Pan African full year gold production increases by 6.2% year-on-year

Pan African Resources has provided a preliminary operational update for the financial year ended 30 June 2024, an update on the Mogale Tailings Retreatment project (MTR Project) commissioning and information on progress with its renewable energy projects.

Group full year production of 186,039oz was within guidance and increased by 6.2% year-on-year. The average achieved gold price for the Reporting Period was US$2,021/oz (R1,215,827/kg at an exchange rate of US$/ZAR18:71), and will be the highest on record

for the Group.

KEY FEATURES

Gold production increased by 6.2% to 186,039oz (FY2023: 175,209oz), in line with the revised guidance previously announced, with operations performing consistent with expectations: (FY2023 figures in brackets)

• Barberton Mines: 71,470oz (64,586oz)
• Evander Mines underground: 40,869oz (40,175oz)
• Elikhulu: 54,812oz (50,573oz)
• Barberton Tailings Retreatment Plant (BTRP): 18,888oz (19,875oz)

The Group’s all-in sustaining costs (AISC) for the Reporting Period is expected to be approximately US$1,350/oz, at an average exchange rate of US$/ZAR: 18.71.

A delay in commissioning the ventilation shaft for hoisting at Evander 8 underground operations adversely impacted production in the last two months of the Reporting Period, resulting in the Group not achieving the higher end of production guidance and also negatively impacted unit costs. Work is now scheduled to be completed in the coming weeks, after which the full benefits of the improved ore flow will achieve the planned increased production profile.

Exceptional progress has been made with the MTR Project’s construction, which is nearing its final stages. Plant commissioning and first gold production is anticipated ahead of schedule in October 2024, with steady state production expected during December 2024. Furthermore, the project is expected to be completed below budget including the Soweto Cluster Mineral Resources, as per the internal pre-feasibility study outcomes reported in May 2024, MTR is expected to produce approximately 60koz/year over a 21-year life of mine, at a forecast AISC of less than US$900/oz. Previously announced FY2025 production guidance reiterated at between 215,000oz and 225,000oz.

Net debt at the end of the Reporting Period increased to US$106.4 million (FY2023: US$22.0 million), mainly attributable to construction costs at the MTR Project (US$71.5 million for the year), expansion capital expenditure in respect of Evander 8 Shaft 25-26 Level development and Elikhulu’s new tailings storage facility extension (US$23.8 million) and Fairview solar plant expenditure (US$9.9 million).

Construction of the Fairview Mine’s 8.75MW solar photovoltaic plant has been completed, with final commissioning in the coming weeks.