0220 GMT [Dow Jones] UBS cuts its price target for Panoramic...

0220 GMT [Dow Jones] UBS cuts its price target for Panoramic Resources (PAN.AU) by 17% to A$0.40/share, citing increasing risk of lower production from its Savannah mine in Western Australia state and weak nickel prices. The broker previously penciled in 7,000 tons of nickel in concentrate from Savannah in fiscal 2016, but believes the mine is generating very little free cash flow at current prices. According to analyst Jo Battershill, Panoramic could halt mining at Savannah until prices recover. That would mean Panoramic's prospects are mostly tied to success with the drillbit at its Savannah North prospect and nearby its Lanfranchi mine. "While nickel prices remain in a trough, should exploration not deliver, there is a risk that Panoramic's share price drifts down to a level supported by cash backing," Battershill says. UBS has a neutral call on the stock. PAN last traded at A$0.385. ([email protected]; Twitter: @dwinningWSJ)