Panoramic Resources Announces Placement & Rights Issue, Shares trade lower on ASX

PAN

Panoramic Resources Limited (ASX: PAN) counter is seeing a busy day. The Company releases investor presentation, issues statement on capital raising and the shares are trading on ASX post-trade suspension lift.

More than 3 million shares of PAN have changed hands today ( as at 2:15 PM AEST, 11 March’19) after the trading suspension was lifted ;this comes on the back of the company announcing the details about its capital raising plans.

The company in its press statement has announced details regarding initial placement and underwritten rights issue. PAN has received firm commitments for a placement to institutional and sophisticated investors, of 13.16 million fully paid ordinary shares at an issue price of $0.38, to raise ~$5 million.

The company is also offering a rights issue to eligible shareholders. PAN is offering a fully underwritten pro-rata renounceable entitlement issue of one share for every thirteen shares held on the record date, i.e. Thursday, 21 March 2019, at an issue price of $0.38 per share of PAN to raise $14.84 million. Issue price is at a discount of 17.4% to the closing price of $0.46 on 5 March 2019.

PAN informed the exchange that Zeta Resources Limited (Zeta), has provided a partial commitment to the company to follow its Rights under the Entitlement Offer and provide general sub-underwriting in total amounting to $4.6 million. The offer is fully underwritten by Hartleys Limited.

The company will reportedly issue a second tranche placement to Zeta to raise ~$2.6 million by issuing up to 6.84 million new shares at an issue price of $0.38, to be scaled back so that Zeta’s voting power do not exceed 33.15% in the company.

The company’s presentation to the shareholders’ highlighted the details regarding the capital raised and the project status. The forecast mine production for Savannah Orebody stood at 1.68Mt @ 1.18% Ni for 19,800 Ni contained. The company started mining Savannah ore in December 2018. The Savannah North Orebody forecast mine production stood at 5.97Mt @ 1.49% Ni for 88,900t Ni contained, and the development of twin decline has commenced. The 900-metre ventilation shaft construction is in progress.  The company expects the first ore production to start in Q42019.

PAN presentation highlighted on the operational updates of Savannah Orebody. The long hole production drilling is exceeding the company’s forecast. However, the ore production ramp-up is slower than anticipated due to various reasons, delays in recruiting maintenance and operational personals, Mobile equipment availability, reduced number of available mining stopes, etc. The company stated that as part of its improvement plan, it is planning to achieve a steady state operation and maximise metallurgical recoveries, minimise ROM stocks to reduce oxidation.

On the concentrate shipping front, the company stated that first ship departed on 13 February 2019 for an estimated value of $8.6 million. The second ship is due to depart in late March and a nominated cargo size of 5,00-8,000 wmt. The company’s goal is to improve the performance of the Savannah mine and ensure the development across to the Savannah North orebody is achieved on time

Stock Information:

The shares of the company resumed trading on ASX today, post the trading halt (placed on 6 March’19).The stock has moved up by 26.03% YTD and is up by 17.95% and down by 2.13% in the past three months and one month respectively (Returns measured as on 05 March 2019).

The shares of PAN were trading at A$0.405 on ASX (as at Mon 11 Mar 19, 2:30 PM), down by 11.96%.

Panoramic Resources Limited’s (ASX: PAN) market capitalization stands at circa $227.4 million. The Stock has noted the 52-week high price of A$0.670 and 52-week low price of A$0.335. As per the latest ASX declaration the, company EPS stood at -0.032AUD.


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