PAN AFRICAN RESOURCES PLC - Trading Statement for the year ended 30 June 2020 (Reporting Period)

Trading Statement for the year ended 30 June 2020 (Reporting Period)

Pan African Resources PLC
(Incorporated and registered in England and Wales under 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)


TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 (REPORTING PERIOD)

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required
to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that
the financial results for the period to be reported upon next, will differ by at least 20% from those of the
previous corresponding period.

Pan African’s presentation currency is the United States Dollar (US$). All Group subsidiaries are
incorporated in South Africa and their functional currency is South African Rand (ZAR). The Group’s
business is conducted in ZAR and the accounting records are maintained in the same currency, except
precious metal product sales, which are conducted in US$ prior to conversion into ZAR.
The US$/ZAR exchange rate affects the reporting of results in US$. The average US$/ZAR exchange rate is
used in translating ZAR results into US$.

During the Reporting Period, the average US$/ZAR exchange rate was US$/ZAR:15.67 (2019:
US$/ZAR:14.19), and the closing US$/ZAR exchange rate at 30 June 2020 was US$/ZAR:17.33 (2019:
US$/ZAR:14.08).

The year-on-year change in the average and closing exchange rates of 10.4% and 23.1%, respectively,
must be considered when comparing period-on-period results. The weighted average number of
outstanding shares remained unchanged at 1,928.3 million shares (2019: 1,928.3 million shares).

Pan African advises shareholders that its headline earnings per share (HEPS) and earnings per share (EPS),
in respect of its operations for the current Reporting Period, are expected to be as follows:

    •   HEPS of between US 2.23 cents per share and US 2.35 cents per share compared to US 1.19
        cents per share for the previous corresponding period, being an increase of between 87%
        and 97% respectively for the Reporting Period.

    •   EPS of between US 2.20 cents per share and US 2.40 cents per share compared to US 1.97
        cents per share for the previous corresponding period, being an increase of between 12%
        and 22% respectively for the Reporting Period.


The considerable improvement in EPS and HEPS are primarily due to the following:

    •   Gold revenue increased by 25.9% to US$273.7 million (2019: US$217.4 million) predominantly
        due to an increase in gold sold of 1.3% to 173,864oz (2019: 171,706oz) and the average US$ gold
        price received increasing by 24.3% to US$1,574/oz (2019: US$1,266/oz)
    •   An impairment charge reversal of US$0.1 million (net of tax) for the year ended 30 June 2020
        (2019: US$15.1 million) was excluded from the calculation of HEPS. Impairment charges and any
        subsequent reversal thereof, are included in the calculation of EPS.


The financial information contained in this announcement has neither been reviewed nor audited by
the Company’s auditors. The Group’s audited results for the year ended 30 June 2020 will be
released on 16 September 2020.



Rosebank

1 September 2020

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com



Contact information

Corporate Office                                      Registered Office

The Firs Office Building                              Suite 31

2nd Floor, Office 204                                 Second Floor

Cnr. Cradock and Biermann Avenues                     107 Cheapside

Rosebank, Johannesburg                                London

South Africa                                          EC2V 6DN

Office: + 27 (0)11 243 2900                           United Kingdom

info@paf.co.za                                        Office: + 44 (0)20 7796 8644

Cobus Loots                                           Deon Louw

Pan African Resources PLC                             Pan African Resources PLC

Chief Executive Officer                               Financial Director

Office: + 27 (0)11 243 2900                           Office: + 27 (0)11 243 2900

Phil Dexter/Jane Kirton                               Hethen Hira

St James's Corporate Services Limited                 Pan African Resources PLC

Company Secretary                                     Head : Investor Relations
Office: + 44 (0)20 7796 8644                          Tel: + 27 (0)11 243 2900

                                                      E-mail: hhira@paf.co.za
Ciska Kloppers                                   Ross Allister/David McKeown

Questco Corporate Advisory Proprietary Limited   Peel Hunt LLP

JSE Sponsor                                      Nominated Adviser and Joint Broker

Office: + 27 (0)11 011 9200                      Office: +44 (0)20 7418 8900

Thomas Rider/Neil Elliot

BMO Capital Markets Limited

Joint Broker

Office: +44 (0)20 7236 1010

Website: www.panafricanresources.com

Date: 01-09-2020 08:15:00
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