Sign up Australia
Proactive Investors - Run By Investors For Investors

Pan African headed in right direction after challenging year

In terms of safety performances, significant progress was made over the past year with on-mine safety improvement
Gold pour
The company is now a smaller but higher-margin producer

Gold production by Pan African Resources plc (LON:PAF) was ahead of recent guidance in the year to the end of June.

Gold production in the financial year just ended clocked in at 160,421 ounces (oz), which was ahead of the group's most recent production guidance range of 157,000 – 160,000 oz.

READ: Pan African Resources completes Barberton plant as Elikhulu construction continues

Barberton Mines produced 90,628 oz, within its production guidance range of 90,000oz - 91,000oz. During the second half of the financial year, Barberton Mines produced 50,017 oz of gold, a 23% increase on its first-half production.

Evander Mines, where underground mining operations ceased at the end of May, produced 69,793 oz, exceeding its production guidance of 67,000oz – 69,000oz.

Production guidance for the current financial year is about 170,000 oz, excluding any production from Evander’s underground operations. Some 70,000 oz is expected from Elikhulu, which remains on track for first gold in August, with the rest coming from 100,000, which, as one broker noted, implies a continuation of the 50,000 Barberton produced in the second half.

With the previous high-cost ounces from the Evander underground now replaced by production from low-cost surface re-mining operations, production costs are also expected to demonstrate a significant improvement, Pan African said.

Happily, the group's mining operations experienced no fatalities during the year to the end of June 2018.

“The 2018 financial year was extremely challenging for the group, both financially and operationally; however, during the past six months, we have successfully addressed key deliverables that were critical to the future sustainability of Pan African Resources,” declared Cobus Loots, the chief executive officer of Pan African.

“We are now re-positioned as a lower-cost, long-life gold miner, consistent with stakeholder expectations,” he added,

The shares were up 3.4% at 7.58p in mid-morning trading.

View full PAF profile View Profile

Pan African Resources plc Timeline

Related Articles

Gold pour
March 16 2018
Total gold equivalent ounces (GEOs) produced clocked in at 189,456, up 17% on the 161,289 GEOs produced in 2016...
Thor Explorations' Segilola high grade pit offers strong return on investment
June 13 2018
The 100% owned project sits on a 27 sq km exploration licence containing a 17 sq km mining licence
Lydian International will be one of the few gold companies to go into production this year
January 10 2018
Lydian International is one of only a handful of companies taking gold projects into production this year

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use