PAN African Resources has forecast an increase in gold production of up to 21% as the first fruits of its $135m (R2.4bn) Mintails surface mining project flowed.
Commenting in its financial results for the year ended June today, the South African gold producer said production for the current (2025) financial year would be between 215,000 and 225,000 ounces exceedings its previous production record in 2022 of just over 200,000 oz. Production in the 2023 financial year was 186,039 (2023: 175,209 oz).
Pan African had a solid year reporting a 30.3% lift in share earnings to 4.14 US cents (2023: 3.18c/s restated). Headline share earnings were 32.1% higher at some 4.15c/share (3.14c/share).
But cash generation from operating activities fell $9.3m to $90.8m ($100.1m) partly as a result of higher than planned mining costs. All in sustaining costs (AISC) totalled $1,354/oz marginally exceeding guidance owing to a delay in the commissioning of Evander Mines’ subvertical hoisting shaft which negatively hit unit costs, the firm said.
The issues at Evander Mines could potentially hurt 2025’s production guidance by about 5,000 oz but possibly itself offset by vamping operations at Evander and the earlier production from Mintails.
Net debt ballooned to $106.4m – an increase of $84m year-on-year mostly as a result of the cost of building Mintails which nonetheless will start first production next month under budget and construction schedule.
Despite the pressure Pan African declared a 1.2 US cents per share final dividend. A final dividend of 0.96 US cents/share was paid for the 2023 financial year.
The miner also said it had extended its Barberton Tailings Retreatment Plant’s life of mine to seven years from the previous two-year target. The increase in life for BTRP’s was after the group reassessed its feedstock sources.
