Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) has maintained its forecast for gold production this year as it expects production at its Barberton and Evander mines in South Africa to pick up in the second half.
Output in the six months to end-December 2022 was 92,307 ounces down from 108,085 ounces in the comparable period, which the gold miner's chief executive Cobus Loots said was largely down to issues at Barberton and problems with grid electricity supplies.
A restructuring plan has been agreed with unions at the Barberton complex, with the focus switching to the Fairview and Sheba deposits and Consort to become a contract operation.
Pan African is also installing solar plants to help overcome South Africa's power problems
Full-year production is still being guided at 195,000 to 205,000 ounces, a level similar to that achieved in 2022 as the benefits of the restructuring will come through in the second half.
In a statement, Loots said: "We believe that the concrete measures being implemented at this operation will result in a significant improvement during the second half of the financial year and in the years ahead.
“The balance of our portfolio delivered in line with expectations, despite disruptions to our electricity supply and inclement weather conditions impacting operations."
“We are encouraged by the progress made with the group’s growth projects. The Mintails acquisition was concluded in October 2022 and the senior debt funding for the construction of the project is expected to be finalised in April 2023.
“This asset is expected to significantly increase group gold production in the years ahead,” said Loots.