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PAN - Panoramic Resources

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I sold out of PAN not long after I bought on news of delays and cost overrun on their underground project. I understand that further delays were recently announced to the market. I'm holding WSA, IGO, SGQ, MCR and ARL. I've got an order in the market for some more WSA should the price pull back and fill that gap.
 
I still have a few in the bottom draw, from the last hoorah about 7 years ago.
I think they will be o.k, just have to get ahead of the debt curve, so production = money in the bank. I wont be adding, untill their income exceeds their outgoings.
I think MCR will be my nickel miner of choice, just dig and supply to nearby processor BHP, very little to go wrong. Just my opinion.
 
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tinhat said:
I sold out of PAN not long after I bought on news of delays and cost overrun on their underground project. I understand that further delays were recently announced to the market. I'm holding WSA, IGO, SGQ, MCR and ARL. I've got an order in the market for some more WSA should the price pull back and fill that gap.
Click to expand...

Tinhat have you looked at NIC the only independent nickel producer on the asx that’s not in your list.
 
Padowan said:
Tinhat have you looked at NIC the only independent nickel producer on the asx that’s not in your list.
Click to expand...

Hi Padowan, I've given NIC a miss because;

a) I'm not interested in the location of their operations, Indonesia. I worked for a brief while in Indonesia in the early '90s and I love the place and the people, but I had a disappointing experience with Finders Resources which developed a copper mine and electric winning plant in Indonesia and once it got established the Indonesians basically forced a hostile take-over. We shareholders weren't left with much choice but to sell. I made a decent return but it should have been a lot more. I am not saying that is going to happen to NIC, but for me, once bitten...

b) I've decided to stick to Nickel sulphate miners rather than Nickel laterite for the time being. Without actually knowing a lot about Nickel processing economics, it seems for the time being that Nickel sulphate suitable for the electric battery industry has a lower cost of production and higher value.
 
tinhat said:
Hi Padowan, I've given NIC a miss because;

a) I'm not interested in the location of their operations, Indonesia. I worked for a brief while in Indonesia in the early '90s and I love the place and the people, but I had a disappointing experience with Finders Resources which developed a copper mine and electric winning plant in Indonesia and once it got established the Indonesians basically forced a hostile take-over. We shareholders weren't left with much choice but to sell. I made a decent return but it should have been a lot more. I am not saying that is going to happen to NIC, but for me, once bitten...

b) I've decided to stick to Nickel sulphate miners rather than Nickel laterite for the time being. Without actually knowing a lot about Nickel processing economics, it seems for the time being that Nickel sulphate suitable for the electric battery industry has a lower cost of production and higher value.
Click to expand...

I agree with you Tinhat, I see overnight Indonesia has already started softening production quotas of unrefined nickel ore leading into the Dec 2019 ban, this will allow acceleration of stockpile builds over the next 4 months, LME nickel was off 3% on the news. nickel + Indonesia = volatility
 
As Tinhat said Padowan, sulphate is a better bet, due to demand for batteries which will happen regardless of economic outlooks.
That isn't the case for stainless steel, it is very linked to consumer spending, in an economic downturn stainless gets hammered.
Also as tinhat mentioned Indonesia is a difficult place to mine, they have already confirmed the banning of nickel exports from 2020, so it would be a brave person indeed to gamble on that not happening.
https://www.reuters.com/article/ind...es-nickel-ore-export-ban-decree-idUSL3N25W0VF

By the way, it is good to see a new member, hope you enjoy the forum don't be afraid to ask questions.:xyxthumbs
 
sptrawler said:
As Tinhat said Padowan, sulphate is a better bet, due to demand for batteries which will happen regardless of economic outlooks.
That isn't the case for stainless steel, it is very linked to consumer spending, in an economic downturn stainless gets hammered.
Also as tinhat mentioned Indonesia is a difficult place to mine, they have already confirmed the banning of nickel exports from 2020, so it would be a brave person indeed to gamble on that not happening.
https://www.reuters.com/article/ind...es-nickel-ore-export-ban-decree-idUSL3N25W0VF

By the way, it is good to see a new member, hope you enjoy the forum don't be afraid to ask questions.:xyxthumbs
Click to expand...

Thanks sptrawler. Members definitely make this forum very informative.
I’ve been spending my early time here trying to absorb a lot of information from past and ongoing threads.
I must admit I realise now that I know a bucket load less about the market/trading than what I thought I did when I joined, so don’t have a lot of value to contribute to the majority of threads I’ve been tracking.
I still have the aspiration to develop a mechanical trading system that beats the returns of my superannuation fund as a minimum that I have the confidence to trade
 
Padowan said:
Thanks sptrawler. Members definitely make this forum very informative.
I’ve been spending my early time here trying to absorb a lot of information from past and ongoing threads.
I must admit I realise now that I know a bucket load less about the market/trading than what I thought I did when I joined, so don’t have a lot of value to contribute to the majority of threads I’ve been tracking.
I still have the aspiration to develop a mechanical trading system that beats the returns of my superannuation fund as a minimum that I have the confidence to trade
Click to expand...
Never think you have nothing to contribute, everyone has some knowledge that others don't, that is why it is important to ask questions.
You will have answers to my questions and I will have answers to yours.:xyxthumbs
It is only when you think you have all the answers, that you learn nothing. IMO
 
IGO offer looks dead in the water. Quote below from latest IGO release.

“Any M&A must deliver a return to our shareholders. At announcement, IGO’s off market takeover bid for Panoramic, which was based on the public disclosure of the 2017 Savannah Project feasibility study, represented a potential “win win” for both IGO and Panoramic shareholders. The subsequent disclosures by Panoramic, including the operational update and need for additional funding have significantly eroded the value proposition for IGO and its shareholders. Consequently, we have decided to allow the Offer for Panoramic to lapse. This decision reflects our disciplined approach to M&A.”

I believe strongly that IGO will come back for PAN. I interpret that statement above to read 'we think PAN are going to mess up again, so we'll gamble and wait' There are few Nickel plays in Australia which near to production. Savannah is a good one, but PAN don't have a good track record.

In saying all that - Looks like PAN will have a good chuck of money in the bank for the short-term. I'll keep a good watch on them. I think at 33 cents it will drop down a little.
 
WOW, Panoramic hammered today down to 26cents, poor result, looks like they may need more money.
The IGO takeover looks like an opportunity lost ATM.
 
At sub 20 cents this is looking like a reasonable price. Except they keep moving the goal posts.

With a change of control being considered in the most recent press release and debt waivers being required it would appear PAN days are numbered. My guess is Zeta or WSA are going pick them up maybe black mountain?. IGO must have known exactly what was happening.
 
The Triangle said:
At sub 20 cents this is looking like a reasonable price. Except they keep moving the goal posts.

With a change of control being considered in the most recent press release and debt waivers being required it would appear PAN days are numbered. My guess is Zeta or WSA are going pick them up maybe black mountain?. IGO must have known exactly what was happening.
Click to expand...
They must be feeling the squeeze IMO. Hopefully they can get through to the new ore body.
Re reading my last post I forgot that IGO walked away from the deal, when I posted I made the mistake of thinking PAN had rejected an offer, my mistake.:oops:
 
PAN has come out with a Response to Media Speculation
"It remains in contact with third parties... nothing may come out of these talks ...."

Panoramic Resources could be back in play, as Andrew Forrest’s Squadron Resources builds a stake in the WA nickel miner. It is understood Squadron has been buying for the past few weeks, following the failure of Independence Group to get its $312m takeover offer over the line early this year, and is sitting just under the 5 per cent substantial shareholder notice.

Panoramic is believed to have had informal discussions with fellow nickel producer Western Areas since the IGO offer lapsed and its data room closed, but nothing firm has resulted.
Click to expand...
The iron ore billionaire’s move into Panoramic may be part of a broader play in the nickel sector, given Squadron and Forrest Family Investments also dropped about $8.7m on extending their position in Mincor Resources between December and February, increasing Mr Forrest’s stake in Mincor to 8.5 per cent, from 6.2 per cent previously.
Click to expand...
 
Dona Ferentes said:
PAN has come out with a Response to Media Speculation
"It remains in contact with third parties... nothing may come out of these talks ...."
Click to expand...
Expecting a premium for the asset could be a problem IMO, I can't see anyone offer much, in the current climate. Just my opinion.
 
@sptrawler wow thats a lot of shares issues.

upload_2020-6-3_4-58-18.png


and a lot of money raised. Is there trouble with their mines or are they expanding ?

Looking through some of the announcements my impression is that it doesn't look good for PAN but I must be missing something.

Not a very nice looking chart either

upload_2020-6-3_5-3-53.png
 

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