South African mining would in time move increasingly towards a nonracial approach "to show that business is about people, not black or white", Pamodzi Gold chairperson Ndaba Ntsele said on Monday.

But that time had not yet arrived, which was why Pamodzi Gold would take steps to return to its status of being a black-controlled business in the next 12 to 18 months, when it expected to be involved in additional acquisitive activity.

He made these comments against the background of the company's black shareholding declining from 50%-plus to the current 28%, as a result of the reconfiguring of its Orkney deal with Harmony Gold.

Being majority black-owned rather than merely empowered had assisted Pamodzi as it had enabled those selling mines to the company to earn additional credits, which is why the company would again lift its black shareholding to 50%-plus when it set out to do more deals, Ntsele told Mining Weekly Online.

Acquisitions had helped to advance Pamodzi Gold from being a company producing 20 000 oz of gold a year to one with a production capacity of 420 000 oz a year in a mere 24 months.

Pamodzi Gold CEO Peter Steenkamp said that the company's conclusion of the two major Orkney and President Steyn acquisitons would mean that it would have to take both over in the same week, which was "quite a challenge".

Steenkamp said that the company had done a good job of lowering quarter-on-quarter costs 8% to R154 000/kg. Current cash costs were down at $478/oz.

While the market-to-market value of its onerous hedge was R550-million, this would become increasingly less significant as a percentage as the company advanced towards its goal of being a million-ounce producer.

Pamodzi intended increasing its free float of shares and would be setting out to attract more institutional North America investors.

It currently had reserves of 3,7-million ounces and resources of 37,5-million ounces.