https://newsletter.mw.creamermedia.com
Construction|Financial|Gold|PROJECT|Projects|Resources|Underground|Operations
Construction|Financial|Gold|PROJECT|Projects|Resources|Underground|Operations
construction|financial|gold|project|projects|resources|underground|operations

Pan African’s full-year profits rise on higher production, sales and prices

An image showing the Mogale Tailings Retreatment

Mogale Tailings Retreatment project

11th September 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

JSE- and Aim-listed Pan African Resources has proposed a dividend of 22c a share for approval at the company’s upcoming AGM for the financial year ended June 30, as operational enhancements and optimisation initiatives resulted in a 6.2% year-on-year increase in group gold production to 186 039 oz, in line with guidance.

Enhancements and optimisations contributed to significant improvements at Barberton Mines’ underground operations, resulting in a 13.5% year-on-year increase in production from the Fairview and Sheba mines to 65 580 oz, as well as an 8.4% increase in production from the Elikhulu Tailings Retreatment Plant to 54 812 oz.

Revenue increased by 16.8% to $373.8-million, supported by a 4.9% increase in gold sales to 184 885 oz from the restated 176 216 oz in 2023, and an 11.3% increase in the average dollar gold price received in the period.

Profit for the year increased by 30.2% to $78.8-million.

CEO Cobus Loots highlights considerable progress in advancing the group’s growth projects, with the development of Evander Mines’ 24 to 25 Level project and the commissioning of the Mogale Tailings Retreatment (MTR) project being prioritised.

The MTR project’s commissioning is in progress, with steady-state production expected by December at the latest. The project is expected to be delivered under budget and ahead of schedule.

The Barberton Tailings Retreatment Plant’s life-of-mine has been extended to seven years, from the two years previously stated, following a successful internal project to reassess feedstock sources.

Total capital expenditure for the year was $172.4-million, resulting in an increase in net debt to $106.4-million from $22-million in 2023, mainly owing to the construction of the MTR project.

Loots says additional production from the MTR project will firmly position the group as a midtier producer, with production growing by about 25% and a commensurate reduction in the unit costs of production.

All-in sustaining costs (AISC) were $1 354/oz, marginally above guidance of between $1 325/oz and $1 350/oz, with the delay in commissioning Evander Mines’ subvertical hoisting shaft negatively impacting on unit costs.

AISC guidance for the 2025 financial year is set at $1 350/oz to $1 400/oz, with the MTR project’s low-cost production offsetting inflationary pressures.

Production guidance for the new financial year has been set at 215 000 oz to 225 000 oz, with the expected increase in production largely attributable to the contribution from the MTR project.

This could potentially be impacted by the delay in the commissioning of Evander Mines’ subvertical shaft, which is scheduled to be completed during September, by about 5 000 oz.

However, Evander Mines’ underground vamping operations and earlier production from the MTR project may offset the impact of this delay. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Avlock International
Avlock International

Avlock International is a leading manufacturer and distributor of Specialized Fastening Systems.

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

MMC, Pan African, Vanadium Resources make headlines
MMC, Pan African, Vanadium Resources make headlines
4th October 2024
Magazine round up | 04 October 2024
Magazine round up | 04 October 2024
4th October 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.051 0.126s - 129pq - 4rq
Subscribe Now