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Mining Weekly reported that Panoramic Resources Ltd. (ASX:PAN) saw its share price fall over 30 percent after announcing that it will place its Western Australia-based Savannah operation on care and maintenance.
Mining Weekly reported that Panoramic Resources Ltd. (ASX:PAN) saw its share price fall over 30 percent after announcing that it will place its Western Australia-based Savannah operation on care and maintenance.
As quoted in the market news:
Panoramic blamed the continued decline in the US nickel price and the uncertain outlook for the price over the foreseeable future. Panoramic said the price outlook had necessitated a review of its activities at both the Savannah operation and the Perth head office.
Following the review, the Panoramic board believed that it was in the best interest of shareholders to place the Savannah operation onto care and maintenance over the coming months, in the hopes of preserving the remaining resource.
It was envisaged that the operation could restart when nickel prices returned to a more sustainable level, where the mining of the Savannah orebody, most likely in conjunction with the development of the Savannah North project, would provide an “acceptable” return.
As a result of the decision to suspend operations at Savannah, about 50 employees would be made redundant at the mine over the coming months.