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Pan African Resources PLC on Thursday said a feasibility study on its Soweto cluster tailings storage facilities has confirmed the potential for significant long-term production growth at the Mogale tailings retreatment complex. The study assessed two development routes and identified a 600,000-tonne-per-month expansion module integrated into the existing Mogale operation as the preferred option, due to lower capital requirements, faster construction and stronger financial returns. A definitive feasibility study for this option is expected by June 2026. The preferred plan carries an estimated capital cost of $160 million and is expected to produce 30,000 to 35,000 ounces of gold annually for around 15 years at an all-in sustaining cost of $1,000 to $1,200 per ounce. At a gold price of $2,800 per ounce, the project has a post-tax net present value of $129.7 million and a 29% internal rate of return. Pan African said its Mogale complex is already increasing output, with an expansion to lift production from about 50,000 ounces a year to 60,000 ounces on track for completion in December 2025. Chief Executive Officer Cobus Loots said adding the Soweto tailings retreatment circuit could raise total Mogale output to nearly 100,000 ounces a year while further lowering costs. Environmental approvals and water-use licences are progressing in line with schedule, with decisions expected by mid-2026. Pan African expects to be net-debt-free by February 2026, giving it flexibility to fund the expansion. Shares in the company were 2.4% higher at R 22.38 in Johannesburg on Thursday. In London Pan African shares were 2.6% lower at 99.00 pence. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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