The Pantoro Gold Ltd (ASX: PNR) share price is under pressure today after the company released its December 2025 quarterly report.
The Pantoro share price is down 10% to $5.22 in early afternoon trade, despite the gold producer delivering another strong operational quarter.
Zooming out, Pantoro shares are still up more than 200% over the past 12 months. That rally has been driven by a higher gold price and a sharp turnaround in operational performance.
So, what did Pantoro report?
Another strong quarter on paper
Pantoro produced 22,071 ounces of gold during the December quarter, broadly in line with recent run rates. Gold sales totalled 22,473 ounces at an average realised price of $6,077 per ounce, reflecting the strength in the local gold price.
Importantly, costs remained under control. All-in sustaining costs (AISC) came in at $2,571 per ounce, helping Pantoro generate EBITDA of $83.6 million for the quarter.
Cash generation was equally impressive. The company reported operating cash flow of $39.2 million. As a result, Pantoro's cash and gold balance increased by $35 million to $216.5 million at 31 December.
Operations continue to improve
The Scotia underground mine produced 7,869 ounces at an average grade of 3 grams per tonne. Development is moving into higher grade northern zones, which Pantoro expects to become a key source of ore in the coming months.
At the OK underground mine, production reached 7,081 ounces at a stronger grade of 4.31 grams per tonne. Open pit mining at Princess Royal and Gladstone also continued, with first ore from Gladstone expected by the end of the March quarter.
Drilling results were encouraging, particularly at Mainfield and Crown South Reef, supporting Pantoro's longer-term growth plans.
Why are Pantoro shares falling then?
Despite the solid numbers, Pantoro flagged that FY 2026 production is now expected to come in at the lower end of its 100,000 to 110,000 ounce guidance range.
After a huge share price run over the past year, that softer outlook may have been enough to trigger profit taking. With gold stocks having rallied hard, the market appears to be demanding continued upside surprises.
Foolish Takeaway
Pantoro's quarterly report highlights strong cash flow, a robust balance sheet, and ongoing operational and asset base improvements.
While the share price reaction looks negative today, the underlying business remains well-positioned if gold prices stay supportive. Investors will be watching whether Pantoro can convert its strong cash generation into consistent production growth.
