JSE- and Aim-listed Pan African Resources remains on track to produce at least 185 000 oz of gold for the year ending June 30, following a successful six months to December 31.
CEO Cobus Loots in a statement on Friday confirmed that the company’s Evander 8 Shaft Pillar project would reach commercial production in the next few weeks, which would add further high-margin production from the company’s operations in the remainder of the current financial year.
First gold was poured at the Evander 8 Shaft Pillar project in August last year and the project was expected to reach steady-state production during March, at which point it would start contributing about 30 000 oz/y of gold to production.
The company has successfully completed a mining feasibility study on the Evander Egoli project, which demonstrated its technical viability and compelling economic returns.
The study is being reviewed by a third party.
The company will consider several nondilutive funding options, which will enable it to continue its strategy of de-gearing its balance sheet and increasing dividends.
“We have engaged with several financial institutions who have expressed an interest in the continued financing of the company’s organic growth projects,” said Loots.
For the six months to December 31, the company’s Elikhulu tailings project produced 29 301 oz, which was a 91.6% increase on the 15 292 oz produced in the six months ended December 31, 2018.
The company commissioned a new pump station at the project during December, which should increase plant feed grades and plant feed rates for the remainder of the financial year.
Meanwhile, Pan African’s Barberton Mines produced 47 356 oz of gold during the six months under review, compared with the 50 556 oz produced in the prior comparable period.
The 6% reduction in output was owing to community unrest experienced in July last year, which adversely impacted on underground production, as well as challenging geological conditions at the Fairview operation, which were expected to be mitigated through increased mining flexibility for the remainder of the financial year.
The Evander complex’s production had increased by 7.4% year-on-year to 16 284 oz, despite electricity supply constraints.
The company will release its interim results on February 18.