http://moneyam.uk-wire.com/cgi-bin/articles/20050126070000PE650.html

StockMarketWire.com
Pan African Resources said its first-half gold production fell 5% after it discounted an underground mining operation in South Africa.

Output for the six months through December fell to 81,014 ounces owing to the closure of Evander Mines' large-scale underground mining operation, which produced 32,734 ounces in the corresponding six-month period.

Output from continuing operations jumped 54%, following 'robust' operational performances from Barberton Mines' underground operations and from the group's tailings retreatment plants.

'The improved production performance, curtailment of large scale underground mining operations at Evander Mines and the contribution of incremental low-cost ounces from Elikhulu has resulted in a marked reduction in the group's all-in sustaining cost of production,' Pan African said.

Barberton's three-year wage agreement was expected to assist with stability at the operation in the coming years, it added.

Peel Hunt today reaffirms its buy investment rating on Pan African Resources PLC (LON:PAF) and raised its price target to 16p (from 14p).