PanAust is focused on a sustainable business model associated with the production and sale of copper and gold, delivery of production goals and economically astute growth. While copper forms the core product focus, gold and silver provide a measure of commodity diversity.
The strategic direction of the Company is to maximise returns from its producing assets while advancing projects that offer potential to sustain and grow the business in the long term. Any project that progresses to the development stage is required to demonstrate compelling investment returns.
PanAust Business overview 2015
2015 was a year characterised by outstanding results in the face of challenges and change including a depressed metal price environment and the Company’s transition from being publicly listed to private ownership by GRAM.
The Company achieved exceptional full-year outcomes recording the strongest ever annual performance metrics, each exceeding agreed targets.
- Safety: total recordable injury frequency rate, 0.62 (target1.35); Lost time injury frequency rate, 0.16 (target 0.23)
- Production: 78,449t copper, 221,616oz gold in concentrate and doré and 1,664,242oz silver in concentrate and doré (target 74,000t to 76,000t copper, 195,000oz to 205,000oz gold, and 1.4Moz to 1.5Moz silver)
- Costs Phu Kham: C1US$1.30/lb (target US$1.47/lb) and AISC US$1.69/lb (target US$1.99/lb)
- Costs Ban Houayxai: C1US$516/oz (target US$673/oz) and AISC US$687/oz (target US$869/oz)
The PanAust business efficiency review announced in January 2015 and implemented throughout the year delivered improvements to productivity through a more streamlined organisation, and numerous operational standardisations and innovations; each contributing to significant cost savings across the business.
During the course of 2015, PanAust’s workforce in in Laos for the first time reached more than 90 per cent localisation. It was with this level of Lao-national personnel that PanAust’s Operations delivered their best overall performance outcomes to date.
As the year drew to a close, PanAust progressed key activities to ensure the growth of the business in the long term. A primary focus was the Frieda River Copper-Gold Project feasibility study, which was completed in the first half of 2016.
In Myanmar, PanAust was granted three Exploration Licences providing the Company with the first phase of a contract area that PanAust aims to build into a package of tenements covering 1,400 square-kilometres.
Strong production, together with excellent cost outcomes enabled the Lao Operations to deliver solid free cash flow and by year end the PanAust business was in a strong position to withstand the subdued commodity prices that are likely to continue throughout 2016.
Looking forward, in the context of ongoing economic volatility, the PanAust Executive Management Team will continue to focus on elements of the business that will ensure its ongoing success: safety, production, expenditure and strategic growth opportunities.