Pan African Resources increases production guidance as Evander volumes improve

Pan African Resources Plc (LON:PAF) has increased its production guidance to 195,000 ounces of gold for the twelve months ending June 30.

It marks an upgrade from prior guidance of 190,000 and it comes amidst what the company described as a “robust operational performance, driven by a significant improvement in production from the Evander mine’s 8 Shaft pillar.

That part of the Evander mine has yielded some 3,400 ounces of gold per month for the past three months, the company highlighted, and it is expected to unearth a further 80,000 ounces of gold in its remaining two years of expected lifespan.

Additionally, the company highlighted that it received positive results of an independent fatal flaw analysis and subsequent concept study for the Mintails SA tailings resources, which is seen to have potential for 533,000 ounces of gold production over a 12-year project life with an all-in-sustaining-cost of around US$800 per ounce.

PAF has consequently reworked its capital spending plans to move the Egoli project into a phased development – reducing upfront capital needs and therefore reducing debt requirements – and it will advance feasibility programmes for Mintails so that the definitive study is complete in the first quarter of 2022.

The company also highlighted that its solar power project on the Evander Mines site has begun, and, it is on-track for commissioning during the third quarter of 2021.

“We are pleased with the robust operational performance for the year to date, and that we again expect to exceed our original full year production guidance,” said chief executive Cobus Loots.

He added: “The successful completion of the Evander Solar Plant in the next months will pave the way for further renewable energy initiatives, so as to further reduce our carbon footprint and further increase operating margins”

Story by ProactiveInvestors