To view the PDF file, sign up for a MySharenet subscription.

PAN AFRICAN RESOURCES PLC - Further update regarding the COVID-19 National Lockdown and status of Group operations

Release Date: 14/04/2020 10:01
Code(s): PAN     PDF:  
Wrap Text
Further update regarding the COVID-19 National Lockdown and status of Group operations

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
("Pan African Resources" or "the Company" or "the Group")


Shareholders are referred to the Company's announcements of 24 and 30 March 2020, following the
regulations announced by President Cyril Ramaphosa on Monday 23 March 2020, and enacted in
terms of the South African Disaster Management Act ("the Regulations"), which required a 21-day
national lockdown, effective midnight 26 March 2020 to midnight 16 April 2020 (“the National
Lockdown”), in an effort to contain the spread of the COVID-19 (coronavirus) pandemic.

On 9 April 2020, following 14 days of the initial lockdown period, President Ramaphosa announced
that the country’s National Coronavirus Command Council has decided to extend the lockdown period
by a further two weeks beyond the initial 21-days, resulting in the existing lockdown measures
remaining in force until 30 April 2020.

Pan African Resources remains committed to all government efforts to contain the spread of COVID-
19. The Group will continue with preventative measures for the spread and detection of COVID-19 at
all its operations, while continuing to undertake essential services during the National Lockdown, as
detailed in the Group’s announcement of 30 March 2020.

As part of these essential services, the Group has obtained authorisation from the South African
Department of Mineral Resources and Energy to conduct surface re-mining and processing activities
on a reduced scale, subject to compliance with and adherence to all relevant Regulations and
applicable legislation. This includes the Group’s Elikhulu Tailings Retreatment Plant and at its
Barberton Tailings Retreatment Plant (collectively, the "Group surface operations"), and limited
underground mining operations at Barberton Mines.

The Group surface operations are currently operating at approximately 70 per cent of normal
production capacity, but with a much reduced workforce. Operating with such a reduced workforce is
possible, for a limited time, as a result of the highly automated nature of the surface operations.
Barberton Mines is currently also able to produce the required minimum feed for its BIOX ® processing
plant, thus ensuring the continued integrity of this system. Of the Group's total staff and contractor
complement, only 26 per cent (excluding security staff) are involved in rendering essential services at
these operations. Updated guidance for the 2020 financial year will be communicated to shareholders
after the National Lockdown has terminated, and once the Group is in a position to quantify the extent
and duration of the operational disruptions during this time.

As previously communicated in the Company’s announcement dated 24 March 2020, the Group’s
liquidity position remains robust. Credit approval from Rand Merchant Bank has been obtained to
defer the last three tranches of the existing gold loan’s redemption, constituting 5,000 ounces
(equivalent to U$7.8m), to the first quarter of the 2021 financial year. The Group’s banking consortium
has also confirmed its support for the Company should further liquidity be required.
The COVID-19 pandemic has had a severe adverse economic and social impact on stakeholders
involved in the Group's operations and throughout the country. The Group has commenced with
support programmes, in addition to its existing community initiatives, to assist stakeholders to
alleviate hardships in the areas around its operations. These support programmes include food
hampers and hygiene products for employees and specific communities. As a further initiative,
potable water will be distributed by the mine’s water tankers to affected communities in Barberton,
in collaboration with the local municipality, for the duration of the National Lockdown.

Cobus Loots, CEO of Pan African Resources, commented as follows: "We are fully supportive of the
actions announced by President Cyril Ramaphosa to reduce the impact of the COVID-19 pandemic,
while at the same time implementing support measures to assist stakeholders around our operations.
The health and well-being of our employees and communities remains our number one priority, and
the measures that we have implemented enable essential services and operations to be maintained.”

Pan African Resources will continue to provide shareholders with regular updates regarding
developments at Group operations during this time.

14 April 2020

For further information on Pan African Resources, please visit the Company's website at
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                                   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                          John Prior

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

Ciska Kloppers                                   Ross Allister/David McKeown

Questco Corporate Advisory Proprietary Limited   Peel Hunt LLP

JSE Sponsor                                      Joint Broker

Office: + 27 (0)11 011 9200                      Office: +44 (0)20 7418 8900

Investor Relations                               Thomas Rider/Neil Elliot
Hethen Hira                                      BMO Capital Markets Limited
Tel: + 27 11 243 2900                            Joint Broker
                                                 Office: +44 (0)20 7236 1010


Date: 14-04-2020 10:01:00
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.

Share This Story