26/02/2009 - 13:27

Panoramic reveals $8.6m net loss

26/02/2009 - 13:27

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Write-downs totaling $17.6 million and a sharp fall in the nickel price has resulted in Panoramic Resources reporting an $8.6 million loss for the half-year.

Panoramic reveals $8.6m net loss

Write-downs totaling $17.6 million and a sharp fall in the nickel price has resulted in Panoramic Resources reporting an $8.6 million loss for the half-year.

In its interim report released today, the company said it suffered an impairment charge on its mine assets before tax of $25 million.

"The impairment charge was booked following a comprehensive review of the recoverable amount of each project's carried forward values in light of the significant fall in the nickel price," Panoramic said.

After taking into account the income tax expense, Panoramic reported a write-down after tax on its Copernicus open pit mine of $8.6 million, and a $9 million write-down on its Savannah operation.

Panoramic said in its report that nickel prices have almost halved from an average of $15.57 per pound in the prior corresponding period to $8.51 in the six months to the end of December 2008.

The company's net loss compares to the $24.4 million net profit achieved in the previous corresponding period.

Total net revenue for the period rose from $107.2 million to $113.3 million while earnings before interest, tax, depreciation and amortisation was $39.5 million, down from $51.6 million.

Nickel production over the six months increased from 5773 tonnes to 7913t while copper production increased slightly from 2174t to 2337t.

Panoramic is forecasting full-year nickel production, including copper and cobalt credits, to be between 18-19,000t, up 20-30 per cent from the prior year.

The board has declared an interim, fully franked dividend of one cent per share.

Shares in Panoramic were up 1.5c to 81c at 15:37 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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