Hey Cashed, I am more in your camp, albeit I would really like...

Hey Cashed, I am more in your camp, albeit I would really like to see exploration ramped up before any real move to increase the plant throughput. As a 3rd source of U/G ore is for me, far more important than having the plant throughput increased in the near term, especially when most of the open pits PNR have early in their production plans are relatively small.

From the presentation, here are the key changes from Feb.
Guidance for FY25. I am surprised they are being so optimistic, when they have underpeformed for so long... Surely Paul has looked across the sector and realized that the market is only impressed with understating and overdelivering, not the other way around. Though I do think they can easily achieve this guidance as long as the contractors perform even close to the March 2024 rates.

So so so pleased to see they are finally going to re-start exploration, with the specific focus of brining online another U/G mine (which could see the need for upgrading the plant as somewhat redundant in the near term, because 150k p.a could easily be achieved if the average grade is increased).



Then you have the change in shareholdings. Tulla did not particpate in the last raising, whilst Regal and Franklin did (to be clear in some ways, PNR is very strongly held by management, i.e the Tulla holdings, BUT... not by the other directors.





However, PNR does seem to be saying that the increase in plant throughout is NOT actually the main focus in the near term (which is good).
It's very hard to see what I have highlighted -




This is a really interesting slide. Firstly, it shows they have $50m in cash...
The last graph is the most interesting though, showing the huge amount of sunken capital to get to this point that an acquirer gets.... with production just hitting commercial production.



Suffice to say, PNR is damn cheap if it can hit it's FY25 guidance..... I mean, having Calidus valued more highly is truly a sign that PNR have a lot to improve on... which should be achievable.



Then you have unofficial guidance of 25k ounces for the June Q.



I mean, if that is really the case, why did Paul not simply put it front and centre on the presentation (or the quarterly)....

Then you have a the slight change in wording, to now be a bit more flexible regarding when the open pit mining might finish, I am hopeful that this will see them further mine Green Lantern, to basically ensure they have even more stockpiles and more redundancy in their mine plan.
I don't think the market believes that PNR is basically going to have enough stockpiles for for almost 2 years, but once PNR prove they have it, then the understanding will follow that this will ensure PNR enjoys a much more reliable and profitable production rates.




More on Scotia U/G.... slight slip with the initial start of excavation, however the rest of the timeline is the same, another slight change in wording, and suddenly, Scotia U/G has potential to be expanded (my guess over the medium term, but... again, this could be a very important improvement, perhaps closer to 600ktpa, which would see them be able to mine closer to 80-87,000 ounces p.a).




Then you have OK/Star looking good for a lot longer than the initial 3-4 years of reserves it currently has.



Getting more clarity on the future potential open pits is a nice addition to the presentation.
Though I need the strip ratio to have any real context (they include it for Cobbler... on the next slide).
In saying that, Gladstone looks like a very logical place to replicate what they are doing at Scotia, do the open pit, then go U/G.
72,000 ounces is basically 2 years of mill feed (open pit) for the plant, which even at higher strip ratios, is going to be very profitable, BUTTT.... they had better grade control the hell out of it this time).



I am not overly excited about Cobbler, I sort of wonder if Green Lantern Stage 2 would offer the same results....


This sums up very nicely just how underexplored Norseman is... they have too many targets! And this is like 1% of their tenemenets.



In summary, yep, PNR is starting to come out of it's shell, though it must must must back it up with a better quarter with cash generation, otherwise.... all of this is just talk and PNR has over promised for a lonnnnggg time.