11th Jun 2025 11:31
(Alliance News) - Pan African Resources PLC on Wednesday said it expects annual production to rise at a slower pace than earlier anticipated, and sees costs overshooting guidance.
The Rosebank-headquartered gold producer estimates gold output at about 197,000 ounces for the financial year ending June 30, up from 186,039 ounces the year before. It previous had guided financial 2025 production at between 205,000 ounces and 215,000 ounces.
Actual output fell short of guidance, Pan African said, due to a slower-than-expected ramp-up of the Evander underground subvertical shaft project and delays encountered with the commissioning of the filter presses associated with the dry stack landforms of the Tennant Mines plant.
Pan African acquired an additional 92% of Tennant Consolidated Mining Group Pty Ltd in November last year.
The junior miner said there was "notable" increase in production to about 112,000 ounces in the second half of financial 2025 from 84,705 ounces in the first half.
The second-half performance benefitted from the ramp-up at the Mogale tailings retreatment operation, steady production at Elikhulu and Barberton tailings retreatment plant, and improved grades and tonnages following the commissioning of the Evander subvertical shaft, it said.
Pan African said Tennant Mines gold processing plant, commissioned on budget and on schedule, expects steady state production of around 50,000 ounces per year during the first quarter of the 2026 financial year.
All-in sustaining costs for financial 2025 is expected to be between USD1,550 an ounce and USD1,575, higher than USD1,450 and USD1,500 projected previously.
Production guidance for the 2026 financial year is between 275,000 ounces and 292,000 ounces.
Pan African on Wednesday also reported a fatal accident at Barberton's Sheba mine on Friday last week.
In London, shares in Pan African were down 1.8% to 46.65 pence on Wednesday. But they were up 0.8% at ZAR11.24 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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