Pan African Resources expects to meet upper production guidance; progress on Mintails project
London, UK
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May 13, 2024 10:52 AM Eastern Daylight Time
Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) CEO Cobus Loots tells Proactive's Stephen Gunnion the company is expected to meet the upper end of its production guidance for the year ending in June. This outcome could have been surpassed if not for a reduction in marginal surface throughput at its Evander operation, a decision driven by economic factors related to third-party tolling material. Additionally, progress continues on the construction of the Mintails tailings project, set to be commissioned later this year, with steady-state production anticipated by December.
Loots also touched on developments at the Soweto cluster, part of the company's longer-term strategy at MTR. This cluster, along with the Mogale cluster, is expected to significantly extend the life and production capabilities of the mine. Initial estimates project a life span of over 20 years for the mine, with production cost-effectively under $1,000 per ounce, enhancing profitability, especially in the current favourable gold price environment.
Loots also noted that while the company is focusing on completing the Mintails project, the final investment decision for the Soweto cluster will not be rushed, with further studies and permitting still pending. Overall, operations across the company’s portfolio are progressing well and in line with guidance.
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