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OPERATIONAL UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Pan African is pleased to provide shareholders and noteholders with an
operational update for the six months ended 31 December 2022 (“current
reporting period”).
Key features for the current reporting period
Operational
* Gold production of 92,307oz (2021: 108,085oz), with operational results as
follows: * Barberton Mines 32,022oz (2021: 39,991oz)
* BTRP 10,012oz (2021: 9,126oz)
* Elikhulu 25,830oz (2021: 25,900oz)
* Evander Mines 24,443oz (2021: 33,068oz)
* Proactive journey to ‘zero harm’ through a number of health and safety
initiatives to address regression in underground mining safety rates
* Agreements with representative unions to restructure Barberton Mines
underground operations as follows: * Consort Mine loss-making operations are
to be converted to a contractor mining model, focussing on higher grade areas
with reduced overheads, whilst development and exploration will continue to
increase future mining flexibility and production; and
* Fairview Mine and Sheba Mines’ operations are to be reconfigured to a
continuous operations (24 hour) shift cycle with productivity expected to
increase commensurately
* The Group maintains its full year production guidance of 195,000oz to
205,000oz, a level similar to that achieved in 2022
Financial
* Issue of an inaugural sustainability-linked bond of US$47.3 million to
assist in the funding of Pan African’s pipeline of growth projects, with
Mintails being the preeminent project for development
* Payment of a net dividend of US$20.0 million (2021: US$21.6 million) in
December 2022
* An increase in net senior debt by 108.8% to US$49.9 million (2021: US$23.9
million), primarily as a result of capital expenditure incurred on Pan
African’s organic growth projects
Environmental, Social and Governance
* Average monthly cost savings of US$145,000 achieved from Evander Mines’
10MW renewable energy solar photovoltaic (PV) plant
* Site clearance completed for Barberton Mines’ 8MW solar PV plant, with
construction scheduled to commence by June 2023
* Scheduling of further large renewable energy initiatives underway
Growth projects
* Mintails’ project construction expected to commence by June 2023
* Royal Sheba’s development plan to be finalised in the next months
Pan African CEO Cobus Loots commented:
“Reduced gold production over the past half year can primarily be attributed
to the performance of the Barberton Mines underground operations. We believe
that the concrete measures being implemented at this operation will result in
a significant improvement during the second half of the financial year and in
the years ahead. The balance of our portfolio delivered in line with
expectations, despite disruptions to our electricity supply and inclement
weather conditions impacting operations. At our Evander operation alone,
electricity issues impacted production by approximately 5%, reinforcing our
Don’t think there are shorts open on this share and if there is, it’s a very small amount. The rise to 85p was on the back of breaking above the 50 and then the 200ema. A healthy retrace then happened back down to the 200ema which it has bounced off. Should see 85p again soon before going higher over time.
A golden cross has just formed which is quite bullish.
Fundamentals are good. The company has gone through a 5 year plan to change and adapt. Going from 90% revenues from emerging markets to 95% in evolved markets which are safer and more profitable. The company has returned to profit making. The only downside is the dept which is being repaid and manageable now it is profit making. The other downside would be there are more shares than 5 years ago, so it’s unlikely to go back to £3 again but it could easily see 90-100% increase from these prices.
Unlikely to see the money from Russian sale of the business. This money should be ignored now and if it is received it will be seen as a bonus.
Nov 12 - Residents of an Andean community in Peru broke into Hochschild Mining Plc's Inmaculada gold and silver mine, the company said on Saturday, causing interruptions and putting the safety of its workers at risk.
London-listed Hochschild Mining HOCM.L said in a statement
that residents of the Huancute community in the Ayacucho region on Friday night broke the metal fence to the mine and attacked the vehicles with stones.
While the incident interrupted the flow of internal
operations at the mine, a company representative said it "did
not paralyze production."
Reuters was unable to immediately contact leaders from the
community for comment. Residents from the area last year
demanded that the company close its mining operations - which it rejected.
Protests from poor communities against big mining companies are common in Peru. At times, these have led to temporary
closures of operations in the world's second-largest copper
producer.
I'm a little surprised there is no rns news out today regarding this situation reported by Reuters.
Oct 31 (Reuters) - Peruvian demonstrators on Monday burned infrastructure at Hochschild Mining Plc's (HOCM.L) Inmaculada mine as part of a protest, the company said, threatening the operations of its largest mine in the Andean nation.
UK-listed Hochschild is an important precious metals miner and Inmaculada produces both gold and silver.
The company did not say if production had been affected, but said protesters had blocked the entrance to the mine since Oct. 27.