Panoramic Resources Limited (ASX: PAN) is into mining and exploration of base metals including nickel, copper etc. The company was established in 2001, with a high quality of expertise in nickel, copper and cobalt sulphide projects. It operated continuously for twelve years between 2004-2016 and has produced over 180,000 tonnes of nickel, 60,500 tonnes copper and 4,900 tonnes cobalt sulphide from its Savannah Nickel Project and Lanfranchi Nickel Project before it was sold to Black Mountain Metals LLC.
on 8 March 2019, Panoramic Resources Limited has requested a voluntary suspension on its securities pending an announcement by the company in relation to capital raising program. Further, the company anticipates that it will be able to position to lodge an announcement on the commencement of the normal trading on Monday, 11 March 2019.
In the December 2018 quarterly report, the company operations faced several challenges during including delays in recruiting various operational and maintenance staffs, availability of mobile equipment and damages arising from the storm that diverted resources away from operations to repair infrastructure and services.
The ramp-up of the mining and processing operations continued during January and February although at a slower rate than expected rate. The company implemented initiatives are to address productivity predominantly in mining and decline development. It had also achieved a significant project milestone when it achieved the first shipment of concentrate during mid-February.
The company reported a net profit after tax from ordinary activities of $21.56 million for the first half of FY2019, compared to the previous corresponding half-year net loss of $5.3 million driven by the increase of a $19.2 million non-cash impairment reversal to the carrying value of the Savannah Project because of the re-commencement of operations during the period. Additionally, the company recognised a $1.3 million gain on the sale of the Lanfranchi Project, after its completion in December 2018.
The net cash outflow from investing activities stood at $22.4 million which included $31.7 million on Savannah pre-production costs, $4.1 million on exploration and evaluation expenditure across the projects of the group ($2.5 million at Gum Creek) and offset from $13.2 million (after costs) received from the sale of the Lanfranchi Project to an Australian subsidiary of US Texas-based Black Mountain Metals LLC. The remaining $1.6 million yet to be received from the Lanfranchi sale expected during 2021, has been recognised as a non-current asset.
Going forward, the company will continue its efforts in increasing production from the Savannah orebody, and the company will also focus on its operations on the development across to the Savannah North orebody and the raise-boring of the ventilation shaft. These activities are crucial to the timely ramp-up of production from Savannah North, which is scheduled for late CY2019.
On the price-performance front, the stock of Panoramic Resources Limited last traded at $0.460 with a market capitalisation of $227.48 million. The stock has generated a YTD return of 26.03% and a return of ~17.95% in the past three months. It had a 52-week high price of $0.670 with an average trading volume of 298,759.
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