Pan African Resources plc (LON:PAF) has told investors it is “progressing on schedule” with critical refurbishment and maintenance work at its Evander Mine in South Africa.
As the company guided before, the works on no. 7 and no. 8 shaft infrastructure are expected to be completed within the 55-day timeframe previously set out.
Whilst the underground operations have been suspended, Pan African said it had been making the most of the available retreatment plants to continue processing tailings and additional surface sources.
The company also announced it had reached a deal with the National Union of Mineworkers to retrench approximately 30% of the employees at Evander.
The estimated cost of this retrenchment is US$4.1mln, although over the longer-term Pan African expects it to reduce the operation’s fixed cost base.
The company stressed that a number of these employees will be re-engaged once site activities for Elikhulu.
Speaking of Elikhulu, Pan African confirmed that it had built a decent book of demand from potential investors to potentially fund further development at the project.
However, given “current market conditions and market volatility”, the company has decided not to follow through with the equity raise at this time.
Instead, the company will continue to progress the Elikhulu development from existing cash and banking facilities until the final package is secured.
Shares closed at 15.1p on Friday afternoon.