Pan African puts tough year behind it, raises future production target
CEO Cobus Loots says the company is now a low-cost producer, after a painful year in which the closure of the loss-making Evander mine caused production to plunge
After a difficult year in which it closed its Evander mine, leading to a sharp fall in expected gold output, Pan African Resources lifted its future gold production target to about 170,000oz. Pan African, which is traded on bourses in Johannesburg and London, fell well short of the 190,000oz target it set at the end of its 2017 financial year, in which gold sales dropped by 15% to 173,285oz because of difficulties at its Evander mine in Mpumalanga. Pan African took the decision to stop the loss-making Evander mine, putting 1,700 people out of work after having already laid off 775 employees at contractors at the mine during the 2017 financial year to end-June.
In its production update for the 2018 financial year, Pan African, one of the worst-performing gold stocks on the JSE so far this year, said its full-year production of 160,421oz was ahead of a more recent forecast of between 157,000oz and 160,000oz. For the 2019 financial year, Pan African set a target of 170,000oz, wit...
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