Proactiveinvestors United Kingdom Pan African Resources plc Proactiveinvestors United Kingdom Pan African Resources plc RSS feed en Mon, 22 Jul 2019 15:26:11 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Pan African Resources Plc - Directorate Change ]]> Thu, 18 Jul 2019 13:30:00 +0100 <![CDATA[News - Pan African Resources looks to build on strong momentum and production growth ]]> Pan African Resources plc (LON:PAF) has told investors it is assessing options to build on the momentum achieved in the past year.

Ahead of results for the twelve months ended 30 June 2019, the company pointed out that through the year it has emerged as a safe, low-cost and long-life gold producer.

WATCH: Pan African reports pleasing performance as production is boosted

Significantly, it highlighted that gold output exceeded full year production guidance which was set at 70,000 ounces. Production rose by 7.5% to 172,442 ounces, or 54% when considered in terms of continuing operations.

“This has been delivered through the cessation of the high cost underground mining at Evander Mines, the successful commissioning of the Elikhulu tailings retreatment plant, and Barberton Mines achieving a significant increase in production,” said Cobus Loots, PAF chief executive.

“Critically, Barberton Mines achieved a historical milestone of 2 million fatality free shifts during June 2019 and we commend the team for this safety achievement.”

Loots added: “We continue to assess the optionality of our portfolio and are looking to build upon this year’s momentum to drive further growth. Evander’s 8 Shaft Pillar mining is expected to contribute an additional 20,000oz to 30,000oz per annum for the next three years.

“The group is currently reviewing the merits of expediting the Egoli project and is assessing funding options.”

Looking to the new financial year, PAF set its production guidance at around 185,000 ounces.

Operations results

PAF noted that the Barberton mines yielded 99,363 ounces over the last year, up from 90,629 ounces. Underground and surface mining operations at Barberton provided 75,356 ounces and 24,007 ounces came from tailings retreatment.

Evander contributed some 26,878 ounces. The Elikhulu tailings retreatment plant produced some 46,201 ounces.

Meanwhile, the company noted that it has recently experienced a number of lost production days due to its roadways being blocked by protestors.

Police support amid protests

“These protests are unrelated to normal industrial action and are initiated and supported by politicians and criminals who believe that extortion by means of violence is a legitimate social objective,” the company said.

“The mine has been supported by the South African Police’s Public Order Policing Division to control these protests, protect Pan African’s employees and preserve its assets.

“Whilst Pan African is cognisant of the levels of unemployment in South Africa and the resultant social impact flowing therefrom, these actions will only exacerbate the country’s economic problems and further disincentivises investment in the mining sector.

“Pan African will take the appropriate action to protect its employees and assets in the interest of all its stakeholders, supported by the South African law enforcement authorities.”

PAF noted that interdicts have been served and further criminal and civil actions will follow against certain individuals and organisations.

Fri, 12 Jul 2019 07:48:00 +0100
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update for the Year ended 30 June 2019 ]]> Fri, 12 Jul 2019 07:00:00 +0100 <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> Mon, 01 Jul 2019 10:00:00 +0100 <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> Wed, 05 Jun 2019 11:15:00 +0100 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Fri, 31 May 2019 16:40:51 +0100 <![CDATA[RNS press release - Price Monitoring Extension ]]> Fri, 31 May 2019 16:35:31 +0100 <![CDATA[Media files - Pan African reports on pleasing performance as gold production is boosted ]]> Mon, 20 May 2019 10:32:00 +0100 <![CDATA[News - Pan African Resources on track to hit production target ]]> Pan African Resources plc (LON:PAF) boosted gold production by more than 51% in the nine months to March helped by an 11% rise at the Barberton Mines complex.

The South Africa-based gold miner added though that it has decided against re-opening the Royal Sheba mine at Barberton as a stand-alone project.

Royal Sheba might, however, become a source of additional ore to be processed at Barberton once the infrastructure already in place there is upgraded.

Pan African produced just shy of 123,800oz of gold in the nine months, out of which almost 73,000oz came from Barberton, 21,000oz from Evander and 30,000oz from the Elikhulu tailings retreatment plant.

The Evander 8 Shaft Pillar operation is expected to come onstream in August and produce between 20-30,000oz per year at a sustaining cost of US$900/oz.

Confident remains on track

Cobus Loots, chief executive, said: “We are confident the Group remains on track to meet its gold production guidance of 170,000oz for the full financial year to end 30 June 2019. “

Loots added Pan African will produce approximately 185,000oz of gold in the 2020 financial year, “which is a sizeable increase in our gold production profile.”

In a note to clients, analysts at ‘house’ broker Peel Hunt said: “The production data for Q3 sees output tracking slightly behind our estimates for FY19E production. Our estimate is 179koz, slightly ahead of the 170koz guidance.”

They added: “Looking to FY20E the 185koz guidance has a slower ramp up of the 8 shaft pillar than we have assumed, but this will likely translate into better FY21E and FY22E production given the 30koz/year average production rate from this project.”

Peel Hunt reiterated a ‘buy’ rating and 15.5p target price on Pan African shares, which in afternoon trading were down 1% at 9.54p.

 -- Adds analyst comment, share price --

Fri, 17 May 2019 07:51:00 +0100
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update for 9 Months ended March 2019 ]]> Fri, 17 May 2019 07:00:00 +0100 <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> Tue, 07 May 2019 13:30:00 +0100 <![CDATA[RNS press release - Pan African Resources Plc - Directorate Change ]]> Wed, 03 Apr 2019 12:06:00 +0100 <![CDATA[News - Pan African Resources has recovered its poise, and is now driving towards an annual production target of 170,000 ounces ]]> Pan African Resources plc (LON:PAF)(JSE:PAN) is comfortably on track to achieve its full year target of 170,000 ounces of gold produced from its South African mines.

The company produced just over 50,000 ounces of gold from its Barberton mine during the six months to December 2018, up around 25% on the production figure from the corresponding period a year earlier.

And production from the new operations at Elikhulu amounted to 15,000 ounces of gold as the ramp up there continues.

Two and half months into the second half of the financial year, Pan African chief Cobus Loots is confident that Elikhulu is now producing at roughly around the targeted 70,000 ounces per year annualised rate.

If there’s a shortfall this year from Elikhulu because of lower levels of production during ramp-up, that will be made up for by residual production from the old Evander project, now shut down, which amounted to around 15,000 ounces in the first half of the financial year.

The return of Pan African to such levels of production represents the culmination of much work, after the company took the tough decision to close the underperforming Evander a couple of years ago. Because although it may have been playing havoc with the company’s margins, Evander’s 100,000 ounces per year did at least allow Pan African to punch-in for work at the 200,000 ounce overall production level.

And to some, it seemed doubtful whether Pan African would ever reach that kind of scale again, after surgically removing such a significant amount of production.

Barely two years later, and the company has almost completely dispelled those doubts. To be sure, this year’s 170,000 ounce target isn’t quite up there at the 200,000 mark, but there are other improvements to be taken into consideration, as well as the possibility that mining could get underway again at the 8Shaft pillar at Evander and add to the overall production total.

More importantly, costs now look to be under proper control.

“It’s important for us to position ourselves as a low-cost producer,” says chief executive Coobus Loots.

“In the last six months we came in with all-in sustaining costs at US$975. An there is scope for us to bring those costs down further as Elikhulu ramps up in the current period.”

Indeed the all-in cost profile of the various operations inside Pan African is quite varied. Elikhulu comes in at around US$650 per ounce, while the tailings retreatment portion of Barberton, which accounts for around 25% of production there, boasts all-in costs of just US$500 per ounce.

That leaves Barberton itself as a higher cost centre, but here too Loots is confident that costs can be brought down. He cites two specific sections of the mine as the current areas of focus.

“We are utilising more infrastructure at Fairview,” he says, and this will include the commissioning of a new sub-vertical shaft within two years.

“And at Royal Sheba we will add more ounces over the short-to-medium term.”

This keen-eyed focus on costs is no accident. It was margin pressures that did for Evander in the end as erratic grades undermined the Pan African modelling, and the company is determined not to get itself into such a position again.

Instead, the plan now is to focus on existing assets and allow the sizeable and growing cashflow to whittle away at the debt that was incurred to get Elikhulu up and running.

“In three years’ time I would anticipate that our debt will have been substantially repaid,” says Loots.

“At that point we’ll have stable production, and hopefully we’ll be looking at growth.”

What’s more, he adds, by that time Pan African ought to be in a secure enough position to go back to paying dividends, which it did with clockwork regularity before drastic action at Evander was called for.

Barberton has a 20 year mine life on current plans although, given that its current operational history stretches back 130 years, it’s probably imprudent to set any absolute and final limit to its life.

Either way, Pan African investors can look ahead for much further than the decade that is usual when it comes to modelling mid-tier mining investments.

The company has an established record as an experienced producer, and to boot, has shown recently that it can navigate some pretty choppy waters. With the return of dividends now looming on the horizon, supported by newly stabilising production, it looks as though conditions for Pan African will be set fair for plenty of years to come.



Mon, 25 Mar 2019 12:16:00 +0000
<![CDATA[Media files - Pan African in a strong position and on track to produce 170k ounces ]]> Fri, 22 Mar 2019 11:55:00 +0000 <![CDATA[News - Pan African Resources reports “robust” first half as profits more than double ]]> Pan African Resources plc (LON:PAF) has reported an increase in profit of over 100% as it reflected on a “robust” performance in its first half.

The gold miner reported that after-tax profit for the six months ended 31 December 2018 had risen 127% to £7.5mln, while in South African rand the figure was up 137% at R137.8mln.

WATCH: Pan African Resources reports sharp increase in gold production in first half

Revenues from continuing operations in the period had also surged 47% to £75.3mln, or up 52.8% to R1.38bn, thanks to an increase in gold ounces from underground operations at the company’s Barberton Mine.

Earnings per share, meanwhile, were up 116.7% at 0.39p per share.

Gold production surges

In the six months, gold production from operations rose 54.2% to 81,014 ounces (oz), with the company's Barberton complex increasing “significantly” by 24.5% to 50,556oz.

“The group is now positioned as a low cost and long-life gold producer, in line with our stated strategy and our shareholders’ expectations” said chief executive Cobus Loots, adding that the firm’s combined underground and tailing operations were “some of the lowest-cost gold producers in South Africa and also internationally competitive, from an all-in sustaining cost perspective”.

During the first half, the all-in sustaining cost per kilogram dropped 18.5% in rand terms to R444,946/kg, while in dollar terms the cost per ounce fell 23.1% to US$975/oz.

Due to financing the construction of its flagship Elikhulu tailings retreatment facility at the Evander mines, net debt in the period rose to £102.7mln from £39.2mln a year ago.

170,000oz target for full year “on track”

In its outlook for the rest of the year, Pan African said it was on track to achieve its gold production guidance of about 170,000oz, while also strengthening its financial position by reducing net debt to allow for “improved funding flexibility and increased capacity”.

Loots added that the firm had “an attractive pipeline of near- to medium-term growth projects” including the potential to access “low-cost, near-surface ounces” at its Royal Sheba project, where a definitive feasibility study is ongoing.

House broker expects more “significant cost savings” as net debt comes in below estimates

In a note to clients, analysts at Pan African’s house broker Peel Hunt said the company’s net debt had come in lower than their own estimates of £107mln and that there were “further significant cost savings to come at the Barberton operation as management looks to streamline the logistics of moving men and ore to and from the working faces to the surface”.

The broker added that it was “not surprised” that revenues had been in line with its estimates of £75mln, as the company had already reported gold production of 81,014oz in January.

“Overall operating costs were slightly higher than we expected (EBITDA was £18.7mln vs our £21.1mln estimate) but lower interest costs and effective tax rate meant our EPS of 0.39p was in line.”

Peel Hunt rates Pan African with a ‘Buy’ rating and 15.5p target price, with shares on the day down 1.9% at 10.5p.

Wed, 20 Feb 2019 09:12:00 +0000
<![CDATA[RNS press release - Pan African Resources Plc - Interim Results for six months to 31 Dec 2018 ]]> Wed, 20 Feb 2019 07:00:00 +0000 <![CDATA[RNS press release - Pan African Resources Plc - Holding(s) in Company ]]> Tue, 19 Feb 2019 10:00:00 +0000 <![CDATA[News - Pan African Resources expects uplift to EPS for second half of 2018 ]]> Pan African Resources plc (LON:PAF) said it expects its earnings per share (EPS) for the second half of 2018 to be higher year-on-year.

In a trading update for the six months ended 31 December, the gold miner said its EPS and headline EPS (HEPS) from continuing operations were expected to range between 3% to 13% higher than the 0.36p per share reported a year ago, resulting in an EPS and HEPS range of between 0.37p and 0.41p.

WATCH: Pan African Resources reports sharp increase in gold production in first half

For the group’s combined operations, which include discontinued mining at Evander Gold Mining Proprietary Limited, EPS was expected to be 112% to 122% higher at between 0.38p and 0.4p per share from 0.18p previously, while HEPS was predicted to be between 90% to 100% higher at the same range from 0.2p the year before.

Pan African added that during the six-month period the value of the South African rand, in which it conducts material transactions, had depreciated by around 4% year-on-year and that this should be considered when comparing results for the period.

Wed, 13 Feb 2019 07:40:00 +0000
<![CDATA[RNS press release - Pan African Resources Plc - Trading Statement for six months ended 31 Dec 18 ]]> Wed, 13 Feb 2019 07:00:00 +0000 <![CDATA[Media files - Pan African Resources reports sharp increase in gold production in first half ]]> Fri, 25 Jan 2019 13:24:00 +0000 <![CDATA[News - Pan African surges after half-year production update ]]> Pan African Resources plc (LON:PAF) saw a sharp increase in gold production in the first half of its fiscal year.

Gold production from the group’s continuing mining operations increased by 54.2% to 81,014 ounces (oz) in the six months to the end of 2018 from 52,548 oz in the same period of 2017.

WATCH: Pan African Resources reports sharp increase in gold production in first half

The company said there were “robust operational performances” from Barberton Mines’ underground operations and from the group’s tailings retreatment plants.

Gold production from the Barberton complex increased by 24.5% to 50,556 oz from 40,611 oz a year earlier.

The new Elikhulu tailings retreatment plant, which reached nameplate throughput capacity in October, contributed 15,292 oz (2017: nil) of incremental low-cost ounces.

The company said the improvement in production performance, the curtailment of large scale underground mining operators at Evander mines and the coming on-stream of the Elikhulu plant had led to a marked reduction in the group’s all-in sustaining cost of production.

The group suffered no fatalities during the current and corresponding reporting periods while the reportable injury frequency rate improved to 0.53 from 0.62 in the same period of 2017.

“The operational and safety performance during the current reporting period demonstrates the progress in repositioning our group as a low-cost, long-life producer, with the safety of our employees and contractors always being of paramount importance,” said Cobus Loots, the chief executive officer of Pan African.

“We are very pleased with the commissioning of Elikhulu during the period under review, notwithstanding the challenges associated with delivering a project of this magnitude and complexity on time and within budget. We now look forward to Elikhulu’s growing contribution to the group’s results in forthcoming reporting periods.

“In the period ahead, management will continue to focus on further improving our mining operations. The group remains on track to produce 170,000 oz for the full financial year to 30 June 2019,” he added.

Broker Peel Hunt said the output figure of 81,000 oz was a little below its forecast of 83k oz, with slightly lower recovery levels at Elikhulu and lower output from the Barberton underground operations more than offsetting the faster-than-expected recover at the Barberton tailing retreatment plant.

"The materially lower lost time injury rate (1.77 vs 4.05 in 1H FY18) suggests that with the transition to a much higher % of ounces from surface facilities has come a more stable business," the broker observed.

“Looking to the second half of FY19 the integration of the ETRP plant into Elikhulu looks to be ramping up marginally faster than expected. Once volumes are stabilised (February) we would expect management to turn their focus to plant recoveries,” the broker said.

“With a full half of Elikhulu volumes, and stability at the Barberton operations, management looks well set to produce towards 170koz from the continuing operations and ~180koz including output from residual operations at Evander,” it added.

Peel Hunt rates the shares as a ‘buy’ and has increased its target price to 16p; the shares currently trade at 9.61p, up 5% on the day.

“We don’t think the market is really valuing the much lower cost (and lower operating risk) ounces from Elikhulu. With the plant ramped up a stronger production level for 2H, FY19E looks assured and that should confirm that the shares are undervalued,” Peel Hunt concluded.

--- adds broker comment and share price reaction ---

Fri, 25 Jan 2019 07:21:00 +0000
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update for the six months to 31.12.18 ]]> Fri, 25 Jan 2019 07:00:00 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 10 Jan 2019 12:07:50 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 10 Jan 2019 12:02:33 +0000 <![CDATA[RNS press release - Pan African Resources Plc - Notification of Change in Auditor ]]> Wed, 19 Dec 2018 14:30:00 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Mon, 17 Dec 2018 12:07:51 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Mon, 17 Dec 2018 12:02:39 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 13 Dec 2018 16:40:52 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 13 Dec 2018 16:35:40 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Tue, 11 Dec 2018 16:40:48 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Tue, 11 Dec 2018 16:35:35 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Fri, 07 Dec 2018 16:41:01 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Fri, 07 Dec 2018 16:35:47 +0000 <![CDATA[RNS press release - Pan African Resources Plc - Change in JSE Sponsor ]]> Thu, 06 Dec 2018 07:00:00 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Wed, 05 Dec 2018 16:35:39 +0000 <![CDATA[News - Pan African Resources set to complete DFS at Royal Sheba after successful drilling programme ]]> 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.

Fri, 30 Nov 2018 07:52:00 +0000
<![CDATA[RNS press release - Pan African Resources Plc - Royal Sheba Update ]]> Fri, 30 Nov 2018 07:00:00 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Fri, 23 Nov 2018 16:40:57 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Fri, 23 Nov 2018 16:35:35 +0000 <![CDATA[RNS press release - Pan African Resources Plc - Result of AGM ]]> Wed, 21 Nov 2018 07:00:00 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Tue, 13 Nov 2018 16:40:42 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Tue, 13 Nov 2018 16:35:17 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Mon, 12 Nov 2018 16:40:19 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Mon, 12 Nov 2018 16:35:28 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 08 Nov 2018 12:07:39 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 08 Nov 2018 12:02:34 +0000 <![CDATA[News - Pan African’s Cobus Loots confident of achieving full year production guidance of 170,000 ounces of gold ]]> 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.

Tue, 06 Nov 2018 08:01:00 +0000
<![CDATA[RNS press release - Pan African Resources Plc - Operational Update quarter ended 30/09/18 ]]> Tue, 06 Nov 2018 07:00:00 +0000 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Wed, 31 Oct 2018 12:07:27 +0000 <![CDATA[RNS press release - Price Monitoring Extension ]]> Wed, 31 Oct 2018 12:02:20 +0000