Pan African
Resources PLC
(Incorporated and registered in
England and Wales under Companies Act 1985 with registered
number 3937466 on 25 February
2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African” or the
“Company” or the “Group”)
OPERATIONAL
UPDATE
Following the operational updates released in March and
May 2018, Pan African is pleased to
provide preliminary production results for the financial year ended
30 June 2018, production guidance for
the 2019 financial year and further information on the Group’s
operations and organic growth projects.
Key highlights are summarised as
follows:
-
Improved safety performance year-on-year with no fatalities
(2017: three fatalities).
Barberton Mines commendably achieved one million fatality free
shifts during June 2018.
-
Group gold production of 160,421oz in the 2018 financial year,
ahead of its most recent production guidance of 157,000oz -
160,000oz.
-
Barberton Mines produced 90,628oz for the 2018 financial year,
within its production guidance of 90,000oz - 91,000oz. During the
second half of the financial year, Barberton Mines produced
50,017oz of gold, a 23% increase on its first half production.
-
Evander Mines produced 69,793oz
for the 2018 financial year, exceeding its production guidance of
67,000oz - 69,000oz.
-
Construction of the Elikhulu Tailings Retreatment Plant
(“Elikhulu”) remains on track and within budget for first
gold in August 2018, with
construction now entering the commissioning phases of the
project.
-
The Royal Sheba Project feasibility study at Barberton Mines is
expected to conclude during September
2018.
-
Production guidance for the 2019 financial year is approximately
170,000oz, excluding any production from Evander’s underground
operations.With the previous high cost ounces from the Evander
underground now replaced by production from low cost surface
remining operations, production costs are also expected to
demonstrate a significant improvement.
Pan African Resources CEO Cobus Loots commented:
“The 2018 financial year was
extremely challenging for the Group, both financially and
operationally. However, during the past six months, we have
successfully addressed key deliverables that were critical to the
future sustainability of Pan African Resources. We are now
re-positioned as a lower-cost, long-life gold miner, consistent
with stakeholder expectations.”
Group safety
The Group experienced no fatalities in the 2018 financial year
(2017: three employees fatally injured). The Group’s lost-time
injury frequency rate remained stable at 3.73 (2017: 3.51), while
the reportable injury frequency rate improved materially to 1.08
(2017: 1.53). In terms of safety performances, significant progress
was made over the past year with on-mine safety improvement
campaigns contributing to these results. Further, Barberton Mines
achieved its one million fatality free shifts milestone during
June 2018. To ensure continued safety
improvements, the Group will be engaging independent safety experts
to review each of the mining operations’ safety systems and
controls.
Barberton Mines
Barberton Mines produced 90,628oz of gold for the 2018 financial
year, comfortably within the production guidance of 90,000oz -
91,000oz. The operation successfully produced 50,017oz during the
second half of the 2018 financial year, which was an increase of
23% from gold produced during the first half. Barberton Mines’
production performance during the second half of the 2018 financial
year was underpinned by Fairview Mine’s 11-block MRC 272 and 358
platforms.
Evander
Mines
Evander Mines ceased its
underground mining operations and concluded its retrenchment
process at the end of May 2018.
Evander Mines produced 69,793oz of
gold for the 2018 financial year, above the production guidance of
67,000oz - 69,000oz.
The Evander Tailings Retreatment Plant (“ETRP”) and
surface sources produced 19,874oz, marginally below the production
guidance of between 20,000oz - 21,000oz.
Evander Mines’ underground mining operation concluded the 2018
financial year with 49,919oz of gold produced, exceeding the
guidance provided of 46,000oz.
Elikhulu construction
As previously communicated, construction at Elikhulu is
progressing ahead of schedule with first gold expected in
August 2018. The construction teams
are now entering the commissioning phases of the project, in
anticipation of a two month ramp-up period to full production. The
Elikhulu project is expected to produce approximately 55,000oz of
gold per annum, at an all-in sustaining production cost of between
US$650/oz and US$700/oz.
The transfer of the ETRP processing capacity into Elikhulu is on
track and scheduled for December
2018. Elikhulu, in conjunction with the ETRP, is expected to
produce approximately 70,000oz per annum.
Royal Sheba project
The Royal Sheba orebody at Barberton Mines has the potential to
deliver approximately 30,000oz per annum. The Company mandated DRA
Global to undertake a life-of-mine technical feasibility study on
the orebody and the study is expected to be concluded during
September 2018.
The information contained in this announcement has not been
reviewed or reported on by Pan
African’s auditors and is the responsibility of the directors of
Pan African.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
For further information on Pan African, please visit the
Company’s website at www.panafricanresources.com
12 July 2018
Contact
information |
Corporate Office
The Firs Office Building
2nd Floor, Office 204
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240 |
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645 |
Cobus
Loots
Pan African Resources PLC
Chief Executive Officer
Office: + 27 (0) 11 243
2900 |
Deon Louw
Pan African Resources PLC
Financial Director
Office: + 27 (0) 11 243 2900 |
Phil Dexter
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0) 207 796 8644 |
John Prior / Paul
Gillam
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0) 20 7260 1000 |
Sholto Simpson
One Capital
JSE Sponsor
Office: + 27 (0) 11 550 5009 |
Ross Allister/James
Bavister/David McKeown
Peel Hunt LLP
Joint Broker
Office: +44 (0) 207 418 8900 |
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880
0037 |
Jeffrey Couch/Neil
Haycock/Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 207 236 1010 |
Bobby
Morse
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
Email: PAF@buchanan.uk.com |
Website:
www.panafricanresources.com |