Morgans downgrades to Hold from Add. However, the target price is increased to $0.18 from $0.16, partly due to positive metal prices.
Management announced the restart of the Savannah Nickel Mine with forecast costs of $6.36/lb payable nickel, compared to spot pricing over $10/lb. A US$45m loan facility with offtake partner Trafigura fills the funding gap without shareholder dilution, explains the broker.
The analyst sees the use of contractors for mining (and the new equipment they bring) as a big positive for production.
Target price is $0.18.Current Price is $0.16. Difference: $0.02 – (brackets indicate current price is over target). If PAN meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).