Breaking down the operations, the Phu Kham copper-gold project in Laos produced a record 21,146 tonnes of copper and 29,745 ounces of gold at a C1 cost of $US1.05 ($A1.38) per pound copper and all-in costs of $1.50/lb.

The Ban Houayxai gold-silver operation, also in Laos, produced 24,530oz gold and 261,268oz silver at a C1 cost of $674/oz and all-in costs of $862/oz.

Further details are set to be released later this month, but PanAust says the figures compared favourably with the 2015 guidance of 73,000-76,000t copper and 175,000-183,000oz gold.

“Both operations performed strongly with increased production and reduced costs in the March quarter,” managing director Fred Hess said.

“The organisational changes announced in January in conjunction with the wave of cost reduction initiatives flowing from the business efficiency review have had a significant and immediate beneficial impact.”

C1 costs at Phu Kham benefited from the record quarterly gold production, with the stronger US dollar driving down prices for key consumables including diesel fuel.

The weaker Australian dollar also helped lower head office costs and the expatriate payroll charge.

Taking stock of the results, PanAust said the March numbers showed further improvements on top of the cost savings that had already been identified.

“It’s most encouraging to see such clear evidence that unit costs are improving as a result of the planned initiatives under the business efficiency review and also from the stronger US dollar we have recently experienced,” Hess said.

“These excellent results reflect the company’s strategy to maximise returns from its producing assets while advancing the Frieda River project through its feasibility study and the regulatory approvals phase.”

Looking ahead, PanAust said copper production at Phu Kham was expected to rise steadily over the next few years as the head grade increased.

Annual copper concentrate production is expected to peak in 2018 and 2019 at about 90,000t, while gold in concentrate is expected to range between 70,000-75,000oz per annum from 2016.

The strong figures come as the company continues to assess a takeover offer from its major shareholder, Guangdong Rising Assets Management.

PanAust shares were steady at $A1.74 this morning.