Canning coal

Since our last update note, Pan African Resources (PAF) has announced the disposal of its 91% interest in its coal asset, Uitkomst, for ZAR275m (£16.3m, or US$20.9m), a placing to raise ZAR705m (£41m, or US$51m) and an update on progress at its Evander underground refurbishment. As well as returning an exceptional profit to the company, the disposal self-evidently returns Pan African to its core competency of gold mining. It also materially reduces risk in the form of its net funding requirement while developing Elikulu.