Wrap Text
Operational update for the year ended 30 June 2024 and board change
Pan African Resources PLC Pan African Resources Funding Company
(Incorporated and registered in England and Wales Limited
under Companies Act 1985 with registered Incorporated in the Republic of South Africa
number 3937466 on 25 February 2000) with limited liability
Share code on AIM: PAF Registration number: 2012/021237/06
Share code on JSE: PAN Alpha code: PARI
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:
o the total reportable injury frequency rate reduced to 5.47 per million man hours (FY2023:
8.13)
o the lost time injury frequency rate improved to 1.62 per million man hours (FY2023: 2.54)
o 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)
o Barberton Mines: 71,470oz (64,586oz)
o Evander Mines underground: 40,869oz (40,175oz)
o Elikhulu: 54,812oz (50,573oz)
o Barberton Tailings Retreatment Plant (BTRP): 18,888oz (19,875oz)
• 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
o 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
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 2900 Office: + 27 (0)11 243 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 Langoulant
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0)20 3869 0706 Office: +44 (0)20 7418 8900
JSE Sponsor Joint Broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0)11 011 9200 Office: +44 (0)20 7236 1010
Joint Broker
Matthew Armitt/Jennifer Lee
Joh. Berenberg, Gossler & Co KG (Berenberg)
Office: +44 (0)20 3207 7800
Date: 29-07-2024 08:00:00
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