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Pan African Resources revises guidance as it overcomes challenges
Pan African Resources updated the market on its progress for the six months ended 31 December on Tuesday - a period which saw the group further implement its strategy to provide a platform of stability at its operations at Barberton Mines and Evander Mines, as well as improved and sustainable cash flows and production for the second half of the year.
The AIM-traded firm said the measures taken had seen "substantial changes" at all of its underground operations, with the restructuring at Evander Mines and the increased investment in development at Barberton Mines.
It said the Elikhulu tailings retreatment plant project remained on track to commence commercial production a number of weeks ahead of schedule, whilst the operational challenges at Barberton tailings retreatment plant and the lower-than-anticipated recoveries were expected to be resolved following the installation of a regrind mill to assist with the processing of the coarser material encountered.
"The commissioning of Elikhulu will significantly advance Pan African's strategy of sourcing a substantial portion of its annual gold production from long-life, low-cost surface tailings operations," its board explained in its statement.
"These surface tailings operations ensure sustainability in the challenging South African operating environment."
The delivery of 85,282oz for the half year, down 6.9% year-on-year, was still described by the board as a "credible performance" in the light of the substantial challenges faced during the reporting period.
Pan African noted that it remained profitable despite the currency volatility, the lost production days from industrial disputes, and the technical challenges at the BTRP.
The group said it was now positioned for a stronger second half, with the results of its investment in the BTRP regrind mill and improved grades from Barberton Mines set to deliver strong production growth and lower costs over the next 12 months.
Its production guidance for the full financial year was now approximately 177,000oz-181,000oz.