Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) has stuck with its production forecast this year in spite of problems at its Barberton mine in the first half.
Gold production this year (to end-June 2023) should be between 195,000-205,000oz, said the South Africa-based miner, even after a fall in the first half to 92,300oz from the previous year's record 108,100oz.
Profits after tax reflected the lower output and higher costs and dropped to US$28.9mln from US$46.1mln.
In January, Pan African said it had agreed a restructuring plan 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
Cobus Loots, chief executive, added: “Reduced gold production over the past six months can primarily be attributed to the performance of Barberton Mines’ underground operations.
“We believe that the tangible measures being implemented at these operations will result in a significant improvement in production 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 adversely impacting operations.”