Pan African Resources Plc - Operational Update for year-ended 30 June 2022
(Incorporated and registered in
Share code on AIM: PAF
Share code on JSE: PAN
ADR code: PAFRY
(“Pan African” or “the Company” or “the Group”)
OPERATIONAL UPDATE FOR THE YEAR ENDED
Pan African is pleased to provide its shareholders with the gold production figures and a preliminary operational update for the financial year ended
-- Record annual gold production o Production of 205,459oz of gold, an increase of ~2% on FY2021 gold production of 201,777oz o Production was ~3% higher than the upwardly revised guidance of 200,000oz and ~5% higher than initial guidance of 195,000oz, released at inception of the Reporting Period -- Industry leading safety statistics – further improvements have been achieved o Recordable injury frequency rate (“RIFR") improved to 0.35 per million man hours (FY2021: 0.63) o Lost time injury requency rate (“LTIFR") improved to 1.04 per million man hours (FY2021: 1.41) o COVID-19 vaccination rate of +80% achieved across the Group -- Significant decrease in the Group’s net senior debt o Reduction of 71.5% to
US$9.6 million(FY2021: US$33.7 million) -- Organic growth projects on track o Barberton Mines -- Royal Shebaorebody intersected on schedule during June 2022, extraction of 10,000 ton bulk sample in progress o Evander underground -- Refrigeration plant at Evander 8 Shaft 24 Level nearing completion for commissioning during August 2022-- Development blasting on Evander 8 Shaft 24 Level completed in preparation for mining o Elikhulu surface tailings retreatment -- New Leslie/Bracken re-mining pump station and related infrastructure in place for mining to commence during August 2022-- ESG highlights o Commissioned 10MW solar PV renewable energy plant at Evander – the first of this scale in the South African mining industry o Barberton 8MW solar PV renewable energy plant site establishment has commenced o First commercial harvest at Barberton’s blueberry project o Commenced construction of a water retreatment plant at Evander Mines -- Capacity to recycle 3 megalitres per day and produce potable water, substituting potable water from the local municipality -- Production guidance for FY2023 o Gold production is expected to be at a level similar that achieved in the Reporting Period
Pan African CEO
“We are very pleased with the Group’s operational performance over the last year, and the record gold production achieved by our teams during this period.
The Group has made meaningful progress with our production growth projects at Evander underground and at Barberton’s
We have further strengthened our balance sheet over the last year, despite the payment of a record dividend and incurring significant growth and sustaining capital expenditure.
A key focus area in the year ahead will be the smaller underground operations at Barberton, to ensure that these assets perform to their full potential.
Significant milestones have also been achieved with progress on our ESG projects, including the commissioning of our first solar PV renewable energy project at Elikhulu, the first of its scale in the South African mining industry. We are also excited about the imminent commencement of construction of Barberton’s solar PV plant. The Group plans to generate 30MW of solar PV renewable energy by 2024, with commensurate cost savings of approximately R100million or
We look forward to presenting our 2022 year-end financial results in September, and to provide further details and information on the impact of our initiatives and operations and the value created for our stakeholders.”
GROUP ANNUAL PRODUCTION
Year ended 30 June 2022* Year ended 30 June 2021 Production ounce profile: Fairview Mine 47,985 45,686 Sheba and Consort Mines 27,587 39,140 Barberton Tailings Retreatment 19,560 18,239 Plant (BTRP) Elikhulu 52,139 51,459 Evander Mines 58,187 47,252 Total ounces produced: 205,459 201,777
* Preliminary values subject to final refinery adjustments
Barberton Mines’ Fairview underground operations and the BTRP surface operations performed very well during the Reporting Period. At
Performances from Barberton’s smaller Sheba and Consort underground operations were below expections, and the Group is implementing improvement programmes to ensure that these assets deliver to their full potential.
The Elikhulu tailings retreatment operation processed tonnages with volumes and head grade both in excess of the mining plan, which improved gold production levels when compared to the previous financial year. Notwithstanding, production levels were negatively impacted by adverse weather conditions and lower than anticipated recoveries. Production is expected to improve as re-mining of the Leslie/Bracken tailings facility commences during FY2023. Elikhulu remains one of the lowest-cost gold mining operations in
Evander’s 8 Shaft pillar significantly outperformed its planned gold output for the Reporting Period, with a remaining life of just over a year. Evander Mines’ 24 Level project is currently in the construction phase, while the refrigeration plant is expected to be commissioned during
As previously communicated, the Group is proceeding with plans to mine the down-dip extent of the Evander orebody at 25 and 26 Levels using the 24 Level infrastructure, with an on-reef decline layout. The mining of 25 and 26 Levels demonstrates a compelling business case and further extend Evander Mines’ 8 Shaft’s production, post cessation of mining at the 8 Shaft pillar and 24 Level, for an additional eight years, with average expected annual production of approximately 65,000oz. Dewatering on 25 Level commenced in the Reporting Period, and blasting of the development ends will commence in the 2023 financial year, with mining of the first stope planned for the 2025 financial year.
These projects will increase the 8 Shaft life-of-mine to 13 years, with potential to increase further, should the Inferred Mineral Resources be converted to Mineral Reserves. Evander Mines’ mining right is valid until 2038.
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 to 0.35 per million man hours for the Reporting Period (2021: 0.63 per million man hours); -- The Group’s LTIFR also improved to 1.04 per million man hours for Reporting Period (2021: 1.41 per million man hours); --
Evander Minesachieved a 100% improvement in reportable injuries in the Reporting Period, despite the increased number of crews deployed underground, including the 24, 25 and 26 Level development crews
Barberton Mines achieved 2 million fatality free shifts on
REDUCTION IN SENIOR DEBT
The Group materially reduced its net senior debt over the Reporting Period, with a year-on-year decline of 71.5% to
OPERATIONAL AND GROWTH PROJECTS UPDATE
A detailed update on the Group’s operations and production growth projects will be included in the Company’s annual final results and presentation, scheduled to be released on
PRODUCTION GUIDANCE FOR FY2023
The Group expects to maintain its 2023 financial year gold production at a level similar to that achieved in the Reporting Period.
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
For further information on
Corporate information Corporate Office Registered Office
The Firs Office BuildingSuite 31 2nd Floor, Office 204 Second Floor Cnr. Cradock and Biermann Avenues 107 Cheapside Rosebank, Johannesburg London South AfricaEC2V 6DN Office: + 27 (0)11 243 2900 United Kingdom email@example.com Office: + 44 (0)20 7796 8644 Chief Executive Officer Financial Director Cobus Loots Deon LouwOffice: + 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: firstname.lastname@example.org Company Secretary Nominated Adviser and Joint Broker Phil Dexter/ Jane Kirton Ross Allister/ Alexander AllenSt James's Corporate Services Limited Peel Hunt LLPOffice: + 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 BMO Capital Markets Limited LimitedOffice: +44 (0)20 7236 1010 Office: + 27 (0)11 011 9200 Joint Broker Matthew Armitt/ Jennifer Lee Joh. Berenberg, Gossler & Co KG(Berenberg) Office: +44 (0)20 3207 7800