Minerals miner Panoramic Resources Ltd
(ASX:PAN) has posted a massive fall in net profit for the 2009 financial year and says it is looking at additional hedging commitments because of the risk of nickel prices falling.
Net profit after tax and impairment for the year came to $5.6 million, down from $53.3 million in fiscal 2008.Net revenue for the year was$228.7 million down 4 per cent compared to last year.
The miner says it has weathered the global financial crisis well due to a combination of prudent commodity hedging, aggressive cost reduction program and record group production of 18,752 tonnes of contained nickel.
Panoramic Resources says it remains cautious on the short term outlook for nickel and is therefore being opportunistic and is looking at hedging additional nickel at prices that provide an acceptable margin.
Panoramic Resources declared a final dividend of 2 cents a share. Looking back over the past five years Panoramic Resources best net profit was in 2007.
