RECOVERY
Pan African looks to turn tide on higher production
Pan African Resources, a gold miner with underground and tailings operations, flagged a recovery of production from its Barberton mines, while its large R1.7bn tailings project at Evander is on track to start low-cost production from August. Pan African is in talks with labour at its Evander underground mine because costs are too high to sustain production and the process is to be completed by June. There has been speculation that the mine could be mothballed until rand gold prices recover from levels just above R500,000 a kilogram. Some 1,400 jobs are at stake in the Section 189 process in terms of the Labour Relations Act. "The company has underperformed as multiple issues have affected production while a weak rand gold price forced a review of higher cost operations," BMO Capital Markets analyst Andrew Breichmanas said. "However, with a Section 189 process initiated at Evander and the Elikhulu project expected to achieve a first gold pour in August, the group appears to be positi...
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