Sign up United Kingdom
Pan African Resources plc (LON:PAF)

Pan African Resources plc (LON:PAF)


Share Price
9.20 p
Change
0.1 (1.10 %)
Market Cap
£165.45 m
Proactive Investors - Run By Investors For Investors

Pan African Resources plc RNS Release

Pan African Resources Plc - Update on Operations and BTRP Mill Commissioning


Pan African Resources Plc - Update on Operations and BTRP Mill Commissioning

PR Newswire

Pan African Resources PLC

(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)

AIM Code: PAF

JSE Code: PAN

ISIN: GB0004300496

(“Pan African Resources” or the “Company” or the “Group”)

UPDATE ON OPERATIONS AND BTRP MILL COMMISSIONING

Further to the announcement published on 2 May 2018 in respect of the finalisation of Evander Gold Mining Proprietary Limited (“Evander Mines” or “Evander”) restructure and operational update,
Pan African Resources advises shareholders as follows:

  • The commissioning of the Barberton Mines Tailings Retreatment Plant (“BTRP”) regrind mill will be completed during the current week, on schedule and on budget. The BTRP is expected to reach annualised gold production of 21,000 ounces in the next month, in line with previous guidance.

  • The Group has signed a retrenchment agreement with representative unions at Evander Mines, which governs the final terms of the retrenchment. The retrenchment process will therefore be completed as previously communicated, with several programmes implemented by Evander to assist retrenched employees.

  • The Elikhulu project construction (“Elikhulu”) remains ahead of schedule and below budget.

BTRP MILL COMMISSIONING

The construction of the regrind mill at the BTRP is complete and the commissioning process has commenced and will be completed in the next week. The mill enables the BTRP to sustain the annual production at approximately 21,000 ounces per annum.  The construction of the regrind mill took five months and was completed on budget. The regrind mill was installed to reduce the coarseness of the material treated from the Harper Dump and will improve material handling and recoveries going forward.

The 1.7 megawatt, 4.3 metre by 4.9 metre, Veecor regrind mill was constructed in record time by Barberton Mines, with New Concept Projects as the main subcontractor to DRA Global, which was responsible for the mill refurbishment and installation.

FINALISATION OF THE EVANDER MINES SECTION 189 PROCESS

Pan African Resources has concluded the Section 189 process in terms of the South African Labour Relations Act, 66 of 1995 (“Section 189 Process”) and signed a retrenchment agreement with the recognised unions of Evander Mines. The retrenchment cost will be approximately R160 million and will be funded from the Group’s existing debt facilities and internal resources.

As previously communicated, the retrenched employees will be provided with opportunities for reskilling and the Group is in the process of identifying employment opportunities for retrenched employees, both internally and with potential external employers.

Separately, the Group is at an advanced stage of reviewing the technical and commercial merits of mining the remainder of Evander’s 8 shaft pillar.  This may extend the final closure date of the shaft, generate positive cash flows and assist with further employment opportunities for those affected by the Section 189 Process. Further information on the findings of the Evander 8 shaft pillar initiative will be communicated to shareholders in the near future.

UPDATE ON ELIKHULU CONSTRUCTION

The construction of Elikhulu remains ahead of schedule, with first gold production expected in August 2018, and full commissioning at the end of September 2018. Elikhulu’s capacity will be increased by 200,000 tonnes to 1.2-million tonnes per month with effect from December 2018, by incorporating the existing Evander Tailing Retreatment Plant (“ETRP”) throughput with the associated economies of scale and enhanced recovery benefits.  The increase in processing capacity will not affect the original construction schedule or first gold production expectations. In conjunction with the ETRP throughput, these two surface operations, once in full production, are expected to produce more than 70,000 ounces per annum.

Pan African’s Barberton and surface tailings operations uniquely positions the Group as a relatively low-cost producer with long-life, quality assets and attractive organic growth prospects.

The information contained in this announcement has not been reviewed or reported on by Pan African Resource’s auditors and is the responsibility of the directors of Pan African Resources.

For further information on Pan African Resources, please visit the Company’s website at www.panafricanresources.com

24 May 2018

Contact information
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office:   + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office:   + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645
Cobus Loots     
Pan African Resources PLC   
Chief Executive Officer 
Office: + 27 (0) 11 243 2900                                         
Deon Louw
Pan African Resources PLC
Financial Director
Office: + 27 (0) 11 243 2900
Phil Dexter
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0) 207 796 8644
John Prior / Paul Gillam
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0) 20 7260 1000
Sholto Simpson
One Capital
JSE Sponsor
Office: + 27 (0) 11 550 5009
Ross Allister/James Bavister/David McKeown
Peel Hunt LLP
Joint Broker
Office: +44 (0) 207 418 8900
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880 0037        
Jeffrey Couch/Neil Haycock/Thomas Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 207 236 1010
Bobby Morse
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
Email: [email protected]
Website: www.panafricanresources.com

Pan African Resources plc Timeline

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use