Wrap Text
Operational update for the quarter ended 30 September 2018
Pan African Resources PLC
("Pan African" or “the company" or “the group”)
(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
OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2018
Pan African is pleased to provide an operational update for the first quarter of the 2019 financial year (“this
quarter” or “first quarter”), and further information on the performance of the Elikhulu Tailings Retreatment
Plant (“Elikhulu”).
Pan African CEO Cobus Loots commented:
“Pan African recorded a commendable safety and production performance for the first quarter of the 2019
financial year. The group produced 37,729oz of gold during the quarter, and with Elikhulu now commissioned
and running at design capacity, we are confident of achieving our production guidance of approximately
170,000oz for the 2019 financial year.
Elikhulu ramped-up to its design capacity of 1-million tonnes per month during October 2018, ahead of the
original schedule and on budget. Average gold recoveries achieved were consistent with our forecasts, with
further optimisation of recoveries expected in the short term. The incorporation of the Evander Tailings
Retreatment Plant (“ETRP”) into Elikhulu, which will increase Elikhulu’s capacity to 1.2-million tonnes per
month, is progressing on schedule, with full commissioning expected to be completed by January 2019.
Barberton Mines is on track to meet its full-year production guidance of 100,000oz, with the underground
operations’ production benefitting from Fairview Mine’s high-grade 272 and 358 platforms, and the newly
installed regrind mill at the Barberton Tailings Retreatment Plant (“BTRP”) performing as anticipated.
At Evander Mines, we have commenced mining and vamping of the remnant high-grade stopes as part of
the phased closure of the underground mining operations as an initiative to supplement Evander Mines’
production, while commencing with the equipping and preparatory work to advance the mining of the 8 Shaft
pillar and high-grade areas in proximity to the pillar. The first phase of the equipping and preparatory work
is expected to be completed in the third quarter of the 2019 financial year.
The drilling programme on Barberton Mines’ Royal Sheba prospect has been completed, and we look
forward to updating shareholders on the progress of this exciting growth project in the coming months with
an updated resource statement to be released by the end of November 2018, and the feasibility study still
on schedule for release in February 2019.”
Safety
The group has significantly improved its safety performance in the first quarter, and we remain committed
and focussed to ensuring the safety of all our employees, while we continue to strive towards a zero harm
environment.
- Fairview Mine achieved its one-million fatality-free shift milestone during July 2018;
- The group had no fatalities in this quarter (2018 Q1: no fatalities);
- The group’s lost-time injury frequency rate improved significantly to 0.57 (2018 Q1:3.64);
- The reportable injury frequency rate improved significantly in this quarter to zero (2018 Q1: 0.91); and
- The group is implementing recommendations from independent safety experts, following reviews of the
respective mining operations’ safety systems and controls.
Elikhulu
- As previously communicated, Elikhulu was successfully commissioned during September 2018, ahead
of the original project schedule and on budget;
- During October 2018, the plant attained steady-state production with a throughput of 1-million tonnes
per month. The average gold recoveries achieved were consistent with our forecasts, with further
optimisation of recoveries expected in the next months; and
- The incorporation of the existing ETRP throughput into Elikhulu’s processing capacity, which will result
in an increased processing capacity of 1.2-million tonnes per month, is on track with full commissioning
expected to be completed by January 2019.
Barberton Mines Proprietary Limited (“Barberton Mines”)
- Barberton Mines produced 27,201oz for this quarter, with underground mining operations contributing
21,278oz, and the BTRP contributing 5,923oz. Barberton Mines remains on track to deliver its annual
production guidance of approximately 100,000oz for the 2019 financial year.
- Barberton Mines’ underground operations are benefitting from increased underground mining flexibility
due to, inter alia, both the high-grade 272 and 358 platforms being available at the Fairview Mine
operation. The BTRP is also benefiting from the commissioning of the regrind mill during May 2018,
which has improved throughput and recoveries.
- Barberton Mines has increased development rates to further improve Fairview Mine’s mining flexibility
at the 11-block by developing towards an additional high-grade platform (256 platform), below the
existing 272 and 358 platforms. This platform is expected to be in production by the end of the 2019
financial year.
Evander Gold Mines Proprietary Limited (“Evander Mines”)
- Evander Mines has implemented the following initiatives to maximise Evander Mines’ underground gold
production:
1) Mining and vamping of the remnant high-grade stopes as part of the phased closure of the
underground mining operations, which contributed 3,815oz during this quarter; and
2) While the above operations are ongoing, the mine has commenced equipping and preparatory
work to advance mining of the 8 Shaft pillar and high-grade areas in proximity to the pillar, following
a comprehensive review on the technical merits thereof. The first phase of the equipping and
development of the 8 Shaft pillar and surrounding areas is estimated to be completed in the third
quarter of the 2019 financial year.
- The ETRP and surface-source operations produced 3,819oz for this quarter, and the operation is
investigating new sources of feed for the Kinross plant, once the ETRP operation is integrated into
Elikhulu.
The financial information contained in this announcement has neither been reviewed nor audited by the
company’s auditors and is the responsibility of the directors of Pan African.
For further information on Pan African, please visit the company’s website at www.panafricanresources.com
6 November 2018
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
2nd Floor, Office 201 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) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
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 John Prior / Paul Gillam
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser and Joint Broker
Office: + 44 (0) 20 7796 8644 Office: +44 (0) 20 7260 1000
Sholto Simpson Ross Allister/James Bavister/David McKeown
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0) 11 550 5009 Office: +44 (0) 20 7418 8900
Julian Gwillim Jeffrey Couch/Thomas Rider
Aprio Strategic Communications BMO Capital Markets Limited
Public & Investor Relations SA Joint Broker
Office: +27 (0)11 880 0037 Office: +44 (0) 20 7236 1010
Bobby Morse
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
Email: PAF@buchanan.uk.com
Website: www.panafricanresources.com
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