Wrap Text
Operational update for the half year ended December 2023 (H1 FY2024)
Pan African Resources PLC Pan African Resources Funding Company
(Incorporated and registered in England and Wales Limited
under Companies Act 1985 with registered Incorporated in the Republic of South Africa
number 3937466 on 25 February 2000) with limited liability
Share code on AIM: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
ISIN: GB0004300496
ADR code: PAFRY
("Pan African" or "the Company" or "the Group")
OPERATIONAL UPDATE FOR THE HALF YEAR ENDED DECEMBER 2023 (H1 FY2024)
Pan African is pleased to provide its shareholders and noteholders with a production update for the
half year ended 31 December 2023 (Reporting Period) and information on progress being made with
the construction of the processing plant at the Mogale Tailings Retreatment project (MTR Project).
KEY FEATURES
• Improvement in overall Group safety performance
• Gold price received of US$1,961/oz (2022: US$1,725/oz), an increase of 13,7% relative to the six
months ended 31 December 2022 (Previous Reporting Period)
• Excellent operational results, with gold production of 98,458oz (2022: 92,307oz), an increase of
6.7% relative to the Previous Reporting Period
• Production costs were well managed despite inflationary pressures, with Group all-in sustaining
costs (AISC) expected to be approximately US$1,300/oz at an average exchange rate of
US$/ZAR18.69, below the FY2024 guidance of US$1,350/oz (at an assumed exchange rate of
US$/ZAR18.50)
• MTR Project construction on time and within budget, with commissioning expected in the latter
half of the 2024 calendar year
• Commissioning of further renewable energy generating capacity is on schedule.
SAFETY AND GROUP GOLD PRODUCTION FOR SIX MONTHS ENDING DECEMBER 2023
• The Group continues to implement initiatives in pursuit of its 'Zero Harm' goal
o Group safety rates remain industry leading:
- Total recordable injury frequency rate (TIFR) declined to 6.13 per million man
hours (FY2022: 8.54), a notable improvement
• Operations performed in line, or better than expected, with production forecast for the Reporting
Period, as follows:
o Barberton Mines underground: 36,779oz* (2022: 32,022oz). The implementation of
continuous operations at Barberton Mines contributed to increases in mined tonnages
and grades, when compared to the Previous Reporting Period
o Evander Mines underground: 21,307oz (2022: 19,173oz). The ramping up of mining
operations at Evander Mines' 24 Level underground operations contributed to the
increased gold production, successfully replacing the depletion of the 8 Shaft pillar ore
resources, consistent with the mine plan
o Elikhulu tailings retreatment: 28,106oz (2022: 25,830oz), with operations benefitting from
improved metallurgical recoveries
o Barberton tailings retreatment plant (BTRP): 9,864oz (2022: 10,012oz)*
o Evander Mines' surface sources: 2,401oz (2022: 5,270oz).
* Surface sources from Fairview Mine included in BTRP production
PRODUCTION GUIDANCE
• Production guidance for the full 2024 year is maintained at between 180,000oz to 190,000oz
(FY2023: 175,209oz). However, given the excellent production performance in the Reporting
Period, revised guidance may be considered in due course. Production for FY2025 is expected to
be significantly higher, following commissioning of the MTR project, which will add approximately
50,000oz/yr to Group production, increasing annual output by some 25%.
FINANCIAL RESULTS
• The Group's AISC for the Reporting Period is expected to be approximately US$1,300/oz, at an
average exchange rate of US$/ZAR18.69
o The AISC reduction resulted from excellent cost control, improved gold production, as well
as the weaker US$/ZAR exchange rate that prevailed during the Reporting Period
• Group net senior debt increased to US$60.0 million (June 2023: US$18.9 million), primarily as a
result of the capital expenditure of US$23.2 million incurred on the MTR Project and the dividend
of US$22.1 million paid to shareholders in December 2023.
MTR PROJECT
• As previously communicated, significant progress has been made with the construction of the
MTR Project's processing plant, with commissioning being on track for the latter half of the 2024
calendar year and steady state production expected by December 2024:
o Construction is progressing on time and capital expenditure is in line with the project's
budget
o Construction highlights include completion of the laying of foundations for the nine CIL
tanks and the tower crane's construction.
UPDATE ON THE ORGANIC GROWTH PROJECTS
• Progress at Evander Gold Mine's 24 to 26 Level underground expansion project remains on track,
with the following notable achievements:
o Construction of Phase 2 of the refrigeration plant on 24 Level at Evander Mines' 8 Shaft is
currently at an advanced stage, with completion anticipated during the 2024 financial
year, as 25 Level mining operations commence
o Development to access 25 and 26 Level mining areas has commenced
o Equipping of the existing 17 Level underground ventilation shaft, with a hoisting capacity
of up to 40,000 tpm, is expected to be completed during FY2024, improving efficiencies
and eliminating the existing cumbersome conveyor system
• Dewatering of Evander's 7 Shaft Egoli project is ongoing. Once dewatered to below 20 Level,
reserve delineation drilling will commence to further define the ore payshoot and its grade
variability.
ESG UPDATES
• Construction of Fairview Mine's 8.75MW solar energy plant is progressing according to plan, with
commissioning expected during June 2024
• Community social and labour plan projects:
o Barberton Mines completed the construction and refurbishment of two local schools,
benefitting over 1,600 learners
o Evander Mines constructed and fully equipped science and computer laboratories at two
local schools, benefitting over 1,200 learners
• MTR Project:
o Community engagement structures and social initiatives have commenced with host
communities and small local businesses
o Environmental rehabilitation is ongoing, including cleanup of historical spillages and
removal of derelict pipelines, eradication of alien vegetation and wetlands remediation,
which positively impacts local living conditions.
Cobus Loots, Pan African's CEO commented:
"We are pleased with the Group's excellent safety, production and cost performance for the Reporting
Period which positions us well to deliver on our guidance for the full financial year. Commissioning of
the world-class processing plant at the MTR Project towards the end of this calendar year will further
increase the Group's production with approximately 50,000 oz per year of high margin ounces.
The commissioning of Barberton's solar PV plant will contribute to further cost savings in the next
financial year, adding to the benefits already being realised from Evander's PV solar plant. We are also
excited by the positive and tangible impact the Group's ESG projects have made on improving
relationships with our host communities and contributing to the sustainability of these areas."
INTERIM RESULTS PRESENTATION, OPERATIONAL AND GROWTH PROJECTS UPDATE
A detailed update on the Group's operations and capital projects will be included in the Company's
interim results presentation, scheduled for release on 14 February 2024.
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service (RIS), this inside information is now considered to
be in the public domain.
Rosebank
22 January 2024
For further information on Pan African Resources, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate Office Registered Office
The Firs Office Building 107 Cheapside
2nd Floor, Office 204 Second Floor
Cnr. Cradock and Biermann Avenues London
Rosebank, Johannesburg EC2V 6DN
South Africa United Kingdom
Office: + 27 (0)11 243 2900 Office: + 44 (0)20 7796 8644
info@paf.co.za
Chief Executive Officer Financial Director
Cobus Loots Deon Louw
Office: + 27 (0)11 243 2900 Office: + 27 (0)11 243 2900
Head: Investor Relations Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company Secretary Nominated Adviser and Joint Broker
Jane Kirton Ross Allister/Bhavesh Patel
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0)20 7796 8644 Office: +44 (0)20 7418 8900
JSE Sponsor Joint Broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0)11 011 9200 Office: +44 (0)20 7236 1010
Joint Broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG (Berenberg)
Office: +44 (0)20 3207 7800
Date: 22-01-2024 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
