File picture: Carl De Souza

JOHANNESBURG - Gold producer Pan African said on Friday it remained on track to meet its gold production guidance of 170,000 ounces for the financial year to June.

In an operational update Pan African said its performance over the past nine months reflected efforts to maintain its position as a safe, low-cost and long-life gold producer. 

Safe, highly profitable and sustainable ounces at Elikhulu had replaced those of Evander’s loss-making underground operations, CEO Cobus Loots said.

"We continue to optimise Elikhulu, which delivered a throughput of 1.3-million tonnes in March 2019, 100,000 tonnes above the name plate capacity. The focus is now on maximising sustainable margins from this world-class operation," he said.

He said the company had commenced developing and equipping Evander Mines’ 8 Shaft Pillar, with first gold expected in August.

Evander is expected to contribute an additional 20,000 ounces to 30,000 ounces per annum for three years, at an all-in sustaining costs of approximately US$900 per ounce, making a meaningful contribution to the group’s near-term production and profitability. 

Loots said Pan African had completed extensive feasibility work on Barberton Mines’ Royal Sheba project, but due to its disciplined capital allocation criteria and the capital cost estimates to develop this mine, would not the project on a stand-alone basis.

African News Agency (ANA)