Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Panoramic Resources halts operations at Savannah nickel mine amid price drop

EditorLina Guerrero
Published 01/08/2024, 08:40 PM
Updated 01/08/2024, 08:40 PM

PERTH - Panoramic Resources has halted operations at its Savannah nickel mine located in Western Australia, leading to job losses for approximately 140 workers. This decision comes as the company grapples with the sustained downturn in metal prices, which has eroded the mine's profitability.

FTI Consulting (NYSE:FCN), which assumed the role of administrator for Panoramic Resources in December, managed the mine's last shipment of nickel concentrate prior to the suspension.

The global nickel market is currently experiencing a surplus, largely due to increased production in Indonesia, which has further diminished the likelihood of a near-term recovery for the nickel industry.

In response to these challenging market conditions, Panoramic is actively seeking solutions to preserve its financial health. With the guidance of Treadstone Resource Partners, the company is considering various strategic alternatives, including the potential sale of its assets or a recapitalization effort.

These measures are aimed at navigating the current economic climate and securing a more stable future for the mining firm.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.