http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Tue, 25 Sep 2018 10:55:25 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Pan African Resources Plc - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809241200PR_NEWS_UKDISCLO_0107/ Mon, 24 Sep 2018 17:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809241200PR_NEWS_UKDISCLO_0107/ <![CDATA[Media files - Pan African Resources repositions after challenging year ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/10566/pan-african-resources-repositions-after-challenging-year-10566.html Mon, 24 Sep 2018 11:55:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/10566/pan-african-resources-repositions-after-challenging-year-10566.html <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920164038_13799030/ Thu, 20 Sep 2018 16:40:38 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920164038_13799030/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920163536_13799025/ Thu, 20 Sep 2018 16:35:36 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920163536_13799025/ <![CDATA[News - Pan African Resources reports financial results after decisive action to maintain profitability ]]> http://www.proactiveinvestors.co.uk/companies/news/205198/pan-african-resources-reports-financial-results-after-decisive-action-to-maintain-profitability-205198.html Pan African Resources plc (LON:PAF) chief executive Cobus Loots reflected on a challenging year which saw the company ‘act decisively’ to reconfigure operations as it aimed for sustainable profitability.

It ended large-scale, high-cost underground operations at the Evander Mines in May, and, pushed forward alternative surface works and tailings processing. Meanwhile, at the Barberton site underground mining continues.

WATCH: Pan African Resources repositions after challenging year

“Our cost base is now significantly lower, and efficiencies and stability improved due to the restructuring we effected during the year,” Loots said in today’s financial results statement.

“We are confident the group is now positioned as a lower-cost, long-life gold miner, consistent with stakeholder expectations and our key strategic objectives.

“All our producing assets are today generating positive cash flows through the production of low-cost gold ounces.”

Financial results

PAF reported a £11.5mln profit from continuing operations, versus a £40mln comparative figure for the preceding twelve months – stated in South African rand that amounted to R202mln, against R700.6mln.

The annual results include a £106.3mln one-off write off (R1.78bn) due to the Evander cessation.

In turn, the overall business (including the discontinued operations) made a £93.3mln loss after tax (R1.56bn).

Revenue from the continuing operations was marked at £108.5mln for the year or R1.8bn.

The company announced the “expected but disappointing” decision to suspend dividend payments (it paid out £10mln early in the year for the 2017 final dividend).

Net debt was reported at £89.8mln, up from £4mln at the end of 2017. By June 30, the company had around £700,000 of cash, plus £14.8mln in trade and receivables and a gold inventory worth £2.7mln.

Loots highlights operational successes

With his comments to shareholders, chief executive Cobus Loots looked to the group’s operational success during the year.

“A key highlight of the year was the excellent progress made towards the completion of the Elikhulu tailings retreatment plant,” he said.

“The project poured its first gold on 16 August 2018, ahead of schedule and within the projected budget. It is expected to be a flagship operation within our low-cost, long-life asset base.

“In terms of our existing operations, the regrind mill at the Barberton tailings retreatment plant was completed, which alleviated past processing challenges. Barberton Mines’ sub-vertical shaft project at Fairview, together with our current programme of accelerated underground development, will facilitate improved access to the high-grade Fairview 11-block Main Reef Complex orebody in the future.”

Loots added: “Our existing portfolio presents attractive opportunities to further the group’s profitable production growth.

“The Royal Sheba Project at Barberton Mines offers the potential to access low-cost near-surface ounces and significantly boost Barberton Mines’ production in the short to medium term.

“The Egoli Project at Evander Mines also remains an attractive opportunity as a standalone project, following the difficult but necessary decision to cease large-scale underground mining activities at 8 Shaft.”

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Wed, 19 Sep 2018 08:14:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/205198/pan-african-resources-reports-financial-results-after-decisive-action-to-maintain-profitability-205198.html
<![CDATA[RNS press release - Pan African Resources Plc - Final Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809190200PR_NEWS_UKDISCLO_0013/ Wed, 19 Sep 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809190200PR_NEWS_UKDISCLO_0013/ <![CDATA[News - Pan African Resources looks forward to year ahead after challenging period ]]> http://www.proactiveinvestors.co.uk/companies/news/204922/pan-african-resources-looks-forward-to-year-ahead-after-challenging-period-204922.html Pan African Resources PLC (LON:PAF) told investors that it is looking forward to the year ahead, following a period which saw a challenging operating environment.

In the company’s trading statement for the financial year, ended June 30, chief executive Cobus Loots said: “The group results for the 2018 financial year are reflective of both the incredibly challenging operational environment and the specific issues that confronted the group over the past year. 

“These issues, as well as the definitive remedial actions we implemented, were well disseminated to the market.

“The operational update and the commissioning of the Elikhulu plant demonstrates that we are well on track to deliver into our 2019 targets and look forward to the year ahead.”

READ: Pan African Resources agrees three-year wage deal with mining unions

The company noted that its forthcoming financial results statement, due next week, will include a £106.3mln one-off impairment related to the cessation of underground operations at the Evander mine.

In terms of annual earnings, the company said that GBP headline earnings per share would be 32-42% lower than in the prior period, anticipated in the range of 11.65 to 13.67 cents – the standard EPS figure is meanwhile expected between 0.5 to 0.76 cents, representing an 71-81% decline.

Expectations for the current financial year

It updated on the production performance at the Barberton Mines operation which the company described as benefitting from increased underground mining flexibility - with high grade platforms being available.

The mine is forecast to produce approximately 26,000oz for the first quarter of the current year, the company said, and it added that it is therefore ‘on-track’ to deliver its annual production target of 100,000 ounces.

PAF also noted that it anticipates an update to the group’s minerals reserves report, for the Royal Sheba deposit, by November and a corresponding definitive feasibility would then be due in February.

At Evander, surface and tailings operations continue and are expected to contribute some 4,000 ounces of gold during the first quarter. The company, meanwhile, continues to review the merits of mining from the Evander mine 8 Shaft pillar, and, it expects to update investors on this in the near future.

The company highlighted that the commissioning of the Elikhulu Project is progressing according to schedule and it is expected to produce at steady-state from October.

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Fri, 14 Sep 2018 10:31:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/204922/pan-african-resources-looks-forward-to-year-ahead-after-challenging-period-204922.html
<![CDATA[RNS press release - Pan African Resources Plc - Trading Statement and Production Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809140418PR_NEWS_UKDISCLO_0032/ Fri, 14 Sep 2018 09:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809140418PR_NEWS_UKDISCLO_0032/ <![CDATA[News - Pan African Resources says three-year wage agreement successfully concluded with unions by Barberton Mines ]]> http://www.proactiveinvestors.co.uk/companies/news/204407/pan-african-resources-says-three-year-wage-agreement-successfully-concluded-with-unions-by-barberton-mines-204407.html Pan African Resources plc (LON:PAF) has announced that Barberton Mines Proprietary Limited has successfully concluded a three-year wage agreement with the National Union of Mineworker and the United Association of South Africa.

The AIM-listed firm said the agreement provides for an average annual wage increase of approximately 6.5% and 5.5% for NUM and UASA members, respectively, over the three years.

WATCH: Pan African reports significant boost to resource at Royal Sheba project

The group pointed out that negotiations were successfully concluded with no industrial action or work stoppages.

It said NUM and UASA represent the majority of employees at Barberton Mines.

The announcement comes a day after Pan African Resources revealed that it has more than doubled the mineral resource estimate at its Royal Sheba gold project in South Africa after results from the latest round of drilling “exceeded expectations”.

The miner now thinks the orebody is host to 0.9mln ounces of gold – a 150% increase on its previous estimate of 0.36mln ounces.

Drilling has suggested that around 0.35mln ounces of the precious metal are near to the surface and are conducive to open pit mining.

Peel Hunt rates ‘buy’

In a note to clients published this morning, analysts at City broker Peel Hunt raised their rating for Pan African Resources to ‘buy’ from under review’ with a target price of 16p.

They said: “With a greater understanding of the assets following site visits to both Barberton and Evander/Elikhulu earlier this year, we have shifted the base case for the company to a smaller but more profitable gold producer.”

Pan African Resources shares closed trade on Thursday at 7.82p.

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Fri, 07 Sep 2018 07:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/204407/pan-african-resources-says-three-year-wage-agreement-successfully-concluded-with-unions-by-barberton-mines-204407.html
<![CDATA[RNS press release - Pan African Resources Plc - Barberton Mines Wage Negotiations Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809070200PR_NEWS_UKDISCLO_0002/ Fri, 07 Sep 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809070200PR_NEWS_UKDISCLO_0002/ <![CDATA[Media files - Pan African reports significant boost to resource at Royal Sheba project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/10376/pan-african-reports-significant-boost-to-resource-at-royal-sheba-project-10376.html Thu, 06 Sep 2018 12:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/10376/pan-african-reports-significant-boost-to-resource-at-royal-sheba-project-10376.html <![CDATA[News - Pan African Resources flagship asset is 'gift that keeps on giving', says CEO ]]> http://www.proactiveinvestors.co.uk/companies/news/204363/pan-african-resources-flagship-asset-is-gift-that-keeps-on-giving-says-ceo-204363.html Barberton Mines – the flagship asset of Pan African Resources plc (LON:PAF) – is the gift that keeps on giving, according to chief executive Cobus Loots.

The South African underground gold project, which includes the Fairview, New Consort and Royal Sheba mines, has been operating for more than 130 years, produces at an exceptionally low cost and output is expected to reach 100,000 ounces in fiscal year 2019.

“It’s one of the oldest operating mines in the world… and in a way it’s the gift that keeps on giving,” Loots said in an interview with Proactive Investors.

In the most recent positive development at Barberton, the company more than doubled its mineral resource estimate at Sheba after results from the latest round of drilling beat expectations.

READ: Pan African Resources more than doubles mineral resource estimate at Sheba after latest round of drilling

The mining group said in an early September update that it thinks the orebody is host to 0.9mln ounces of gold – a 150% increase on its previous estimate of 0.36mln ounces.

Drilling has suggested that around 0.35mln ounces of the precious metal are near to the surface and are conducive to open pit mining.

Open pit mining is generally a cheaper and easier process than underground mining, albeit with slightly lower grades. That isn’t the case at Sheba though, with the results suggesting the near-surface resource is of a slightly higher grade than that of the underground resource.

Overall, Pan African estimates the grade at Sheba to by 3.27 grams per tonne.

Based on the estimates, Loots said he believes Sheba will be a “very welcome and attractive addition” to the miner’s portfolio.

He said the opencast orebody has the potential to increase production from the Barberton operations at a competitive cost.

Sheba definitive feasibility study eyed 

An in-fill drilling programme of 20 holes is nearing completion at Sheba. Pan African expects to update the market with a further mineral resource estimate in November followed by a definitive feasibility study (DFS) in February 2019.

Following the DFS, Loots said he expects to have an implementation plan for the project early in the new year

He is also upbeat about other deposits within the Barberton mining right and operations at Evander Gold Mines in South Africa, where the Elikhulu tailing retreatment project poured its first gold recently.

Elikhulu set to ramp up after first gold poured

Pan African has said it expects to complete the commissioning phase of Elikhulu by the end of September and reach the steady stage of production in October.

Elikhulu, which was constructed ahead of schedule and within budget, is projected to achieve an initial production of 55,000 ounces of gold per annum at an all-in sustaining cost of between US$650/oz and 700/oz.

READ: Pan African Resources announces first gold pour at Elikhulu

“It’s another low cost, long life project that is being brought on ahead of schedule and on budget by Pan African,” Loots said.

Loots said once the company integrates the Evander Tailings Retreatment Plant, which comes on stream in December, production is forecast to rise to 70,000oz.

Over the life of the project, Elikhulu is expected to produce 674,000oz of gold, with a value of about 11.5bn Rand (£622mln) at a gold price of 550,000 Rand/kg (£29,800/kg).

Numis recommends 'buy' rating for Pan African 

Analysts at Numis repeated a ‘buy’ rating on Pan African following July’s announcement of pouring first gold at Elikhulu.

“This is a good result for PAF, which should also benefit from the recent weakening of the ZAR vs the USD that should offset some of the impact of the weaker gold price,” the analysts said.

They added: “PAF has faced challenges with the Evander underground mine, which has now been closed, and the start of production at Elikhulu marks a key point in the transition to a lower risk, lower cost business model.”

The analysts noted that given Pan African’s 2019 guidance for total production of 170,000 ounces, they expect group cash costs to decline to US$657 per ounce from the US$1,045 per ounce reported in 2018 as Elikhulu ramps up.

Numis said the next major catalyst for the shares will be the publication of the DFS for Sheba.

Weaker Rand provides support 

The broker also pointed out that a weaker South African Rand (ZAR) provides support for the group, with the currency having back pulled back from a year-to-date high of R11.55 per US dollar to R14.43

“In ZAR terms, the gold price has increased from R16,000/oz (R514,000/kg) at the beginning of August to R17,025/oz (R547,000/kg) at present, as the weakening of the ZAR has outweighed the pullback in the USD gold price over the same period.

“Over the short term, this should be supportive for PAF, which has ZAR denominated costs, although over the longer term the benefit should be tempered by higher inflation in South Africa.”

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Thu, 06 Sep 2018 10:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/204363/pan-african-resources-flagship-asset-is-gift-that-keeps-on-giving-says-ceo-204363.html
<![CDATA[News - Pan African Resources more than doubles mineral resource estimate at Sheba after latest round of drilling ]]> http://www.proactiveinvestors.co.uk/companies/news/204315/pan-african-resources-more-than-doubles-mineral-resource-estimate-at-sheba-after-latest-round-of-drilling-204315.html Pan African Resources plc (LON:PAF) has more than doubled the mineral resource estimate at its Royal Sheba gold project in South Africa after results from the latest round of drilling “exceeded expectations”.

The AIM-quoted miner now thinks the orebody is host to 0.9mln ounces of gold – a 150% increase on its previous estimate of 0.36mln ounces.

READ: City broker Numis repeats ‘buy’ on Pan African

Drilling has suggested that around 0.35mln ounces of the precious metal are near to the surface and are conducive to open pit mining.

Open pit mining is generally a cheaper and easier process than underground mining, albeit with slightly lower grades. That isn’t the case at Sheba though, with the results suggesting the near-surface resource is of a slightly higher grade than that of the underground resource. Overall, Pan African estimates the grade at Sheba to by 3.27 grams per tonne.

Definitive feasibility study by end of February

“The exploration results from the drilling on Royal Sheba have exceeded our expectations, reaffirming the grades historically mined at depth,” said chief executive Cobus Loots.

“Significantly, the drilling programme has indicated the orebody extends to surface, with the potential to establish a new open pit mining operation in the short term, transitioning to an underground mining operation only after a number of years.

He added: “Royal Sheba’s opencast orebody has the potential to increase production from our flagship Barberton operations at a very competitive cost, aligned with our strategic positioning as a low-cost gold producer.”

More drilling planned

Another 15 holes are planned to be drilled as part of this current exploration programme, after which another mineral resource estimate is expected to be given, likely in November.

Shortly after, Pan African expects to undertake a definitive feasibility study which is scheduled for completion in February 2019.

Shares were up 2.1% to 7.7p in early deals on Thursday.

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Thu, 06 Sep 2018 08:27:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/204315/pan-african-resources-more-than-doubles-mineral-resource-estimate-at-sheba-after-latest-round-of-drilling-204315.html
<![CDATA[RNS press release - Pan African Resources Plc - Royal Sheba Project Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809060200PR_NEWS_UKDISCLO_0009/ Thu, 06 Sep 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809060200PR_NEWS_UKDISCLO_0009/ <![CDATA[News - Numis Securities repeats ‘buy’ on Pan African Resources after Elikhulu tailings plant news ]]> http://www.proactiveinvestors.co.uk/companies/news/203164/numis-securities-repeats-buy-on-pan-african-resources-after-elikhulu-tailings-plant-news-203164.html Numis Securities has reiterated a ‘buy’ stance Pan African Resources plc (LON:PAF) after the firm announced that the pouring of first gold at its Elikhulu tailings retreatment plant in South Africa was “on budget and ahead of schedule”.

The project’s commissioning phase is scheduled to be completed next month, with steady state production of approximately 55,000 ounces of gold per annum at an all-in sustaining cost of between US$650/oz and 700/oz.

READ: Pan African Resources announces first gold pour at Elikhulu

Once the Evander Tailings Retreatment Plant, which has a throughput of 200,000 tonnes per month, comes on stream in December, production is expected to rise to 70,000oz.

Over the life of the Project, Elikhulu is expected to produce 674,000oz of gold, with a value of approximately 11.5bn Rand (£622mln) at a gold price of 550,000 Rand/kg (£29,800/kg).

In a note to clients, the Numis analysts said: “This is a good result for PAF, which should also benefit from the recent weakening of the ZAR vs the USD that should offset some of the impact of the weaker gold price.”

They added: “PAF has faced challenges with the Evander underground mine, which has now been closed, and the start of production at Elikhulu marks a key point in the transition to a lower risk, lower cost business model.”

The analysts noted that given Pan African’s guidance for full-year 2019 is for production of 170,000 ounces, they expect group cash costs to decline from US$1,045 per ounce in full-year 2018 to US$657 per ounce in full-year 2019 as Elikhulu ramps up.

Royal Sheba feasibility study next major catalyst

The analysts pointed out: “The next major catalyst for the shares should be the publication of the feasibility study for the Royal Sheba orebody at Barberton in September.”

They added that financial results for full-year 2018 should be published on September 19, which is “likely to be noisy with one-offs, due to the closure process at Evander, and we expect underlying EPS of £0.002/share”.

They pointed out that a weaker South African Rand (ZAR) also provides support for the group, with the currency having back pulled back from a year-to-date high of R11.55 per US dollar to R14.43.

The analysts noted: “In ZAR terms, the gold price has increased from R16,000/oz (R514,000/kg) at the beginning of August to R17,025/oz (R547,000/kg) at present, as the weakening of the ZAR has outweighed the pullback in the USD gold price over the same period.

“Over the short term, this should be supportive for PAF, which has ZAR denominated costs, although over the longer term the benefit should be tempered by higher inflation in South Africa.”

The City broker repeated a 16p target price on Pan African Resource shares, with the stock currently changing hands at 7.31p.

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Fri, 17 Aug 2018 16:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/203164/numis-securities-repeats-buy-on-pan-african-resources-after-elikhulu-tailings-plant-news-203164.html
<![CDATA[News - Pan African Resources announces first gold pour at Elikhulu ]]> http://www.proactiveinvestors.co.uk/companies/news/203041/pan-african-resources-announces-first-gold-pour-at-elikhulu-203041.html Pan African Resources PLC (LON:PAF) has announced the first gold pour at its Elikhulu tailings retreatment plant in South Africa.

The construction of Elikhulu was completed ahead of schedule and within its 1.74bn Rand (£95mln) budget, the miner said.

The project’s commissioning phase is scheduled to be completed next month, with steady state production of approximately 55,000 ounces of gold per annum at an all-in sustaining cost of between US$650/oz and 700/oz.

READ: Pan African headed in right direction after challenging year

Once the Evander Tailings Retreatment Plant, which has a throughput of 200,000 tonnes per month, comes on stream in December, production is expected to rise to 70,000oz.

Over the life of the Project, Elikhulu is expected to produce 674,000oz of gold, with a value of approximately 11.5bn Rand (£622mln) at a gold price of 550,000 Rand/kg (£29,800/kg).

“The completion of Elikhulu’s construction and the inaugural gold pour, ahead of schedule and in line with the project budget, is a further significant milestone as we deliver into our strategy of repositioning the group as a low-cost, long-life gold producer,” said chief executive Cobus Loots.

“We expect Elikhulu to be a flagship operation within our low-cost, long-life asset base, and we will continue to focus on improving and expanding our portfolio in a sustainable manner to the benefit of all stakeholders.”

Shares rose 3.7% to 7.8p early on Thursday.

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Thu, 16 Aug 2018 08:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/203041/pan-african-resources-announces-first-gold-pour-at-elikhulu-203041.html
<![CDATA[RNS press release - Pan African Resources Plc - Elikhulu's Inaugural Gold Pour ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201808160200PR_NEWS_UKDISCLO_0002/ Thu, 16 Aug 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201808160200PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180713120228_13717532/ Fri, 13 Jul 2018 12:02:28 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180713120228_13717532/ <![CDATA[News - Pan African headed in right direction after challenging year ]]> http://www.proactiveinvestors.co.uk/companies/news/200673/pan-african-headed-in-right-direction-after-challenging-year-200673.html Gold production by Pan African Resources plc (LON:PAF) was ahead of recent guidance in the year to the end of June.

Gold production in the financial year just ended clocked in at 160,421 ounces (oz), which was ahead of the group's most recent production guidance range of 157,000 – 160,000 oz.

READ: Pan African Resources completes Barberton plant as Elikhulu construction continues

Barberton Mines produced 90,628 oz, within its production guidance range of 90,000oz - 91,000oz. During the second half of the financial year, Barberton Mines produced 50,017 oz of gold, a 23% increase on its first-half production.

Evander Mines, where underground mining operations ceased at the end of May, produced 69,793 oz, exceeding its production guidance of 67,000oz – 69,000oz.

Production guidance for the current financial year is about 170,000 oz, excluding any production from Evander’s underground operations. Some 70,000 oz is expected from Elikhulu, which remains on track for first gold in August, with the rest coming from 100,000, which, as one broker noted, implies a continuation of the 50,000 Barberton produced in the second half.

With the previous high-cost ounces from the Evander underground now replaced by production from low-cost surface re-mining operations, production costs are also expected to demonstrate a significant improvement, Pan African said.

Happily, the group's mining operations experienced no fatalities during the year to the end of June 2018.

“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,” declared Cobus Loots, the chief executive officer of Pan African.

“We are now re-positioned as a lower-cost, long-life gold miner, consistent with stakeholder expectations,” he added,

The shares were up 3.4% at 7.58p in mid-morning trading.

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Thu, 12 Jul 2018 09:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/200673/pan-african-headed-in-right-direction-after-challenging-year-200673.html
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201807120330PR_NEWS_UKDISCLO_0025/ Thu, 12 Jul 2018 08:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201807120330PR_NEWS_UKDISCLO_0025/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180711120801_13714101/ Wed, 11 Jul 2018 12:08:01 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180711120801_13714101/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180711120241_13714096/ Wed, 11 Jul 2018 12:02:41 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180711120241_13714096/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180705120728_13707266/ Thu, 05 Jul 2018 12:07:28 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180705120728_13707266/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180705120226_13707261/ Thu, 05 Jul 2018 12:02:26 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180705120226_13707261/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180628120740_13697679/ Thu, 28 Jun 2018 12:07:40 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180628120740_13697679/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180628120214_13697675/ Thu, 28 Jun 2018 12:02:14 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180628120214_13697675/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180620164044_13687623/ Wed, 20 Jun 2018 16:40:44 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180620164044_13687623/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180620163544_13687609/ Wed, 20 Jun 2018 16:35:44 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180620163544_13687609/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201806190530PR_NEWS_UKDISCLO_0039/ Tue, 19 Jun 2018 10:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201806190530PR_NEWS_UKDISCLO_0039/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180613164050_13678724/ Wed, 13 Jun 2018 16:40:50 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180613164050_13678724/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180613163535_13678712/ Wed, 13 Jun 2018 16:35:35 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180613163535_13678712/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201806040604PR_NEWS_UKDISCLO_0038/ Mon, 04 Jun 2018 11:04:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201806040604PR_NEWS_UKDISCLO_0038/ <![CDATA[News - Pan African Resources slips as PAR Gold sells 130mln shares, representing a 5.8% stake ]]> http://www.proactiveinvestors.co.uk/companies/news/197995/pan-african-resources-slips-as-par-gold-sells-130mln-shares-representing-a-58-stake-197995.html Pan African Resources plc (LON:PAF) shares retreated on Thursday morning as the firm revealed that PAR Gold Propriety Limited has disposed of 130mln of its shares, representing 5.8% of the miner's issued share capital.

The AIM-listed company said the disposal was at a price of R1.15 (around 6.9p) per share, representing a 5% discount to the company’s last closing price of R1.21 (7.3p) on 29 May. In early morning trading, Pan African shares were trading at 7.15p, down 3%. 

READ: Pan African Resources completes Barberton plant as Elikhulu construction continues

Following the disposal, PAR Gold continues to hold 306.36mln Pan African shares, representing 13.7% of the issued share capital of the company.

Pan African Resources is an indirect 49.9% shareholder in PAR Gold and will receive the majority of the proceeds from the disposal.

The company said the proceeds of approximately R126mln (around £75.9mln) will be used for general corporate and liquidity purposes and to fund the expansion of the Elikhulu project’s throughput to 1.2mln tonnes per month.

Pan African said: “Following receipt of the proceeds from the Disposal, the Company has, in conjunction with its existing debt facilities, the necessary resources to meet its operational and immediate growth objectives and fund its ongoing capital requirements.”

 

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Thu, 31 May 2018 08:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/197995/pan-african-resources-slips-as-par-gold-sells-130mln-shares-representing-a-58-stake-197995.html
<![CDATA[RNS press release - Pan African Resources Plc - Disposal of Pan African Resources shares by PAR Gold ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805310200PR_NEWS_UKDISCLO_0012/ Thu, 31 May 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805310200PR_NEWS_UKDISCLO_0012/ <![CDATA[News - Pan African Resources completes Barberton plant as Elikhulu construction continues ]]> http://www.proactiveinvestors.co.uk/companies/news/197629/pan-african-resources-completes-barberton-plant-as-elikhulu-construction-continues-197629.html Pan African Resources plc (LON:PAF) said it will complete construction of the Barberton Mines Tailings Retreatment Plant (BTRP) in the current week as it continued construction of its Elikhulu project.

In an operations update, the AIM-listed precious metals miner said the construction of the regrind mill at the BTRP was complete and the commissioning process had commenced and would be completed in the next week.

READ: Pan African Resources to cease underground operations at the Evander gold mine in South Africa

The group added that the mill had been completed on budget and would enable the BTRP to sustain annual production of around 21,000 ounces of gold per annum.

Meanwhile, the company said the construction of its Elikhulu project was proceeding ahead of schedule, with first gold production expected in August 2018, and full commissioning at the end of September 2018.

The firm added that Elikhulu’s capacity would be increased by 200,000 tonnes to 1.2mln tonnes per month from December 2018 by incorporating the existing Evander Tailing Retreatment Plant (ETRP) throughput with the associated economies of scale and enhanced recovery benefits.

Elsewhere, Pan African said it had signed a retrenchment agreement with the recognised unions of Evander Mines at a cost of R160mln South African rand which would be funded through existing debt facilities and internal resources.

The firm added that it was also at an advanced stage of reviewing the technical and commercial merits of mining the remainder of Evander’s 8 shaft pillar, and that this may extend the final closure date of the shaft. However, the process would also generate positive cash flows and assist with further employment opportunities for those affected by dismissal for operational requirements.

In early-morning trading Thursday, Pan African shares were up 0.5% at 7.4p.

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Thu, 24 May 2018 09:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/197629/pan-african-resources-completes-barberton-plant-as-elikhulu-construction-continues-197629.html
<![CDATA[RNS press release - Pan African Resources Plc - Update on Operations and BTRP Mill Commissioning ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805240402PR_NEWS_UKDISCLO_0024/ Thu, 24 May 2018 09:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805240402PR_NEWS_UKDISCLO_0024/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805230516PR_NEWS_UKDISCLO_0043/ Wed, 23 May 2018 10:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805230516PR_NEWS_UKDISCLO_0043/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805170823PR_NEWS_UKDISCLO_0072/ Thu, 17 May 2018 13:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805170823PR_NEWS_UKDISCLO_0072/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180511120739_13638183/ Fri, 11 May 2018 12:07:39 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180511120739_13638183/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180511120214_13638175/ Fri, 11 May 2018 12:02:14 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180511120214_13638175/ <![CDATA[News - Pan African Resources to cease underground operations at the Evander gold mine in South Africa ]]> http://www.proactiveinvestors.co.uk/companies/news/196268/pan-african-resources-to-cease-underground-operations-at-the-evander-gold-mine-in-south-africa-196268.html Pan African Resources plc (LON:PAF) has confirmed that it is to cease the existing underground operations at the Evander gold mine in South Africa.

The firm said the move will result in approximately 1,700 employees being retrenched by the end of May 2018, at a cost of approximately R160mln (around £9.26mln) that will be funded from the group’s existing debt facilities.

READ: Pan African Resources confirms considering cutting jobs at Evander Gold Mine in South Africa

The group said the move is being made after it concluded a consultation process with the relevant Evander Mines’ stakeholders. The consultation was initiated following continued operational losses, which the group said have been exacerbated by the prevailing weak rand gold price.

It added: “An internal and external review of the existing Evander 8 Shaft underground operation concluded that there is no realistic prospect of mining on a sustainable and profitable basis from this operation in the current weak rand gold price environment.

“The outcome of this process is regrettably that the current underground mining at Evander 8 Shaft will cease and the affected employees will be retrenched.”

Finalising additional standby facility

Pan African Resources said that to ensure that it has adequate working capital and the continuation of funding for operations and growth projects, the group is also in the process of finalising an additional standby facility of approximately R100mln (around £5.8mln).

The firm said the Evander rehabilitation provision is fully funded by means of a R311mln (around £180mln) rehabilitation trust and these funds will be used to fund Evander’s underground closure costs and associated rehabilitation.

The group added that retrenched employees will be provided with opportunities for reskilling and it is in the process of identifying employment opportunities for them in new, lower-cost operations at Evander, such as the new Elikhulu Tailings Retreatment Plant, and also in post-closure environmental rehabilitation works.

To ensure sustainability and profitability

Pan African Resources’ CEO Cobus Loots commented: “Post the cessation of Evander’s current underground mining operations, the balance of the Group’s production ounces will be low cost and cash flow positive, which will ensure the sustainability and profitability of the Group in the prevailing low rand gold price environment”.

The firm said the cessation of underground mining at Evander Mines’ will adversely impact its gold production for the year, however Barberton Mines and the surface operations at Evander, which are the group’s primary cash generative units, are performing consistent with prior guidance.

It added that the revised production guidance for the 2018 financial year is expected to be between 156,000 ounces and 158,000 ounces of gold.

In late afternoon trading, Pan African shares were 0.4% higher at 7.19p.

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Wed, 02 May 2018 15:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/196268/pan-african-resources-to-cease-underground-operations-at-the-evander-gold-mine-in-south-africa-196268.html
<![CDATA[RNS press release - Pan African Resources Plc - Finalisation of Evander Mines Restructure & OP Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805021000PR_NEWS_UKDISCLO_0087/ Wed, 02 May 2018 15:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201805021000PR_NEWS_UKDISCLO_0087/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180430120228_13623885/ Mon, 30 Apr 2018 12:02:28 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180430120228_13623885/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201804260700PR_NEWS_UKDISCLO_0077/ Thu, 26 Apr 2018 12:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201804260700PR_NEWS_UKDISCLO_0077/ <![CDATA[News - Pan African on track to produce between 177,000 and 181,000 ounces of gold this year ]]> http://www.proactiveinvestors.co.uk/companies/news/195060/pan-african-on-track-to-produce-between-177000-and-181000-ounces-of-gold-this-year-195060.html Pan African Resources PLC (LON:PAF) listed on AIM more than 15 years ago with a small gold project in Mozambique.

The company then went on an aggressive acquisition spree in South Africa, transforming itself into an established mid-tier miner with production from two major projects, Evander and the Barbeton Mines, regularly amounting to upwards of 160,000 ounces per year.

Total production for the six months to 31 December 2017 amounted to 85,282 ounces, and the company is guiding for full year production of between 177,000 and 181,000 ounces.

Barberton Mines on track to produce 50,000 ounces of gold in the second half of 2018

Production from Barberton is expected to increase by 23% during the second half of 2018, as the company moves on from issues relating to the underground grade which hampered development in the first half.

First half production was also hit by industrial action and disruption from pressure groups, as well as a technical issue with the ore at the Barberton Tailings Retreatment project.

All those issues have now been addressed.

Evander returns to profitability

After remedial action was taken to address critical shaft infrastructure, Evander has returned to profitability, and production has risen by 5.4%. Gold sold rose to 32,734 ounces during the first half of the current year. However, at this stage, Pan African is being cautious about setting precise production guidance for this mine.

Gold production from Evander Mines will be dependent on the outcome of the labour consultation process and the review of the 8-shaft operations. As it stands, Pan African is prioritising lower cost, high margin ounces in the current weak rand gold price environment. A reduction in non-paying gold production will therefore benefit group margins and sustainable cash flows.  

Expansion projects underway

Construction of the Elikhulu tailings retreatment plant remains ahead of schedule, with first gold production expected in August 2018. A feasibility study has confirmed the viability of processing tailings from the Evander Retreatment plant.

Meanwhile, the company has booked a 100% increase in resources at Barberton’s Royal Sheba Project to 720,000 ounces, and a re-assessment of the feasibility of Evander Mine’s Egoli project is in progress.

Objective is to deliver low-cost high margin, sustainable gold, says chief executive

“The past 12 months have been a watershed period, during which we reassessed the sustainability of all our operations and dealt with the issues causing operational disruptions,” said chief executive Coobus Loots. 

“While we still have some work to do, we are confident our operations are being positioned to deliver into our objective of mining relatively low-cost, high-margin and sustainable gold ounces. In light of the prevailing low ZAR gold price, the group is reviewing its cost base and the strategic merits of our portfolio. We expect to deliver improved production results and cost savings in the next reporting period.”

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Mon, 16 Apr 2018 09:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195060/pan-african-on-track-to-produce-between-177000-and-181000-ounces-of-gold-this-year-195060.html
<![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201804120832PR_NEWS_UKDISCLO_0077/ Thu, 12 Apr 2018 13:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201804120832PR_NEWS_UKDISCLO_0077/ <![CDATA[RNS press release - Pan African Resources Plc - Operational Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803280200PR_NEWS_UKDISCLO_0002/ Wed, 28 Mar 2018 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803280200PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803230932PR_NEWS_UKDISCLO_0091/ Fri, 23 Mar 2018 13:32:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803230932PR_NEWS_UKDISCLO_0091/ <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803200639PR_NEWS_UKDISCLO_0040/ Tue, 20 Mar 2018 10:39:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201803200639PR_NEWS_UKDISCLO_0040/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180316164028_13570787/ Fri, 16 Mar 2018 16:40:28 +0000 http://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180316164028_13570787/