Panoramic executes cost cutting measures

Miner Panoramic Resources has implemented a number of cost cutting measures to maintain sustainability in a weak nickel price environment.

In its quarterly report, the company said it has had cut employee numbers to place its nickel operations on a more secure basis.

Additionally, Panoramic has also implemented a 10 per cent salary reduction and has discontinued some employee benefits including private health cover and additional super contributions above the statutory 9 per cent level.

The company said it will continue to focus on cost reduction and productivity improvement through several measures including the deferral of all discretionary capital projects, seek price reductions from existing suppliers and reduce reliance on diesel power at its Savannah mine.

"Our industry is facing very difficult times and we are doing our best to move with the times to ensure our business is sustainable," Panoramic said.

The lower nickel price also resulted in a $17.8 million writedown for Panoramic during the quarter.

The company operates the Savannah and Lanfranchi nickel mines in Western Australia.

Over the three months to the end of December, total nickel production increased 22 per cent to 5103 tonnes with Panoramic's shares at 4398t.

Group cash costs dropped 9 per cent to $US3.44 per pound of nickel.

At the end of the period, the company had $70 million in cash and receivables.