Pan African Resources Plc - Further update re Covid-19 National Lockdown
(Incorporated and registered in and under Companies Act 1985 with registered number 3937466 on )
Share code on AIM: PAF
Share code on JSE: PAN
("" or "the Company" or "the Group")
FURTHER UPDATE REGARDING THE COVID-19 NATIONAL LOCKDOWN AND STATUS OF GROUP OPERATIONS
Shareholders are referred to the Company's announcements of 24 and , following the regulations announced by President on Monday , and enacted in terms of the South African Disaster Management Act ("the Regulations"), which required a 21-day national lockdown, effective midnight to midnight (“the National Lockdown”), in an effort to contain the spread of the COVID-19 (coronavirus) pandemic.
On , following 14 days of the initial lockdown period, announced that the country’s has decided to extend the lockdown period by a further two weeks beyond the initial 21-days, resulting in the existing lockdown measures remaining in force until .
remains committed to all government efforts to contain the spread of COVID-19. The Group will continue with preventative measures for the spread and detection of COVID-19 at all its operations, while continuing to undertake essential services during the National Lockdown, as detailed in the Group’s announcement of .
As part of these essential services, the Group has obtained authorisation from the to conduct surface re-mining and processing activities on a reduced scale, subject to compliance with and adherence to all relevant Regulations and applicable legislation. This includes the Group’s Elikhulu Tailings Retreatment Plant and at its Barberton Tailings Retreatment Plant (collectively, the "Group surface operations"), and limited underground mining operations at Barberton Mines.
The Group surface operations are currently operating at approximately 70 per cent of normal production capacity, but with a much reduced workforce. Operating with such a reduced workforce is possible, for a limited time, as a result of the highly automated nature of the surface operations. Barberton Mines is currently also able to produce the required minimum feed for its BIOX ® processing plant, thus ensuring the continued integrity of this system. Of the Group's total staff and contractor complement, only 26 per cent (excluding security staff) are involved in rendering essential services at these operations. Updated guidance for the 2020 financial year will be communicated to shareholders after the National Lockdown has terminated, and once the Group is in a position to quantify the extent and duration of the operational disruptions during this time.
As previously communicated in the Company’s announcement dated , the Group’s liquidity position remains robust. Credit approval from has been obtained to defer the last three tranches of the existing gold loan’s redemption, constituting 5,000 ounces (equivalent to U$7.8m), to the first quarter of the 2021 financial year. The Group’s banking consortium has also confirmed its support for the Company should further liquidity be required.
The COVID-19 pandemic has had a severe adverse economic and social impact on stakeholders involved in the Group's operations and throughout the country. The Group has commenced with support programmes, in addition to its existing community initiatives, to assist stakeholders to alleviate hardships in the areas around its operations. These support programmes include food hampers and hygiene products for employees and specific communities. As a further initiative, potable water will be distributed by the mine’s water tankers to affected communities in Barberton, in collaboration with the local municipality, for the duration of the National Lockdown.
, CEO of , commented as follows: "We are fully supportive of the actions announced by President to reduce the impact of the COVID-19 pandemic, while at the same time implementing support measures to assist stakeholders around our operations. The health and well-being of our employees and communities remains our number one priority, and the measures that we have implemented enable essential services and operations to be maintained.”
will continue to provide shareholders with regular updates regarding developments at Group operations during this time.
For further information on , please visit the Company's website at
Contact information Corporate Office Registered Office Suite 31 2nd Floor, Office 204 Second Floor Cnr. Cradock and Biermann Avenues 107 Cheapside Rosebank, EC2V 6DN Office: + 27 (0)11 243 2900 United Kingdom Office: + 44 (0)20 7796 8644 Chief Executive Officer Financial Director Office: + 27 (0)11 243 2900 Office: + 27 (0)11 243 2900 / St James's Company Secretary Nominated Adviser and Joint Broker Office: + 44 (0)20 7796 8644 Office: +44 (0)20 7260 1000 / Joint Broker Office: +44 (0)20 7418 8900 Office: + 27 (0)11 011 9200 Investor Relations / Hethen Hira Tel: + 27 11 243 2900 Joint Broker E-mail: Office: +44 (0)20 7236 1010 Website:
The Firs Office Building Johannesburg London South Africa[email protected][email protected]www.panafricanresources.com Cobus Loots Deon Louw Phil Dexter Jane Kirton John Prior Ciska Kloppers Ross Allister David McKeown JSE Sponsor Thomas Rider Neil Elliot Pan African Resources PLC Pan African Resources PLC Corporate Services Limited Numis Securities Limited Questco Corporate Advisory Proprietary Peel Hunt LLP Limited BMO Capital Markets Limited
Quick facts: Pan African Resources plc
Market Cap: £355.29 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE