Pan African halts Sudan project
Pan African Resources recently suspended its exploration activities in Sudan due to the ongoing conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces (RSF). The company evacuated its expatriate employees from the region, relocating them to safety in Saudi Arabia before returning them to South Africa.
Despite halting operations temporarily, Pan African remains optimistic about the project’s long-term prospects and does not plan to write down its investment at this stage. The company has invested approximately $5 million of the planned $7 million into this exploration venture, focusing on a promising 1,100 square kilometer gold exploration site near Port Sudan.
Australia expansion
Pan African CEO Cobus Loots emphasized that while the situation is concerning, the company is hopeful that international diplomatic efforts will eventually stabilize the region, allowing them to resume exploration in the future. In the meantime, the company will focus on its other projects, including South African operations like the Mintails project, which processes gold from existing mining waste and contributes to its core activities outside Sudan.
Meanwhile Pan African Resources is expanding into Australia with the acquisition of Tennant Consolidated Mining Group (TCMG) for $54.2 million. This purchase increases Pan African’s ownership in TCMG from 8% to 100%, granting it control of the Nobles gold project in the Northern Territory. The project is expected to produce 50,000 ounces of gold annually, with commissioning set for June 2025 and first production planned for July. The acquisition aligns with Pan African’s strategy to invest in low-cost, Tier 1 jurisdictions, with a payback period of three years if gold prices average $2,600 per ounce.
