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
("Pan African Resources" or "the Company" or "the Group")
FURTHER UPDATE REGARDING THE COVID-19 NATIONAL LOCKDOWN AND STATUS OF 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
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
email@example.com 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
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