- Panoramic Resources (PAN) bids farewell to its final nickel-copper-cobalt concentrate shipment to Jinchuan Group Co after almost 20 years of collaboration
- Panoramic’s UHL Falcon departed Wyndham Port on February 15, carrying the final delivery to Jinchuan as part of a 2018 concentrate sale agreement, which expires this month
- Over its partnership with Jinchuan and Sino, Panoramic delivered roughly 1.5 million wet metric tonnes of concentrate across 179 shipments for US$1.68 billion (A$2.45 billion) in revenue
- To support the restart of its Savannah operations in April 2021, PAN penned a new five-year nickel and copper concentrate offtake agreement with Trafigura, with the contract to begin following the expiry of the Jinchuan offtake agreement
- Panoramic Resources shares are trading at 16 cents at 12:25 pm AEDT
Panoramic Resources (PAN) has bid farewell to its final nickel-copper-cobalt concentrate shipment to Jinchuan Group Co after almost 20 years of collaboration.
Panoramic’s UHL Falcon departed Wyndham Port on February 15 carrying the final delivery to Jinchuan as part of the 2018 concentrate sale agreement, which expires this month.
A total of 8185 wet metric tonnes of nickel-copper-cobalt concentrate is expected to arrive at the discharge port of Lianyungang in the People’s Republic of China in late February.
The departure concludes Panoramic’s offtake arrangements with Jinchuan Group Co and Sino Nickel. Jinchuan received its first shipment from Panoramic in 2004.
Panoramic said Jinchuan had been a “highly valued offtake partner” over the past 20 years, having supported Panoramic from its start of mining at Savannah in 2003.
Since the first shipment from Savannah in September 2004, approximately 1.5 million wet metric tonnes of concentrate containing more than 100 thousand tonnes of nickel, 60 thousand tonnes of copper and five thousand tonnes of cobalt have been delivered to Jinchuan across 179 shipments, resulting in a total revenue of US$1.68 billion (A$2.45 billion).
“Jinchuan has been an important part of Panoramic’s journey over the past 20 years, and we are delighted to be able to acknowledge their contribution at this juncture,” Panoramic Managing Director and CEO Victor Rajasooriar said.
To support the restart of the Savannah operations in April 2021, PAN has penned a new five-year nickel and copper concentrate offtake agreement with Trafigura.
The contract will start following the expiry of the offtake agreement with Jinchuan and will be valid until February 2028.
The Trafigura offtake agreement was executed following a “competitive” tender process and reflects commercial terms which are in line with the previous Jinchuan offtake agreement.
As part of the offtake contract, Trafigura also agreed to provide a US$45 million (A$65.5 million) secured financing facility, which substantially funded the restart of the Savannah operations.
“Trafigura was able to provide the necessary funds for the restart and also offered improved payabilities for our highly sought after, clean nickel-copper-cobalt concentrate,” Mr Rajasooriar said.
“Our shipment next month in March will mark the commencement of sales to Trafigura and we look forward to building a long-lasting mutually beneficial relationship as we did with Jinchuan.”
Panoramic Resources shares were last trading at 16 cents at 12:25 pm AEDT.