Panoramic Resources: Quarterly Activities Report for the period ending 30 June 2023

26 July 2023

Quarterly Activities Report

for the period ending 30 June 2023

Summary

SAVANNAH NICKEL OPERATIONS

• Mining and processing outcomes at Savannah reflect a challenging quarter due to a one-off weather event in the Kimberly region and the failure of the filter press head plate at the Savannah processing plant during the quarter:
• • Ore mined increased 1% quarter-on-quarter to 176,229t.
  • Ore milled decreased by 14% to 146,678t.
  • Concentrate production down 24% to 15,039dmt, with:
  • • Contained nickel production down 26% to 1,081t nickel
    • Contained copper production down 20% to 658t copper
    • Contained cobalt production down 23% to 76t cobalt
• Three shipments of nickel-copper-cobalt concentrate completed:
• • Concentrate shipments down 32% to 15,147dmt with:
  • • Contained nickel shipped down 34% to 1,091t
    • Contained copper shipped down 27% to 668t
    • Contained cobalt shipped down 31% to 77t
  • All concentrate shipments during the quarter sent to Trafigura under the new offtake agreement with improved payability compared to the previous agreement.
• Unit cost performance for the quarter was higher across C1, AISC and AIC metrics due to the operational issues which reduced production.

		Units			Jun Qtr			Mar Qtr			Change			Total
				2023			2022			Qtr on Qtr			FY23
	C1	A$/lb			$17.49		$12.78		37%		$13.25

Unit Costs

AISC	A$/lb	$19.59	$13.65	44%	$14.90
AIC	A$/lb	$22.33	$15.55	44%	$17.64

• FY23 production C1 costs in line with revised FY23 guidance issued on 14 June 2023 following the failure of the filter press head plate.

Panoramic Resources Limited

Level 9, 553 Hay St

Perth, Western Australia 6000

Telephone: [phone]

Website:

www.panoramicresources.com

Quarterly Report

FY24 GUIDANCE

• FY24 guidance forecasts an increase in production for nickel of 26% - 41%, for copper of 36% - 52% and for cobalt of 9% - 36% compared to FY23 outcomes.
• Significant lift in production also expected to be accompanied by a year-on-year reduction in C1 costs per pound of nickel in FY24.
• Improved FY24 performance to be driven by a range of factors including the opening of new mining levels in Savannah North, first production from the Savannah extension, the sourcing of additional spares at site and greater equipment/manning availability.

SAVANNAH NICKEL EXPLORATION

• Three-holedrill program to establish new underground DHEM survey platforms testing extensions at Savannah intersects massive sulphide intrusions.
• Surface DHEM surveying undertaken at the regional Stoney Creek and Northern Ultramafic Granulite prospects.
• Surface exploration diamond drilling completed at the Dave Hill / Wilsons Intrusion and Keller Creek Graphite targets.

CORPORATE

• Cash at the end of the quarter of A$14.2 million, down by 57% from the end of the prior quarter.
• Debt repayments for the quarter total $2.5 million.

Panoramic Managing Director and CEO, Victor Rajasooriar commented:

"The operations staff and our business partners battled hard in FY23 to achieve this outcome in the face of periods of adversity, largely due to equipment failure. We were able to get through these challenges, undertake preventative maintenance and build mine stocks to lay the foundation for a much stronger FY24 financial year, as reflected in our guidance."

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Quarterly Report

Savannah Nickel Project - Operations

Safety

The site safety culture has continued to develop, there has been a focus on increasing the standard of incident investigations with emphasis on ensuring quality actions from investigations to prevent re-occurrence of similar incidents.

Unfortunately, the Total Recordable Injury Frequency Rate (TRIFR) increased during the quarter to 6.3 due to two medically treated hand injuries.

Mental Health First Aid training was carried out during the quarter with site-based employees and contractors attending. The training was very well received and further courses are being planned.

		Total Recordable Injury Frequency Rate
7
6
5										6.3	6.3
4	4.3								5
3	4.1	4.1	4	4			3.8
2					2.6	2.6	2.4
1
0
	Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23	Mar-	Apr-23	May- Jun-23
								23		23
			Recordable Injuries		12 Month Rolling TRIFR
Environment

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

Planning and preparation of tender documents to construct a tailings storage facility wall lift commenced. This has been approved by relevant authorities and is planned for the first half of FY2024.

Cultural Heritage training was undertaken on site during the quarter.

Underground Mining

The mining physicals reflect a challenging quarter due to a number of issues. The effects of the one- off weather event from the March quarter continued to impact the logistics route to site in early April with the Fitzroy Crossing bridge being washed out creating delays in getting supplies to site.

At the start of the quarter, production from the mine was affected due to blockages in the paste fill line servicing the mine. This resulted in a re-sequence of lower grade stopes being brought online which were independent of paste fill requirements.

Compounding this issue was the failure of the filter press head plate in the processing plant in June. This hampered the operation of the processing plant which, in turn, led to a reduced amount of paste being supplied to the underground mine.

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Quarterly Report

As a result of the filter press head plate failure and the suspension of concentrate production, a decision was made to restrict underground ore production activities in order to minimise oxidation of newly mined ore on the surface stockpile. In total approximately 34,000t of ore was stockpiled on the surface during the June quarter, with the underground mine holding back approximately 55,000t of ore which was otherwise ready to be blasted and mined. These activities set the operation up for a positive start in FY24.

Figure A: Long Section of Savannah North

Figure B: Long Section of Savannah

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Quarterly Report

Table 1: Mining physicals achieved at Savannah

	Area		Details		Units	Jun Qtr 2023		Mar Qtr 2023		Variance
			Jumbo development		m	922		803		15%
			Ore mined		dmt	176,229		174,924		1%
	Mining		Ni grade	%	0.93		1.03		-10%
		Ni Metal contained		dmt	1,631		1,803		-10%
			Cu grade	%	0.48		0.50		-4%
			Co grade	%	0.06		0.07		-14%

Processing and Concentrate Production

FY23 Actuals

4,171

680,438

1.02

6,973

0.51

0.07

The processing physicals for the quarter were materially lower than the March quarter's result, mainly driven by the lower grade ore mined at the start of the quarter (resulting in lower recoveries) and the filter press failure in June at the processing plant.

A new filter press head unit was fabricated and successfully commissioned on 9 July 2023 with concentrate production quickly returning to full production capacity.

Table 2: Processing physicals achieved at Savannah and Savannah North

	Area			Details			Units			Jun Qtr			Mar Qtr			Variance
							2023			2023
				Ore milled		dmt	146,678		170,562		-14%
				Ni grade	%		0.94		1.05		-10%
				Cu grade	%		0.48		0.51		-6%
	Milling		Co grade	%		0.06		0.06		0%
				Ni recovery	%		78.62		81.46		-3%
				Cu recovery	%		93.81		93.90		0%
				Co recovery	%		87.98		89.59		-2%
				Concentrate		dmt	15,039		19,764		-24%
				Ni grade	%		7.19		7.41		-3%
	Concentrate		Ni Metal contained		dmt	1,081		1,465		-26%
		Cu grade	%		4.38		4.17		5%
	Production
		Cu Metal contained		dmt	658		825		-20%
				Co grade	%		0.51		0.50		2%
				Co Metal contained		dmt	76		99		-23%

FY23 Actuals

648,324

1.04

0.52

0.06

80.34

93.67

87.90

73,088

7.39

5,402

4.28

3,129

0.50

368

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