Gold ore mining and processing company Pan African resources (LON: PAF) posted increases to its mining and processing in its update for the year ended June 30 2019.
The Company told investors in today’s update that gold production from its continuing mining operations spiked 54.1% to 172,442oz and said production from its continued and discontinued operations was up by 7.5%.
Its largest operation, Baberton Mines, saw production rise 9.6% to 99,636oz of gold, while Evander mines’ volumes grew from 21,250oz to 26,878oz year on year.
Its Elikhulu tailings retreatment plant operation produced 46,201oz of gold, which exclude pre-production gold volumes of 736oz. Pan African Resources added that the plant processed 10.85 million tonnes from the period between September 2018 and June 2019.
Pan African Resources comments
Pan African CEO Cobus Loots added the following insights,
“Pan African has emerged at year-end as a safe, low-cost and long-life gold producer, following the successful execution of our strategy. We exceeded the full year production guidance of 170,000 ounces, resulting in the Group’s gold production increasing by 7.5% to 172,442oz – or 54.1% on continuing operations relative to the corresponding reporting period.”
“This has been delivered through the cessation of the high cost underground mining at Evander Mines, the successful commissioning of the Elikhulu tailings retreatment plant, and Barberton Mines achieving a significant increase in production. Critically, Barberton Mines achieved a historical milestone of 2 million fatality free shifts during June 2019 and we commend the team for this safety achievement.”
“We continue to assess the optionality of our portfolio and are looking to build upon this year’s momentum to drive further growth. Evander’s 8 Shaft Pillar mining is expected to contribute an additional 20,000oz to 30,000oz per annum for the next three years. The Group is currently reviewing the merits of expediting the Egoli project and is assessing funding options. Progress is also being made with the underground mining project feasibility study at Royal Sheba and we look forward to communicating the results to shareholders in the near future.”
“We are also very mindful of the positive socio-economic impact that the mining industry has on communities and are proud of the way we manage our stakeholder relations. That said, we continue to experience certain challenges amongst specific stakeholder groups, which have impacted Barberton Mines, and are working in conjunction with law enforcement and other stakeholders to remedy the situation.”
“As previously announced, the 2020 financial year production guidance will be approximately 185,000oz, representing an important increase in our year-on-year gold production profile.”
The Company’s shares have rallied 5.71% or 0.6p so far in Friday morning trading, up to 11.1 p per share 12/07/19 11:46 GMT. Peel Hunt analysts reiterate their ‘Buy’ stance on Pan African Resources stock.
Elsewhere in the mining and minerals sector, recent updates have come from; Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA), Arc Minerals Ltd (LON: ARCM) and Thor Mining PLC (LON: THR).