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Pan African Resources confirms gold production growth

“Pan African has demonstrated the resilience of its operations with an improved performance for the year," said chief executive Cobus Loots

Pan African Resources plc - Pan African Resources confirms gold production growth

Pan African Resources plc (LON:PAF) has told investors that its gold production increased by 4.1% in the year ended June 30, 2020.

In the twelve-month period, it produced 179,575 ounces of gold up from 172,442 ounces in 2019.

The company noted that operations have implemented stringent policies and protocols to deal with the ongoing coronavirus (COVID-19) pandemic.

READ: Pan African Resources stays cashflow positive

“Pan African has demonstrated the resilience of its operations with an improved performance for the year, especially when taking into account the challenges posed by the COVID-19 pandemic,” the group's chief executive Cobus Loots said in a statement.

“The flexibility inherent in our operations confirms the quality of these mines and their ability to withstand short term disruptions and still deliver on our targets. We expect that we still have a long battle ahead against COVID-19 and will do our part to mitigate the impact as far as possible.”

Loots added: “Our strategic focus for the year ahead remains on optimising our operations and degearing our balance sheet, with the intent of increasing dividends in the years ahead.

“We are especially pleased to report that the rate of degearing has exceeded previous guidance and, at prevailing Rand gold prices and guided production levels, we expect to be debt free within the next twelve months.”

He noted detailed plans set out in last year’s interim results, to cut costs and lower margins.

“We have delivered on these plans with our annual production profile bolstered by the pillar mining at Evander’s 8 Shaft, which reached steady state during June 2020, while the accelerated development at Barberton Mines’ Consort operation has exceeded our expectations in terms of recovered grades and gold production. 

“The positive feasibility study for Evander’s Egoli Project demonstrates that this project can add considerably to the group’s production profile and firmly entrench Pan African as an established mid-tier gold producer,” Loots concluded.

Quick facts: Pan African Resources plc

Price: 24.5 GBX

AIM:PAF
Market: AIM
Market Cap: £472.44 m
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Pan African should be debt-free this year and hopes to increase dividends as...

Pan African Resources plc's (LON:PAF) Cobus Loots tells Proactive its gold production increased by 4.1% in the year ended June 2020. Loots says the strategic focus for the year ahead remains on optimising operations and de-gearing the balance sheet with the intention of increasing dividends in...

4 weeks, 1 day ago

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