PAN AFRICAN RESOURCES: Operational update for H1 FY2024

Pan African has provided a production update for the half year ended 31 December 2023.

KEY FEATURES

• Improvement in overall Group safety performance
• Gold price received of US$1,961/oz (2022: US$1,725/oz), an increase of 13,7% relative to the six months ended 31 December 2022 (Previous Reporting Period)
• Excellent operational results, with gold production of 98,458oz (2022: 92,307oz), an increase of 6.7% relative to the Previous Reporting Period
• Production costs were well managed despite inflationary pressures, with Group all-in sustaining costs (AISC) expected to be approximately US$1,300/oz at an average exchange rate of US$/ZAR18.69, below the FY2024 guidance of US$1,350/oz (at an assumed exchange rate of US$/ZAR18.50)
• MTR Project construction on time and within budget, with commissioning expected in the latter half of the 2024 calendar year
• Commissioning of further renewable energy generating capacity is on schedule.

Operations performed in line, or better than expected, with production forecast for the Reporting Period, as follows:

• Barberton Mines underground: 36,779oz (2022: 32,022oz). The implementation of continuous operations at Barberton Mines contributed to increases in mined tonnages and grades, when compared to the Previous Reporting Period
  • Evander Mines underground: 21,307oz (2022: 19,173oz). The ramping up of mining operations at Evander Mines’ 24 Level underground operations contributed to the increased gold production, successfully replacing the depletion of the 8 Shaft pillar ore resources, consistent with the mine plan
  • Elikhulu tailings retreatment: 28,106oz (2022: 25,830oz), with operations benefitting from improved metallurgical recoveries
  • Barberton tailings retreatment plant (BTRP): 9,864oz (2022: 10,012oz)
  • Evander Mines’ surface sources: 2,401oz (2022: 5,270oz).

PRODUCTION GUIDANCE

Production guidance for the full 2024 year is maintained at between 180,000oz to 190,000oz  (FY2023: 175,209oz). However, given the excellent production performance in the Reporting  Period, revised guidance may be considered in due course. Production for FY2025 is expected to  be significantly higher, following commissioning of the MTR project, which will add approximately  50,000oz/yr to Group production, increasing annual output by some 25%.