Macquarie Downgrade

DJ Panoramic Heading for a Loss in FY16, Says Macquarie -- Market Talk
25/09/2015 10:48AM AEST

0048 GMT [Dow Jones] A weaker outlook for stainless steel demand has taken the shine off Australian nickel miner Panoramic Resources (PAN.AU) for Macquarie. The broker downgrades Panoramic to neutral from outperform and cuts its price target by 40% to A$0.30/share after swinging the ax at its nickel price forecasts for FY16-FY19. "Weak demand and high inventories have driven a material change in our view for nickel," Macquarie says. It now expects an average nickel price of US$5.05/lb in FY16, down 23% on its prior forecast. Its FY17, FY18 and FY19 nickel-price forecasts are also cut by 28%, 24% and 22%, respectively. That's enough to push Panoramic from an expected profit in FY16 to a loss, Macquarie says. PAN last traded at A$0.29.([email protected]; @dwinningWSJ)