Pan African Resources achieved record annual gold production while strengthening its balance sheet in its year to June, 30.
In an operational update for the period, the JSE-listed company said yesterday that gold output increased by 2 percent to 205 459 ounces compared to 201 777 ounces in the prior year.
The 2023 annual production guidance was revised to 200 000 ounces, 5 percent higher than the initial guidance of 195 000 ounces.
Net senior debt was lowered by 71.5 percent to $9.6 million (R165.8m) compared to the previous year’s $33.7m.
The group said it also strengthened its balance sheet, despite the payment of a record dividend, incurring significant growth and sustaining capital expenditure.
Chief executive Cobus Loots said: “We are very pleased with the group’s operational performance over the past year, and the record gold production achieved by our teams during this period.”
He said they made meaningful progress with production growth projects at Evander underground and at Barberton’s Royal Sheba; both projects were on schedule to start delivering within their anticipated production time-frames.
He said key focus for the year ahead were the the smaller underground operations at Barberton to ensure that these assets perform to their full potential.
“The Royal Sheba orebody intersected on schedule during the June, 2022 extraction of 10 000 tonnes bulk sample in progress. Evander underground refrigeration plant at the Evander 8 Shaft 24 Level nearing completion for commissioning during August, 2022. Development blasting on Evander 8 Shaft 24 Level was completed in preparation for mining,” the group said.
The company said at Elikhulu surface tailings retreatment, a new Leslie/Bracken re-mining pump station, and related infrastructure were in place for mining to commence in August, 2022.
Loots said there were significant environmental, social and governance (ESG) milestones at the group through the year.
Highlights included commissioning a 10MW solar PV renewable-energy plant at Evander.
It is the first of this scale in the South African mining industry. The Barberton 8MW solar PV renewable-energy plant site establishment has also commenced.
The first commercial harvest at Barberton’s blueberry project was achieved and the construction of water treatment at Evander mines has also commenced.
The company is set to release its 2022 financial results in September, the group said.
BUSINESS REPORT