Panoramic posts profit turnaround

Panoramic Resources has recorded a profit turnaround to $23.1 million on the back of improving nickel prices and the inclusion of all nickel production from the Lanfranchi mine in Western Australia.

The miner reported an interim net profit of $23.1 million, up from the $8.6 million net loss booked in the previous corresponding period.

Panoramic said the half year result benefitted from the inclusion of all nickel production at Lanfranchi after the company acquired the remaining 25 per cent interest in the mine it did not own.

Also affecting the result was the improvement in the Australian dollar spot nickel price, which averaged $9.18 per pound and a significant cost reduction and efficiency measures.

Revenue for the six months to the end of December 2009 rose from $113.3 million to $133.7 million while earnings before interest, tax, depreciation and amortisation jumped from $39.5 million to $60.2 million.

Cash flow from operating activities before tax reached $60.3 million, up from $20.7 million.

At the end of the period, Panoramic had cash and receivables of $136 million and no bank debt.

The board has declared a fully franked, five cent interim dividend, plus a fully franked five cents one-off special dividend.