Pan African on track to produce 200,000oz of gold for FY2022

Pan African has delivered an excellent operational performance, achieving record gold production in excess of 108,000oz for the six months ended 31 December 2021, and exceeding its previous guidance. Group AISC was US$1,173/oz, which is in line with its target AISC of approximately US$1,200/oz for the year ending 30 June 2022. Net cash generated by operating activities increased by 54.4%, together with a 13.3% increase in EPS and HEPS.

Barberton Mines produced 49,117oz of gold for the Current Reporting Period, and is on track to achieve full-year production guidance of approximately 100,000oz. the company is expecting an improved performance from the Elikhulu Tailings Retreatment Plant during the second half of the financial year, where production was adversely impacted as a result of inclement weather conditions experienced during November and December 2021.

Evander Mines’ 8 Shaft (8 Shaft) pillar delivered an excellent performance during the Current Reporting Period, again 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, work continues in preparation for the commencement of mining 8 Shaft’s 2 Decline on 24 Level. Mining from this level is anticipated to commence in the 2023 financial year, as the current pillar mining reaches completion. The board has now also approved the development capital for Evander Mines’ 25 and 26 Level project, which is expected to increase the LoM for 8 Shaft to 13 years, with expected annual production from these levels of approximately 65,000oz.

At Barberton Mines’ Royal Sheba project, development work is ongoing. Project Dibanisa, which effectively connects the underground workings of the Fairview and Sheba Mines, is also progressing on schedule and will reduce the operational cost of underground operations.

At Mintails, the definitive feasibility study on Mogale Gold’s tailings storage facilities (TSFs) is being finalised, and we look forward to communicating the results of this study in due course.

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 TSFs (Blyvoor assets). This acquisition has the potential of further building on the Group’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 study expected to be completed by April 2022.

The 9.975MW solar photovoltaic (PV) renewable energy plant at Evander Mines is on track to be commissioned in March 2022, following minor delays due to port disruptions and inclement weather.

This plant, which will be delivered on budget, will be one of the first of its kind in the South African mining sector and demonstrates Pan African Resources’ commitment to sustainable energy solutions, with the benefits of cost savings and certainty of power supply.

A feasibility study to expand the solar PV renewable energy plant to 21.98MW is underway, with the additional capacity designated for Evander Mines’ underground growth projects. A feasibility study for a similar-size solar PV renewable energy plant at Barberton Mines has been completed, with environmental permitting and detailed engineering design work progressing to plan and, in conjunction with several other advanced ESG projects, these plants will contribute to underpinning the Group’s profitability and sustainability in the longer term.

The Group is on track to produce approximately 200,000oz of gold for the financial year ending 30 June 2022, in line with its increased production guidance.

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