PERTH (miningweekly.com) – Nickel miner Panoramic Resources on Monday announced an on-market share buy-back as part of its efforts to increase share value.
The ASX-listed company told shareholders that it would buy-back some 15.96-million shares over the next 12 months, and would cancel these shares once acquired.
The Panoramic board believed that the company’s shares were trading at a level which ‘significantly undervalued’ the company’s assets, and the proposed buy-back was aimed at consolidating Panoramic’s capital base.
The company’s shares were trading at around 37c a share on Monday.
The nickel miner in November announced that it would start the development of the Jury-Metcalfe decline, at its Lanfranchi operation, in Western Australia, following an amendment of the existing toll treatment and concentrate purchase agreement with mining major BHP Billiton.
The company started the six- to nine-month predevelopment activities at the Jury-Metcalfe resource, developing a decline that would allow Panoramic access to the orebody and exploration drill platforms to continue further exploration of the area.
The decision to start production from the Jury-Metcalfe orebody would be dependent on the prevailing and forecast nickel prices during the June 2015 quarter.