PERTH (miningweekly.com) – Nickel miner Panoramic Resources has temporarily suspended operations at its Savannah project, in Western Australia, amid the Covid-19 outbreak.
The miner on Wednesday said that while there were currently no cases of Covid-19 reported at the Savannah nickel mine, the pandemic was adversely impacting the operation, including transportation, the availability and cost of personnel, equipment and supplies at site.
As a result, the company had taken the decision to temporarily halt operations at Savannah, telling shareholders that essential services, safety and environmental monitoring would continue, while the underground operations would cease in an orderly manner, and ore processing operations would be suspended by the end of this week.
“This has been a difficult decision to take but is unquestionably the right one for the current operating environment and Panoramic’s particular circumstances,” said MD and CEO Victor Rajasooriar.
“We believe that it will protect the welfare of our staff and contractors, and the surrounding communities, as well as target the preservation of shareholder value through these difficult times. We greatly appreciate the support of all our stakeholders through this period in what is an incredibly challenging environment for them also.”
Panoramic on Wednesday withdrew its production and cost guidance for 2020.
Meanwhile, the miner said that it remained in discussions with a number of parties around required funding.
Rajasooriar said that the temporary suspension of Savannah would result in the preservation of cash while the funding options were being progressed, with the company also reviewing its operating strategy to ensure that once a restart occurs, efficiency and profitability are optimised and a ‘robust and appropriate’ funding structure is in place.
The company’s shares will be suspended from trading until the review has been completed and a funding pathway has been finalised.