Posted on 10 Jan 2024
Panoramic Resources will suspend its Savannah nickel project operations in the Kimberley region of northern Western Australia amid low nickel prices, Kallanish reports.
The administrators of the Australian miner said Monday that whilst operations have continued, including a shipment of approximately 10,000 tonnes of nickel concentrate on 3 January 2024, nickel prices have continued to trend lower.
After further engagement with major creditors, key suppliers and other stakeholders, the administrators determined that operations at the Savannah nickel project will be suspended “over the coming days.”
The decision will mean the majority of the roughly 140 Panoramic staff on-site at the project will be stood down and made redundant, some with immediate effect.
“While it was our intention to continue to trade-on the Savannah Nickel Project and preserve the employment of the operating team as we explored opportunities for a sale or recapitalisation of Panoramic Resources’ business, after consultation with major creditors and key suppliers it is apparent that the prospect of achieving a near-term turnaround of operations and finances is low,” explains administrator and FTI Consulting senior managing director Daniel Woodhouse.
To maintain operations would have required near-term funding during the sale/recapitalisation process, which the administrators found to be unfeasible.
“The administrators, with assistance from Treadstone Resource Partners, will continue a dual-track strategy to sell or recapitalise the Panoramic business. This process will continue regardless of the Savannah nickel project’s operating status and look to realise the full value of the defined ore bodies, extensive infrastructure, and exploration potential of the project,” Woodhouse adds.
FTI Consulting has yet to provide details on potential investors or current asset value.
Panoramic and its subsidiaries PAN Transport and Savannah Nickel Mines entered voluntary administration last month, following a strategic review in November 2023.
The Savannah project has a throughput capacity of 750,000 tonnes/year, able to produce nickel, copper and cobalt concentrate. The operations had been restarted in 2021, following a suspension in April 2020 amid the impact of the global pandemic and the falling nickel price.
Source:Kallanish
