Pan African said yesterday that despite the previously flagged challenges experienced at its underground operations, it had met its revised gold production guidance for fiscal 2023.
In its operational update for the year ended June 30, 2023, the mid-tier miner said gold production was 175 209 ounces.
For the 2024 financial year, production guidance was set at 178 000 to 190 000 ounces.
Pan African CEO Cobus Loots said: “Despite the previously flagged challenges experienced at our underground operations, the group delivered a robust financial performance for the reporting period.
“The continuous operations at our Barberton underground mines and other improvements are now positively impacting production, with increased production expected in the year ahead.”
The group said Barberton Mines produced 64 586 ounces, Barberton Tailings Retreatment Plant (BTRP) manufactured 19 875 ounces, while Elikhulu produced 50 573 ounces, and Evander Mines manufactured 40 175 ounces.
In May, the company cut its gold production guidance to around 175 000 ounces from prior guidance in the 195 000 to 205 000 ounces range, primarily as a result of challenges related to Eskom-generated electricity supply.
At the time, Pan African Resources said issues related to Eskom-generated electricity supply impacted all of the group’s operations.
“In addition to loading curtailment, power outages, and surges, difficulties related to transformers and other Eskom infrastructure contributed to production disruptions,” the group said.
Last week, Pan African Resources said the construction of the Mintails tailings retreatment plant would start after raising R2.5 billion in debt funding for the project.
In October last year, the company acquired Mogale Gold and Mintails' SA Soweto Cluster for R50 million. Mintails Mining SA, which owns two mines, was placed in provisional liquidation in 2018.
Pan African said the project would be commissioned in the latter half of the 2024 calendar year.
The group also announced the closure of the senior debt facility, that all conditions precedent to its R1.3bn senior debt tranche, earmarked to fund the Mintails, had been fulfilled, and the senior debt facility had become effective.
This would enable the company to start full-scale construction on its Mogale tailings retreatment plant, which is expected to produce 50 000 ounces annually for the next 20 years and longer.
Loots said: “We look forward to presenting our 2023 year-end financial results in September, and to providing further details on developments in our operations and growth projects that will improve value creation for our stakeholders.”
BUSINESS REPORT