Pan African Resources' Barberton Mines. Full year production for 2026 is expected to be about 72,000 ounces from 68,550 ounces in 2025, an increase of 5%.
Image: Simphiwe Mbokazi/Independent Newspapers
Pan African Resources has reached its record gold production target, ahead of its financial year to June 30, by increasing gold output by some 40% year-on-year, CEO Cobus Loots said Monday.
He said in an operational update that annual gold production is expected to increase by 40% to about 275,000 ounces, in line with the lower end of the 2026 financial year production guidance of 275,000 ounces to 292,000 ounces.
Second half gold production had increased materially to 147,000 ounces from 128,296 ounces in the first quarter.
“Our very robust financial position will allow us to continue our considered growth trajectory, executing initiatives to expand annual gold output to 300,000 ounces and beyond, while also further increasing cash returned to shareholders,” said Loots.
“The strong operational performance from our South African portfolio offset the slower-than-anticipated production ramp-up from Tennant Mines. Excellent production performances from the Elikhulu Tailings Retreatment Plant (Elikhulu) and Mogale Tailings Retreatment (MTR) surface operations and the Evander and Barberton Mines underground operations offset the slower-than-anticipated ramp-up of production from Tennant Mines.”
However, Loots said Tennant Mines' 2027 production target was expected to increase significantly as the operation mined the White Devil deposit.
The group expects to achieve full-year all-in sustaining cost (AISC) guidance of $1,870 per ounce at an average exchange rate of R17 per dollar for the 2026 year.. Cash flow generation was projected at $220 million.
An investment of was made in CuFe Limited, and three months of strategic cyanide supplies were funded for $7m. A month’s supply of diesel fuel reserves stored at Tennant Mines was purchased in light of the Middle East crisis.
Loots said the group is now in a net cash position, with the only outstanding debt being the domestic medium-term notes (DMTNs) of $49.7m.
The proposed acquisition of Emmerson Resources to consolidate the Tennant Creek mineral field is expected to be concluded during July 2026.
At Tennant Mines in Australia, blending of open pit ore sources with historic Crown Pillar Stockpile (CPS) material resulted in the head grade improving to 1.5 g/t from 1.3 g/t. “During the last quarter, the operation is expected to achieve annualised gold production of approximately 45,000 oz.”
Capital was allocated to the Nobles plant for a fixed crusher circuit, secondary mill, and a belt filter for dry stack tailings, as well as mining of the White Devil deposit to improve future production, with forecast 2027 financial production guidance of between 48,000-52,000 ounces.
Production at the MTR surface operation improved substantially in the second half. The previously reported calcine layer continued to impact both grade and recoveries, but it was planned to mine through the last of the calcine material in the first quarter of the 2027 financial year.
Elikhulu production is estimated at about 27,000 ounces, with gold production of more than 56,500 ounces on track for the full 2026 year, well up from 52,606 ounces in 2025. This was the highest production rate at Elikhulu since 2020, when production reached 59,616 ounces.
The Barberton Tailings Retreatment Plant (BTRP) is expected to achieve production of 5,500 oz in the seocnd half, with full year production of about 13,000 ounces (15,224 ounces). The reduced production is in line with the mine plan.
The group is planning increased capital expenditure at Tennant Mines to enhance the Nobles plant efficiencies and increase throughput while also expediting mining at the large-scale White Devil open pit, which contains indicated mineral resources of over 3 million tons at 3,73 g/t in the current open pit envelope.
Second half gold production at Evander Mines’ is estimated at 25,000 ounces, and annual production of 47,000 ounces is expected to be 68% higher than the previous year as the 8 Shaft underground development resulted in the average recovered grade increasing to more than 11 g/t from 6.8 g/t in 2025.
“The conclusion of the Emmerson transaction will see Pan African consolidate the Tennant Creek goldfield...as we also complete our listing on the Australian Stock Exchange, subject to the implementation of the transaction,” said Loots.
BUSINESS REPORT