Nov 14 (Reuters) – Metals miner Panoramic Resources Ltd said on Thursday that production at its key Savannah nickel project would fall short of guidance for fiscal 2020, prompting its shares to post their biggest drop in nearly four years.
The miner, which is the subject of a A$312 million ($213.88 million) offer from larger peer Independence Group Ltd, said it had commenced an operational review of Savannah, and that it may need to raise more funds to maintain working capital.
Panoramic said Savannah was underperforming due to issues with the underground paste filing system, as well as equipment unavailability, and said short-term performance at the mine would remain below previous forecasts.
In September, the miner had forecast 2020 nickel production of 9,500 tonnes to 10,000 tonnes in concentrate from Savannah.
Panoramic’s stock plunged up to 28.7% to A$0.310, compared with a 0.3% rise in the Australian benchmark index.
Recently, Panoramic’s top shareholder, investment fund Zeta Resources Ltd, had rejected the Independence offer on the grounds of it being “opportunistic”. ($1 = 1.4588 Australian dollars) (Reporting by Ambar Warrick in Bengaluru; Editing by Muralikumar Anantharaman)