Ann: Production at Norseman Increasing, page-27

BP analyst David Coates maybe giving a bit of comfort upgrading to buy. Their forecast in eps is 0.3 for this fy, 1.3 fy 25, and 1.7 cps FY26, and don't forecast another cap raise. Price target 5.2 cps.

"Uncertainty priced in September quarter 2023 production update PNR has released preliminary production figures for the September quarter 2023 of 13,168oz (vs BPe 12,757oz). Commentary states that mill head grades have improved, supported by both open-pit and underground operations. Open-pit mining production has begun to meet budgeted material movement rates and operational free cash flows should benefit from lower stripping ratios. Underground capital development is planned to be maintained, opening up additional production areas. PNR is targeting ore production from the OK underground mine of 16-20kt per month (48-60kt per quarter) which is consistent with our existing production assumptions for the balance of FY24. PNR is yet to report AllIn-Sustaining-Costs (AISC) for Norseman and this remains a key element of uncertainty. We estimate AISC for the September quarter of ~A$2,400/oz (with a wide margin for error) and PNR has not yet committed to reporting AISC. There was no production from the Nicolsons gold mine at the Halls Creek Operations, with it having been placed on care and maintenance during the June 2023 quarter. PNR is investigating its divestment options."