Pan African Resources has reported a 6.2% rise in gold production for the year ended June and has maintained its 2025 production guidance.
Releasing an operational update on Monday, the group said gold production increased 6.2% to 186,039oz, which was in line with the revised guidance it announced previously, with operations performing consistent with expectations.
The group’s all-in sustaining costs (AISC) were expected to be about $1,350/oz.
A delay in commissioning the ventilation shaft for hoisting at Evander 8 underground operations adversely affected production in the last two months of the reporting period, resulting in the group not achieving the higher end of production guidance and also negatively affecting unit costs.
Work is now scheduled to be completed in the coming weeks, after which the full benefits of the improved ore flow will achieve the planned increased production profile.
CEO Cobus Louw said the surface tailings retreatment operations at Elikhulu and the Barberton Tailings Retreatment Plant (BTRP) performed exceptionally well, with some of the lowest all-in sustaining production costs in Southern Africa.
“The group is poised to deliver another world class tailings retreatment operation ahead of schedule and below budget in the coming months with the Mogale Tailings Retreatment (MTR) project,” he said.
Barberton Mines has seen a steady improvement in gold production, with planned optimisation initiatives to increase ore tonnages expected to further bolster gold production in the next financial year.
“Commissioning of the ventilation shaft hoisting system at Evander underground during the start of the 2025 financial year, will substantially improve efficiencies and reduce reliance on the cumbersome conveyor system currently in use, vastly improving this operation's production profile and facilitate the 25-26 Level project’s development,” he said.
“Exceptional progress has been made with the MTR project’s construction, which is nearing its final stages,” the group said.
Plant commissioning and first gold production is anticipated ahead of schedule in October, with steady state production expected during December. The project is expected to be completed below budget. MTR is expected to produce about 60,000oz/year over a 21-year life of mine, at a forecast AISC of less than $900/oz.
The group’s net debt increased to $106.4m from $22m in 2023, mainly due to construction costs at the MTR project of $71.5m for the year, expansion capex for Evander 8 Shaft 25-26 Level development and Elikhulu’s new tailings storage facility extension ($23.8m) and Fairview solar plant expenditure ($9.9m), it said.
Construction of the Fairview Mine’s 8.75MW solar photovoltaic plant has been completed, with final commissioning in the coming weeks.
The group also announced that financial director Deon Louw would retire at the end of September but would continue as a consultant. Marileen Kok will succeed Louw as group financial director.
The group has maintained its 2025 production guidance at between 215,000oz and 225,000oz.
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