The company says its ramp-up has delivered a 42% jump in ore mined to 108,226 tonnes, a 20% boost in milling rates to 148,709t and, most importantly, concentrate production was up 57% for 1256t of nickel, 802t copper and 81t cobalt for the March quarter.
The company, which recommenced production last October, and waved off its first new cargo in December 2021, dispatched two further cargoes, one in February and one post-quarter.
The company's cash position ended up $2.5 million at $13.7 million on March 31, plus $29 million was banked for the April 1 cargo.
A fourth ship is expected to arrive at Wyndham in late May.
Panoramic managing director Victor Rajasooriar said the operation benefited from relaxed border restrictions, which improved site labour availability, with the increased availability of underground operators allowing the mining sequence to revert to a more balanced profile between underground development and stope ore.
During the quarter, jumbo development of the Savannah decline recommenced for the first time since 2016, to allow for the establishment of drilling platforms for grade control drilling below the current workings and access to future production levels.
Spending during the quarter was $41 million to support the ramp-up, including many one-off commissioning costs, and Panoramic expects future quarters will be lower cost, allowing it to start rebuilding its treasury, paying down debt and investing more on exploration.
The drillbit has recently supported not only the potential for larger stoping areas in the upper central zone of Savannah North, but highlighted new areas of mineralisation previously modelled as barren.
The company is also bringing in a DDH1 drill rig for diamond drilling from surface of conductors at both the Northern Ultramafic Granulite and the Stoney Creek Intrusions.
Morgans analyst Mat Collings said Savannah was tracking well and he expected to see recoveries continue to improve further over the next two quarters to match his long-term estimates as the plant stabilised and the operations team gained experience.
He said the labour issues may have delayed reaching steady state operations by as much as six months over initial expectations.
"Overall, we remain comfortable with the reported progress made by the company in the quarter and believe the Savannah operation remains on track to ramp up to its long-term production capacity over the course of CY22," he said.
Panoramic shares eased 3% this morning to 31c, capitalising it at $687 million.
The stock has traded at 13.5-38c over the past year.
