Operational Update & Trading Statement

About this update from Pan African Resources Plc

[{"type":"text","content":"\n \nPan 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: PAFShare code on JSE: PANISIN: GB0004300496(“Pan African Resources” or “the Company\" or “the Group”)\n\nOPERATIONAL UPDATE AND TRADING STATEMENT FOR THE SIX MONTH REPORTING PERIOD ENDED 31 DECEMBER 2017\n\nOPERATIONAL UPDATE\n\nKey features\n\n\nImproved safety performance from both Barberton Mines and Evander Mines.\n\nThe Group’s gold production for the six months ended 31 December 2017 (“current reporting period”) reduced by 6,331oz to 85,282oz(2016: 91,613oz), primarily as a result of operational challenges at Barberton Mines.\n\nImproved overall operational and financial performance from Evander Mines.\n\nThe Elikhulu tailings retreatment plant (“Elikhulu”) project remains on track for commissioning early in the 2019 financial year, ahead of schedule and below budget. \n\nThe reduced production from Barberton Mines was as a result of: \n\n\nprocessing challenges at the Barberton Tailings Retreatment Plant (“BTRP”), which produced 6,289oz less compared to the corresponding period; and  \n\nunderground production impacted by delays in developing into Fairview’s high-grade 272 and 358 platforms, as well as 11 production days lost (equivalent to 3,000oz of gold) due to industrial action by employees and protests directed by community pressure groups.\n\n\n\nConclusion of the sale of Phoenix Platinum Mining Proprietary Limited to Sylvania Platinum Limited on 7 November 2017 for R89 million.\n\nThe group’s production guidance for 2018 financial year will now be 177,000oz to 181,000oz.\n\n\nPan African Resources CEO Cobus Loots commented:\n\n“The past 12 months have been a watershed period, during which we reassessed the sustainability of all our operations and dealt with the issues causing operational disruptions.  While we still have some work to do, we are confident our operations are being positioned to deliver into our objective of mining relatively low-cost, high-margin and sustainable gold ounces. In light of the prevailing low ZAR gold price, the Group is reviewing its cost base and the strategic merits of our portfolio. We expect to deliver improved production results and cost savings in the next reportin...

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