Pan African Resources Plc Update on Operations and BTRP Mill Commissioning
May 24 2018 - 3:02AM
UK Regulatory
TIDMPAF
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 Registered Office
The Firs Office Building Suite 31
1st Floor, Office 101 Second Floor
Cnr. Cradock and Biermann Avenues 107 Cheapside
Rosebank, Johannesburg London
South Africa EC2V 6DN
Office: + 27 (0) 11 243 2900 United Kingdom
Facsimile: + 27 (0) 11 880 1240 Office: + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: + 27 (0) 11 243 Office: + 27 (0) 11 243 2900
2900
Phil Dexter John Prior / Paul Gillam
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser and Joint Broker
Office: + 44 (0) 207 796 8644 Office: +44 (0) 20 7260 1000
Sholto Simpson Ross Allister/James Bavister/David
One Capital McKeown
JSE Sponsor Peel Hunt LLP
Office: + 27 (0) 11 550 5009 Joint Broker
Office: +44 (0) 207 418 8900
Julian Gwillim Jeffrey Couch/Neil Haycock/Thomas
Aprio Strategic Communications Rider
Public & Investor Relations SA BMO Capital Markets Limited
Office: +27 (0)11 880 0037 Joint Broker
Office: +44 (0) 207 236 1010
Bobby Morse
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
Email: PAF@buchanan.uk.com
Website: www.panafricanresources.com
END
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