Tails wagging

Pan African’s (PAF’s) interim figures were consistent with both its trading statement of 27 January and our prior full-year expectations, despite a sharp increase in Department of Mineral Resources’ (DMR) Section 54 stoppage notices and an unusually strong South African rand. While overall gold production fell 10.0% cf H116, there were sharp increases at both the BTRP (+14.0%) and the ETRP (+77.3%) such that, for the first time, the company recorded greater profits, in the form of adjusted EBITDA, from its tailings retreatment projects than from underground.