While the miner is currently working on a new surface tailings plant, what other opportunities exist for expansion?
Pan African Resources said it was unlikely to hedge gold as part of its plans to fund the Elikhulu surface tailings retreatment plant – a R1.65bn project for which it recently raised R705m through an issue of shares, with the balance to be funded through a R1bn debt package with Rand Merchant Bank (RMB).
“We are still working through the legals with RMB, but I don’t think hedging makes sense,” said Pan African CEO Cobus Loots.
“Elikhulu is in the lowest-cost quartile and it would be easily out of the money if we were to hedge it,” he said.
Once Elikhulu is completed, Pan African will produce 250 000 ounces of gold of which 40% will be from the surface.
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