The South Africa-based gold miner added though that it has decided against re-opening the Royal Sheba mine at Barberton as a stand-alone project.
Royal Sheba might, however, become a source of additional ore to be processed at Barberton once the infrastructure already in place there is upgraded.
Pan African produced just shy of 123,800oz of gold in the nine months, out of which almost 73,000oz came from Barberton, 21,000oz from Evander and 30,000oz from the Elikhulu tailings retreatment plant.
The Evander 8 Shaft Pillar operation is expected to come onstream in August and produce between 20-30,000oz per year at a sustaining cost of US$900/oz.
Confident remains on track
Cobus Loots, chief executive, said: “We are confident the Group remains on track to meet its gold production guidance of 170,000oz for the full financial year to end 30 June 2019. “
Loots added Pan African will produce approximately 185,000oz of gold in the 2020 financial year, “which is a sizeable increase in our gold production profile.”
In a note to clients, analysts at ‘house’ broker Peel Hunt said: “The production data for Q3 sees output tracking slightly behind our estimates for FY19E production. Our estimate is 179koz, slightly ahead of the 170koz guidance.”
They added: “Looking to FY20E the 185koz guidance has a slower ramp up of the 8 shaft pillar than we have assumed, but this will likely translate into better FY21E and FY22E production given the 30koz/year average production rate from this project.”
Peel Hunt reiterated a ‘buy’ rating and 15.5p target price on Pan African shares, which in afternoon trading were down 1% at 9.54p.
-- Adds analyst comment, share price --