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(Alliance News) - Pan African Resources PLC said on Thursday it has lifted the bottom end of its annual production guidance after stopping to process surface material at its mine in Mpumalanga, South Africa.
The Rosebank-headquartered gold producer now expects production to range between 186,000 ounces and 190,000 ounces for the financial year ending June 30, from 180,000 ounces to 190,000 ounces forecast previously. For financial 2023, output was 175,209 ounces.
The miner said it had ceased processing of marginal surface sources at Evander Gold Mines in the second half because it had become uneconomical. This business contributed about 2,500 ounces in the first half of the 2024 financial year
If production from these sources was maintained in the second half, full-year production would have exceeded 190,000 ounces, it said.
Pan African maintained all-in sustaining cost guidance for financial 2024 at between USD1,325 and USD1,350 an ounce, compared to USD1,327 in 2023.
"The robust production results, combined with record rand gold prices, should see the group deliver an excellent financial performance for the year," Chief Executive Officer Cobus Loots said.
Production guidance for the 2025 financial year is between 215,000 ounces and 225,000 ounces.
The gold producer said the Mogale tailings retreatment project is on schedule for commissioning and steady state production during December. It has said this project will add about 50,000 ounces per year.
Pan African also said it will proceed with the necessary permitting and servitudes required for the re-mining and processing of the Soweto cluster, with a final investment decision in due course.
In October 2022, Pan African acquired Mogale Gold Pty Ltd and Mintails' SA Soweto Cluster Pty Ltd for ZAR50.0 million.
An internal pre-feasibility study for the Soweto cluster was completed in March 2024, Pan African said on Thursday.
Under consideration, the company may develop re-mining, overland piping and pumping infrastructure at the Soweto cluster resource to process the material at the Mogale tailings retreatment plant.
Pan African expects to release its financial results on September 11.
In Johannesburg, Pan African shares rose 1.3% to ZAR5.62 on Thursday, while they were up 1.9% at 24.10 pence each in London.
By Artwell Dlamini, Alliance News reporter
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