Copper and Gold producer PanAust Limited (ASX:PNA) released its March 2015 quarterly activities report on Wednesday. The Brisbane-based company raised its gold production by 12 per cent to between 195,000 to 205,000 ounces. Silver production guidance was lifted by 8 per cent to between 1.4m to 1.5m ounces. Copper production guidance made slight gains. The minimum expected guidance for copper production increased to 74,000 tonnes while the upper guidance remained unchanged at 76,000 tonnes. From a 2014 base, PanAust expects annual copper production to increase by almost 25 per cent with no further capital expenditure going forward. Production of copper in concentrate is expected to peak in 2018/19. Both the associated C1 costs and all-in sustaining costs of copper production are expected to fall US$0.50 per pound.
The mining company received a takeover bid last month from the Chinese state-owned company Guangdong Rising Asset Management (GRAM). The offer was rejected and labelled as “inadequate.” Concerning the takeover bid, managing director Fred Hess commented, “In relation to the GRAM offer, the board is open to all possibilities and all players who might have possibilities to put in front of them.” PanAust acquired a company themselves last year, purchasing Frieda River from Glencore. PNA jumped over 40 per cent on news of the takeover bid, although ultimately the acquisition did not occur. Shares of PanAust are now trading higher than the original $1.71 per share offer made by GRAM. PNA is up .2c, or .12 per cent, at $1.74 per share around 2:40pm on Wednesday. Shares of the mining company have advanced 9.12 per cent in the last 12 months and 22.62 per cent so far this year.