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Panoramic warns of loss in 2013

2nd August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Nickel miner Panoramic Resources has warned shareholders that the company would report an after tax loss of A$37-million for the full 2013.

This was compared with an after tax loss of A$18.2-million in 2012.

The company said that the widening loss reflected the adverse impact on sales revenue from the continued weakness of the nickel price, as well as the strength of the Australian dollar against its US counterpart.

In Australian dollar terms, the full-year average nickel price was 15% lower than in the previous financial year.

The 2013 financial results were also expected to include an impairment of A$10-million against the carrying value of the Lanfranchi nickel operation, as a result of the low nickel price and the lower near-term nickel price forecast.

Panoramic said that by the end of June, the lower nickel price forecast had recued the recoverable net present value cash flow from future mining to below the carrying value of Lanfranchi’s mine asset.

Earlier this month, Panoramic increased its production forecast for 2014 after setting a new quarterly production record and exceeding its 2013 production expectations. The miner had now upped its 2014 production forecast from between 19 000 t and 20 000 t, to between 20 000 t and 21 000 t.

Edited by Creamer Media Reporter

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