Page 80 - pd309-Oct22-mag-web-Neat

nIcKeL PReVIeW

Panoramic picks up

the pace

anoramic Resources Ltd managing di- “With Savannah North opening up, it’s
Prector Victor Rajasooriar expects the going to be much easier to get the ore out.
ramp up to steady-state production from the The remnants are also behaving so that’s
Savannah nickel mine will be just as seam- not going to be too much of an issue and we
less as last year’s operational restart. are actually now drilling at the bottom part of Victor Rajasooriar
Since producing the first batch of concen- the old Savannah mine, which looks like it’s
trate from the refurbished 1 mtpa process- going to provide some ore in the short term.
ing plant at Savannah almost 12 months “By having those three sources, I think cause it opens up lots of other opportuni-
ago, Panoramic has waved goodbye to five we will be able to deliver. Mining always has ties. Our concentrate is clean, Trafigura can
shipments and now has its sights set on its little challenges here and there – stope blend it with other products and potentially
ramping up operations to full capacity by the bridging or something temporarily failing – market a larger product to a customer. They
end of FY2023. but having those three areas will give us the are also actively involved in the battery
Despite milled ore falling 15% in the June flexibility to deliver into the mine plan. space with car manufacturers and they’re a
quarter due to power interruptions and a “When I look back at the last [financial] good supporter of future-facing metals, so
planned shutdown, Panoramic still churned year and the ramp up that we went through it’s a small step for us in this larger picture
out a healthy 14,070t of concentrate contain- there, the major thing that interfered with de- that is evolving around the EV space.
ing 1,009t nickel, 547t copper and 71t cobalt livering to the plan was actually people. We “It’s only the start of the relationship, but
for the reporting period. had a lack of labour on site, but everything it’s a good relationship and one we think will
Panoramic has guided production of else was there.” be there for a very long time.”
6,600-7,100t nickel, 4,100-4,500t copper Rajasooriar said the company, as well as Rajasooriar said the company’s relation-
and 400-500t cobalt at C1 costs of $7.30- mining contractor Barminco and processing ship with new major shareholder IGO Ltd
8.30/lb payable nickel for FY2023 with contractor Primero, were now fully staffed had also started on a positive note. The Pe-
output expected to improve on a quarter- and applications were still being received ter Bradford-led company now holds a 21%
by-quarter basis. Ore will be a blend of rem- from people interested in working at Savan- stake in Panoramic following its takeover of
nants from the original Savannah mine and nah, about 110k north of Halls Creek in the rival nickel miner Western Areas earlier this
the new Savannah North development, with East Kimberley. year.
the latter expected to account for 62% of the Panoramic recently began to draw down IGO previously made a play for Pano-
total feed. its $US15 million revolving credit facility with ramic when Rajasooriar took the reins of the
Given the initial restart largely followed the Trafigura Group Pte Ltd to assist with the on- company in late 2019, but it appears past
going ramp-up, especially with history is all but a distant memory, at least
the provisional payment from for now.
the last shipment delayed. “We are looking at growth opportunities
The draw down was original- and from the shareholder meetings we’ve
ly slated for August 2021, but had with IGO, I think they’ll be a supportive
consistently high commodity shareholder,” Rajasooriar said.
prices since the restart of op- “If we do really well, we grow the com-
erations at Savannah afforded pany, our largest shareholder is going to
Panoramic the luxury of hold- benefit from that. So, at the end of the day,
ing off until now. you’re all in the same game, we just have to
Trafigura will also start taking operate safely.”
its first batches of concentrate Just as it has done with the mining and
from Savannah early next year processing at Savannah over the past 18
as per the offtake and financing months, Panoramic is slowly ramping up
agreement, including a $US30 its focus on exploration. Drilling to date has
million five-year prepayment largely targeted near-mine underground op-
loan, to support the operational portunities.
restart. “We’ve gone from one drill rig to two drill
“Finally, we’ll be delivering rigs, so that’s a first step,” Rajasooriar said.
Panoramic is ramping up production at Savannah “I think we’ll still stick to two rigs for next
the product to the people who
actually lent us the funds,” Ra- year before we actually go aggressively, be-
jasooriar said. cause at the end of the day, the mine is still
script, Rajasooriar said there was no reason “Trafigura have never taken any concen- the major focus. But, if you get a good target
to suggest the ramp-up would not follow suit. trate from us in the last 20 years, although and if you hit something, then it’s game on.”
“If you look at what the site has done in they’ve tried many times so this will be the – Michael Washbourne
July and August, the physicals the mine first time they’re going to get their hands on
has delivered, on paper it looks like it’s very it.
much on track,” he told Paydirt. “It will be an exciting moment for us be-

Page 80 OCTOBeR 2022 aUSTRaLIa’S PaYDIRT