Pan African Resources Plc - Pan African Concludes Five-Year Wage Agreement at Barberton Mines and Maturation of the Barberton Mines' Employee Share Ownership Plan (ESOP)
| Pan African Resources PLC (Incorporated and registered in England and Wales under the Companies Act 1985 with registered number 3937466 on 25 February 2000) Share code on AIM: PAF Share code on JSE: PAN ISIN: GB0004300496 ADR ticker code: PAFRY (“Pan African” or the “Company” or the “Group”)
| Pan African Resources Funding Company Limited Incorporated in the Republic of South Africa with limited liability Registration number: 2012/021237/06 Alpha code: PARI
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PAN AFRICAN CONCLUDES FIVE-YEAR WAGE AGREEMENT AT BARBERTON MINES AND MATURATION OF THE BARBERTON MINES’ EMPLOYEE SHARE OWNERSHIP PLAN (ESOP)
Pan African is pleased to inform shareholders and noteholders that the Company has concluded a milestone five-year wage agreement (“the Agreement”) for wage increases and other conditions of service with the National Union of Mineworkers (NUM), the representative union for Category 4 to 8 bargaining unit employees, at its Barberton Mines operations. The agreed increases for the period 1 June 2024 to 30 June 2029 amounts to an average annual increase of approximately 5.3% per annum over the five-year period.
The current five-year wage agreement with UASA (the other representative union at Barberton Mines), entered into in 2021, is valid for another two years, until 30 June 2026. The agreement provides for an increase of 5.0% or CPI, whichever is higher, capped at 6%. This agreement affords the parties a once-off option to re-negotiate these increases, in the event of CPI being lower than 4% or higher than 7.5%.
Maturation of Barberton Mines’ ESOP scheme
The maturation of this ESOP scheme has realised meaningful benefits for qualifying employees over its life.
The scheme was destined to mature on 30 June 2024, after a ten-year term, but an early settlement of the scheme, at 31 March 2024, was negotiated with employees and unions. Qualifying employees received dividends of more than R40 million during the scheme's tenor, with the final maturity benefits paid to employees during May 2024.
More than 2,200 employees qualified to receive final maturity payments, with payments dependent on the number of completed years of service.
Pan African CEO Cobus Loots commented:
“We are pleased to have entered into multi-year wage agreements at Barberton Mines, which will ensure stability in labour relations at this operation over the coming years. The maturation of Barberton’s ESOP has also realised tangible benefits to all its participants.”
Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.
Rosebank
4 June 2024
For further information on Pan African, please visit the Company's website at
| Corporate information | |
| Corporate office The Firs Building 2nd Floor, Office 204 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0)11 243 2900 | Registered office 2nd Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0)20 7796 8644 |
| Chief executive officer Cobus Loots Office: + 27 (0)11 243 2900 | Financial director and debt officer Deon Louw Office: + 27 (0)11 243 2900 |
| Head: Investor relations Hethen Hira | Website: www.panafricanresources.com |
| Company secretary Jane Kirton St James's Corporate Services Limited Office: + 44 (0)20 7796 8644 | Nominated adviser and joint broker Ross Allister/Georgia Langoulant Peel Hunt LLP Office: +44 (0)20 7418 8900 |
| JSE Sponsor and JSE debt sponsor Ciska Kloppers Questco Corporate Advisory Proprietary Limited Office: + 27 (0)11 011 9200 | Joint broker Thomas Rider/Nick Macann BMO Capital Markets Limited Office: +44 (0)20 7236 1010 |
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| Joint broker Matthew Armitt/Jennifer Lee Joh. Berenberg, Gossler & Co KG Office: +44 (0)20 3207 7800 |
