Pan African’s inaugural gold from Elikhulu marks another step on the path to cheaper production

Pan African Resources marked a shift in its source of gold from underground mining to cheaper and safer tailings retreatment operations, marking the first gold pour at its R1.74bn Elikhulu project at Evander, Mpumalanga, on Thursday.

Pan African has said it is closing its unprofitable underground mine at Evander, with the loss of 1,700 jobs.

It is replacing underground gold with cheaper gold from the large tailings retreatment project, which will deliver 55,000oz of gold a year at an all-in sustaining cost of up to $700/oz, which at the prevailing exchange rate, gives the company gold at a cost of less than R326,000/kg.

The rand gold price is trading at close to R550,000/kg.

“The completion of Elikhulu’s construction and the inaugural gold pour,…

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