Proactiveinvestors United Kingdom Pan African Resources plc https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Pan African Resources plc RSS feed en Fri, 14 Dec 2018 11:21:59 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181213164052_13903286/ Thu, 13 Dec 2018 16:40:52 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181213164052_13903286/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181213163540_13903277/ Thu, 13 Dec 2018 16:35:40 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181213163540_13903277/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181211164048_13899895/ Tue, 11 Dec 2018 16:40:48 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181211164048_13899895/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181211163535_13899881/ Tue, 11 Dec 2018 16:35:35 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181211163535_13899881/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181207164101_13896495/ Fri, 07 Dec 2018 16:41:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181207164101_13896495/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181207163547_13896490/ Fri, 07 Dec 2018 16:35:47 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181207163547_13896490/ <![CDATA[RNS press release - Pan African Resources Plc - Change in JSE Sponsor ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201812060200PR_NEWS_UKDISCLO_0002/ Thu, 06 Dec 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201812060200PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181205163539_13893088/ Wed, 05 Dec 2018 16:35:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181205163539_13893088/ <![CDATA[News - Pan African Resources set to complete DFS at Royal Sheba after successful drilling programme ]]> https://www.proactiveinvestors.co.uk/companies/news/210281/pan-african-resources-set-to-complete-dfs-at-royal-sheba-after-successful-drilling-programme-210281.html Pan African Resources plc (LON:PAF) expects to complete a definitive feasibility study for the Royal Sheba project at flagship Barberton Mines in February after exploration results exceeded expectations.

The mining company completed an in-fill drilling programme of 4,311.6m and 39 holes at the South African gold project in November.

Results from 25 drill holes confirmed robust mineralisation extending from surface over a strike length of more than 900m at grades above economic break-even concentrations of 0.5 grams per tonne (g/t).

Following sign-off by independent mining consultant, SRK Consulting, Pan African said it can now provide an updated mineral resource estimate (MRE) at Royal Sheba.

The total mineral resource was declared and signed off by SRK at 0.8mln ounces (Moz), or 8.97mln tonnes (Mt) at 2.62g/t.

READ: Pan African Resources flagship asset is 'gift that keeps on giving', says CEO

The updated MRE showed a 6% increase in the near surface mineral resource to 0.37 Moz, or 5.85Mt at 1.96g/t, from 0.35Moz, or 2.84Mt at 3.81 g/t.

Pan African said the updated MRE was considered conservative, exhibiting a high level of confidence, and believes there is further exploration upside.

Chief executive Cobus Loots said Pan African is “very pleased” with the outcome of the in-fill drilling programme and the updated MRE for Royal Sheba.

“The drilling programme has confirmed that the orebody extends to surface, with the potential to establish a new open pit mining operation, which will transition to an underground mining operation only after a number of years,” he said.

 “The scale and grade of the Royal Sheba Mineral Resource gives us confidence to advance the near-surface mineral resource to a definitive feasibility study status, which DRA Global is currently undertaking, with this full study expected in February 2019.”

The group is now exploring the Jamestown Shear Zone, within the New Consort mining right at Barberton Mines for near-surface mineral resources.

The brownfield project targets near-surface mineral resource definition drilling to yield between 0.2Moz to 0.3Moz, at grades between 2g/t and 4g/t.

The first phase of a two-phase drilling programme started on November 13 and comprises 10 drill holes, totalling 1,035m, testing 600m of strike length and 200m of dip extension of the Main Maiden Reef orebody and the associated Consort Bar.

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Fri, 30 Nov 2018 07:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210281/pan-african-resources-set-to-complete-dfs-at-royal-sheba-after-successful-drilling-programme-210281.html
<![CDATA[RNS press release - Pan African Resources Plc - Royal Sheba Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811300200PR_NEWS_UKDISCLO_0012/ Fri, 30 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811300200PR_NEWS_UKDISCLO_0012/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181123164057_13879123/ Fri, 23 Nov 2018 16:40:57 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181123164057_13879123/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181123163535_13879109/ Fri, 23 Nov 2018 16:35:35 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181123163535_13879109/ <![CDATA[RNS press release - Pan African Resources Plc - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811210200PR_NEWS_UKDISCLO_0007/ Wed, 21 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811210200PR_NEWS_UKDISCLO_0007/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181113164042_13865576/ Tue, 13 Nov 2018 16:40:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181113164042_13865576/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181113163517_13865565/ Tue, 13 Nov 2018 16:35:17 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181113163517_13865565/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181112164019_13863998/ Mon, 12 Nov 2018 16:40:19 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181112164019_13863998/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181112163528_13863990/ Mon, 12 Nov 2018 16:35:28 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181112163528_13863990/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181108120739_13860363/ Thu, 08 Nov 2018 12:07:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181108120739_13860363/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181108120234_13860352/ Thu, 08 Nov 2018 12:02:34 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181108120234_13860352/ <![CDATA[News - Pan African’s Cobus Loots confident of achieving full year production guidance of 170,000 ounces of gold ]]> https://www.proactiveinvestors.co.uk/companies/news/208589/pan-africans-cobus-loots-confident-of-achieving-full-year-production-guidance-of-170000-ounces-of-gold-208589.html Pan African Resources plc (LON:PAF) produced 37,729 ounces of gold during the first quarter of the 2019 financial year.

And chief executive Cobus Loots struck an optimistic tone when commenting on the likely performance for the rest of 2019.

WATCH: Pan African Resources repositions after challenging year

“With Elikhulu now commissioned and running at design capacity, we are confident of achieving our production guidance of approximately 170,000oz for the 2019 financial year,” he said.

“Elikhulu ramped-up to its design capacity of 1-million tonnes per month during October 2018, ahead of the original schedule and on budget. Average gold recoveries achieved were consistent with our forecasts, with further optimisation of recoveries expected in the short term.”

The incorporation of the Evander Tailings Retreatment Plant into Elikhulu is also proceeding well and is set to which will increase capacity at Elikhulu to 1.2-million tonnes per month.

“Barberton Mines is on track to meet its full-year production guidance of 100,000 ounces,” added Loots.

During the quarter, operations at Barberton accounted for production of just over 27,000 ounces of gold.

Meanwhile, operations are continuing at Evander, ahead of the proposed closure of the operations.

“At Evander Mines, we have commenced mining and vamping of the remnant high-grade stopes as part of the phased closure of the underground mining operations as an initiative to supplement Evander Mines’ production,” said Loots.

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Tue, 06 Nov 2018 08:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208589/pan-africans-cobus-loots-confident-of-achieving-full-year-production-guidance-of-170000-ounces-of-gold-208589.html
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update quarter ended 30/09/18 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811060200PR_NEWS_UKDISCLO_0002/ Tue, 06 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201811060200PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181031120727_13849654/ Wed, 31 Oct 2018 12:07:27 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181031120727_13849654/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181031120220_13849624/ Wed, 31 Oct 2018 12:02:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181031120220_13849624/ <![CDATA[RNS press release - Pan African Resources Plc - Notice of AGM & No Change Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201810290600PR_NEWS_UKDISCLO_0036/ Mon, 29 Oct 2018 10:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201810290600PR_NEWS_UKDISCLO_0036/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181023164024_13839624/ Tue, 23 Oct 2018 16:40:24 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181023164024_13839624/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181023163519_13839614/ Tue, 23 Oct 2018 16:35:19 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181023163519_13839614/ <![CDATA[RNS press release - Pan African Resources Plc - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201810191102PR_NEWS_UKDISCLO_0103/ Fri, 19 Oct 2018 16:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201810191102PR_NEWS_UKDISCLO_0103/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181011120758_13825352/ Thu, 11 Oct 2018 12:07:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181011120758_13825352/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181011120241_13825346/ Thu, 11 Oct 2018 12:02:41 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181011120241_13825346/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181004120745_13816842/ Thu, 04 Oct 2018 12:07:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181004120745_13816842/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181004120218_13816829/ Thu, 04 Oct 2018 12:02:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20181004120218_13816829/ <![CDATA[News - Pan African Resources looks all set to return to profitability in 2019 ]]> https://www.proactiveinvestors.co.uk/companies/news/205753/pan-african-resources-looks-all-set-to-return-to-profitability-in-2019-205753.html A company that was created from scratch to become a substantial employer with a market capitalisation of £200mln in little more than a decade is always worthy of note.

In the case of Pan African Resources PLC (LON:PAF), that market capitalisation also allows for a significant period of underperformance from the company’s South African gold mines that’s only now coming to an end. As the recovery gets underway, the valuation could return to previous heights.

READ: Pan African Resources says three-year wage agreement successfully concluded with unions by Barberton Mines

Go back just a little more than two years and the company’s shares were almost three times higher than where they are today.

A trend of positive newsflow has already begun. The most recent success has been the negotiation of a wage settlement for the company’s sizeable workforce. Labour relations in the mining industry in South Africa can be a contentious affair, but Pan African’s chief executive Coobus Loots is a tough operator himself and takes a fairly no-nonsense approach.

He also brings a past history as a senior figure on the board of Pan African’s black empowerment partner, so is capable of bringing several viewpoints into the negotiations.

“We reached a wage agreement two weeks ago,” he says. “We’ve agreed a 6% compound annual increase. It’s a fair agreement for all stakeholders.”

The news follows on from the closing down of a tough-to-manage deep underground mine, Evander.

This mine was plagued by an inconsistent and hard to model orebody almost from the time it was acquired from Harmony back in 2012. It enjoyed good years, as Loots points out, citing 2016 specifically, but on the whole, it was not an asset that was working well for the company.

“It became quite clear it was not sustainable and was tarnishing our other operations,” says Loots. The share price suffered on the back of the decision to close down operations, but now that the impairment charges have all been booked, Pan African is all set to move on to a simpler and more prosperous future.

That, says Loots, will be centred on “long life, low cost sustainable assets.”

These comprise one long-standing underground operation at Barberton, and as well as three operations that recover gold from previously mined waste ore known as tailings.

READ: Pan African Resources flagship asset is 'gift that keeps on giving', says CEO

Put together, Broker Numis expects these operations to allow Pan African to return to free cash flow during the 2018/2019 financial year. Total production is likely to hit around 170,000 ounces of gold, as a new operation at Elikhulu ramps up.  

As a consequence, Numis sets a target price of 16p, more than 80% higher than the prevailing 8.6p. So there’s serious upside on offer.

Of course, there are risks with such a recovery play.

But one that can be dispensed with immediately is the risk that any underperforming asset continues to hold back wider improvement. In Pan African’s case, the underperforming asset has been dispensed with entirely, and the company is turning over a new leaf.

With that new leaf, come the newer and simpler operations.

Production at the new Elikhulu project continues to ramp up, with steady state production targets on track to be met next month. The dependable Barberton mine, one of South Africa’s oldest, is all set to yield 26,000 ounces of gold in the first quarter of the current financial year, and continues to underpin the overall performance of the company.

And with the gold price holding steady at around US$1,200, with the rand weak and the dollar strong, the macro picture is moving in Pan African’s favour too.

READ: Numis Securities repeats ‘buy’ on Pan African Resources after Elikhulu tailings plant news

Numis expects revenues of US$157mln for 2019, rising to US$184mln in 2020. That in turn, will translate into net profits of US$32mln in 2019 and US$55mln in 2020.

It’s expected too that the dividend, which was cancelled following the troubles at Evander, will be reinstated in 2019 at 0.5p per share, and that it will then rise to 0.9p per share in 2020.

That puts Pan African on a healthy enough yield of just over 5.5% for the current year and more than 10% for 2020.

And it’s more than arguable that a 10% yield from a company with a track record of production that goes back more than a decade, and which is well ensconced in its country of operations, is attractive.

The question remains whether cautious investors will leave the shares where they are and pocket the reinstated dividend as it rolls in, or whether more bullish punters will move in and re-rate the shares, such that the yield falls but existing shareholders end up sitting on sizeable gains.

On that scenario, Numis’s 16p target looks eminently within reach.

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Wed, 26 Sep 2018 12:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205753/pan-african-resources-looks-all-set-to-return-to-profitability-in-2019-205753.html
<![CDATA[RNS press release - Pan African Resources Plc - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809241200PR_NEWS_UKDISCLO_0107/ Mon, 24 Sep 2018 17:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809241200PR_NEWS_UKDISCLO_0107/ <![CDATA[Media files - Pan African Resources repositions after challenging year ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10566/pan-african-resources-repositions-after-challenging-year-10566.html Mon, 24 Sep 2018 11:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10566/pan-african-resources-repositions-after-challenging-year-10566.html <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920164038_13799030/ Thu, 20 Sep 2018 16:40:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920164038_13799030/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920163536_13799025/ Thu, 20 Sep 2018 16:35:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180920163536_13799025/ <![CDATA[News - Pan African Resources reports financial results after decisive action to maintain profitability ]]> https://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 https://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 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809190200PR_NEWS_UKDISCLO_0013/ Wed, 19 Sep 2018 07:00:00 +0100 https://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 ]]> https://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 https://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 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809140418PR_NEWS_UKDISCLO_0032/ Fri, 14 Sep 2018 09:18:00 +0100 https://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 ]]> https://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 https://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 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809070200PR_NEWS_UKDISCLO_0002/ Fri, 07 Sep 2018 07:00:00 +0100 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201809060200PR_NEWS_UKDISCLO_0009/ Thu, 06 Sep 2018 07:00:00 +0100 https://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 ]]> https://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 https://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 ]]> https://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 https://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 ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201808160200PR_NEWS_UKDISCLO_0002/ Thu, 16 Aug 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/PRNRNS_201808160200PR_NEWS_UKDISCLO_0002/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180713120228_13717532/ Fri, 13 Jul 2018 12:02:28 +0100 https://www.proactiveinvestors.co.uk/companies/rns/745/LSE20180713120228_13717532/