http://moneyam.uk-wire.com/cgi-bin/articles/20050126070000PE650.html

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=144438&sn=Detail&pid=102055
Harmony's Evander sale game changer for Wits Gold and Pan African


Harmony Gold is to sell its Evander gold mining operations to a JV of Pan African Resources and Wits Gold for .$216m.
Author: Geoff Candy
Posted: Monday , 30 Jan 2012

GRONINGEN -

Pan African Resources and Wits Gold have joined forces to buy Harmony's entire interest in the Evander project from Harmony Gold for R1.7bn ($216m).

For Pan African Resources the deal adds 50 000 ounces of attributable gold production per year to the company as well as another 34m ounces in terms of a project pipeline that can be fairly quickly developed.

According to Jan Nelson, Pan African CEO, the deal also provides access to an attractive partnership with Wits Gold. "One of the issues for junior gold miners is access to skills and this transaction gives us access to their skills sets."

Speaking on a conference call earlier in the day, Nelson added that there have been a lot of questions asked of late about how junior miners in South Africa are likely to grow. This deal, which he says is a first in the South African mining space, is a very good answer to that question.

For Wits Gold, the transaction is even more of a game changer. According to CEO, Philip Kotze, it turns the exploration company into a producer overnight.

"This is a very exciting time for us," Kotze said on the conference call, we signalled the market in September last year that we wanted to become a producer, and this does it for us."

He added that, the some of the cashflows from their portion of the Evander project could also be used to fund the building of a mine at the group's BDM project. And, while it doesn't make as much of a differnce to its resource base as it does to Pan African, it does increase the group's reserve base significantly.

For Harmony, the sale represents the end of a significant turn-around at the asset following a restructuring process that has taken the better part of 3 years.

As CEO Graham Briggs explained, three years ago the operation was running the numbers 2,5, 7 and 8 shafts. "those operations were really looking at remnant pillars mainly from operations, relatively difficult infrastructure, fairly old infrastructure from an equipment point of view and the grade that they were getting out of that was in the region of 3.5, 4g/tonne at most and with gold prices where they were, we decided to restructure the whole operation.

All but the number 8 shaft have now been closed down and that has been refocused to mine the declines and, currently, the operation has a mine life of around 10 plus years.

But, according to Briggs, if money is invested in the project, the operation has a life of 50-plus years.

Nelson and Kotse, who have both worked at the Evander operations during their career are very positive about the prospects for the mine with Nelson going so far as to say he believes it to be even better than Harmony's Wafi Golpu asset, although there was an element of tongue about his cheek when making that comment.

But, he says, " The Evander 8 Shaft orebody has gold grades in excess of 14g/t in the measured and indicated resource category, an extremely experienced management team and workforce, as well as good infrastructure, I don't know where else in Africa you can find that."

In terms of the management of the mine iteself, Nelson explained the plan was too keep a fairly hands off approach and let the management that is already in place take most of the reins.

When asked, which of the two partners would be in control, he answered that, "the moment one party has more control than the other, that is when the problems begin."

The deal is structured so that the consortium will make an initial payment of R1.4bn (R178m) on the closing date of the transaction. This Kotze says could be as late as sometime between October and December. the effective date for the transaction, however, is the 2nd of April. This means as much as R200m could be deducted from the price in the form of dispersments by Evander in the intervening period.

After the closing date, the consortium will pay four equal quarterly amounts of R25m ($3.18m) (. And, the remaining R200m ($25.5m)will be paid in two equal tranches, the first 19 months after the closing date, if the average rand gold price for the preceding 12 month period is greater than R410,000 per kilogram (US$1,700 per ounce.

The second tranche is payable, 31 months after the original closing date, if the average rand gold price for the preceding 12 month period is more than ZAR450,000 per kilogram (US$1,865 per ounce).

Approval granted for Phase One of the Barberton Tailings Retreatment Project

and the acquisition of Harper Tailings Operations

Pan African is pleased to announce that the board of directors has approved
Phase One of the Barberton Tailings Retreatment Project ("BTRP") which will
recover gold from the retreatment of the gold tailings situated close to the
Barberton Gold Mining Operations ("Barberton"). It is anticipated that the BTRP
will increase the production profile at Barberton from 95,000oz to 120,000oz
per annum.

Highlights

- The BTRP comprises a total resource of 654koz (13.7Mt @ 1.38g/t) and a
reserve of 248koz (13.7Mt @ 0.56g/t)

- A Capital Cost Estimate ("Capex") of GBP27 million (ZAR325 million) has been
approved for Phase One of the BTRP in order to retreat 1.2Mt per annum of gold
tailings over a six year life, funded from internal cash flows

- Over the life of Phase One of the project, a total of 160koz will be
recovered (which includes 120koz from tailings and another 40koz from current
underground arisings to be retreated)

- At a gold price of ZAR400,000 per kilogram the project has a net present
value ("NPV") of GBP27 million (ZAR325 million)

StockMarketWire.com
Pan African has approved Phase One of the Barberton Tailings Retreatment Project ("BTRP") which will recover gold from the retreatment of the gold tailings situated close to the Barberton Gold Mining Operations.

It is anticipated that the BTRP will increase production at Barberton from 95,000oz to 120,000oz per annum.

Gone Long on PAF this morning:

*Gold Producer in South Africa
*Fab long term uptrending chart Jan 2009
*Stochs/RSI oversold and both indicator's turning up
*MACDs under 0 with the faster line about to cross slower
*ATR being exhausted suggesting bear's running out of steam
*ADX at 20 suggesting trend downwards weakening
*Sitting on 50 day EMA/lower of the Bolli Bands

Great Week All

I came across this audio interview when I was researching about Pan African.

Its really interesting and its well worth a listen:
http://www.brrmedia.co.uk/event/98351/jan-nelson-chief-executive-officer

LISTEN: Pan African (PAF) - Provisional audited results for the year ended

Click the link below to listen
http://www.brrmedia.co.uk/event/116248/ron-holding-chief-executive-officer

KEEP an EYE

7.32p ( 7.26 v 7.38p )

Has been moving higher since last week AGM, Last September good results were EPS up in sterling terms increased by 65% and paying dividend 0.53108p. Slowly rising for the last few days now on a narrow spread.
Ex-Dividend 10 December, pay date 24 December

Some good interest today with more volume than usual over 2M and share price rising with small spread at the end of the day 7.75 v 7.79p +0.55 +7.64%

Keep going this way aa all Indicators are perfectly position on the TA front
MACD just cross up "0" bullish

↑ GOLD $1021-15 ↑

Full name of person(s) subject to the notification obligation: iii FIL LIMITED
Increased holdings from 5% to 6.52%

119,558,403 6.52% on 26 November 2015

Slowly moving higher now 8.21p +0.47

at this rate soon will be ready to sell

edit - double post

Sold @ 8.145p close bargain

I was aiming for about 1p profit, but managed a bit more 1.296p

I just realised that I am going to get the dividend before the profit from this deal, as it settles on 30 December, she went X-divi last Thursday for 0.53108p.

Ex-Dividend 10 December, pay date 24 December

Bought 30th November @ 7.38p on a T+20
a gain of 17.56 % on 2 weeks

What a difference a day does, 7.75p - 0.47p

look a bit overbought yesterday on the Bollinger Bands, but not expecting to fall so much today

I also own PAF.

COMPLETION OF THE ACQUISITION OF BLUE FALCON 232 TRADING PROPRIETARY LIMITED ("UITKOMST COLLIERY") FROM OAKLEAF INVESTMENT HOLDING 109 PROPRIETARY LIMITED AND SHANDUKA RESOURCES PROPRIETARY LIMITED.

Pan African shareholders are referred to the initial Transaction announcement published by the Company on 8 June 2015, regarding the acquisition of Uitkomst Colliery by the Company.

Pan African is pleased to advise shareholders that the Transaction has become unconditional, and that Pan African assumed effective control of Uitkomst Colliery on 1 April 2016. Pan African settled the Transactions revised purchase consideration of R176 million in full in cash on 31 March 2016. The total net purchase consideration (inclusive of working capital acquired) amounts to approximately R150 million, compared to the R200 million previously announced.

The Uitkomst Colliery will be implementing a BEE transaction similar in nature to those currently in place at Pan Africans Barberton and Evander mining operations. The BEE transaction will result in an additional 9% historically disadvantaged on-mine ownership in the Uitkomst Colliery. This 9% ownership will be held by broad-based trusts and by a strategic entrepreneurs trust. The BEE transaction will be financed by the Uitkomst Colliery on a notional basis, with this notional funding accruing interest linked to the prime interest rate. The Transaction results in limited dilution to Pan African and 80% of dividends issued to the BEE shareholders will be retained to repay the notional funding over a period of 10 years.

A production update for Uitkomst Colliery for the period 1 July 2015 29 February 2016 is as follows:

Run-of-mine coal mined : 412 kt
Saleable coal produced : 278 kt
Wash yield : 67.5%
The life of mine of the operation is estimated at 28 years.

BDO Corporate Finance Proprietary Limited (Expert), who were appointed as the independent expert by Pan African, have concluded that the terms of the Transaction are fair in so far as Pan African shareholders are concerned. A copy of the Experts opinion is available for inspection at the Corporate Offices of the Company for a period of 28 days from the date of this announcement.

Cobus Loots, CEO of Pan African commented: We are pleased to have finalised the Transaction and we welcome the Uitkomst Colliery employees to the Group. The Transaction is expected to be value accretive to Pan African, as previously communicated.

For further information on Pan African, please visit the Companys website at http://www.panafricanresources.com/

StockMarketWire.com
Pan African, the African-focused precious metals producer, has appointed BMO Capital Markets Limited as joint broker alongside Numis Securities Limited and Peel Hunt LLP with immediate effect.

Peel Hunt today reaffirms its buy investment rating on Pan African Resources PLC (LON:PAF) and raised its price target to 26p (from 17p).

Bought some @ 18.75p

Gold prices on the up and is share price after reaching on what it seems lows lately. Profitable company that lately has been moving uptrend. Order book stronger on the bid side, though there is a seller on the order book at 18.75p, that keeps adding stock once is taken by ATs.
Currently the seller or order book hiding the sell amount, added 100K, after all the once before where taken by ATs once again