Fact: LME nickel inventories have been falling to just under 40k now for over two years. Take note that this has not really had material influence on pricing. Why is this? I would strongly assume that nickel is circulating in the market by skipping the warehouses.
Furthermore, it is ignorant to think that Indonesia/China are not able to get to a point in the medium future to convert class 2 to class 1 nickel where it is cost effective and green friendly.
Also, do not be fooled that ‘green friendly’ companies/governments will not deal with Indonesia. For example, Tesla has already signed contracts worth about 5 billion to buy materials for batteries from nickel processing companies in Indonesia. Many more companies will follow suit to meet their supply requirements.
The biggest concern investors should also consider is that the company has shown it currently cannot even generate profits in an environment where nickel, copper, cobalt were trading at historically elevated levels along with the added advantage of currency exchange.
Keeping the faith and hope is not smart investing. These are red flags that one should not ignore unless you want to lose money.
I believe the market is re-valuing Panoramic and would not be surprised to see the market capitalisation get as low as $100-$150m. ($0.05-$0.07 per share).
The above are only my opinions and views, please always do your own research.
PAN Price at posting:
11.5¢ Sentiment: Sell Disclosure: Not Held
(20min delay)