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Pan African Resources Plc - EGOLI PROJECT FEASIBILITY STUDY PRESENTATION

Pan African Resources PLC

(Incorporated and registered in and under Companies Act 1985 with registered number 3937466 on )EnglandWales25 February 2000

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

ADR ticker code: PAFRY

(“Pan African” or "the Company")

PAN AFRICAN RESOURCES’ EGOLI PROJECT FEASIBILITY STUDY PRESENTATION

On , Pan African released its operational update for the year ended , wherein shareholders were advised that an independent review had been completed on the feasibility study at Evander Mine’s (“Egoli Project”). A copy of the presentation summarising the findings of this study, is now available on Pan African’s website at10 July 202030 June 2020Egoli Projectwww.panafricanresources.com/investors/company-presentations/

is a long life, low cost brownfield project, that will capitalise on the Evander mine’s existing established infrastructure during its development and exploitation. This synergy has materially reduced Egoli’s upfront capital investment, when benchmarked against other development projects of similar scale, and contributed to its compelling and robust economic returns. The project has an initial life of mine of 9 years, with annual gold production of approximately 72koz at an average head grade of 6.61g/t (LOM gold production of 17,771 kg (c.570koz)).  First gold is expected to be produced approximately 20 months after construction commences, with ramp up to steady state production over the following 16 months. Additional geological and operational upside exists when the Inferred Resources are accessed as underground development proceeds, potentially increasing LOM to 14 years.The Egoli Project

The feasibility study demonstrates a compelling organic growth project, with the following salient financial parameters:

Detailed project scheduling and planning is in progress and is expected to be completed in the first quarter of the 2021 financial year. Non-dilutive funding options are currently being explored following receipt of a number of financing offers from investors and institutions. Funding is expected to be finalised in the second quarter of the 2021 financial year.

Inception of the Egoli project is scheduled to commence in the second quarter of the 2021 financial year with the dewatering of the decline followed by re-quipping, standard footwall development, further deeping of the decline and on-reef development.

Egoli is expected to directly employ approximately 1,200 people, mainly from the local communities surrounding Evander and will provide additional economic and supplier development opportunities for this region of the .Mpumalanga Province

The project has strong Environmental Social & Governance credentials, as it is already fully licenced and empowered, the closure cost rehabiliation liability is fully funded and the Company intends to utilise the existing TSF at Evander for the project, resulting in there being no additional environmental footprint.  The Evander solar plant, which will be completed in the next year, is expected to also contribute to cost savings and reduced emissions at Evander’s operations.

The Mineral Reserves and Mineral Resources on which the feasibility study is based is shown in the tables below:

Egoli Mineral Reserve Statement* (as at )30 November 2019

Egoli Mineral Resource Statement* (as at )30 June 2019

*Mineral Resources and Mineral Reserves are reported in accordance with the SAMREC Code

The Competent Person for Pan African, Mr , the Group Mineral Resource Manager, has reviewed and approved the information contained in this announcement. is a member of the as well as a member in good standing of the .Hendrik PretoriusMr PretoriusSouth African Council for Natural Scientific ProfessionsGeological Society of South Africa

Rosebank

30 July 2020

For further information on Pan African, please visit the Company's website atwww.panafricanresources.com

Glossary of Technical Terms

--  Peak funding: R1,05 billion ()
    --  Capital payback period: 3.8 years (from project inception)
    --  NPV¹???¹: R2,01 billion/USD 131,25 million, at a gold price of
        R850,000/kg (/oz) and an exchange rate of ZAR/US$:16.00)
    --  IRR (post tax real): 50.1%
    --  AISC: R399,600/kg (/oz)US$66mUS$1,650US$777
Reserve Category Mt   Grade (g/t) Tonnes gold Ounces (Moz)

Proved           0.45 5.90        2.64        0.08

Probable         2.99 6.72        20.08       0.65

Total Reserve    3.44 6.61        22.72       0.73
Resource Category Mt   Grade (g/t) Tonnes gold Ounces (Moz)

Measured          0.44 8.60        3.80        0.123

Indicated         2.94 9.85        28.93       0.930

Inferred          6.26 9.68        60.58       1,948

Total Resource    9.64 9.69        93.33       3.001
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

Hethen Hira                            /
              
Head : Investor Relations              Joint Broker
Tel: + 27 (0)11 243 2900               Office: +44 (0)20 7236 1010
E-mail: 

Website:The Firs Office BuildingJohannesburgLondonSouth Africa[email protected][email protected]www.panafricanresources.comCobus LootsDeon LouwPhil DexterJane KirtonPaul GillamCiska KloppersRoss AllisterDavid McKeownJSE SponsorThomas RiderNeil ElliotPan African Resources PLCPan African Resources PLCCorporate Services LimitedNumis Securities LimitedQuestco Corporate Advisory Proprietary Peel Hunt LLP
LimitedPan African Resources PLCBMO Capital Markets Limited
“AISC”               All In Sustaining Costs

"g/t"                grammes per tonne, equivalent to parts per million

"Inferred Resource"  that part of a Mineral Resource for which tonnage, grade
                     and mineral content can be estimated with a low level of
                     confidence. It is inferred from geological evidence and
                     assumed but not verified geological and/or grade
                     continuity. It is based on information gathered through
                     appropriate techniques from locations such as outcrops,
                     trenches, pits, workings and drill holes which may be
                     limited or of uncertain quality and reliability

"Indicated Resource" that part of a Mineral Resource for which tonnage,
                     densities, shape, physical characteristics, grade and
                     mineral content can be estimated with a reasonable level of
                     confidence. It is based on exploration, sampling and
                     testing information gathered through appropriate techniques
                     from locations such as outcrops, trenches, pits, workings
                     and drill holes. The locations are too widely or
                     inappropriately spaced to confirm geological and/or grade
                     continuity but are spaced closely enough for continuity to
                     be assumed

“kg”                 kilogram

"koz"                thousand troy ounces of gold

"Measured Resource"  that part of a Mineral Resource for which tonnage,
                     densities, shape, physical characteristics, grade and
                     mineral content can be estimated with a high level of
                     confidence. It is based on detailed and reliable
                     exploration, sampling and testing information gathered
                     through appropriate techniques from locations such as
                     outcrops, trenches, pits, workings and drill holes. The
                     locations are spaced closely enough to confirm geological
                     and grade continuity

"Mineral Resource"   a concentration or occurrence of material of intrinsic
                     economic interest in or on the Earth's crust in such form,
                     quality and quantity that there are reasonable prospects
                     for eventual economic extraction. The location, quantity,
                     grade, geological characteristics and continuity of a
                     Mineral Resource are known, estimated or interpreted from
                     specific geological evidence and knowledge. Mineral
                     Resources are sub-divided, in order of increasing
                     geological confidence, into Inferred, Indicated and
                     Measured categories when reporting under JORC

"Mt"                 million tonnes

"oz"                 troy ounce (= 31.103477 grammes)

"Reserve"            the economically mineable part of a Measured and/or
                     Indicated Mineral Resource

"t"                  tonne (= 1 million grammes)

Quick facts: Pan African Resources plc

Price: 19.3

Market: AIM
Market Cap: £372.17 m
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