JOHANNESBURG (miningweekly.com) – Copper and gold miner PanAust on Monday announced an expected increased its 2014 production, compared with the 2013 figures.

The miner has previously estimated that it would deliver between 62 000 t and 65 000 t of copper in concentrate in 2013 and between 160 000 oz and 175 000 oz of gold in concentrate, along with some 1.2-million ounces of silver.

PanAust told shareholders that the 2014 copper and gold production at its Phu Kham mine, in Laos, was expected to increase by over 80% and 50% respectively during the new year, as the full benefits of the recent Increased Recovery project kicked in.

Copper production would increase to between 65 000 t and 70 000 t during the year, from some 18.5-million tonnes of ore.

Peak life-of-mine material moved in the openpit was scheduled, with 52-million tonnes mined in 2014. Around 35% of the material mined would be capitalised a deferred waste and low-grade ore stocks.

At the Ban Houayxai project, also in Laos, mill feed would remain above design, despite the harder transitional ores being scheduled, with PanAust noting that the benefits of higher silver grades largely offsetting the effects of the increased power draw on operating costs.

Average C1 cash costs at Phu Kham were expected to be between $1.50/lb and $1.60/lb, while Ban Houayxai would average between $650/oz and $700/oz.

Meanwhile, operational cash flow would also more than double in 2014, to about $100-million, following the completion of the Increased Recovery project, as well as other capital projects, a 50% reduction in sustaining capital, and improvements in stores and shared service management.

Earnings before interest, tax, depreciation and amortization would be between $200-million and $225-million in 2014, assuming the average copper price remained between $3.20/lb and $3.40/lb and the gold price remained at $1 300/oz.

PanAust said on Monday that the increased free cash flow would fund brownfield and generative exploration in Laos, as well as acquisitions and planned study costs for the Frieda River project, in Papua New Guinea.