Underground development issues were also a problem.
During the six months to December 2017, Pan African delivered 85,282 ounces of gold produced from its South African projects, down nearly 7% on the comparable period in 2016.
Even so, Pan African still ranks comfortably among mid-tier producers and continues to pay a dividend, marked at just under 0.88p per share for the full financial year.
Profits for the six months to December came in at £3.3mln.
During the period, the company also disposed of the troubled Phoenix platinum project, and also pressed on with development of the Elikhulul tailings project, which will be a low cost operation.