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Pan African Resources sees strong cashflows as gold price surges

Snapshot

  • South African- based gold miner 
  • Operations at Barberton, Evander and Elikhulu
  • Production for 2019/20 was 180,000oz
Pan African Resources plc - Pan African Resources back on track as production climbs

Quick facts: Pan African Resources plc

Price: 24.7 GBX

AIM:PAF
Market: AIM
Market Cap: £476.3 m
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How it's doing

Gold production increased by 4.1% in the year ended June 30 2020 to 179,575 ounces of gold up from 172,442 ounces in 2019.

Pan African also raised its production guidance for the 2021 financial year to approximately 190,000oz.

This increase is attributable to operational optimisation initiatives and resumption of full-scale mining activities following the lifting of COVID-19 restrictions.

In July, the miner published details of the feasibility study for its Egoli underground mine on the site of its existing Evander operation.

Based on a gold price of US$1,650 per oz, the project can generate US$131mln from a nine-year life, an independent study concluded.

Using Evander’s existing infrastructure will bring the cost of the project down to US$66mln, said Pan African.

What the boss says: Cobus Loots 

“Pan African has demonstrated the resilience of its operations with an improved performance for the year, especially when taking into account the challenges posed by the COVID-19 pandemic,” the group's chief executive Cobus Loots said in a statement.

“The flexibility inherent in our operations confirms the quality of these mines and their ability to withstand short term disruptions and still deliver on our targets. We expect that we still have a long battle ahead against COVID-19 and will do our part to mitigate the impact as far as possible.”

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Inflexion points 

  • Production hits its target of 190,000oz in 2020/21
  • Gold price remains high
  • Dividend rises as debt is paid down

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Pan African increasing production after reaching new high-grade gold zone

Cobus Loots, chief executive of Pan African Resources plc (LON:PAF), tells Proactive they've begun to increase production again at the Barberton mine complex in South Africa after reaching a new high-grade gold zone. Barberton, which comprises the Fairview, Sheba and Consort mines, has...

on 3/3/18

2 min read