PERTH (miningweekly.com) – Nickel miner Panoramic Resources has narrowed its net loss after tax for the full year ended June, from A$144.3-million in 2016, to A$4.7-million, despite a tough operational year.
Panoramic on Thursday reported an impairment loss reversal of A$9.2-million as part of the initial public offering of Horizon Gold, which was spun-out in 2016.
However, net revenue declined from A$92.1-million in 2016 to A$9-million, as operations were suspended at the Savannah and Lanfranchi project.
During the full year under review, some 10 719 t of concentrate, containing 929 t of nickel, 520 t of copper and 44 t of cobalt were sold from the Savannah operations, sourced from concentrate that had remained unsold at the end of the previous financial year.
Panoramic in July released a project feasibility study on the optimisation of the Savannah project, based on an improved mine plan, higher grade ore, lower input costs and metallurgical performance.
Compared with a February feasibility study (FS), the optimised study decreased C1 cash costs from $2/lb to $1.40/lb nickel in concentrate, while operating costs have decreased from $4.50/lb to $3.10/lb of nickel.
The optimised FS also expected nickel production to increase from the previously estimated 9 700 t/y to 11 000 t/y, while copper production will increase from 5 000 t/y to 5 800 t/y and cobalt production for 670 t/y to 760 t/y.
However, the project’s mine life has also decreased from the initially estimated 10.25 years to 8.5 years, while revenue expectations have decreased from $1.5-billion to A$1.2-billion.
Panoramic said further productivity improvements were being pursued to target further cost reductions at Savannah.