Pan African Resources has reported record gold production for the 2026 financial year and the group is expected to achieve its full-year cost guidance.The group said in an operational update ahead of its results for the year ending June that it produced about 275,000oz of gold, 40% more than a year ago, and in line with the lower end of financial year 2026 production guidance of 275,000oz to 292,000oz.There was a material increase in gold production in the second half compared with the first half, it said.It reported excellent production performances from the Elikhulu Tailings Retreatment Plant and the Mogale Tailings Retreatment (MTR) surface operations, as well as from the Evander and Barberton Mines underground operations. This offset the slower-than-anticipated ramp-up of production from Tennant Mines in Australia’s Northern Territory.Tennant Mines’ financial year 2027 production is expected to increase significantly as the operation commences mining of the White Devil deposit, it said.Despite inflationary pressures, Pan African is expected to achieve full-year all-in sustaining cost (AISC) guidance of $1,870/oz.The group reported record operating cash flow generation, with its projected cash position of $220m at the end of the financial year.The group is now in a net cash position, with the only outstanding debt being the domestic medium-term notes of $49.7m, it said.Pan African said it has measures in place at all operations to mitigate potential fuel and reagent shortages resulting from Middle East conflict.For the 2027 financial year, the group expects to produce 280,000oz-302,000oz of gold at an AISC of between $2,075/oz and $2,175/oz.Further increases are expected in later years, primarily driven by production growth from Tennant Mines and the MTR surface operations.The proposed acquisition of Emmerson Resources to consolidate the Tennant Creek mineral field is expected to be concluded during July, it added.Improved production contribution from Tennant Mines is expected following CIL (carbon in leach) plant infrastructure upgrades and accelerated access and development plans at the White Devil open-pit and shallow underground operations at Juno and Golden Forty deposits, it said.CEO Cobus Loots said the group has never been in a stronger position, with the growth in gold production achieved in a sustained high gold price environment.“Our very robust financial position will allow us to continue our considered growth trajectory, executing initiatives to expand annual gold output to 300,000oz and beyond, while also further increasing cash returned to shareholders,” he said.“In the next financial year, we expect a much-improved performance from Tennant Mines, with a full year of mining from the high-grade White Devil deposit and a clear pathway to growing Australian gold production to about 100,000oz per annum in the next three years.“In addition, we anticipate increasing gold production from MTR in the next years, with the Soweto Cluster DFS now nearing completion,” he said.Group production for the 2027 financial year is expected to rise to between 280,000oz and 302,000oz. Total capital expenditure for the 2026 financial year is forecast at $180m.“Given the sustained high gold price environment, the group is expediting several initiatives to grow gold production further and reduce AISC,” he said.The group’s capital expenditure guidance for the 2027 financial year has been revised to $324m from $267m previously guided.This increase is due to expediting the development of the White Devil open pit and the installation of a fixed crusher circuit and filter belt at the Nobles plant to support current and future production growth, as well as fast-tracking exploration. In addition, construction costs for the renewable energy projects have been finalised and included in the revised capital expenditure, he said.