Pan African Resources boosts interim production, keeps costs in check

(Alliance News) - Pan African Resources PLC on Monday described its interim production ...

Alliance News 22 January, 2024 | 10:17AM
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(Alliance News) - Pan African Resources PLC on Monday described its interim production performance as "excellent" after lifting output and keeping costs under control.

In an operational update, the Rosebank-headquartered gold producer said production rose 6.7% to 98,458 ounces for the six months that ended December 31, up from 92,307 ounces a year earlier.

The company said it managed output costs "well" despite inflationary pressures.

All-in sustaining costs are expected to be around USD1,300 an ounce, below the 2024 guidance of USD1,350 an ounce.

Gold price received in the first half was up 14% to USD1,961 per ounce from USD1,725.

Pan African maintained its output annual production guidance of between 180,000 ounces and 190,000 ounces.

"However, given the excellent production performance in the reporting period, revised guidance may be considered in due course," the gold miner said.

Production for 2025 is expected to be significantly higher, following commissioning of the Mogale Tailings Retreatment project, which will add about 50,000 ounces per year, increasing annual output by some 25%.

This project has made significant progress, with the construction of the processing plant on track to be commissioned in the latter half of the 2024 calendar year and steady state production expected by December.

In Johannesburg, Pan African shares rose 1.3% to ZAR3.85 on Monday at around midday, while they were flat at 15.64 pence in London.

By Artwell Dlamini, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Pan African Resources PLC 26.80 GBX -3.77 -

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