Workers and shareholders of Panoramic Resources are set to learn more about the future of the nickel miner by tomorrow amid concerns of a major overhaul in the face of weak metals prices.
Panoramic yesterday extended a trading halt that was first put in place last Thursday, telling the ASX it was preparing an announcement “in relation to material corporate matters”.
The halt has sparked speculation that the company could be readying to shut down its Savannah nickel mine in Western Australia’s East Kimberley. There has also been talk that the changes may include the departure of Panoramic’s long-serving managing director Peter Harold, who has been at the helm since 2001.
Resources investment fund Zeta Resources became Panoramic’s single biggest shareholder last year, holding a 19.3 per cent stake in the company, and has previously been active in changing the management of companies in which it is invested if it believes a change of direction is required.
Panoramic last year shut down its Lanfranchi nickel mine, cutting 150 jobs, and has been cutting workers at Savannah and its Perth head office as it continues to grapple with the sinking nickel price.
The weak conditions recently helped pushed Clive Palmer’s Queensland Nickel into administration, while First Quantum Resources has put its Ravensthorpe nickel mine in WA up for sale.
Junior nickel explorer Mining Projects yesterday halted its shares pending a material acquisition, and The Australian understands the company is buying a lithium project in Europe in an effort to move into an area with greater investor appeal.
