Pan African prepares for solar power

Published Date: 2021-01-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

The gold mining company expects to generate the first power from the solar photovoltaic plant in the third quarter of the year.

Pan African Resources will start construction of a solar photovoltaic plant at its Evander Mines before the end of March, with first power expected to be generated during the third quarter of the year. The gold producer says the plant will be one of the first of its kind in the SA mining sector. In conjunction with several other projects, it says it also will also underpin its profitability and sustainability.

In an operational update, Pan African said Evander increased gold production by 17% to 19,169 ounces in the six months to end-December, contributing to a 5.9% rise in total gold production to 98,386 ounces. Its flagship asset, Barberton Mines, reported production of 52,354 ounces, while Elikhulu produced 26,863 ounces. It said the rise in production came despite the challenges of the ongoing Covid-19 pandemic and put it on track to meet its full-year production guidance of about 190,000 ounces.

The higher production and a stronger gold price helped it reduce net debt by 47% to $65.2 million even after paying a record final dividend for the year to end-June.

The company said it expected operations at Evander Mines' 8 Shaft pillar to deliver a much-improved performance during the remainder of the 2021 financial year, as the pillar mining activities gathered momentum.

Pan African expects to release its interim results on 16 February. Its shares closed 0.6% down at R4.95 on Friday.