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Update on operations and BTRP mill commissioning
Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985 with registered
number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African Resources” or the “Company” or the “Group”)
UPDATE ON OPERATIONS AND BTRP MILL COMMISSIONING
Further to the announcement published on 2 May 2018 in respect of the finalisation of Evander Gold
Mining Proprietary Limited (“Evander Mines” or “Evander”) restructure and operational update,
Pan African Resources advises shareholders as follows:
• The commissioning of the Barberton Mines Tailings Retreatment Plant (“BTRP”) regrind mill
will be completed during the current week, on schedule and on budget. The BTRP is expected
to reach annualised gold production of 21,000 ounces in the next month, in line with previous
guidance.
• The Group has signed a retrenchment agreement with representative unions at Evander Mines,
which governs the final terms of the retrenchment. The retrenchment process will therefore be
completed as previously communicated, with several programmes implemented by Evander to
assist retrenched employees.
• The Elikhulu project construction (“Elikhulu”) remains ahead of schedule and below budget.
BTRP MILL COMMISSIONING
The construction of the regrind mill at the BTRP is complete and the commissioning process has
commenced and will be completed in the next week. The mill enables the BTRP to sustain the annual
production at approximately 21,000 ounces per annum. The construction of the regrind mill took five
months and was completed on budget. The regrind mill was installed to reduce the coarseness of the
material treated from the Harper Dump and will improve material handling and recoveries going forward.
The 1.7 megawatt, 4.3 metre by 4.9 metre, Veecor regrind mill was constructed in record time by
Barberton Mines, with New Concept Projects as the main subcontractor to DRA Global, which was
responsible for the mill refurbishment and installation.
FINALISATION OF THE EVANDER MINES SECTION 189 PROCESS
Pan African Resources has concluded the Section 189 process in terms of the South African Labour
Relations Act, 66 of 1995 (“Section 189 Process”) and signed a retrenchment agreement with the
recognised unions of Evander Mines. The retrenchment cost will be approximately R160 million and will
be funded from the Group’s existing debt facilities and internal resources.
As previously communicated, the retrenched employees will be provided with opportunities for reskilling
and the Group is in the process of identifying employment opportunities for retrenched employees, both
internally and with potential external employers.
Separately, the Group is at an advanced stage of reviewing the technical and commercial merits of
mining the remainder of Evander’s 8 shaft pillar. This may extend the final closure date of the shaft,
generate positive cash flows and assist with further employment opportunities for those affected by the
Section 189 Process. Further information on the findings of the Evander 8 shaft pillar initiative will be
communicated to shareholders in the near future.
UPDATE ON ELIKHULU CONSTRUCTION
The construction of Elikhulu remains ahead of schedule, with first gold production expected in August
2018, and full commissioning at the end of September 2018. Elikhulu’s capacity will be increased by
200,000 tonnes to 1.2-million tonnes per month with effect from December 2018, by incorporating the
existing Evander Tailing Retreatment Plant (“ETRP”) throughput with the associated economies of scale
and enhanced recovery benefits. The increase in processing capacity will not affect the original
construction schedule or first gold production expectations. In conjunction with the ETRP throughput,
these two surface operations, once in full production, are expected to produce more than 70,000 ounces
per annum.
Pan African’s Barberton and surface tailings operations uniquely positions the Group as a relatively low-
cost producer with long-life, quality assets and attractive organic growth prospects.
The information contained in this announcement has not been reviewed or reported on by Pan African
Resource’s auditors and is the responsibility of the directors of Pan African Resources.
For further information on Pan African Resources, please visit the Company’s website at
www.panafricanresources.com
24 May 2018
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
1st Floor, Office 101 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) 207 796 8644
Facsimile: + 44 (0) 207 796 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) 207 796 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) 207 418 8900
Julian Gwillim Jeffrey Couch/Neil Haycock/Thomas Rider
Aprio Strategic Communications BMO Capital Markets Limited
Public & Investor Relations SA Joint Broker
Office: +27 (0)11 880 0037 Office: +44 (0) 207 236 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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