Elikhulu
JSE-listed Pan African Resources achieved record gold production in excess of 108 000 oz for the six months ended December 31, exceeding its previous expectations of producing 105 000 oz of gold.
CEO Cobus Loots says the higher output was achieved while continuing to manage the impact of the Covid-19 pandemic and maintaining an excellent safety record.
Pan African has, therefore, raised its full-year production guidance to about 200 000 oz.
Gold production from Barberton Mines for the period under review was 49 117 oz, while the Elikhulu and Evander Mines produced 25 900 oz and 33 068 oz, respectively.
Following its reprioritised capital programme, work continues in preparation for the inception of mining Evander’s 8 Shaft No 2 Decline at 24 Level.
Mining from this level is anticipated to start in the 2023 financial year, as the existing pillar mining reaches completion. Studies to access the 25 and 26 Level mineral resources at 8 Shaft are also at an advanced stage.
Pan African’s organic growth projects have the potential to increase Evander’s operating life by an estimated 20 years, Loots notes.
The group has achieved a vaccination rate of 77% and it says it continues to implement and maintain stringent policies and protocols to mitigate the effects of the ongoing Covid-19 pandemic on employees and production.
Group net senior debt decreased by 60.1%, to $23.9-million, after payment of a record net dividend of $21.6-million in December.
Environmental, social and governance projects, including the 10 MW solar photovoltaic plant at Evander Mines and large-scale agriculture projects at Barberton Mines, are on track for commissioning before the June 30 financial year-end.
At the end of last year, the group announced the conditional acquisition of one of the last remaining large-scale gold tailings resources available in South Africa, the Blyvoor Gold tailing storage facility (TSF) dumps.
An independent fatal flaw assessment and gap analysis has started on the Blyvoor assets, with this work expected to be completed by April.
At the Mintails gold retreatment project, the definitive feasibility study on Mogale Gold’s TSFs is being finalised.