Pan African gold production meets revised expectations

7th Aug 2023 07:44

(Sharecast News) - Pan African Resources reported total gold production of 175,209 ounces for the 2023 financial year on Monday, meeting its revised guidance announced in May.

The AIM-traded firm said the total was made up of 64,586 ounces at Barberton Mines, 19,875 ounces at the Barberton Tailings Retreatment Plant, 50,573 ounces at Elikhulu, and 40,175 ounces at Evander Mines.

For the new financial year, the company projected gold production ranging between 178,000 and 190,000 ounces.

On the financial front, Pan African said its efforts to trim net senior debt had borne fruit, with its debt figure, which stood at $49.9m in December, slashed down to $18.9m by the end of the reporting period on 30 June.

The firm said its all-in sustaining costs for the period were anticipated to be between $1,325 and $1,350 per ounce, based on an average exchange rate of ZAR 17.77 to the dollar.

Finally, Pan African said its total recordable injury frequency rate had shown an improvement, declining from 8.95 per million man hours in 2022 to 8.13 in 2023.

"Despite the previously-flagged challenges experienced at our underground operations, the group delivered a robust financial performance for the reporting period," said chief executive officer Cobus Loots.

"The continuous operations at our Barberton underground mines and other improvements are now positively impacting production, with increased production expected in the year ahead.

"We look forward to presenting our 2023 year-end financial results in September, and to provide further details on developments at our operations and growth projects, that will improve value creation for our stakeholders."

At 0823 BST, shares in Pan African Resources were up 0.43% at 14p.

Reporting by Josh White for Sharecast.com.