Panoramic Resources (ASX:PAN) has initiated a strategic review process to determine the future of its Savannah Nickel Project in Western Australia.
The $103.93 million market capitalisation company plans to assess the ongoing capital requirements of the project ‘in the context of the current and forecast nickel price environment’.
It comes as nickel prices continue to slip amid a weak demand outlook for the metal. As of 16 November 2023, nickel is trading at around US$17,250 per tonne — its lowest point since March 2022, as per Trading Economics.
In light of the tough nickel market, Panoramic has engaged boutique corporate advisory firm Treadstone Resources Partners to undertake the strategic review and explore various options for both the Savannah project.
Panoramic says this could include a partial or complete divestment of the asset, joint ventures (JVs), or other funding options or partnerships.
The company has engaged Australian law firm Gilbert + Tobin to assist with the strategic review.
The review follows the identification of a ‘broad, high-grade’ extension of mineralisation at Savannah below the 900 Fault, as reported by Panoramic in September this year.
This extension of mineralisation was uncovered from an underground drill and downhole electromagnetic survey (DHEM) survey campaign.
Panoramic Resources is headquartered in Perth, Western Australia, where its Savannah Project sits in the East Kimberley region.
Operations at the project were restarted in 2021, and it was recommissioned with the first concentrate shipment achieved in December of the same year. Savannah currently has a 12-year mine life with clear potential to further extend this through ongoing exploration.
Panoramic Resources had $42.6 million cash and cash equivalents at hand as of 30 September 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Panoramic Resources
