Panoramic Resources has reduced its 2020 production guidance at the Savannah nickel project in Western Australia amid the takeover tussle with Independence Group (IGO).
The company now aims to produce 7000–7500 tonnes of nickel, 4500–5000 tonnes of copper and 400–450 tonnes of cobalt contained during the period.
Panoramic stated earlier this month that the company wouldn’t be able to meet its original production guidance at the troubled project.
The revised guidance follows the first, complete component of an operational review launched by Panoramic.
It also factors in the softening American-dollar nickel price since the end of the September quarter, with Panoramic flagging the need to raise an additional funding worth $30 million.
Panoramic has secured a $10.5 million unsecured loan agreement with major shareholder Zeta Resources, providing the former’s board with flexibility to meet its short-term working capital requirements.
The company aims to improve Savannah’s short-term operational performance while optimising the Savannah North development plans.
Panoramic has faced multiple setbacks in turning Savannah around due to ongoing operational issues.
It is, however, adamant in urging shareholders to ‘take no action’ in relation to IGO’s unsolicited, highly conditional off-market takeover bid.
“There is no benefit in accepting the offer (or taking any other action) at this time given the highly conditional nature of the offer,” Panoramic stated.
The company will formally respond to the offer in its target’s statement by in mid-December.
IGO’s offer has been scheduled to close on December 27.