Modern Mining May 2022

GOLD

Pan African Resources eyes the big league Mid-tier miner Pan African Resources’ growth strategy, underpinned by organic growth and advanced acquisition opportunities, will soon see the AIM and JSE-listed gold producer, which currently produces around 200 000 oz of gold per annum, move up the gold production ranks. The dual-listed entity is already busy with initiatives to ramp up production to 250 000 oz in the next three years and 300 000 oz in the next six years, investor relations head Hethen Hira tells Modern Mining’s Nelendhre Moodley.

“ W e are currently mining just over 200 000 oz per annum – a recent record production for the Group – and are aiming to increase production to 250 000 oz, which will put us in a totally different mid-tier bracket,” says Hira. Like its peers benefitting from the favourable gold price, Pan African Resources reduced its debt significantly and is reinvesting in its existing operations, bedding down on its tailings acquisition opportunities – Mintails and Blyvoor – and making a play for new Greenfields projects, having recently entered the Sudanese gold sector.

“With the gold price sitting at close to $2000/oz, South African companies are also benefitting greatly from the weaker rand. A gold price of anything above R900 000 per kilogram is fantastic news for Pan African Resources, as our average all in sustaining production cost sits at around R600 000/kg,” says Hira. This bounty has helped the miner significantly lower its debt, reinvest to unlock more gold ounces at its existing operations and return cash to shareholders in the form of dividends. “There are also sufficient funds in the kitty to buy back shares, as we believe Pan African Resources is

Barberton plant.

12  MODERN MINING  May 2022