PERTH (miningweekly.com) – Nickel miner Panoramic has widened its losses for the 2015 financial year, as bottom-line figures were affected by lower production and declining revenues.
The company reported a net loss after tax of A$28.8-million, compared with a net loss of A$9.3-million in the 2014 financial year.
Nickel-in-concentrate production decreased by 13% during the year, to 19 301 t, generating revenue of A$199.7-million, compared with revenue of A$238.2-million reported in 2014.
“The 2015 financial year was a tough year that was certainly not anticipated. The rapid drop in the nickel price since November 2014, despite general consensus that the price would trade higher as Indonesian stockpiles of laterite ore in China were drawn down, impacted heavily on sales revenue,” said Panoramic MD Peter Harold.
“In addition, seismic activity at Lanfranchi in April affected production in the June quarter and further reduced revenue, which had a significant impact on the full-year results.”
Panoramic took the decision to suspend mining at the Deacon orebody, within the Lanfranchi operation, following the seismic activity, necessitating changes to the original Lanfranchi operating plan for 2016.
While it was still planned to access and drill the Lower Schmitz resource, further weakness in the nickel price could necessitate a further review of activities.
In the meantime, production from the Lanfranchi orebody would continue, along with development activities to access the Lower Schmitz. Subject to a resource and reserve being defined at Lower Schmitz, as well as a favourable nickel price and board decision to start mining, the ramp-up of production at Lower Schmitz could occur in the March 2016 quarter.
“On the positive side, Savannah achieved record nickel production and [Panoramic] released the maiden resource for Savannah North. Both are outstanding achievements and a great credit to the operations and geological team,” Harold said.
“The ramp-up in exploration activities in 2015 led to a significant increase in reported resources at Savannah, increased the potential strike extent of the Savannah North system to about 2 km and the discovery of the high-grade Lower Schmitz mineralisation at Lanfranchi.
“Our growing nickel resource base puts the company in a good position to leverage off improved commodity prices.”
The Savannah operation was expected to produce between 10 000 t and 10 500 t of nickel in concentrate during the 2016 financial year.