29/08/2008 - 09:20

Panoramic books 40% fall in FY earnings

29/08/2008 - 09:20

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Panoramic Resources Ltd has followed the trend of its fellow nickel miners, today posting a 40 per cent fall in full year net profit to $53.3 million on the back of lower commodity prices and higher operating costs.

Panoramic books 40% fall in FY earnings

Panoramic Resources Ltd has followed the trend of its fellow nickel miners, today posting a 40 per cent fall in full year net profit to $53.3 million on the back of lower commodity prices and higher operating costs.

Net profit after tax fell from last year's record of $88.1 million and was short of previous guidance given by the company of about $60 million.

Today Panoramic, formerly Sally Malay Mining, said there were significant adjustments made to the preliminary forecast including a $3 million after tax net sales revenue reduction.

The company said the fall in net profit was on the back of a falling spot nickel price, which fell 17 per cent over the year to an average realised price of $A13.26 per pound of payable nickel.

As a result the average operating cash surplus was lower at $7.35/lb, down from the previous year's $10.78/lb.

Those results came despite a 13 per increase in group nickel production to a record 14,883 tonnes.

Total revenue for the reporting period was down from $302.3 million to $238.4 million and net cash flow from operations fell from $165.7 million to $51.9 million.

The directors have declared a dividend of 12 cents per share.

Panoramic's financial results follow the trend of other Perth-based nickel miners, with Minara Resources Ltd reporting an 80 per cent fall in half-year net profit and Mincor Resources Ltd recording a 36 per cent drop in full year net profit.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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