gold
The Elikhulu project in Evander, South Africa

Pan African Resources has obtained authorisation from the South African Department of Mineral Resources and Energy to conduct gold surface re-mining and processing activities on a reduced scale, subject to compliance with and adherence to all relevant Regulations and applicable legislation.

This includes the Group’s Elikhulu Tailings Retreatment Plant and at its Barberton Tailings Retreatment Plant, and limited underground mining operations at Barberton Mines.

The surface gold operations are currently operating at approximately 70% of normal production capacity, but with a much reduced workforce.

Operating with such a reduced workforce is possible, for a limited time, as a result of the highly automated nature of the surface operations.

Barberton Mines is currently also able to produce the required minimum feed for its BIOX processing plant, thus ensuring the continued integrity of this system.

Of the Group’s total staff and contractor complement, only 26 are involved in rendering essential services at these gold operations.

Updated guidance for the 2020 financial year will be communicated to shareholders after the National Lockdown has terminated, and once the Group is in a position to quantify the extent and duration of the operational disruptions during this time.

As previously communicated the Group’s liquidity position remains robust.

Credit approval from Rand Merchant Bank has been obtained to defer the last three tranches of the existing gold loan’s redemption, constituting 5,000 ounces (equivalent to U$7.8 million), to the first quarter of the 2021 financial year.

The Group’s banking consortium has also confirmed its support for the Company should further liquidity be required.

The COVID-19 pandemic has had a severe adverse economic and social impact on stakeholders involved in the Group’s operations and throughout the country.

Pan African Resources has commenced with support programmes, in addition to its existing community initiatives, to assist stakeholders to alleviate hardships in the areas around its operations.

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These support programmes include food hampers and hygiene products for employees and specific communities. As a further initiative, potable water will be distributed by the mine’s water tankers to affected communities in Barberton, in collaboration with the local municipality, for the duration of the National Lockdown.

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