Mincor Resources has reported a half-year net loss of $34.7 million while fellow nickel miner Panoramic Resources has cut its directors’ fees and board size to further slash costs.
Mincor Resources has reported a half-year net loss of $34.7 million while fellow nickel miner Panoramic Resources has cut its directors’ fees and board size to further slash costs.
Panoramic, which last month began winding down operations at its Savannah nickel mine in the Kimberley, told the market this morning that non-executive director Chris Langdon would retire at the end of June after 12 years with the company.
“Chris has been with the company since the financing and ramp-up of the Savannah project during 2004 and has played an integral role in steering the company through its growth phase, including the acquisition of Lanfranchi and the gold and PGE assets and through the turbulent periods of the GFC and the commodity price slump we are experiencing at present,” the company said in a statement.
“The board would like to thank Chris for his contribution over the past 12 years.”
Panoramic also said the board had reviewed directors’ fees and from next month would be reduced by about 35 per cent.
Chairman Brian Phillips’ annual salary will be reduced from $140,000 to $90,000, while remaining non-executive directors will see their salary fall from $100,000 to $65,000.
Panoramic said executive salaries would be reviewed once the Savannah project had moved onto care and maintenance in April.
Panoramic announced last month it had cut 50 jobs and would be mothballing Savannah, with a significant portion of the company’s workforce at the mine and its Perth office to be made redundant, in response to the depressed nickel market.
Meanwhile, Mincor has reported a widened net loss of $34.7 million for the six months to December, but said the result was mitigated by the decision to put its Kambalda nickel mines on care and maintenance last month.
The result included depreciation and amortisation charges of $9.4 million, asset impairments of $13.9 million, and redundancy and writedown costs of $3.4 million.
Outgoing managing director David Moore said the wind-down of Mincor’s Miitel and Mariners nickel mines was now largely complete, with both mines expected to be fully secured by mid-March.
“The care and maintenance program has been implemented swiftly, efficiently and safely, despite the obvious challenges involved, and the operations have been secured for the future,” Mr Moore said.
“While this has been a difficult period, it was vitally important that we acted quickly to preserve the value of our resource base and underlying assets.
“Mincor is gearing up for future growth. Two feasibility studies will be completed during the current quarter and these will, in effect, become start-up studies, providing the trigger price at which Mincor can re-commence production.”
Shares in Panoramic and Mincor were unchanged at 8.2 cents and 12 cents each respectively, at 11:45am.