Pan African Resources produced “excellent operational results” in the half year to December 31 and it might soon increase its guidance for the full year, the mid-tier gold mining company’s directors said in an update yesterday.
Gold production increased 6.7% to 98 458 ounces (oz) compared with 92 307oz in the first half of the 2022 financial year.
On top of that, the gold price also increased 13.7% to $1 961 (R37305)/oz (2022: $1 725/oz) over the period.
“We are pleased with the excellent safety, production and cost performance which positions us well to deliver on our guidance,” CEO Cobus Loots said.
He said the commissioning of Barberton’s solar PV plant would contribute to cost savings in the next year, adding to benefits already being realised from Evander’s PV solar plant. The company was excited by the positive impact the ESG projects were making on improving relationships with host communities.
The directors said production costs were well managed despite inflationary pressures, with group all-in sustaining costs (AISC) expected to be about $1 300/oz, below the 2024 financial year guidance of $1 350/oz.
Construction of the Mogale Tailings Retreatment Project was on time and within budget, with commissioning expected in the second half of the 2024 calendar year.
The injury frequency rate fell to 6.13 per million man hours from 8.54.
Barberton Mines underground produced 36 779oz (32 022oz). Evander Mines underground production was 21 307oz (19 173oz).
Elikhulu tailings retreatment produced 28 106oz (25 830oz). The Barberton Tailings Retreatment Plant produced 9 864oz (10 012oz). Evander Mines’ surface sources came to 2 401oz (5 270oz).
Group production guidance for the full year was maintained at between 180 000oz to 190 000oz (175 209oz).
Production for the 2025 financial year was expected to be much higher, following commissioning of the MTR project, which would add about 50 000oz per year to group production, increasing annual output by some 25%, the group said.
Net senior debt increased to $60 million (June 2023: $18.9m) mainly due to $23.2m capex on the MTR project and the $22.1m dividend in December. The interim results are expected to be published on or around February 14, 2024.
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