Operational Update for 9 Months ended March 2019

About this update from Pan African Resources Plc

[{"type":"text","content":"\n \nPan African Resources PLC\n\n(\"Pan African\" or “the Company\" or “the Group”)\n\n(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)\n\nShare code on AIM: PAF\n\nShare code on JSE: PAN\n\nISIN: GB0004300496\n\nOPERATIONAL UPDATE FOR THE NINE MONTHS ENDED 31 MARCH 2019\n\nPan African is pleased to provide an operational update for the nine months ended 31 March 2019 (“Current Reporting Period”) as well as detail on progress with internal growth projects and initial production guidance for the 2020 financial year.\n\nPan African CEO Cobus Loots commented:\n\n“The Group’s performance over the past nine months reflects our efforts to maintain Pan African’s position as a safe, low-cost and long-life gold producer. Safe, highly profitable and sustainable ounces at Elikhulu have replaced those of Evander’s loss-making underground operations. We continue to optimise Elikhulu, which delivered a throughput of 1.3-million tonnes in March 2019, 100,000 tonnes above the name plate capacity. The focus is now on maximising sustainable margins from this world-class operation.\n\nWe have commenced the development and equipping of Evander Mines’ 8 Shaft Pillar (“Evander Pillar operation”), with first gold expected in August 2019. The Evander 8 Shaft Pillar is expected to contribute an additional 20,000oz to 30,000oz per annum for three years, at an all-in sustaining costs (“AISC”) of approximately US$900 per ounce, therefore making a meaningful contribution to the Group’s near-term production and profitability. The operation will be mined by a specialised and experienced independent contractor given the nature of pillar mining. \n\nWe have completed extensive feasibility work on Barberton Mines’ Royal Sheba project (“Royal Sheba Project”). Due to the Group’s disciplined capital allocation criteria and the capital cost estimates to develop this mine, the Company will not pursue the Royal Sheba Project on a stand-alone basis. The existing Barberton Mines’ processing plant infrastructure can be upgraded to process ore from this orebody. The benefits of this approach is the ability to expedite the environmental licencing process, shorten the timeline to production, enhance returns from mining this orebody and negate the requi...

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