Are we being shorted?, page-9

There is still quite a bit of risk for PAN with such a long ramp up doing which it’s free cash flow is quite subseptible to the nickel price (and that of Cu & Co), plus to operational issues.

It should be quite clear from recent reporting that they are still struggling with workforce issues to get the mining rate up to concentrator capacity, and to get the concentrator humming (eg Ni in conc only 6.45% and recovery 76%) although as another poster noted that should improve as the ore quality improves further into the mine.

Imo with the way the nickel price was falling, and the pressures on costs (they use 20 mm litres diesel pa according to a recent presentation) the market is right to be a bit cautious, perhaps seeing better and safer buying between now and when they get to 9000 tpa. At 9000 tpa on current prices 18 would be very good value, but need to be wary on bumps on the road.

Having done a quick analysis on the FY 23 guidance I am feeling a little more comfortable about the company (so not selling), but still wary of market turbulence (so not topping up at this stage).

EL