Pan African Resources PLC (LON:PAF) produced 173,000 ounces of gold in the year to June 2017, slightly lower than guidance.
A slower restart at the Evander mine, after operations were halted earlier in the year and operational challenges at the Barberton mine, now remedied, were behind the miss.
Operationally, the company made much progress over the year.
Evander Mines 7 shaft refurbishment has been successfully completed, and the restructuring programme is materially complete.
The Elikhulu Tailings Retreatment Plant (‘Elikhulu’) is fully funded and construction on-track.
A feasibility study for the addition of between 7,000 and 10,000 ounces of production at Barberton has also been completed, and expansion at Evander is now under consideration too.
“The 2017 financial year was operationally challenging in many respects,” said chief executive Coobus Loots.
“However the Group is now seeing the benefits of the remedial actions implemented by management. We look forward to a much improved performance in 2018, with a substantial increase in gold production.The Elikhulu project is on track for delivering first gold as originally planned, and is expected to contribute low-cost ounces and profits in the next 18 months.
For the current financial year the company expects to produce in excess of 190,000 ounces of gold.