MINING RESULTS
Operational difficulties hit Pan African
Pan African tries to offset the bad news by outlining a host of projects to add extra low-cost ounces of gold
Pan African Resources showed the scars of operational difficulties at key assets, leading to a fall in profit for the interim period, with analysts warning of more pain to come if the rand remains strong against the dollar. Pan African tried to offset the bad news by outlining a host of projects to add extra low-cost ounces of gold from surface and underground resources. The R1.7bn Elikhulu tailing retreatment project at Evander will reach steady state production in September 2018 and will give the company a low-cost base of 100,000oz of gold a year from three tailings projects to help ride out currency storms, said CEO Cobus Loots. Pan African pulled the plug on talks to acquire the assets of ASA Resources, a company with gold and nickel mines in Zimbabwe, because of the rand, the fall in its own share price and the difficulties it was having in SA, Loots said. Pan African’s taxed profit for the six months to December plunged to R58m from R250m, with a fall in gold sales and higher...
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