A tough second half awaits Pan African Resources in its 2017 financial year after the gold miner reported an interim dividend and higher profits that masked operational difficulties. The overriding task facing management in the six months to end-June will be the R40m refurbishment of two shafts at its Evander mine that will entail the underground workings to be shut for up to two months. The mine will produce 14,000oz less of gold in the year and drag the company’s annual output down to 181,000oz. Pan African wants to get the all-in sustaining cost at Evander to $1,100/oz after they ballooned to $1,769/oz in the interim period due to lower output due to safety stoppages and difficulties with its ore hoisting shaft. Pan African must secure R740m for its R1.74bn Elikhulu tailings retreatment project at Evander, which will add 56,000oz a year of low-cost gold to the company.

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