Panoramic's Savannah Nickel Operations Reach Highest Production Point Since Restart

Panoramic Resources (ASX: PAN) disclosed robust improvements in various operational aspects for the September 2023 quarter, attributing these positive results to the repair of the filter head press at its Savannah nickel operations located in Australia. These achievements reflect a significant milestone in the company's journey to enhance its mining and processing capabilities.

The company proudly announced that both mining and processing activities in this quarter reached their highest levels since the operations were reinstated in 2021. In particular, concentrate production experienced a notable upsurge, increasing by an impressive 56% to 23,411 dry metric tonnes (dmt). This increase in production also had a cascading effect on metal production, with nickel production rising by 56% to reach 1,684 tonnes, copper production increasing by 42% to 932 tonnes, and cobalt production witnessing a substantial surge of 76%, resulting in a total of 135 tonnes.

Panoramic further highlighted that unit cost performance for this quarter demonstrated significant improvements across various key metrics, including C1, AISC, and AIC. These advancements can be attributed to the resurgence in production levels that followed the resumption of normal operations in early July.

A noteworthy achievement in this context is the observation that the C1 costs for the September quarter are currently aligning with the FY24 guidance range of A$10.05 to $11.25 per pound. This alignment is a clear testament to the enhanced operational performance realized since the full resumption of processing operations. It is noteworthy that the FY24 guidance remains unchanged, reinforcing the company's commitment to maintaining this positive trajectory.

Victor Rajasooriar, the Managing Director and CEO of Panoramic Resources, expressed his satisfaction with the strong start to FY24. He acknowledged the broad-based improvement in operational performance, highlighting the achievement of concentrate production levels not seen since the Savannah operations were reinstated in 2021. Moreover, he emphasized that this progress did not come at the expense of safety, as the company's safety performance continued to improve during this period.

Rajasooriar extended his gratitude to the dedicated team that worked tirelessly to realign the Savannah operations and expressed appreciation for the steadfast support received from investors during the capital raising activities conducted in the quarter.

Panoramic Resources, headquartered in Perth, Western Australia, is the owner of the Savannah nickel project located in the East Kimberley region. The Savannah project was reactivated in 2021, successfully recommissioned, and achieved its first concentrate shipment in December of the same year.

Savannah boasts a 12-year mine life, with promising potential for further extensions through ongoing exploration activities. This signifies the company's commitment to long-term sustainability and growth in the nickel mining sector.