Pan African increases full-year production

The miner’s gold production was also 3.4% higher than the revised production guidance of about 195 000 oz, which was released in May.

Production from the Barberton underground mine generated 84 819 oz in the reporting year, up from the 68 129 oz produced in the 2020 financial year, while production from the Elikhulu mine reached 51 473 oz for the reporting period, down from the 59 616 oz produced in the year prior.

Production during the 2021 financial year from the Barberton tailings retreatment plant was 18 235 oz, down from the 20 135 oz of the year prior.

Production from the underground Evander mine during the period was 35 959 oz, up from the 20 670 oz of the year prior; while the Evander surface tolling operation produced 11 121 oz during the period, up from the 10 907 oz of the year prior.

The Barberton underground operations' good production performance is mainly attributable to the increased flexibility achieved at Fairview mines’ high-grade Main Reef Complex and Rossiter orebodies.

At Barberton mines’ underground operations, the benefits of the increased mining footprints on the 256, 257, 258 and 358 platforms, as well as the improved flexibility of having multiple platforms available, resulted in the 25% increase in production for the year.

The Fairview mine produced 49 607 oz during the year under review.

In terms of finances, the group materially reduced its net senior debt during the reporting period, with a decline of 45.5% to $33.8-million (R482-million) from $62-million (R1.1-billion) of the year prior.

CEO Cobus Loots says the group has now largely achieved the degearing of its balance sheet, with current debt levels being “very manageable”. This, he says enables the group to fund all its capital requirements from internally generated cashflows and existing facilities.

Loots adds that addressing the challenges posed by the Covid-19 pandemic remains a top priority, with ongoing enhancements to the group’s operating protocols to mitigate the constantly evolving characteristics of the virus that has resulted in an increasing number of infections over multiple waves.

Going forward, the producer expects to maintain its production guidance of about 195 000 oz for the 2022 financial year, which is materially in line with the actual production of 201 608 oz achieved in the year under review.

HEALTH, SAFETY & COMMUNITY
In comparison with the prior financial year, the group maintained a good safety performance, with improvements in both its lost time injury frequency rate of 1.41 per million hours worked, and reportable injury frequency rate (RIFR) of 0.63 per million hours worked.

Pan African reports that its Evander gold mines achieved a reduction in RIFR of about 50% compared with the previous reporting period, despite the increased number of crews working underground.

“The group’s improved safety performance is encouraging, and is primarily attributable to an unrelenting focus on safety at all operations, as well as the much improved safety performance at Evander’s 8 Shaft,” he says.

As for its community projects, Pan African reports that its Cathyville Clinic, in Barberton, is now fully operational.

Further, at Barberton’s 15 ha blueberry farm project, infrastructure has been established and planting completed. The first harvest of between 80 000 t and 100 000 t is expected to be ready for export by mid-2022.

In terms of other projects, Pan African notes that the civil engineering works have commenced at Evander mines’ 9.975 MW solar photovoltaic plant site, with major components procured.

In addition to this, the miner says the public hearings required by the National Energy Regulator of South Africa took place on May 6, with the generation licence expected “imminently”.

This project is on track for completion during the third calendar quarter of this year, with further renewable energy project expansions eyed for the coming years.