Pan African Resources Plc Operational Update
July 12 2018 - 2:30AM
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" or the "Company" or the "Group")
OPERATIONAL UPDATE
Following the operational updates released in March and May 2018, Pan African
is pleased to provide preliminary production results for the financial year
ended 30 June 2018, production guidance for the 2019 financial year and further
information on the Group's operations and organic growth projects.
Key highlights are summarised as follows:
* Improved safety performance year-on-year with no fatalities (2017: three
fatalities).
Barberton Mines commendably achieved one million fatality free shifts
during June 2018.
* Group gold production of 160,421oz in the 2018 financial year, ahead of its
most recent production guidance of 157,000oz - 160,000oz.
+ Barberton Mines produced 90,628oz for the 2018 financial year, within
its production guidance of 90,000oz - 91,000oz. During the second half
of the financial year, Barberton Mines produced 50,017oz of gold, a 23%
increase on its first half production.
+ Evander Mines produced 69,793oz for the 2018 financial year, exceeding
its production guidance of 67,000oz - 69,000oz.
* Construction of the Elikhulu Tailings Retreatment Plant ("Elikhulu")
remains on track and within budget for first gold in August 2018, with
construction now entering the commissioning phases of the project.
* The Royal Sheba Project feasibility study at Barberton Mines is expected to
conclude during September 2018.
* Production guidance for the 2019 financial year is approximately 170,000oz,
excluding any production from Evander's underground operations.With the
previous high cost ounces from the Evander underground now replaced by
production from low cost surface remining operations, production costs are
also expected to demonstrate a significant improvement.
Pan African Resources CEO Cobus Loots commented:
"The 2018 financial year was extremely challenging for the Group, both
financially and operationally. However, during the past six months, we have
successfully addressed key deliverables that were critical to the future
sustainability of Pan African Resources. We are now re-positioned as a
lower-cost, long-life gold miner, consistent with stakeholder expectations."
Group safety
The Group experienced no fatalities in the 2018 financial year (2017: three
employees fatally injured). The Group's lost-time injury frequency rate
remained stable at 3.73 (2017: 3.51), while the reportable injury frequency
rate improved materially to 1.08 (2017: 1.53). In terms of safety performances,
significant progress was made over the past year with on-mine safety
improvement campaigns contributing to these results. Further, Barberton Mines
achieved its one million fatality free shifts milestone during June 2018. To
ensure continued safety improvements, the Group will be engaging independent
safety experts to review each of the mining operations' safety systems and
controls.
Barberton Mines
Barberton Mines produced 90,628oz of gold for the 2018 financial year,
comfortably within the production guidance of 90,000oz - 91,000oz. The
operation successfully produced 50,017oz during the second half of the 2018
financial year, which was an increase of 23% from gold produced during the
first half. Barberton Mines' production performance during the second half of
the 2018 financial year was underpinned by Fairview Mine's 11-block MRC 272 and
358 platforms.
Evander Mines
Evander Mines ceased its underground mining operations and concluded its
retrenchment process at the end of May 2018. Evander Mines produced 69,793oz of
gold for the 2018 financial year, above the production guidance of 67,000oz -
69,000oz.
The Evander Tailings Retreatment Plant ("ETRP") and surface sources produced
19,874oz, marginally below the production guidance of between 20,000oz -
21,000oz.
Evander Mines' underground mining operation concluded the 2018 financial year
with 49,919oz of gold produced, exceeding the guidance provided of 46,000oz.
Elikhulu construction
As previously communicated, construction at Elikhulu is progressing ahead of
schedule with first gold expected in August 2018. The construction teams are
now entering the commissioning phases of the project, in anticipation of a two
month ramp-up period to full production. The Elikhulu project is expected to
produce approximately 55,000oz of gold per annum, at an all-in sustaining
production cost of between US$650/oz and US$700/oz.
The transfer of the ETRP processing capacity into Elikhulu is on track and
scheduled for December 2018. Elikhulu, in conjunction with the ETRP, is
expected to produce approximately 70,000oz per annum.
Royal Sheba project
The Royal Sheba orebody at Barberton Mines has the potential to deliver
approximately 30,000oz per annum. The Company mandated DRA Global to undertake
a life-of-mine technical feasibility study on the orebody and the study is
expected to be concluded during September 2018.
The information contained in this announcement has not been reviewed or
reported on by Pan
African's auditors and is the responsibility of the directors of Pan African.
Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
prior to its release as part of this announcement.
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
12 July 2018
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
2nd Floor, Office 204 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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