PAN African Resources said it expected to post a decline in interim share earnings of between 31% and 41% following a decline in gold sold and a lower gold price received.
Commenting in a trading statement on February 10, Pan African said share earnings would be 1.40 US cents a share to 1.64 cents which compares to 2.39 cents/share for the corresponding period of the previous financial year.
Gold sold for the six months totalled 90,439 ounces which compares to record output of 107,142 oz previously – a decline of 15.6%. The average gold price received decreased by 4.4% to $1,725 oz.
The decline in production has led to a restructuring at Pan African’s Barberton Mines. Commenting in an operating report, CEO Cobus Loots said the Barberton’s Consort Mine would be converted to a “contractor mining model”. Continuous operations would be implemented at Fairview and Sheba, also part of Barberton Mines.
There would be no job losses as a result of implementing contractor mining at Consort Mine as employees would be transferred to Fairview and Sheba in line with increased shifts – a step that would reduce overtime costs. Negotiations with unions to enable continuous operations were concluded on January 27, the group said.
Barberton Mines turned in a disappointing performance for the six months ended December producing 32,022 ounces of gold compared to 39,991 oz for the half year in Pan African’s 2022 financial year.
Power curtailments as a result of Eskom’s loadshedding regime also ate into Pan African’s performance in the half-year. At Evander Mines, “electricity issues” resulted in a five percent decline in production, said Loots. The outages “reinforced” plans to expand the group’s renewable energy portfolio in the years ahead, he added.
