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.
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.