PERTH (miningweekly.com) – Nickel miner Panoramic Resources has narrowed its loss during the full year ended June, as the company increased its output to take advantage of higher nickel prices.
During the 2014 financial year, Panoramic reported a net loss of A$9.3-million, compared with the net loss of A$31.7-million reported in 2013. For the half-year ended June, Panoramic reported a net profit of A$14-million.
Production during the financial year under review reached record highs, at 22 256 t of nickel in concentrate, up 13% on the previous financial year, which, in turn, saw revenue increase by 31% to A$283.2-million.
The revenue increase reflected not only the higher nickel sales, but also the stronger nickel price, Panoramic told shareholders.
“The record full-year production performance was an outstanding achievement and a great credit to the teams at both of our mines,” said Panoramic MD Peter Harold.
“The strong production together with the continued focus on cost control and the nickel price appreciation, post the Indonesian ban on nickel ore exports, allowed the company to generate strong cash flows and record a profit in the second half of the year.”
The Savannah nickel project, in Western Australia, produced 117 122 t of concentrate during the full year, containing 8 481 t of nickel, 5 439 t of copper and 426 t of cobalt.
The Lanfranchi nickel project, also in Western Australia, produced 13 775 t of nickel.
Harold said the ramp-up in nickel exploration at both project sites had already resulted in major success with the discovery of the Savannah North deposit, while the farm-out of the platinum group metals (PGM) project, in Canada, freed up additional funds to invest into the company’s nickel division, to ensure that Panoramic was sustainable going forward.
In July this year, Panoramic signed a consolidation agreement with the Canadian exploration arm of mining major Rio Tinto over PGM assets, in Ontario. The consolidation would include Panoramic’s Thunder Bay North project, and Rio’s Escape Lake project, which is surrounded on all sides by the Thunder Bay project.
Looking ahead, Panoramic expected to produce between 20 000 t and 21 000 t of nickel in concentrate during 2015.