Pan African increased production expected in 2nd half of 2023
Cobus Loots, Pan African’s chief executive officer, said reduced gold production over the past six months can primarily be attributed to the performance of Barberton Mines’ underground operations.
Pan African believes that the tangible measures being implemented at these operations will result in a significant improvement in production during the second half of the financial year and in the years ahead.
The balance of its portfolio delivered in line with expectations, despite disruptions to its electricity supply and inclement weather conditions adversely impacting operations.
At its Evander Mines operation alone, electricity issues adversely impacted production by approximately 5%, reinforcing our strategic objective to expand its renewable energy portfolio in the years ahead.
Given the increased production performance expected in the second half of the 2023 financial year, Pan African will maintain production guidance of 195,000oz to 205,000oz for the full year subject to consistency in Eskom’s electricity supply.
Pan African is committed in its resolve to continued value creation for its stakeholders by positioning the Group as a sustainable, safe, high-margin and long-life gold producer with an attractive pipeline of growth projects.
OPERATIONAL OVERVIEW
Group production for the current reporting period decreased by 14.6% to 92,307oz (2021: 108,085oz) following the record gold production achieved in the previous reporting period.
The decrease in production, mainly attributable to Barberton Mines’ underground operations, will be addressed by reconfiguring Fairview and Sheba Mines’ shift cycles to continuous (24-hour) operations and converting Consort Mine to a contract mining model. These restructuring plans, together with other initiatives to increase mining flexibility, will ensure the sustainability of these operations in the future.
The Barberton Tailings Retreatment Plant produced 10,012oz (2021: 9,126oz) for the current reporting period at an AISC of US$725/oz (2021: US$814/oz). Gold production from Elikhulu, also one of the lowest-cost gold mining operations in Southern Africa, remained steady at 25,830oz (2021: 25,900oz) at an AISC of US$947/oz (2021: US$937/oz), despite electricity supply disruptions and inclement weather conditions during the November and December rainy season.
Gold production from Elikhulu is expected to increase marginally in the second half of the 2023 financial year, as material from the Leslie/Bracken tailings storage facility (TSF) is re-treated, following the installation of the 6km pipeline and successful commissioning of its pump station in September 2022.
Evander Mines’ underground production decreased by 29.8% to 19,173oz (2021: 27,312oz), despite an increase in processed tonnes by 6.0% to 73,946t (2021: 69,790t) due to the normalisation of mining face grades in line with planned grades and limited mining rates in accordance with geotechnical parameters for the shaft pillar’s safe extraction.
