Pan African Resources Pan African Resources Funding Company Limited
PLC
Incorporated in the Republic of South Africa
(Incorporated and
registered in England with limited liability
and Wales
Registration number: 2012/021237/06
under Companies Act 1985
with registered Alpha code: PARI
number 3937466 on 25
February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR code: PAFRY
("Pan African" or "the
Company" or "the Group")
OPERATIONAL UPDATE FOR THE YEAR ENDED 30 JUNE 2024 AND BOARD CHANGE
Pan African is pleased to provide its shareholders and noteholders with a
preliminary operational update for the financial year ended 30 June 2024
("Reporting Period"), an update on the Mogale Tailings Retreatment project (MTR
Project) commissioning and information on progress with its renewable energy
projects. Group full year production of 186,039oz was within guidance and
increased by 6.2% year-on-year. The average achieved gold price for the
Reporting Period was US$2,021 /oz (R1,215,827/kg at an exchange rate of
US$/ZAR18:71), and will be the highest on record for the Group.
KEY FEATURES
· Significant improvement in the Group's already industry leading safety
statistics across all operations, as follows:
· the total reportable injury frequency rate reduced to 5.47 per million man
hours (FY2023: 8.13)
· the lost time injury frequency rate improved to 1.62 per million man hours
(FY2023: 2.54)
· the reportable injury frequency rate improved to 0.70 per million man
hours (FY2023: 1.29)
· Gold production increased by 6.2% to 186,039oz (FY2023: 175,209oz), in line
with the revised guidance previously announced, with operations performing
consistent with expectations: (FY2023 figures in brackets)
71,470oz (64,586oz)
· Barberton Mines:
40,869oz (40,175oz)
· Evander Mines underground:
54,812oz (50,573oz)
· Elikhulu:
18,888oz (19,875oz)
· Barberton Tailings Retreatment Plant (BTRP):
· The Group's all-in sustaining costs (AISC) for the Reporting Period is
expected to be approximately US$1,350 /oz, at an average exchange rate of
US$/ZAR: 18.71
· A delay in commissioning the ventilation shaft for hoisting at Evander 8
underground operations adversely impacted production in the last two months of
the Reporting Period, resulting in the Group not achieving the higher end of
production guidance and also negatively impacted unit costs. Work is now
scheduled to be completed in the coming weeks, after which the full benefits of
the improved ore flow will achieve the planned increased production profile
· Exceptional progress has been made with the MTR Project's construction,
which is nearing its final stages. Plant commissioning and first gold production
is anticipated ahead of schedule in October 2024, with steady state production
expected during December 2024. Furthermore, the project is expected to be
completed below budget
· Including the Soweto Cluster Mineral Resources, as per the internal pre
-feasibility study outcomes reported in May 2024, MTR is expected to produce
approximately 60koz/year over a 21-year life of mine, at a forecast AISC of less
than US$900 /oz
· Previously announced FY2025 production guidance reiterated at between
215,000oz and 225,000oz
· Net debt at the end of the Reporting Period increased to US$106.4 million
(FY2023: US$22.0 million ), mainly attributable to construction costs at the MTR
Project (US$71.5 million for the year), expansion capital expenditure in respect
of Evander 8 Shaft 25-26 Level development and Elikhulu's new tailings storage
facility extension (US$23.8 million ) and Fairview solar plant expenditure
(US$9.9 million )
· Construction of the Fairview Mine's 8.75MW solar photovoltaic plant has been
completed, with final commissioning in the coming weeks
BOARD CHANGE
The Group's financial director, Deon Louw, informed the Company of his intention
to retire with effect from 30 September 2024. He will however, continue as a
consultant to the Group. Deon was appointed in this role in March 2015 and has
contributed significantly to Pan African's operations and growth throughout his
tenure. Marileen Kok will succeed Deon Louw as Group financial director and,
subject to completion of standard director due diligence, will be appointed to
the Company's board of directors. Marileen joined Pan African Resources as Group
Financial Manager in January 2020 and has extensive experience in financial
reporting, corporate finance, governance and regulatory compliance.
PROGRESS WITH RENEWABLE ENERGY PROJECTS AND FUNDING
Construction and mechanical assembly, including installation of the solar
trackers, for Fairview Mine's 8.75MW solar photovoltaic generating plant was
completed at the end of June 2024, enabling the commencement of the required
test work to ensure that the facility complies with operating standards and
regulatory requirements. First power generation is anticipated in the next
month.
This solar plant is expected to provide 15% of Barberton Mines' energy
requirements, with annual electricity cost savings of approximately USD2.4 *
million, at current Eskom tariffs.
Independent feasibility studies are in progress to expand Evander Mines' current
9.975MW solar facility and also for a new solar plant at the Mogale Tailings
Retreatment operation. These studies are anticipated to be completed in the
third quarter of the 2024 calendar year.
Evander Mines' and Barberton Mines' solar photovoltaic generating plants are now
funded by means of a US$19.4 million *, 5-year Green Loan facility which became
effective in June 2024. This facility also provides for an accordion option of
US$13.9 million * to provide for the Group's future renewable energy funding
requirements.
*ZAR amounts converted at an exchange rate of US$/ZAR18:00
Pan African CEO Cobus Loots commented:
"We are pleased that the Group has again delivered into its production guidance,
while further improving safety rates and maintaining its industry leading safety
performance during the 2024 financial year.
The surface tailings retreatment operations at Elikhulu and the BTRP performed
exceptionally well, with some of the lowest all-in sustaining production costs
in Southern Africa . The Group is poised to deliver another world class tailings
retreatment operation ahead of schedule and below budget in the coming months
with the MTR Project.
Barberton Mines has seen a steady improvement in gold production, with planned
optimisation initiatives to increase ore tonnages expected to further bolster
gold production in the next financial year. Commissioning of the ventilation
shaft hoisting system at Evander underground during the start of the 2025
financial year, will substantially improve efficiencies and reduce reliance on
the cumbersome conveyor system currently in use, vastly improving this
operation's production profile and facilitate the 25-26 Level project's
development.
We would like to thank Deon for his commitment and the significant contribution
he has made to the Group over the years. We wish him all the best in his
retirement and look forward to continue working with him on various projects. We
would like to extend our congratulations to Marileen Kok who will be taking over
from Deon as Group financial director, and trust in her seamless transition into
the role.
We look forward to presenting our 2024 year-end financial results in September,
and to provide further details on developments at our operations and exciting
pipeline of growth projects that will significantly increase the Group's total
annual gold production in FY2025."
FINANCIAL RESULTS PRESENTATION, 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 presentation and 2024
financial year annual reporting suite, scheduled to be released on 11 September
2024.
The information contained in this update is the responsibility of Pan African's
board of directors and has not been reviewed or reported on by the Group's
external auditors.
Certain information communicated in this announcement was, prior to its
publication, inside information for the purposes of Article 7 of Regulation
596/2014.
Rosebank
29 July 2024
For further information on Pan African Resources, please visit the Company's
website at
www.panafricanresources.com
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|Corporate information |
+---------------------------------------------+---------------------------+
|Corporate Office |Registered Office |
| | |
|The Firs Building |2nd Floor |
| | |
|2nd Floor, Office 204 |107 Cheapside |
| | |
|Cnr. Cradock and Biermann Avenues |London |
| | |
|Rosebank, Johannesburg |EC2V 6DN |
| | |
|South Africa |United Kingdom |
| | |
|Office: + 27 (0)11 243 2900 |Office: + 44 (0)20 3869 |
| |0706 |
|info@paf.co.za | |
| |info@paf.co.za |
+---------------------------------------------+---------------------------+
|Chief Executive Officer |Financial Director |
| | |
|Cobus Loots |Deon Louw |
| | |
|Office: + 27 (0)11 243 |Office: + 27 (0)11 243 2900|
|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/Georgia |
|St James's Corporate Services Limited |Langoulant |
| | |
|Office: + 44 (0)20 3869 0706 |Peel Hunt LLP |
| | |
| |Office: +44 (0)20 7418 8900|
+---------------------------------------------+---------------------------+
|JSE Sponsor |Joint Broker |
| | |
|Ciska Kloppers |Thomas Rider/Nick Macann |
| | |
|Questco Corporate Advisory Proprietary |BMO Capital Markets Limited|
|Limited | |
| |Office: +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|
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