disaster for most holders. Optimism is dangerous to have in this sector though!

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Hi Spec,

As always another good post from yourself … yes, it always pays to look closely at current reports and previous reports lol, following company presentations without question can be detrimental.

Just to add a little PNR are using 2 contractors, Hampton Mining for openpit and Westauz for underground operations so one faring better than the other.

Apart from the labour situation, Hampton was late receiving a new larger 200t Excavator and 150t truck fleet from Westrac due to supply chain issues so the initial mining was only smaller 125t exc and 90t trucks which are realistically 50% down on output. To add to the problems the blasting was poor which kills optimum production, hence the situation of delayed ore sources. Opposite to the mining plan Green Lantern provided earlier albeit lower grade but necessary ore sources for the mill … clearly difficult decisions for management to balance.

It does now appear to be somewhat back on track, the higher grades and lower stripping in Scotia South providing more high grade ore quicker and cheaper … it also provides a necessary safety net of surplus mined ore stocks. Based on my own numbers the stripping ratio for Scotia over the last 3 qtrs has reduced from approx 98 to 42 to 22, which is still very high, expecting something closer to 11 in the Dec Qtr. As a comparison PNR moved approx half the Waste of Red5 Koth Openpit last qtr which as you know is a much larger operation so looks positive to substantially reducing mining costs at Scotia as the pit develops.

As another comparison to Red5 Koth the underground development metres was greater so once again front ending a lot of costs at the smaller OK and SoE underground.

I have done a series of scenarios and anticipate 6500 - 6800 ozs in November based on 90,000t plant throughput.

Another couple of good qtrs the market may start to rerate PNR. Still can’t rule out a small raise prior to Christmas as a cash buffer for that period thou.

Talking about Christmas sold my 3c purchases which covered the family cruise costs so it’s PNR not P&O lol.