PAN 0.00% 3.5¢ panoramic resources limited

News: Panoramic Resources shares warmer as resources grow

  1. Shares in Panoramic Resources (ASX:PAN) have mounted a rebound this month since improving its global base metal inventory, including a major resource upgrade of the Savannah nickel mine in Western Australia.

    Panoramic shares bounced off a trading range in September near their year-to-date low of A$0.28 with the resource updates helping the company chart about a 28% gain since the start of October.

    Panoramic last closed at $0.365.

    This followed announcement of a 40% year-on-year increase in group nickel resources despite mining depletion at Savannah and the Lanfranchi nickel mine (also in WA).

    At Savannah, the company increased nickel resources by 54,400 tonnes to 183,200 tonnes of nickel, even though less than 30% of the potential mineralisation footprint at the Savannah North area had been tested by resource drilling.

    This is important as it indicates the potential to find other sources of mineralisation at Savannah, where both the upper and lower zones of the Savannah North area are open to the east and west.

    Meanwhile, global copper resources for FY2015 increased 99% compared to FY2014 to 68,300 tonnes. Cobalt resources were up 175% over the same period to 7,700 tonnes.

    The company streamlined its focus on these core base metal sectors last month with the sale of its 70% interest in the Mt Henry gold project in WA to Metals X Limited (ASX:MLX). A consideration of 22 million Metals X shares is to be shared proportionally with Mt Henry partner Matsa Resources (ASX:MAT), which agreed to offload its 30% stake in the same deal.

    Panoramic has been a consistent dividend payer and has paid out a total of $114.3 million in fully franked dividends since 2008. At the end of June, it had $54 million in cash and no bank debt.



    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

 
watchlist Created with Sketch. Add PAN (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.