COVID-19

Pan African restarts tailings plants

Pan African Resources expects only a limited impact from the virus outbreak on production.

The Elikhulu project in South Africa

The Elikhulu project in South Africa

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The Elikhulu and Barberton tailings retreatment plants have been producing at close to full capacity from early May. These fall under the country's "level-four" regulations, a downgrade from the 'level-five' hard lockdown, which since May 1 have allowed opencast mines and surface operations to operate at up to 100% of normal capacity.

The group expects gold production for this year to be revised down to about 176,000oz, only 5% lower than the previous guided production of 185,000oz.

The impact from restrictions was mitigated by the group's ability to increase output from surface toll treatment and low-grade surface stockpile processing initiatives, in substitution of underground production.

The group also continued mining activities at surface operations with reduced staffing as well as limited high-grade underground mining at Barberton Mines.

"We have implemented preventative and precautionary measures at our operations to ensure the health and well-being of employees as they return to work, and we look forward to working with all stakeholders in the operational ramp-up," said Cobus Loots, chief executive of Pan African Resources.

"The strategic repositioning of our group some years ago, as a safe and high-margin producer with multiple operations and the flexibility to withstand short-term external shocks, should continue to serve all stakeholders well."

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