Pan African Resources reports increase of 6.7% in gold production

Pan African delivered an excellent safety, production and financial performance for the reporting period, according to Cobus Loots, Pan African’s chief executive officer which positions the Group well to deliver on our production and cost guidance for the full financial year.

Despite inflationary pressures, the Group managed to curtail AISC, with unit costs benefiting from increased gold production, the Group’s cost-conscious culture and the weaker US$/ZAR exchange rate.

The higher US$ gold price, improved production and cost and capital discipline contributed to the much-improved cash generation of US$27.2 million, an increase of more than 130% when compared to the previous reporting period. This cash flow generation has resulted in the Group’s robust financial position, even after taking into account the MTR project’s capital expenditure and the net dividend of US$18.3 million paid to shareholders in December 2023.

Pan African Resources in their Unaudited interim financial results for the six months ended 31 December 2023 summarise the following production results:

  • Gold production of 98,458oz (2022: 92,307oz), an increase of 6.7% relative to the six months ended 31 December 2022 (previous reporting period)
  • The Group is well positioned to deliver into its 2024 financial year production guidance of between 180,000oz to 190,000oz of gold. Increased guidance may be considered in due course.
  • Improvement in overall safety rates with a total recordable injury frequency rate of 6.13 per million man hours for the year (2022: 8.54 per million man hours)
  • Group surface operations reported no recordable injuries for the six months ended 31 December 2023 (reporting period) (2022: 5.14 per million man hours)
  • Barberton Mines achieved 4 million fatality-free shifts during November 2023.
  • Costs and cost outlook
  • Production costs were well managed, despite inflationary pressures, resulting in a reduction in all-in sustaining costs (AISC) per ounce for the reporting period to US$1,287/oz (2022: US$1,291/oz)
  • The Group’s operations, which account for more than 85% of the Group’s gold production, produced at an AISC per ounce of US$1,149/oz (2022: US$1,139/oz)
  • The Group’s tailings retreatment operations (Elikhulu Tailings Retreatment Plant (Elikhulu) and Barberton Tailings Retreatment Plant (BTRP)) produced at an AISC of US$894/oz (2022: US$887/oz)
  • Renewable energy generation and water recycling, together with other initiatives to increase the Group’s future gold production, are expected to contribute to a decline in future real AISC
  • The AISC per ounce guidance range for the 2024 financial year reduced to between US$1,325/oz and US$1,350/oz (assuming an exchange rate of US$/ZAR:18.50).


  • Net cash from operating activities increased by 134.5% to US$27.2 million (2022: US$11.6 million)
  • Profit for the period increased by 46.7% to US$42.4 million (2022: US$28.9 million)
  • Headline earnings increased by 46.4% to US$42.6 million (2022: US$29.1 million)
  • Earnings per share and headline earnings per share increased by 46.1% to US 2.22 cents per share (2022: US 1.52 cents per share)
  • Payment of a net dividend of US$18.3 million (2022: US$20.0 million) in December 2023, equating to a dividend yield of 5.9% (2022: 4.6%), at the last traded price on 30 June 2023
  • Robust financial position at the end of the reporting period, with net debt of US$64.3 million (2022: US$53.7 million). The increase in net debt is primarily attributable to the capital expenditure of US$21.6 million incurred on the Mogale Tailings Retreatment project (MTR project)

Liquidity remains healthy, with access to immediately available cash of US$31.3 million (2022: US$33.9 million) and undrawn facilities of US$86.4 million (2022: US$52.1 million) at the reporting period-end.

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