Pan African Resources more than doubled its cash flow and increased profit by almost 50% in its latest half-year.
'Exceptional' contributions from its surface tailings treatment operations at Elikhulu and Barberton (BTRP), a higher gold price and slightly lower costs helped profits jump to US$42.4 million (US$28.9m), said the South Africa-based gold miner.
Production in the six months to end December 2023 rose by 6.7% to 98,500oz, with Pan African reiterating its forecast for this year of between 180,000 to 190,000oz.
Cobus Loots, chief executive, commented that the surface operations performed “exceptionally well”, with their sub US$900/oz AISC contributing significantly to group production, cash flows and profits.
“Our long-life MTR project, once commissioned later this calendar year, will also add meaningfully to the group’s surface production portfolio and its valuation.
“With the MTR project’s incremental production of approximately 50,000oz per year, almost 50% of the group’s annual gold production will be sourced from low-cost, long-life surface remaining operations."
Underground, Loots said Pan African was seeing progress with new shafts at Evander, while continuous operations at Barberton’s Fairview and Sheba mines had boosted production.
“In the short term, our priority is to deliver into the production guidance for the 2024 financial year and commission the MTR project on schedule and within budget, which will elevate Pan African into the next tier of global gold producers,” he added.
Cash inflow of the half rose 134% to US$27.2m, with net debt at US$64.3m after spending US$21.6m on MTR.
Loots added the company was deeply saddened by a fatality at Elikhulu after the period.