Panoramic Resources (ASX:PAN) lowered guidance after equipment failure at its processing plant at Savannah Nickel Project in Western Australia.
Panoramic traded down 10% to 0.089 a share.
The company said it needs to replace a pressure plate, which will take four to six weeks. Savannah operations comprise of a conventional single stage crusher, SAG mill, flotation, thickening and filtering stage to produce a bulk nickel, copper, cobalt concentrate. The filtering stage is undertaken with a filter press which filters the final concentrate before shipment.
Savannah was on track to achieve the lower end of its FY23 guidance. As a result of the suspension of concentrate production, the FY23 guidance will not be met. Revised FY23 guidance for production is now expected to deliver 5,400 – 5,800t of nickel, 3,100 – 3,400t copper and 350 – 400t cobalt in concentrate at a C1 cost of $13.00 – $13.50 per pound of nickel.
