Panoramic feels pinch of nickel price dip
Panoramic Resources last night joined peer Western Areas in acknowledging a persistently weak nickel price meant some of its assets values had to be slashed.
Panoramic's full-year financial results guidance included the forecast of a $10 million writedown of the carrying value of Lanfranchi, one of the company's two underground nickel mines.
The impairment charge is expected to help Panoramic report a $37 million loss for the year to June 30, the company said.
"The lower nickel price forecast has reduced the recoverable net present value cash flow from future mining (at Lanfranchi)," it said.
Panoramic shares had earlier closed down 1 cent at 25.5 cents.
Panoramic booked a $7.2 million impairment charge in 2011-12, contributing to an $18.2 million loss.
This year's bigger impairment comes a day after industry leader Western Areas flagged it would take a hit of up to $100 million as part of a writedown of past exploration and its undeveloped Diggers South nickel project, adding to the widespread gloom among WA gold miners as they deal with the reality of weak commodity prices.
