PAN African Resources aimed to double output to 250 000 ounces a year in the next 18 months through organic projects at the Evander operations, chief executive Ron Holding said yesterday.
The new target comes as the JSE- and London-listed gold producer posted an improved operational and financial performance for the year.
Its shares rocketed 10.65 percent higher to close at R2.38 on the JSE yesterday.
In the year to June, group revenue increased 49 percent to R1.8 billion.
Headline earnings a share rose by 20.8 percent to 30.07c and earnings a share increased 39 percent to 34.51c. Group gold sales improved 38.2 percent to 130 493 ounces.
A final dividend of 13.14c a share was proposed by the board and needs to be approved at the annual general meeting on November 29.
The company has taken steps to reach its target of 250 000 ounces, starting with the sweeping and vamping project at one of the Evander shafts to produce gold from previously mined-out areas. The company has proposed bringing the Evander tailings project into production.
“We are in a position to produce 200 000 ounces with our current infrastructure at our Evander and Barberton mines,” Holding said. “There is also further growth potential through the exploitation of other near-term organic projects.”
The Evander mine, acquired from Harmony Gold in February, contributed R438.9 million to group revenue and gold sales were 34 197 ounces in the four months it was on Pan African’s books .