If they fail to meet FY23 guidance on their revised lower end...

If they fail to meet FY23 guidance on their revised lower end target, it does pose some serious red flags as to whether FY24 numbers can be achieved? Nothing worse than not even meeting their revised lower end guidance.

Can you also imagine a scenario where by-credits remain below the companies forecasts as per the updated mine plan, the price of nickel remains low or if FY24 production numbers are not achieved? It would give rise to great concern with respect to costs.

Just maybe this operation is difficult to extract any real value from?

1. Historically the operation has had poor financial performance (Financial reports going back to the inception of the company would demonstrate this view).

2. Continued shareholder dilution where the company now has over 2 billion shares on issue. Long term shareholders may never recover their original investment where the share price has traded from as high of about $4 to currently 11.5 cents. At $4, that would value Panoramic at about $8 billion (No chance EVER now in my opinion).

3. The operation is deep rural, the depth required to mine only adds to the costs, the heavy reliance on diesel to power the operation, the contractor model which is questionable, the current grades, the weather associated risks. The drilling program delivering no real value or significant extension to the operation, the directors/ board having no real significant share holding in the company or even buying on market even at this assumed lower share price. All these points are concerns.

4. I also note reference to the company considering alternative power source to save on costs and promote more green product, still too many questions such as cost to install the infrastructure? How will this be funded? It could also take about 12 months to install solar infrastructure and then what real cost savings/ benefits are achieved?

5. A member also recently highlighted that the companies valuation derived from the annual reports covering the last decade showed the market capitalisation traded as low as $54 million and averaged $220 million. This does not give much confidence where the company is still valued at about $240 million as of Friday’s close and factoring all the associated concerns.

6. The debt is also a concern, how does the company plan to service the debt, in particular the (approx) $25 million due at the end of the year where commodity prices continue to work against the company? Do they look to amend the terms by seeking an extension? Do they refinance the debt? Do they look to the market using a capital raise to settle the debt?

7. I believe nickel is one of the worst commodities to be following, it is extremely volatile and has the hallmarks of manipulation by the Chinese. If anyone recalls, nickel pig iron, nickel matte killed the nickel market about 10 years ago and it has taken a long time to recover from this development. Even the LME protecting a shorter by suspending the nickel market and adding daily limits. I understand multiple lawsuits taking place at the moment against the LME.

As I type this message, I have asked myself, why am I actually invested in the company because I genuinely no longer have the confidence to be a shareholder of this company.

I entered at 12 cents so I have decided to fully part ways with this business. I believe way more better options if someone wanted nickel exposure.

The above are only my views and opinions, please always do your own research.