Pan African Resources Plc Operational Update for year-ended 30 June 2022

 
TIDMPAF 
 
Pan African Resources PLC 
 
(Incorporated and registered in England and Wales under Companies Act 1985 with 
registered number 3937466 on 25 February 2000) 
 
Share code on AIM: PAF 
 
Share code on JSE: PAN 
 
ISIN: GB0004300496 
 
ADR code: PAFRY 
 
("Pan African" or "the Company" or "the Group") 
 
OPERATIONAL UPDATE FOR THE YEARED 30 JUNE 2022 - RECORD ANNUAL GOLD 
PRODUCTION AND SIGNIFICANT REDUCTION IN NET SENIOR DEBT 
 
Pan African is pleased to provide its shareholders with the gold production 
figures and a preliminary operational update for the financial year ended 30 
June 2022 ("Reporting Period"). The detailed report of the Group's operational 
and financial performance for the Reporting Period, and annual reporting suite, 
will be released on 14 September 2022. 
 
KEY HIGHLIGHTS 
 
  * Record annual gold production 
      + Production of 205,459oz of gold, an increase of 2% on FY2021 gold 
        production of 201,777oz 
      + Production was 3% higher than the upwardly revised guidance of 
        200,000oz and 5% higher than initial guidance of 195,000oz, released 
        at inception of the Reporting Period 
  * Industry leading safety statistics - further improvements have been 
    achieved 
      + Recordable injury frequency rate ("RIFR") improved to 0.35 per million 
        man hours (FY2021: 0.63) 
      + Lost time injury requency rate ("LTIFR") improved to 1.04 per million 
        man hours (FY2021: 1.41) 
      + COVID-19 vaccination rate of +80% achieved across the Group 
  * Significant decrease in the Group's net senior debt 
      + Reduction of 71.5% to US$9.6 million (FY2021: US$33.7 million) 
  * Organic growth projects on track 
      + Barberton Mines 
          o Royal Sheba orebody intersected on schedule during June 2022, 
            extraction of 10,000 ton bulk sample in progress 
      + Evander underground 
          o Refrigeration plant at Evander 8 Shaft 24 Level nearing completion 
            for commissioning during August 2022 
          o Development blasting on Evander 8 Shaft 24 Level completed in 
            preparation for mining 
      + Elikhulu surface tailings retreatment 
          o New Leslie/Bracken re-mining pump station and related 
            infrastructure in place for mining to commence during August 2022 
  * ESG highlights 
      + Commissioned 10MW solar PV renewable energy plant at Evander - the 
        first of this scale in the South African mining industry 
      + Barberton 8MW solar PV renewable energy plant site establishment has 
        commenced 
      + First commercial harvest at Barberton's blueberry project 
      + Commenced construction of a water retreatment plant at Evander Mines 
          o Capacity to recycle 3 megalitres per day and produce potable water, 
            substituting potable water from the local municipality 
  * Production guidance for FY2023 
      + Gold production is expected to be at a level similar that achieved in 
        the Reporting Period 
 
Pan African CEO Cobus Loots commented: 
 
"We are very pleased with the Group's operational performance over the last 
year, and the record gold production achieved by our teams during this period. 
 
The Group has made meaningful progress with our production growth projects at 
Evander underground and at Barberton's Royal Sheba; both projects are on 
schedule to start delivering within their anticipated production timeframes. 
 
We have further strengthened our balance sheet over the last year, despite the 
payment of a record dividend and incurring significant growth and sustaining 
capital expenditure. 
 
A key focus area in the year ahead will be the smaller underground operations 
at Barberton, to ensure that these assets perform to their full potential. 
 
Significant milestones have also been achieved with progress on our ESG 
projects, including the commissioning of our first solar PV renewable energy 
project at Elikhulu, the first of its scale in the South African mining 
industry. We are also excited about the imminent commencement of construction 
of Barberton's solar PV plant. The Group plans to generate 30MW of solar PV 
renewable energy by 2024, with commensurate cost savings of approximately 
R100million or US$6,1million per year, and a large reduction in carbon 
emissions. At Barberton, commercial harvesting of blueberries has commenced and 
employment of seasonal labour is ramping up, as planned. 
 
We look forward to presenting our 2022 year-end financial results in September, 
and to provide further details and information on the impact of our initiatives 
and operations and the value created for our stakeholders." 
 
GROUP ANNUAL PRODUCTION 
 
Final Group gold production for the Reporting Period increased by 2.0% to 
205,459oz (2021: 201,777oz), exceeding the upwardly revised production guidance 
of 200,000oz referred to in the interim financial results, announced on 16 
February 2022. The gold production split per operation is as follows: 
 
                                    Year ended 30  Year ended 30 
                                      June 2022*     June 2021 
 
Production ounce profile: 
 
Fairview Mine                           47,985         45,686 
Sheba and Consort Mines                 27,587         39,140 
 
Barberton Tailings Retreatment          19,560         18,239 
Plant (BTRP) 
 
Elikhulu                                               51,459 
Evander Mines                         52,139           47,252 
 
                                        58,187 
 
Total ounces produced:                 205,459        201,777 
 
* Preliminary values subject to final refinery adjustments 
 
Barberton Mines' Fairview underground operations and the BTRP surface 
operations performed very well during the Reporting Period. At Fairview Mine, 
this was again attributable to the increased flexibility established at this 
mines high-grade Main Reef Complex ("MRC") and Rossiter orebodies. 
 
Performances from Barberton's smaller Sheba and Consort underground operations 
were below expections, and the Group is implementing improvement programmes to 
ensure that these assets deliver to their full potential. 
 
The Elikhulu tailings retreatment operation processed tonnages with volumes and 
head grade both in excess of the mining plan, which improved gold production 
levels when compared to the previous financial year. Notwithstanding, 
production levels were negatively impacted by adverse weather conditions and 
lower than anticipated recoveries. Production is expected to improve as 
re-mining of the Leslie/Bracken tailings facility commences during FY2023. 
Elikhulu remains one of the lowest-cost gold mining operations in Southern 
Africa, with a remaining operational life of 11 years. 
 
Evander's 8 Shaft pillar significantly outperformed its planned gold output for 
the Reporting Period, with a remaining life of just over a year. Evander Mines' 
24 Level project is currently in the construction phase, while the 
refrigeration plant is expected to be commissioned during August 2022. Mining 
of the 24 Level ore will extend the production profile of the underground 
mining at 8 Shaft, post extraction of the 8 Shaft pillar, for an additional two 
and a half years, and maintain Evander Mines' annual underground gold 
production. 
 
As previously communicated, the Group is proceeding with plans to mine the 
down-dip extent of the Evander orebody at 25 and 26 Levels using the 24 Level 
infrastructure, with an on-reef decline layout. The mining of 25 and 26 Levels 
demonstrates a compelling business case and further extend Evander Mines' 8 
Shaft's production, post cessation of mining at the 8 Shaft pillar and 24 
Level, for an additional eight years, with average expected annual production 
of approximately 65,000oz. Dewatering on 25 Level commenced in the Reporting 
Period, and blasting of the development ends will commence in the 2023 
financial year, with mining of the first stope planned for the 2025 financial 
year. 
 
These projects will increase the 8 Shaft life-of-mine to 13 years, with 
potential to increase further, should the Inferred Mineral Resources be 
converted to Mineral Reserves. Evander Mines' mining right is valid until 2038. 
 
SAFETY ACHIEVEMENTS 
 
The Group has achieved an overall reduction in recordable injuries, following a 
number of safety initiatives and interventions: 
 
  * The Group reported an improvement in the RIFR to 0.35 per million man hours 
    for the Reporting Period (2021: 0.63 per million man hours); 
  * The Group's LTIFR also improved to 1.04 per million man hours for Reporting 
    Period (2021: 1.41 per million man hours); 
  * Evander Mines achieved a 100% improvement in reportable injuries in the 
    Reporting Period, despite the increased number of crews deployed 
    underground, including the 24, 25 and 26 Level development crews 
 
Barberton Mines achieved 2 million fatality free shifts on 10 May 2022 and the 
combined Evander/Elikhulu operations achieved 2.5 million fatality free shifts 
on 19 January 2022. 
 
REDUCTION IN SENIOR DEBT 
 
The Group materially reduced its net senior debt over the Reporting Period, 
with a year-on-year decline of 71.5% to US$9.6 million (ZAR155.5 million at an 
exchange rate of US$/ZAR:16.28) from US$33.7 million (ZAR481.3 million at an 
exchange rate of US$/ZAR:14.28) at 30 June 2021. In US$ terms, this represents 
a reduction in net senior debt of 59.8% relative to the debt levels at 31 
December 2021 of US$23.9 million (ZAR382.4 million at an exchange rate of US$/ 
ZAR:16:00). 
 
OPERATIONAL AND GROWTH PROJECTS UPDATE 
 
A detailed update on the Group's operations and production growth projects will 
be included in the Company's annual final results and presentation, scheduled 
to be released on 14 September 2022. 
 
PRODUCTION GUIDANCE FOR FY2023 
 
The Group expects to maintain its 2023 financial year gold production at a 
level similar to that achieved in the Reporting Period. 
 
The information contained within this announcement is deemed by the Company to 

constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European 
Union (Withdrawal) Act 2018. Upon the publication of this announcement via 
Regulatory Information Service ('RIS'), this inside information is now 
considered to be in the public domain. 
 
Rosebank 
 
14 July 2022 
 
For further information on Pan African Resources, please visit the Company's 
website at 
 
www.panafricanresources.com 
 
Corporate 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 
[e-mail]                                Office: + 44 (0)20 7796 8644 
 
Chief Executive Officer                       Financial Director 
Cobus Loots                                   Deon Louw 
Office: + 27 (0)11 243                        Office: + 27 (0)11 243 2900 
2900 
 
Head: Investor Relations                      Website: 
Hethen Hira                                   www.panafricanresources.com 
Tel: + 27 (0)11 243 2900 
E-mail: [e-mail] 
 
Company Secretary                             Nominated Adviser and Joint Broker 
Phil Dexter/Jane Kirton                       Ross Allister/Alexander Allen 
St James's Corporate Services Limited         Peel Hunt LLP 
Office: + 44 (0)20 7796 8644                  Office: [phone] 
 
JSE Sponsor                                   Joint Broker 
Ciska Kloppers                                Thomas Rider/Nick Macann 
Questco Corporate Advisory Proprietary        BMO Capital Markets Limited 
Limited                                       Office: [phone] 
Office: + 27 (0)11 011 9200 
 
                                              Joint Broker 
                                              Matthew Armitt/Jennifer Lee 
                                              Joh. Berenberg, Gossler & Co KG 
                                              (Berenberg) 
                                              Office: [phone] 
 
 
 
END 
 
 

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