Pan African Resources, a prominent gold mining entity, has outlined a dynamic roadmap to produce a remarkable 250,000 ounces annually by 2026. According to a report by Edison Investment released this past Monday, their ambitious trajectory leans on two prospective organic growth endeavours.
Mining Weekly highlighted the Mintails Soweto Cluster near Krugersdorp and Mogale on the West Rand and the Royal Sheba in Mpumalanga’s Barberton area as crucial growth projects.
In addition to these ventures, the globally recognized gold mining firm, steered by the adept Cobus Loots, holds significant assets like the Fairview sub-vertical shaft, Rolspruit, Poplar, and Evander South, all earmarked for potential growth. Edison’s assessment highlights that Pan Africa’s share valuation appears to be a steal, signaling a promising investment opportunity.
The Mintails/Mogale project, currently under construction, has met all funding preconditions. At the same time, the team has finalized the mine layout optimization at Royal Sheba.
Edison projects that once Pan Africa hits its 2026 production target, its headline earnings per share could ascend to roughly 6c.
In a recent digital interview with Mining Weekly, Loots expressed confidence in the future of Pan African’s assets. He emphasized their good standing in terms of mine life and cited substantial expansion opportunities at Barberton. Furthermore, he lauded their recent efforts at Evander, highlighting Elikhulu, one of Southern Africa’s most cost-effective producers.
Delving into its gold processing, Pan Africa prides itself on impressive metallurgical plant performances. Although 100% gold extraction is theoretically possible, Loots clarified that it isn’t always economically viable. With recoveries surpassing 92% at Barberton and nearly 98% at Evander, they’re content with their current processes.
Regarding the novel pico-bubble technology, Loots seemed open to innovation, stating the company constantly seeks new methods to bolster gold recoveries and enhance production. However, he emphasized the difference between lab-scale successes and real-world applications, especially given the volume they handle.
Mining Weekly also drew attention to the emerging South African MACH Reactor pico-bubble technology, which has garnered global adoption. This innovative system creates minuscule bubbles, maximizing recoveries while being environmentally conscious. Integrating this with water treatment industries also addresses acid mine drainage, paving the way for a more sustainable future.
In conclusion, while Pan African Resources is primed for significant growth, it remains open to integrating technologies that can further optimize its operations and contribute to a greener mining landscape.
