Pantoro (ASX:PNR) is expected to be susceptible to a potential takeover as the company attempts to regain market trust over the next six to 12 months after its June quarter production missed expectations, Euroz Hartleys said in a Friday note.
The quarterly gold production of 18,028 ounces trailed the investment firm's estimate of 24,000 ounces and brought fiscal year 2026 production to 77,408 ounces. The full-year result missed the company's downgraded guidance of 86,000 to 96,000 ounces.
"We doubt the market will believe that this is the final reset for [Pantoro] until numerous quarters of guidance is achieved," the equity research firm said.
It flagged Ora Banda Mining (ASX:OBM), Bellevue Gold (ASX:BGL), Catalyst Metals (ASX:CYL), Gold Fields, Regis Resources (ASX:RRL), and Capricorn Metals (ASX:CMM) as parties that could be interested in Pantoro, noting that some of those potential bidders are trading at large premiums to Pantoro's roughly AU$800 million market cap.
Euroz Hartleys lowered its fiscal year 2027 production forecast for Pantoro to 93,000 ounces at an all-in sustaining cost of AU$3,102 per ounce from a previous estimate of 103,000 ounces at AU$2,850 per ounce.
It maintained a speculative buy recommendation on Pantoro while reducing the target price to AU$3.53 per share from AU$6.52.
The company's shares advanced 6% in recent Friday trade as the broader materials sector also gained.