Panoramic Resources has restarted underground development work at the Savannah project that will enable the company to restart production. Macquarie believes the Panton sale will close the funding gap for ramping back to full production.
While the timing of the re-start is unclear, the broker believes the buoyant nickel prices present an upside risk to the forecasts.
Target rises slightly to $0.10 from $0.08. Underperform rating is maintained.
Target price is $0.10.Current Price is $0.12. Difference: ($0.02) – (brackets indicate current price is over target). If PAN meets the Macquarie target it will return approximately -20% (excluding dividends, fees and charges – negative figures indicate an expected loss).