Mid-tier gold producer Pan African Resources bucked the local trend as it produced the most gold in its history in the 2022 financial year.
The company’s gold production increased 1.8% to 205,459oz for the year to end-June while the latest data from Stats SA, also released on Thursday, showed gold production slumped by more than a quarter year on year in May as it fell 28.3%.
The miner, with operations in Gauteng and Mpumalanga, said it expects to maintain its 2022 production levels in 2023.
“A key focus area in the year ahead will be the smaller underground operations at Barberton, to ensure that these assets perform to their full potential,” CEO Cobus Loots said.
Local mining production data was down in the past four months as a result of increased load-shedding and a strike in the sector. Gold prices fell 1% to below $1,720/oz on Thursday, the lowest since April 2021. This is because of the stronger dollar and investors expecting the US Federal Reserve to raise the interest rate by 100 basis points after the consumer price index rose to 9.1%, the highest in 40 years.
The Evander mine was the leader of the pack for the JSE and London-listed miner as its production rose 23.1% to 58,187oz, followed by production at Barberton growing 7.2%, but the Sheba and Consort Mines were down 29.5% to 27,587oz.
The company, valued at R8.7bn on the JSE, will release its annual results on September 14 and expects to maintain its gold production level in its 2023 financial year.
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