Miner: more gold, lower cost Pan African production plans
Pan African Resources management is focusing on three new projects to generate more gold for the company, some of it low-cost production that will drag down the group’s average costs, putting behind it an annus horribilis in which its gold output and profits fell hard. The 2017 financial year to end-June was one for the management to learn tough lessons after gold output fell 15% to 173,285oz and post-tax profit tumbled 43%, to R310m. Pan African stuck to its guns on dividend payments, despite starting a R1.74bn tailings retreatment project at its Evander mine. It declared a R185m dividend for the year, translating to R0.08279 per share. The all-in cost during the year shot up to R540,693/kg, which includes capital expenditure on growth projects, compared with 2016’s R410,206/kg. The received rand gold price was flat at R542,773/kg, compared with 2016. The past financial period was also the year in which Pan African drew a line under two investments, selling its Uitkomst Colliery an...
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