Pan African Resources Plc Operational Update

 
TIDMPAF 
 
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                              Registered Office 
The Firs Office Building                      Suite 31 
2nd Floor, Office 204                         Second Floor 
Cnr. Cradock and Biermann Avenues             107 Cheapside 
Rosebank, Johannesburg                        London 
South Africa                                  EC2V 6DN 
Office:   + 27 (0) 11 243 2900                United Kingdom 
Facsimile: + 27 (0) 11 880 1240               Office:   + 44 (0) 207 796 8644 
                                              Facsimile: + 44 (0) 207 796 8645 
 
Cobus Loots                                   Deon Louw 
Pan African Resources PLC                     Pan African Resources PLC 
Chief Executive Officer                       Financial Director 
Office: + 27 (0) 11 243                       Office: + 27 (0) 11 243 2900 
2900 
 
Phil Dexter                                   John Prior / Paul Gillam 
St James's Corporate Services Limited         Numis Securities Limited 
Company Secretary                             Nominated Adviser and Joint Broker 
Office: + 44 (0) 207 796 8644                 Office: [phone] 
 
Sholto Simpson                                Ross Allister/James Bavister/David 
One Capital                                   McKeown 
JSE Sponsor                                   Peel Hunt LLP 
Office: + 27 (0) 11 550 5009                  Joint Broker 
                                              Office: [phone] 
 
Julian Gwillim                                Jeffrey Couch/Neil Haycock/Thomas 
Aprio Strategic Communications                Rider 
Public & Investor Relations SA                BMO Capital Markets Limited 
Office: [phone]                    Joint Broker 
                                              Office: [phone] 
 
Bobby Morse 
Buchanan 
Public & Investor Relations UK 
Office: [phone] 
Email: [e-mail] 
 
Website: www.panafricanresources.com 
 
 
 
END 
 

(END) Dow Jones Newswires

July 12, 2018 03:30 ET (07:30 GMT)