Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN) CEO Cobus Loots talked with Proactive's Stephen Gunnion about the company’s strong operational update for the first half of the year, highlighting a 51% increase in group gold production. This performance was driven by key operations at Elikhulu, the commissioning of the MTR project in Johannesburg, and early contributions from the Tennant project in Australia.
Loots specifically pointed to the improved output from Evander, stating, “That infrastructure is now fully commissioned and operating as it should. But with higher grades, we can expect an even better performance.”
He also noted the contribution of the elevated gold price, which enabled Pan African to cut net debt by over 65%. The company expects to be net debt-free by the end of February, and has proposed an interim dividend. Loots emphasised that Pan African has maintained a strong balance between returns, reinvestment, and growth.
Looking ahead, he said costs were impacted by factors beyond the company’s control, including a stronger rand and one-off share option costs, but anticipated that increased production in the second half would help reduce unit costs.
Loots described the Soweto Tailings project as a “very exciting growth” opportunity, with a definitive study due by June. Meanwhile, Australian operations at Tennant are set to double production in the second half, with encouraging exploration results suggesting long-term potential.
He concluded by reaffirming the company’s conservative approach to planning and investment decisions, noting that projects like Soweto remain compelling even at much lower gold prices.
For more videos like this, visit Proactive's YouTube channel. Don’t forget to give this video a like, subscribe to the channel, and enable notifications so you never miss an update.
#PanAfricanResources #GoldMining #CobusLoots #EvanderMine #MTRProject #TennantMine #SouthAfricaMining #AustraliaGold #MiningInvesting #GoldProduction #GoldStocks #DividendStocks #MiningNews #SowetoTailings #ProactiveInvestors
