Cobus Loots, CEO of Pan African Resources talks to Proactive’s Stephen Gunnion about production, surface mining and safety.
SG: Can you share how the last six months have been for Pan African?
CL: Helped by favourable gold price and our strong production performance it has been a good six months.
Specifically, our operations at Barberton and our tailings portfolio have shown exceptional outcomes. This positions us well for achieving our full-year production guidance of between 180,000 and 190,000 ounces of gold.
SG: How did Pan African Resources manage costs amid inflationary pressures?
CL: Increasing our production volume helped reduce unit costs, alongside our diligent cost control measures.
We're also making strides in renewable energy, with our first solar plant reducing our all-in-sustaining cost by about $13 per ounce. Plus, our focus on water recycling is further contributing to cost efficiencies.
SG: Speaking of investments, how is the Mogale tailings retreatment project progressing?
CL: The Mogale project is on track and within budget. We're looking to commission it later this year and reach steady-state production by December 2024.
This project is expected to add 50 to 60,000 ounces to our annual production for the next two decades, which is a significant boost for us.
SG: Can you highlight the operational enhancements at Barberton Mines?
CL: Certainly. We've seen increased production at both Fairview and Sheba, despite some challenges like electricity outages.
Our ongoing exploration efforts are promising, showing that even after 140 years, Barberton still holds significant potential for future mining.
SG: How about the developments at Evander Mines?
CL: Evander has been performing exceptionally well, with increased underground production.
We're excited about this asset and the infrastructure improvements underway, including the phase two refrigeration and the sub-vertical winder, which will enhance efficiency substantially.
SG: Safety is paramount in mining. How has Pan African Resources fared in this aspect recently?
CL: Safety is our top priority. We believe we cannot mine if we cannot mine safely. Our focus on tailings and surface operations has helped us maintain a strong safety record, and our underground mines are also performing well in this regard.
SG: As we're now into the second half of the fiscal year, how are things looking for Pan African Resources?
CL: The outlook is very positive. We had a strong start in January, and we're optimistic about the prospects for our group for the remainder of the year.