Rosebank, RSA – Pan African has again delivered an excellent operational performance, achieving record gold production in excess of 108,000oz for the six months ended 31 December 2021r the six months ended 31 December 2021, according to Pan African CEO Cobus Loots.
This exceeded the expected 105,000oz announced in the Group’s December 2021 production update and was achieved while continuing to manage the impact of the COVID-19 pandemic and maintaining an excellent safety record.
The reduction in the Group’s net senior debt to US$23.9 million represents a 60.1% decrease relative to the outstanding net senior debt at 31 December 2020, notwithstanding the payment of a record final Rand dividend for the June 2021 financial year.
Barberton Mines’ gold production of 49,117oz for the Current Reporting Period decreased by 6.2%, we are however still forecasting that the operation will achieve full year production guidance of approximately 100,000oz.
At Elikhulu, production was down marginally by 3.6% to 25,900oz, mainly as a result of inclement weather conditions experienced during November and December 2021.
Evander Mines’ 8 Shaft pillar delivered an excellent performance during the Current Reporting Period, demonstrating the potential of this operation. Elevated grades and improved mining rates, as a result of improved face availability, increased production from the pillar and surface sources by 72.5% to 33,068oz for the Current Reporting Period.
Following the reprioritised capital programme, as announced in the Group’s 2021 final results presentation, work continues in preparation for the inception of mining Evander’s 8 Shaft No.2 Decline at 24 Level. Mining from this level is anticipated to commence in the 2023 financial year, as the existing pillar mining reaches completion. Studies to access the 25 and 26 Level Mineral Resources at 8 Shaft are also at an advanced stage. The organic growth projects have the potential to increase Evander’s operating life by an estimated 20 years.
The 10MW solar PV plant at Evander Mines is on track to be commissioned late in February 2022, following delays due to port disruptions and inclement weather. A feasibility study to expand the solar PV plant to 26MW is underway, with the additional capacity designated for Evander’s underground growth projects, with renewable energy expected to further improve the profitability and sustainability of this operation.
At the end of last year the Group announced the conditional acquisition of one of the last remaining large-scale gold tailings resources available in South Africa, the Blyvoor Gold TSF dumps (Blyvoor Assets). This opportunity could further build on the Company’s track record of successfully bringing tailings retreatment operations to fruition. An independent fatal flaw assessment and gap analysis has commenced on the Blyvoor Assets, with this work expected to be completed by April 2022.
At Mintails, the definitive feasibility study (DFS) on Mogale Gold’s tailing storage facilities (TSFs) is being finalised.
Cobus Loots commented: “The Group is on track to produce 200,000oz of gold for the financial year ending 30 June 2022, and Pan African is committed to continue creating value by positioning Pan African as a sustainable, safe, high-margin and long-life gold producer with an attractive pipeline of growth projects.”