Panoramic Resources (ASX: PAN) has launched a strategic review of its flagship Savannah nickel project, in the Kimberley region of Western Australia, amid weak battery metal prices.
The company said it was open to the asset’s total or partial sale, as nickel prices have fallen about one-third since the beginning of the year and they are expected to remain depressed.
The review, Panoramic said, will assess ongoing capital requirements in the context of the current nickel market environment. It will also evaluate funding options, including proposals from third parties.
Treadstone Resource Partners will conduct the strategic review and explore various options for both the company and its Savannah asset, Panoramic said.
The East Kimberley-based nickel project was commissioned in 2004 and produced until 2016, when it was placed on care and maintenance.
Panoramic brought Savannah back online two years later, but the mine halted in 2020 due to the coronavirus pandemic.
Operations at Savannah recommenced in 2021, following a rigorous technical and commercial assessment that gave the asset an estimated 12-year productive life.
Mining is largely focused on the Savannah North deposit with some operations also continuing in the original Savannah deposit.
Underground mining is conducted by contractor Barminco using mechanized, top-down long-hole open stoping and paste backfill methods.
Panoramic has also applied tele-remote mining to improve efficiency and safety outcomes.
Globally, refined nickel production is forecast to rise to 99,800 tonnes by 2025, from 83,400 tones in 2022, according to Shanghai Metals Market.
Nickel has traditionally been used in stainless steel but demand from the battery sector has soared as adoption of electric vehicles is on its way up.
