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Trading statement
PALLINGHURST RESOURCES LIMITED
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93
Share code on the JSE: PGL
("Pallinghurst", “PRL” or the "Company")
Pallinghurst trading statement
PRL is reasonably certain that its net profit after tax1 will be US$45 million for the year ended 31 December 2017
compared to a net profit after tax of US$45 million for the year ended 31 December 2016. In ZAR terms, net
profit after tax will be ZAR600 million (ZAR656 million net profit after tax for the comparative year), a decrease
of 9%.
Earnings per share is expected to be USc 4.0 for the year ended 31 December 2017 compared to earnings per
share of USc 6.0 for the comparative year. In ZAR terms, earnings per share will be ZAR0.49 (ZAR0.86 earnings
per share for the comparative period).
PRL’s interest in Jupiter increased in value by US$33 million over the year, including realised gains on two share
buy-backs and the valuation of Sedibelo reduced by US$16 million. The results for the year have been
significantly impacted by PRL’s acquisition of Gemfields plc (now Gemfields Ltd “Gemfields”) and the resulting
conversion of the Company from an investment entity to an operating mining company, effective 1 August 2017.
The fall in the Gemfields’ share price from 1 January 2017 resulted in an unrealised loss of US$64 million, which
was more than offset by a bargain purchase gain of US$96 million recognised in the income statement since the
fair value of Gemfields’ net assets exceeded the share price of Gemfields at the acquisition date.
Excluding the bargain purchase gain, the headline loss per share is expected to be USc 6.0 for the year ended 31
December 2017 compared to headline earnings per share of USc 6.0 for the year ended 31 December 2016. In
ZAR terms, headline loss per share will be ZAR0.75 (ZAR0.86 headline earnings per share for the comparative
period).
Net asset value1 (“NAV”): US$617 million (2016: US$367 million), an increase of 68%.
NAV per share2: US$0.40 (2016: US$0.48) a decrease of 16%.
In ZAR terms, PRL expects NAV to be ZAR7.6 billion at 31 December 2017 (ZAR5.0 billion at 31 December 2016)
and NAV Per Share1 to be ZAR5.00 at 31 December 2017 (ZAR6.61 at 31 December 2016).
1. Net profit after tax and NAV are reported on a 100% basis for the current period i.e. inclusive of the minority
interest.
2. The Company’s shares in issue at 31 December 2017 was 1,431,685,553, as the Company allotted 671,232,922
shares during the period due to the Gemfields acquisition. The total shares in issue includes 98,999,632 PRL
shares held by the Company, these shares have been omitted from the calculation of NAV Per Share. Total
number of shares in issue at 31 December 2017 excluding these shares is 1,332,685,921. The Company’s
weighted average shares in issue at 31 December 2017 was 1,038,966,894 (760,453,631 at 31 December 2016).
The financial information on which this trading statement is based has not been reviewed or reported on by
PRL’s auditors. The Company’s financial results for the year ended 31 December 2017 are expected to be
released on SENS on 29 March 2018.
Guernsey
28 March 2018
Sponsor
Investec Bank Limited
Date: 28/03/2018 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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