Wrap Text
Operational results for the year ended 30 June 2021
Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with registered number
3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR code: PAFRY
(Pan African or the Company or the Group)
OPERATIONAL RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Pan African is pleased to provide its shareholders with the final gold production figures and further
operational information for the financial year ended 30 June 2021 (“Reporting Period”). This follows
the detailed operational and growth projects update released by the Group in its 21 May 2021
announcement.
Despite the continuing challenges presented by COVID-19 during the financial year, which required
the ongoing enforcement of strict operating protocols and preventative measures, Pan African has
delivered an excellent operational performance, with key highlights for the Reporting Period including:
- Achievement of a 12.3% increase in gold production to 201,608oz, compared with 179,457oz
in the prior year. Gold production was also 3.4% higher than the revised production guidance
of approximately 195,000oz released in May 2021
- The Group maintained an industry leading safety performance, with improvements in both its
lost time injury frequency rate (“LTIFR”) and reportable injury frequency rate (“RIFR”), when
compared with the prior year. Additionally, Evander Gold Mines achieved a reduction in RIFR
of ca.50% compared with the previous Reporting Period, despite the increased number of
crews working underground
- Group net senior debt decreased by 45.5% to USD33.8 million (ZAR482.0 million), from
USD62.0 million (ZAR1.1 billion) at 30 June 2020
- At Barberton Mines’ underground operations, the benefits of the increased mining footprints
on the 256, 257, 258 and 358 platforms and the improved flexibility of having multiple
platforms available resulted in the ca.25% increase in production for the year of ca. 85,000oz
- Evander 8 Shaft pillar production delivered in-line with expectations, producing ca.36,000oz
for the Reporting Period, despite the operational difficulties experienced in the first half of
the 2021 financial year
- Excellent progress has been achieved at our community projects, with the Cathyville Clinic in
Barberton now fully operational
- At Barberton’s 15ha blueberry farm project, infrastructure has been established and planting
completed. The first harvest of between 80,000-100,000 tons is expected to be ready for
export by mid-2022
- Civil engineering works have commenced at Evander Mines’ 9.975 MWAC solar photovoltaic
(“PV”) plant site and major components procured. The National Energy Regulator of South
Africa (NERSA) public hearing took place on 6 May 2021 and the generation licence is expected
imminently. The project is on track for completion during the third calendar quarter of 2021,
and will be one of the first utility scale solar PV facilities to be commissioned in the South
African mining industry
- Following the recent announcement by the South African government, whereby private
consumers have been granted approval to generate up to 100MW of electricity, the Group
will also seek to expand its renewable energy capacity in the coming years
Pan African CEO Cobus Loots commented:
“We are very pleased with the Group’s operational performance over the last year, and the fact that
our team managed to exceed the revised production guidance for this period.
Addressing the challenges posed by the COVID-19 pandemic remains a top priority, with ongoing
enhancements to our operating protocols to mitigate the constantly evolving characteristics of the
virus that has resulted in an increasing number of infections over multiple ‘waves’. We will continue to
rigorously implement preventative and precautionary measures at our operations to maintain the
relatively low infection rate to date, and ensure the health and well-being of our employees.
The Group’s improved safety performance is encouraging, and is primarily attributable to an
unrelenting focus on safety at all operations, as well as the much improved safety performance at
Evander’s 8 Shaft. We continue to strive to enhance safety through our management and staff’s
combined efforts, in pursuit of our ultimate goal of “zero harm”.
We have now largely achieved the degearing of our balance sheet, and current debt levels are very
manageable, enabling the Group to fund all its capital requirements from internally generated
cashflows and existing facilities.
Our operational focus for the new year emphasises the further improvement of our safety performance
and the continued optimisation of our operations. ESG remains a top priority for Pan African, with
renewable energy projects, reduced emissions, land rehabilitation, biodiversity conservation and large-
scale agri-project initiatives being our short to medium term initiatives.
We look forward to presenting our 2021 year-end financial results in September, and to provide further
information on the impact of our initiatives and the value created for all our stakeholders.”
GROUP ANNUAL PRODUCTION
Final Group gold production for FY21 increased by 12.3% to 201,608oz (2020: 179,457oz), exceeding
the revised production guidance of approximately 195,000oz referred to in the 21 May 2021
announcement. The gold production split per operation is as follows:
Year ended 30 Year ended 30
June 2021* June 2020
Production ounce profile:
Barberton Mines – Underground 84,819 68,129
Elikhulu 51,473 59,616
Barberton Tailings Retreatment Plant (BTRP) 18,235 20,135
Evander Mines – Underground 35,959 20,670
Evander Mines – Surface tolling 11,121 10,907
Total ounces produced: 201,608 179,457
* Values subject to final refinery adjustments
Barberton Mines’ underground operations performed very well during the Reporting Period. This was
mainly attributable to the increased flexibility achieved at Fairview Mines’ high-grade Main Reef
Complex (MRC) and Rossiter orebodies, with four large platforms (256, 257, 258 and 358 platforms)
currently being available for mining in the MRC orebody and three within the Rossiter orebody.
Fairview Mine produced 49,607oz during the FY21 production year (FY20: 38,531oz).
At New Consort Mines’ PC Shaft, the mining of the high-grade free milling gold intersection at the 42
Level target block has contributed to a vastly improved operational performance. Development is
currently underway to access additional target blocks within the same area. Production from New
Consort contributed 15,806oz to the FY21 production (FY20: 8,614oz).
Mining of the Thomas orebody at Sheba Mine has assisted Sheba’s production profile for FY21,
however the focus is now on accessing high-grade cross fractures within the Zwartkoppie (ZK) orebody
on the newly accessed 37 Level. Sheba Mine’s production reduced slightly for the Reporting Period at
19,493oz (FY20: 20,985oz).
The Elikhulu tailings retreatment operation processed the tonnes and head grade as per the mining
plan. Unexpected concentrations of carbonaceous material in the lower benches of the Kinross dam
negatively impacted gold recoveries, with lower recoveries in H2, while remedial work on the Elikhulu
TSF’s lower compartment also restricted tonnage throughputs, resulting in lower gold production in
the Reporting Period. This remedial work is complete and Elikhulu is expected to produce ca.55,000oz
of gold in FY22, with improved tonnage throughput and higher recoveries from the planned re-mining
area.
Production from the BTRP continues according to plan from the currently available surface sources. In
the coming years, production at the BTRP is expected to be supplemented with ore from Barberton’s
Royal Sheba orebody. Progress with the development of the Royal Sheba project will be provided in
the following months.
Following initial difficulties experienced at Evander’s 8 Shaft (as previously reported in the Company’s
H1 FY21 results), the remedial work on the shaft barrel was completed, and pillar mining ramped up
as per the mine plan. Evander 8 Shaft and surface sources produced 23,352oz in H2, an improvement
of 12,607oz from H1.
SAFETY ACHIEVEMENTS
The Group has achieved an overall reduction in recordable injuries, following a number of safety
initiatives and interventions:
• The Group reported an improvement in the RIFR from 0.80 per million man hours for the year
ended 30 June 2020 to 0.63 per million man hours for the year ended 30 June 2021;
• The Group’s LTIFR also improved from 1.70 per million man hours in for the year ended 30
June 2020 to 1.41 per million man hours for the year ended 30 June 2021; and
• Evander’s underground operations achieved significant safety improvements during the past
six months, despite the increased number of crews deployed underground.
Pan African will endeavour to further improve its commendable safety performance in the coming
years.
COVID-19 UPDATE
The Group remains vigilant in its efforts to prevent and mitigate the impact of the COVID-19 virus on
its people and operations, and continually updates its operating procedures and protocols based on
the latest available information. The infection rate remains low relative to the number of employees
in the Group, with some 257 positive cases recorded since the start of the pandemic. Seventeen cases
are currently active, with a 93% recovery rate achieved to date.
STATEMENT OF FINANCIAL POSITION
The Group materially reduced its net senior debt, with a decline of 45.5% to USD33.8 million (ZAR482.0
million at an exchange rate of ZAR/USD:14.28) from USD62.0 million (ZAR1.1 billion at an exchange
rate of ZAR/USD:17.33) at 30 June 2020. In USD terms, this represents a reduction in net senior debt
of 43.6% relative to the debt levels at 31 December 2020 of USD59.9 million (ZAR880.5 million at an
exchange rate of ZAR/USD:14.78).
OPERATIONAL AND GROWTH PROJECTS UPDATE
A detailed update on the Group’s operations and projects was provided in the announcement released
on 21 May 2021. Further information on the Group’s growth projects will be provided in due course.
PRODUCTION GUIDANCE FOR FY22
The Group expects to maintain its production guidance of approximately 195,000oz for the 2022
financial year, materially in line with the actual production of 201,608oz achieved in the 2021 financial
year.
Rosebank
13 July 2021
For further information on Pan African Resources, please visit the Company's website at
www.panafricanresources.com
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
info@paf.co.za Office: + 44 (0)20 7796 8644
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: + 27 (0)11 243 2900 Office: + 27 (0)11 243 2900
Phil Dexter/Jane Kirton Ross Allister/Alexander Allen
St James's Corporate Services Limited Peel Hunt LLP
Company Secretary Joint Broker
Office: + 44 (0)20 7796 8644 Office: +44 (0)20 7418 8900
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
JSE Sponsor Joint Broker
Office: + 27 (0)11 011 9200 Office: +44 (0)20 7236 1010
Hethen Hira Website: www.panafricanresources.com
Pan African Resources PLC
Head : Investor Relations
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Date: 13-07-2021 07:57:00
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