PAF announced the inaugural gold pour at its Elikhulu tailings retreatment plant (‘Elikhulu’ or ‘the project’). After commissioning (estimated by September 2018), the plant is expected to produce ~55,000oz of gold annually (operational life – 14 years), at an all-in sustaining production cost between USD650/oz and USD700/oz.
Over the life of the project (14 years), Elikhulu is estimated to produce 674,000oz of gold (~R11.5bn at a gold price of R550,000/kg), and thereby add R5.3bn to the South African economy and contribute an estimated R1.3bn in taxes and royalties. The project was completed ahead of schedule within its R1.74bn budget. Post incorporation into Elikhulu of the Evander Tailings Retreatment Plant (estimated by December 2018), which has a throughput of 200,000 tonnes per month, the enlarged Elikhulu plant is estimated to process a throughput of 1.2m tonnes/month and produce ~70,000oz of gold annually.
Cobus Loots, PAF’s CEO, said: “We expect Elikhulu to be a flagship operation within our low-cost, long-life asset base, and we will continue to focus on improving and expanding our portfolio in a sustainable manner to the benefit of all stakeholders.”