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Pan African Mining halts production at its Evander gold mine
Further to the operational update released on 28 March 2018, Pan African Resources advises shareholders of the conclusion of the Evander Gold Mining Proprietary Limited.
The cessation of the existing underground operations at Evander Mines will result in approximately 1,700 employees being retrenched by the end of May 2018, at a cost of approximately R160 million that will be funded from the Group’s existing debt facilities.
Pan African Resources CEO Cobus Loots commented: “The decision to cease mining from Evander Mines’ underground operations was not taken lightly, particularly given the socio-economic conditions prevailing in the country and the impact on a large number of our employees. All South African gold producers have been adversely affected by the recent strengthening of the rand, and it is imperative that we act decisively to ensure the future of our Group and stakeholders that rely on our operations. During the past five years, Pan African Resources invested capital of R1.76 billion in our current mining operations in South Africa plus a further R1.74 billion which is being invested in our Elikhulu growth project. Pan African Resources remains highly committed to investing in our assets in South Africa and building a long term, sustainable platform for growth. The Elikhulu project has created approximately 250 new employment opportunities and we are confident that the Group’s future growth projects will create further long term employment opportunities. Post the cessation of Evander’s current underground mining operations, the balance of the Group’s production ounces will be low cost and cash flow positive, which will ensure the sustainability and profitability of the Group in the prevailing low rand gold price environment”.