Portfolio News: Panoramic Resources quarterly activities report for the period ending 30 September 2022

27 October 2022

Quarterly Activities Report

for the period ending 30 September 2022

Summary

SAVANNAH NICKEL OPERATIONS

• Mining and processing operations at Savannah continue to ramp up safely following restart.
• • Ore mined increased 29% quarter-on-quarter to 151,045t.
  • Ore milled rose by 22% to 154,196t.
  • Concentrate production up 28% to 18,010t with:
  • • Contained nickel production up 32% to 1,331t nickel
    • Contained copper production up 49% to 817t copper
    • Contained cobalt production up 22% to 87t cobalt
• Two shipments of nickel-copper-cobalt concentrate completed during the quarter:
• • An additional ship departed Wyndham Port on 9 October 2022 carrying 9,466t of concentrate
  • A ship for mid-November and mid-December has been booked
• Production and cost guidance for FY23 of 6,600 - 7,100t of nickel, 4,100 - 4,500t copper and 400 - 500t cobalt in concentrate at a C1 cost of $7.30 - $8.30/t of payable nickel production (including by-products) remains unchanged.

SAVANNAH NICKEL EXPLORATION

• Increase in the Ore Reserve for Savannah North with contained nickel increasing by 4%, contained copper increasing by 7% and contained cobalt increasing by 6% after mining depletion in FY22.
• Infill resource definition drill program on Savannah orebody above the 900 Fault completed:
• • Thick mineralised intersections returned which are expected to add to the Mineral Resource of 21,000t of nickel, 14,200t of copper and 1,000t of cobalt in this area
• Resource infill and extension drilling below the 900 Fault at Savannah commenced.

CORPORATE

• Cash at the end of the quarter of A$25.1M, up from A$22.0M at the end of the previous quarter.
• Drawdown of the US$15.0 million Revolving Credit Loan Facility (RCF) in August 2022 to manage cashflow following a delay in the timing of the August concentrate shipment.

Panoramic Resources Limited	Telephone: [phone]
Level 9, 553 Hay St	Website:
Perth, Western Australia 6000	www.panoramicresources.com

Quarterly Report

• Post quarter end, US$15.0M RCF availability period extended nine months to 31 December 2023, all documentation executed with Trafigura Pte Ltd in October 2022.
• Release of the 2022 Sustainability Report outlining Panoramic's commitment to minimise its environmental impact and support local communities through its activities.

Panoramic Managing Director and CEO, Victor Rajasooriar commented:

"The ramp-up of underground mining activities at Savannah was a particularly pleasing achievement and supported record concentrate production in the quarter. We replaced mining depletion in our updated Ore Reserve for Savannah North and expect to further grow our Resource following drilling success at the Savannah deposit. Our business is in good shape and we look forward to delivering on our ramp-up plan with improved production into the next quarter."

Savannah Nickel Project - Operations

Safety

The overall site safety performance has continued to improve with the 12-month Total Recordable Injury Frequency Rate (TRIFR) reducing to 4.1 at the end of the quarter from 4.5 at the end of the June quarter.

There was one recordable injury on site in the quarter. A surface light vehicle fitter tripped at ground level when climbing down from the cab of a loader and landed on their wrist, resulting in a fracture.

With the onset of the wet season, there has been a significant focus on dehydration and the management of heat in the workplace. Additional hydration testing of crews has been introduced as well as regular education sessions in safety meetings.

The impact of COVID-19 on the workforce has significantly decreased with only a handful of cases presenting in recent months. Employees are still being encouraged to stay at home if they show symptoms to prevent disruptions to the workforce.

The Emergency Response Team continues to improve with several of the members attaining their Certificate III in Mine Emergency Response and new members joining the team regularly.

Environment

During the quarter, the mining operations maintained compliance with all regulatory and operating licence requirements.

Operationally, final commissioning of the refurbished Water Storage Facility (WSF3) settling ponds has been completed. This will facilitate the recycling of all underground return water, reducing the volume of water reporting to the TSF and in turn, reducing net seepage from the project.

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Quarterly Report

Underground Mining

Underground mining took a meaningful step forward in the quarter with a 29% increase in ore mined to 151,045t in the period. Development achieved during the quarter was 1,304m which is an improvement on previous quarters. Development in the Savannah North orebody has a current vertical exposure of 7 levels which equates to approximately 140 vertical metres, providing the necessary production horizons to support the ongoing ramp-up of production in the coming quarters.

Figure A: Long Section of Savannah North

The improved performance during the quarter is a function of the mine opening up in Savannah North, with three active production stopes over three levels. Stope production has been supported with consistent application of paste fill with more than 4,000m3 of paste poured during the quarter.

There was a problem with the second stope on the 1361 level bridging, which resulted in a two week delay of production ore during the quarter. The remedial works extended into October and has now come back online with production underway. This disruption will have minimal impact on the overall stoping sequence in Savannah North.

Development in the Savannah orebody predominately focused on remnant mining areas, but has also progressed towards accessing the resources below the historical workings at Savannah (Savannah Extension), targeting fresh ore. Development focused on pushing the decline further and first ore from development below the historical workings at Savannah is expected in the second quarter of FY23.

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Quarterly Report

Figure B: Long Section of Savannah

Savannah Extension

The operational and technical experience of the underground mining teams at Savannah continues to build which is resulting in more sustained and consistent performance being achieved. This has been supported by the reduced impact of absenteeism through COVID-19 and the previous border closures. The current contractor workforce is sitting at 100% of budgeted expectations and technical services are at 95% with two technical roles currently vacant and a recruitment process well underway.

Table 1: Mining physicals achieved at Savannah

	Area			Details			Units			Sep Qtr			Jun Qtr			Change			FY2023
							2022			2022					YTD
				Jumbo development		m		1,304		1,255		4%			1,304
				Ore mined		dmt		151,045		117,403		29%			151,045
	Mining		Ni grade	%			1.08		1.06		2%			1.08
		Ni Metal contained		dmt		1,636		1,242		32%			1,636
				Cu grade	%			0.57		0.47		22%			0.57
				Co grade	%			0.06		0.07		-14%			0.06

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Quarterly Report

Processing and Concentrate Production

Record tonnes of ore milled and concentrate production were achieved during the quarter, supported by the improved production rates from the underground mine. Concentrate production was 18,010t in the quarter.

Recovery of nickel, copper and cobalt during the quarter was all at its highest level since the restart of operations. This is due to the success of ongoing optimisation work of the plant control system and a resulting improvement in stability of the plant.

The operation has continued to increase manning levels both through our primary contractor Primero and the use of sub-contractors, particularly in maintenance areas to compensate for the skills shortage being experienced in the industry. There were significant planned and opportune maintenance works carried out during quarter. These works were associated with the power station, structural refurbishment including a complete replacement of the float feed conditioner tank and mill relines to support the ramp-up phase of the operation.

Table 2: Processing physicals achieved at Savannah

	Area			Details			Units			Sep Qtr			Jun Qtr			Change			FY2023
							2022			2022					YTD
				Ore milled		dmt		154,196		126,561		22%			154,196
				Ni grade	%			1.08		1.05		3%			1.08
				Cu grade	%			0.56		0.48		18%			0.56
	Milling		Co grade	%			0.07		0.07		-4%			0.07
				Ni recovery	%			79.98		76.12		5%			79.98
				Cu recovery	%			93.80		90.16		4%			93.80
				Co recovery	%			85.80		82.34		4%			85.80
				Concentrate		dmt		18,010		14,079		28%			18,010
				Ni grade	%			7.39		7.16		3%			7.39
	Concentrate		Ni Metal contained		dmt		1,331		1,009		32%			1,331
		Cu grade	%			4.54		3.89		17%			4.54
	Production
		Cu Metal contained		dmt		817		547		49%			817
				Co grade	%			0.48		0.51		-5%			0.48
				Co Metal contained		dmt		87		71		22%			87
				Concentrate		dmt		16,135		9,477		70%			16,135
				Ni grade	%			7.25		7.46		-3%			7.25
	Concentrate		Ni Metal contained		dmt		1,170		712		64%			1,170
		Cu grade	%			4.17		4.21		-1%			4.17
	Shipments
		Cu Metal contained		dmt		672		408		65%			672
				Co grade	%			0.47		0.48		-2%			0.47
				Co Metal contained		dmt		77		46		67%			77

Port Operations and Shipments

At the start of July, the MV Heemskerkgracht departed Wyndham Port with a total cargo of 7,030wmt of nickel-copper-cobalt concentrate. The MV Muntgracht, departed at the end of August with 10,902wmt.

At the end of the quarter there was 7,187wmt of concentrate stocks at the port and 117wmt of concentrate stocks at the mine site.

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