LONDON (ShareCast) - (Sharecast News) - Pan African Resources updated the market on its final gold production figures for the year ended 30 June on Tuesday, reporting "excellent" operational performance despite the continuing operational challenges presented by the Covid-19 pandemic.
The AIM-traded company achieved a 12.3% increase in gold production year-on-year to 201,608 ounces, with that production also 3.4% higher than the revised production guidance of around 195,000 ounces, released in May.

It said it maintained an "industry-leading" safety performance, with improvements in both its lost time injury frequency rate and reportable injury frequency rate over the prior year.

Additionally, Evander Gold Mines achieved a reduction in its reportable injury frequency rate of around 50% over the prior reporting period, despite the increased number of crews working underground.

Group net senior debt decreased by 45.5% to $33.8m, or ZAR482m, at year-end.

At Barberton Mines' underground operations, the benefits of the increased mining footprints on the 256, 257, 258 and 358 platforms, and the improved flexibility of having multiple platforms available, resulted in a 25% increase in production for the year of around 85,000 ounces.

Evander 8 Shaft pillar production delivered in-line with expectations, producing around 36,000 ounces for the period, despite operational difficulties in the first half of the financial year.

The board reported "excellent progress" at its community projects, with the Cathyville Clinic in Barberton now fully operational.

At Barberton's 15 hectare blueberry farm project, infrastructure had been established and planting completed, with the first harvest of between 80,000 and ,000 tons expected to be ready for export by mid-2022.

Civil engineering works had started at Evander Mines' 9.975 MWAC solar photovoltaic plant site, and major components had been procured.

The board said South Africa's National Energy Regulator (NERSA) public hearing took place on 6 May, with the generation licence expected "imminently".

It said the project was on track for completion during the third calendar quarter of 2021, and would be one of the first utility-scale solar photovoltaic facilities to be commissioned in the South African mining industry.

Additionally, following a recent announcement from the South African government that private consumers were now approved to generate up to 100MW of electricity, Pan African said it would also seek to expand its renewable energy capacity in the coming years.

"We are very pleased with the group's operational performance over the last year, and the fact that our team managed to exceed the revised production guidance for this period," said chief executive officer Cobus Loots.

"The group's improved safety performance is encouraging, and is primarily attributable to an unrelenting focus on safety at all operations, as well as the much improved safety performance at Evander's 8 Shaft.

"We continue to strive to enhance safety through our management and staff's combined efforts, in pursuit of our ultimate goal of 'zero harm'."

Loots said the company had now largely achieved the degearing of its balance sheet, describing current debt levels as "very manageable", enabling the group to fund all of its capital requirements from internally-generated cash flows and existing facilities.

"Our operational focus for the new year emphasises the further improvement of our safety performance and the continued optimisation of our operations.

"Environmental, social and governance remains a top priority for Pan African, with renewable energy projects, reduced emissions, land rehabilitation, biodiversity conservation and large-scale agri-project initiatives being our short to medium term initiatives."

Pan African said it would report its full-year results for the 12 months ended 30 June in September.

At 1004 BST, shares in Pan African Resources were down 0.85% at 16.76p.

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