Pan African Resources raised its gold production by 6% to 186 039 ounces in the full year to June 2024, selling its bullion for the period at an average price of $2 021 per ounce or R1.2 million per kilogram.
The company’s average rand price per kilogram was calculated at an exchange rate of R18.71/$1, it said yesterday.
Its Barberton Mines unit produced 71 470 ounces compared to 64 586 ounces in the previous year while Evander Mines underground output rose from 40 175 ounces last year to 40 869 ounces during the year to June.
Output from the Barberton Tailings Retreatment Plant was however lower at 18 888 ounces compared to 19 875 a year earlier, although production from Elikhulu strengthened to 54 812 ounces from 50 573 ounces.
“The surface tailings retreatment operations at Elikhulu and the Barberton Tailings Retreatment Plant performed exceptionally well, with some of the lowest all-in sustaining production costs in Southern Africa,” said Pan African CEO Cobus Loots.
He added that the company was now “poised to deliver another world class tailings retreatment operation ahead of schedule and below budget in the coming months” under the Mogale Tailings Retreatment Plant.
“Barberton Mines has seen a steady improvement in gold production, with planned optimisation initiatives to increase ore tonnages expected to further bolster gold production in the next financial year,” said Loots.
Commissioning of the ventilation shaft hoisting system at the Evander underground mine is expected for the beginning of next year. The project is expected to “substantially improve efficiencies and reduce reliance on the cumbersome conveyor system currently in use”, thereby improving the production profile at the operation.
Investment analyst, Charl Botha, said Pan African Resources was doing well by “controlling what they can” whilst growing production. Shares in the company rose 1.81% to R6.76 in afternoon trade on the JSE yesterday.
“Lets hope the gold price continues to play along nicely,” he said.
On the back of the robust gold production for its full year to end June 2024, Pan African Resources is maintaining its production guidance for the 2025 full year at between 215 000 ounces and 225 000 ounces, representing a significant ramp up and upside potential given currently higher bullion prices.
For the year under review, Pan Pan African’s all-in sustaining costs are expected to be approximately $1 350 per ounce at an average exchange rate of R18.71/$1.
Construction of the Fairview Mine’s 8.75MW solar photovoltaic plant has also been completed, with final commissioning set for the next few weeks. First power generation from the plant, which is expected to provide 15% of Barberton Mines’ energy requirements, is anticipated in the next month.
Pan African expects to accrue $2.4m in annual electricity cost savings .
Net debt in Pan African Resources as at the end of June had increased to $106.4m compared to $22m in the prior year.
This has been attributed to “construction costs at the Mogale Tailings Retreatment Plant” which had taken up $71.5m for the period as well as expansion capital expenditure in respect of Evander 8 Shaft 25-26 Level development.
The extension of Elikhulu’s new tailings storage facility had also taken up $23.8m while $9.9m had been invested into expenditures for the Fairview solar plant.
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