Pan African Resources plc (LON:PAF) shares were higher on Monday as the group said it has remained cashflow positive despite the coronavirus (COVID-19) pandemic and lockdown measures in South Africa.
The AIM-listed miner also said, despite its operations being “severely affected” by the lockdown, its production forecast for the 2020 financial year has been lowered by “only 5%” to 176,000 ounces of gold.
READ: Pan African reiterates support for government measures, as lockdown in South Africa extended
Pan African said the small downgrade reflected its ability to “increase output from surface toll treatment and low-grade surface stockpile processing initiatives, in substitution of underground production”.
The company also said that on April 23 the South African government announced a phased lifting of lockdown restrictions from May 1 and that it has commenced a recall of permitted employees for a restart of its operations.
“We have implemented preventative and precautionary measures at our operations to ensure the health and well-being of employees as they return to work, and we look forward to working with all stakeholders in the operational ramp-up”, Pan African Resources chief executive Cobus Loots said in a statement.
“We expect that we still have a long battle ahead against COVID-19, however, I wish to commend all of our employees for the manner in which they have worked together during this period. The strategic repositioning of our Group some years ago, as a safe and high-margin producer with multiple operations and the flexibility to withstand short-term external shocks, should continue to serve all stakeholders well”, he added.
Shares in Pan African Resources rose 4.5% to 14.2p in early deals.