Wrap Text
Provisional audited results for the year ended 30 June 2014
Pan African Resources PLC
('Pan African Resources' or the 'company' or the 'group')
(Incorporated and registered on 25 February 2000 in England and Wales under the Companies Act 1985, registration number 3937466)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
Provisional audited results for the year ended 30 June 2014
Key features and highlights
Key features reported in South African rand ('ZAR') and pound sterling ('GBP')
- The group's gold sold increased by 44.2% to 188,179oz (2013: 130,493oz).
- Group headline earnings6 decreased by 7.2% to ZAR452.0 million (2013: ZAR487.0 million). As previously announced, headline earnings were impacted by, inter
alia, the low grade mining cycle at Evander Gold Mining Pty Ltd and lower average gold price received.
- For the first time, Phoenix Platinum Pty Ltd was both cash generative and profitable in the 2014 financial year.
- Gold mineral reserve inventory increased by 9.8% to 10.1Moz (2013: 9.2Moz).
- Gold mineral resource inventory decreased by 4.6% to 33.5Moz (2013: 35.1Moz).
- The group has proposed a final dividend of ZAR0.1410 or approximately 0.7898p7 per share or ZAR258.0 million (approximately GBP14.5 million) for approval by
shareholders at the annual general meeting in November 2014.
- A dividend of ZAR0.1314 or (0.8030p) per share (2013: Nil) or ZAR240.3 million (GBP14.7 million) was paid during December 2013 in relation to the 2013
financial years results.
- Net debt for the group increased marginally to ZAR101.0 million (2013: ZAR93.6 million).
For the year end For the year end
Metric 30 June 2014 30 June 2013 Movement
Revenue (ZAR millions - GBP millions) 2,608.8 154.6 1,848.1 133.5 41.2% 15.8%
Average gold price received (ZAR/kg – USD/oz) 433,437 1,303 440,824 1,553 (1.7%) (16.1%)
Cash costs (ZAR/kg – USD/oz) 298,345 897.0 231,439 815.0 28.9% 10.1%
All-in sustaining cash cost (ZAR/kg – USD/oz) 349,008 1,049 281,551 992 24.0% 5.7%
All-in costs (ZAR/kg – USD/oz) 374,015 1,124 343,949 1,212 8.7% (7.3%)
Adjusted EBITDA1 (ZAR millions - GBP millions) 745.5 44.2 735.2 53.1 1.4% (16.8%)
Attributable earnings (ZAR millions - GBP millions) 452.1 26.8 558.9 42.6 (19.1%) (37.1%)
Earnings per share ('EPS') (cents - pence) 24.74 1.47 34.51 2.63 (28.3%) (44.1%)
Headline earnings per share ('HEPS') (cents - pence) 24.74 1.47 30.07 2.17 (17.7%) (32.3%)
Group capital expenditure (ZAR millions - GBP millions) 363.0 21.5 381.6 27.6 (4.9%) (22.1%)
Net asset value per share (cents - pence) 152.4 8.7 140.9 9.5 8.1% (8.4%)
Weighted average number of shares in issue (millions) 1,827.2 1,827.2 1,619.8 1,619.8 12.8% 12.8%
Average exchange rate (ZAR:GBP – ZAR:USD) 16.88 10.35 13.84 8.83 22.0% 17.2%
Closing exchange rate (ZAR:GBP – ZAR:USD) 18.01 10.59 15.01 9.88 20.0% 7.2%
Ron Holding, CEO of Pan African Resources commented: “Pan African Resources is pleased with another satisfactory performance from Barberton Mines, whilst Evander
Mines results were impacted negatively by the low grade mining cycle. Increased dividends and a new progressive dividend policy demonstrates the board and
management's confidence in the quality of our assets and Evander Mine's future performance. Our statement of financial position remains strong, whilst cash
generative assets and internal projects will provide the platform for further profitable growth”.
Operational
Barberton Mines Pty Ltd ('Barberton Mines')
Combined Barberton Mines Operations
- Gold sold increased by 15.9% to 111,623oz (2013: 96,296oz).
- Revenue increased by 11.9% to ZAR1,511.1 million (2013: ZAR1,350.3 million).
- Adjusted EBITDA decreased by 1.4% to ZAR614.0 million (2013: ZAR622.9 million).
- Cash cost per kilogram increased by 8.2% to ZAR239,496/kg(2013: ZAR221,424/kg).
- All-in sustaining cash cost per kilogram increased by 3.3% to ZAR282,716/kg (2013: ZAR273,653/kg).
- All-in cost per kilogram decreased by 13.8% to ZAR302,058/kg (2013: ZAR350,302/kg).
- Average underground head grade of 11.5g/t (2013: 11.8g/t).
- The operation regretfully reports three fatalities (2013: two fatalities).
Barberton Mines (Underground and surface mining operations8)
- Production was negatively affected by flooding at Sheba Mine and technical difficulties at the BIOX ® plant, both of these issues were subsequently resolved.
- Gold sold decreased by 7.8% to 88,738oz (2013: 96,296oz).
- Revenue decreased by 11.0% to ZAR1,201.9 million (2013: ZAR1350.3 million).
- Adjusted EBITDA decreased by 32.4% to ZAR420.9 million (2013: ZAR622.9 million).
- Cash cost per kilogram increased by 17.0% to ZAR258,972/kg (2013: ZAR221,424/kg).
- All-in sustaining cash cost per kilogram increased by 13.9% to ZAR311,756/kg (2013: ZAR273,653/kg).
- All-in cost per kilogram decreased by 8.3% to ZAR321,342/kg (2013: ZAR350,302/kg).
- Life of mine increased to 19 years (2013: 17 years).
Barberton Tailings Retreatment Plant ('BTRP') (Tailings operation)
- Production commenced on 1 July 2013.
- Gold sold contribution of 22,885oz for the year to Barberton Mines.
- Revenue generated of ZAR309.2 million.
- Adjusted EBITDA generated of ZAR193.1 million.
- Cash cost per kilogram achieved of ZAR163,977/kg or USD493/oz.
- All-in sustaining cash cost per kilogram achieved of ZAR170,111/kg or USD511/oz.
- All-in cost per kilogram achieved of ZAR227,286/kg or USD683/oz.
- Total capital expenditure spent on the project was ZAR313.6 million, funded internally from cash generated by Barberton Mines(2).
- Life of mine increased to 15 years (2013: 12 years).
Evander Gold Mining Pty Ltd ('Evander Mines')
- Gold sold decreased by 19.5% to 76,556oz (2013: 95,089oz3).
- Revenue decreased by 22.9% to ZAR1,025.8 million (2013: ZAR1,330.9 million3).
- Construction of the Evander Tailing Retreatment Plant ('ETRP') has commenced, with production expected by January 2015.
- Cash costs per kilogram achieved increased by 36.0% to ZAR384,150/kg (2013: ZAR282,451/kg3).
- All-in sustaining cash costs per kilogram achieved increased by 29.2% to ZAR445,665/kg (2013: ZAR345,006/kg(3)).
- All-in cost per kilogram achieved increased due to the low grade mining cycle and capital spent on the ETRP by 28.5% to ZAR478,933 (2013: ZAR372,707/kg(3).)
- Adjusted EBITDA generated of ZAR128.3 million (2013: ZAR152.2 million for the 4 months consolidated).
- As result of the lower grade mining cycle the underground head grade decreased to 5.2g/t (2013: 7.4g/t(3)), this low grade mining cycle will continue until
February 2015.
- The operation regretfully reports one fatality (2013: one fatality).
- Life of mine increased to 17 years (2013: 14 years).
Phoenix Platinum Mining Pty Ltd ('Phoenix Platinum')
- Phoenix Platinum was both cash generative and profitable for the first time in the 2014 financial year.
- Phoenix Platinum headline earnings increased to ZAR3.7 million (2013: ZAR6.4 million headline loss).
- PGE 4 production increased by 11.2% to 7,204oz (2013: 6,480oz).
- Revenue increased by 22.1% to ZAR71.9 million (2013: ZAR58.9 million).
- The average PGE net revenue price received increased by 9.8% to ZAR9,987/oz (2013: ZAR9,093/oz(5)).
- Cost per ton increased by 24.7% to ZAR222/t (2013: ZAR178/t) due to reduced tonnages processed whilst addressing the inhibiting talc in the tailings feed.
- Cost per ounce of production increased by 2.3% to ZAR7,723/oz (2013: ZAR7,551/oz).
- Adjusted EBITDA increased by 131.9% to ZAR16.0 million (2013: ZAR6.9 million).
- Life of mine increased to 28 years (2013: 20 years).
Notes:
1. Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and amortisation, bargain purchase gain, impairments and loss on disposal
of assets held for sale.
2. BTRP capital expenditure relates directly to plant and tailings storage facility construction, and excludes additional Harper tailings and the associated land
purchased in the prior years for ZAR12.1 million.
3. Evander Mines prior year production results were obtained from Harmony Gold Mining Company Ltd ('Harmony'), for comparative purposes only. The prior year
Evander Mines cost per kilogram figures were recalculated based on historical financial records to allow for consistent reporting with the group's current
gold operations. Therefore the values may vary from Harmony previously reported values. The group commenced consolidating the Evander Mines results from 1
March 2013 for accounting purposes.
4. PGE's are platinum, palladium, rhodium and gold.
5. Phoenix Platinum average PGE net revenue price received represents the value received per ounce following refining and therefore is net of refining charges.
6. Refer to the profit after taxation to headline earnings reconciliation in the statement of comprehensive income.
7. The GBP proposed dividend was calculated based on an exchange rate of ZAR17.85:1. The UK shareholders are to note that a revised exchange rate will be
communicated prior to final approval at the AGM. Therefore the proposed dividend is approximately 0.7898p per share.
8. Barberton Mines surface mining operations refer to historical surface waste rock dumps located at Fairview and Sheba Mines that are currently being processed.
Nature of business
Pan African Resources is a mid-tier African-focussed precious metals producer with a production capacity in excess of 200,000oz gold and 12,000oz platinum per
annum. The group's assets include:
- Barberton Mines : three gold mines and the BTRP in Mpumalanga
- Evander Mines : a gold mine in Mpumalanga
- Phoenix Platinum : the Chrome Tailing Retreatment Plant ('CTRP') in the North West province
Pan African Resources' growth strategy is aimed at achieving and improving margins while driving ongoing growth in our Mineral Reserve base. We aim to capture the
full precious metals mining value chain and maximise shareholder value by exploiting opportunities in the group and in the broader sector.
The group remains cash generative at the current gold price, with the ability to fund all on-mine capital expenditure internally and also meet its other funding
and growth commitments.
Financial Performance
Key external drivers of the group's results
Exchange rates and their impact on results
All of the group's subsidiaries are incorporated in South Africa and their functional currency is ZAR. The group's business is conducted in ZAR and the accounting
records are maintained in this same currency, with the exception of precious metal product sales, which are conducted in USD prior to conversion into ZAR. The
ongoing review of the results of operations conducted by executive management and the board is also performed in ZAR.
The group's presentation currency is GBP due to its ultimate holding company, Pan African Resources plc, being incorporated in England and Wales and also being
dual-listed in the United Kingdom and South Africa.
In the year under review the average ZAR/GBP exchange rate was ZAR16.88:1 (2013: ZAR13.84:1) and the closing ZAR/GBP exchange rate was ZAR18.01:1
(2013: ZAR15.01:1). The year-on-year change in the average and closing exchange rates of 22.0% and 20.0%, respectively, must be taken into account for the
purposes of translating and comparing year-on-year results.
The group converts and records its revenue from precious metals sales in ZAR, and the deterioration in the value of the ZAR/USD exchange rate during the year had
a compensating effect on the weaker USD metals price revenue received. The average ZAR/USD exchange rate was 17.2% weaker at ZAR10.35:1 (2013: ZAR8.83:1).
The commentary below analyses the current and prior year's results. Key aspects of the group's ZAR results appear in the body of this commentary and have been
used as the basis against which its financial performance is measured. The gross GBP equivalent figures can be calculated by applying the exchange rates as
detailed above.
Commodity prices
During the course of the year a lower average USD gold price was achieved when compared to the prior year. The group realised an average gold price of
USD1,303/oz, a decrease of 16.1% from the USD1,553/oz achieved in the prior year.
The market PGE basket price received (applying the Phoenix Platinum prill split) during the year decreased by 9.0% to USD1,122/oz (2013: USD1,233/oz). Phoenix
Platinum achieved an average PGE basket price of USD965/oz (2013: USD1,030/oz), after taking into account the terms of its off-take agreement with Western
Platinum Limited.
The average ZAR gold price received by the group decreased by 1.7% to ZAR433,437/kg (2013: ZAR440,824/kg), partially shielded by the weakening of the ZAR against
the USD exchange rate.
The average ZAR PGE basket price received by the group increased by 9.8% to ZAR9,987/oz (2013: ZAR9,093/oz), also benefitting from the weaker ZAR.
Statement of Comprehensive Income
For the year ended 30 For the year ended 30
June 2014 June 2013 Movement
ZAR GBP ZAR GBP ZAR GBP
(millions) (millions) (millions) (millions)
Revenue 2,608.8 154.6 1,848.1 133.5 41.2% 15.8%
Cost of production (1,795.9) (106.4) (985.1) (71.2) 82.3% 49.4%
Mining profit 637.8 37.8 776.8 56.1 (17.9%) (32.6%)
Adjusted EBITDA 745.5 44.2 735.2 53.1 1.4% (16.8%)
Profit after taxation 452.1 26.8 558.9 42.6 (19.1%) (37.1%)
Headline earnings 452.0 26.8 487.0 35.2 (7.2%) (23.9%)
EPS (cents - pence) 24.74 1.47 34.51 2.63 (28.3%) (44.1%)
HEPS (cents - pence) 24.74 1.47 30.07 2.17 (17.7%) (32.3%)
Weighted average number of shares in issue (millions) 1,827.2 1,827.2 1,619.8 1,619.8 12.8% 12.8%
The 2014 group results include a full year of operations for Evander Mines, whilst the comparative 2013 period only included 4 months of operations, from the date
that Evander Mines was acquired from Harmony.
Group revenue year-on-year increased by 41.2% to ZAR2,608.8 million (2013: ZAR1,848.1 million). Of this increase, Evander Mines contributed ZAR586.9 million,
Barberton Mines contributed ZAR160.8 million and Phoenix Platinum contributed ZAR13.0 million, resulting in a ZAR760.7 million total increase year-on-year.
Barberton Mines grew revenue as a result of an increase in gold ounces sold, with the commissioning of the BTRP on 1 July 2013. Evander Mines' revenue increased
as result of consolidating a full year's production revenue compared to only four months post acquisition revenue in the prior year. Phoenix Platinum recorded an
increase in revenue due to selling more ounces of PGE's at higher prices.
Pan African Resources' year-on-year total cost of production reflects an increase of ZAR810.8 million to ZAR1,795.9 million (2013: ZAR985.1 million), of which
Barberton Mines' contributed ZAR166.2 million , Evander Mines ZAR637.9 million and Phoenix Platinum ZAR6.7 million.
The group's cost of production per kilogram increased by 28.9% to ZAR298,345/kg (2013: ZAR231,439/kg). Evander Mines' cost of production averaged ZAR384,150/kg
compared to Barberton Mines' average cost of production of ZAR239,496/kg.
The group's all-in sustaining cash cost of production per kilogram (including direct cost of production, royalties, associated corporate costs and overheads and
sustaining capital expenditure) increased by 24.0% to ZAR349,008/kg (2013: ZAR 281,551/kg), largely impacted by Evander Mines' lower grade mining cycle.
The all-in cost per kilogram (sustaining cost of production and once-off expansion capital) increased by 8.7% to ZAR374,015/kg (2012: ZAR 343,949/kg), due to:
1) Lower gold ounces sold as a result of the Evander Mines low grade mining cycle and Barberton Mines reduced underground gold ounce sold as result of the
Sheba Mines flooding.
2) Once-off capital expenditure required to construct the ETRP amounted to ZAR79.2 million. The construction of the ETRP is currently funded by a ZAR200
million gold loan facility with a remaining term of 3.5 years.
3) Barberton Mines incurred additional once-off capital totalling ZAR26.5 million (2013: ZAR2.6 million) on four additional raise boreholes to improve
environmental conditions underground.
The improved overall production performance at Barberton Mines was as a result of the commissioning of the BTRP, which contributed an additional 22,885oz of gold
production. The group's Adjusted EBITDA remained largely in line with the previous year, with a small increase of 1.4% to ZAR745.5 million (2013: ZAR735.2
million).
Profit after taxation decreased by 19.1% to ZAR452.1 million (2013: ZAR ZAR558.9 million), primarily due to the points highlighted in the HEPS movement below, as
well as prior year's results which included a net once-off income amount of ZAR71.9 million as summarised below:
- Evander Mines acquisition bargain purchase gain of ZAR322.4 million;
- Impairment charges of ZAR242.3 million related to Phoenix Platinum and Auroch Minerals NL ('Auroch');
- Loss on sale of asset held for sale of ZAR8.2 million (also related to Auroch).
The group's EPS in ZAR was 24.74 cents (2013: 34.51 cents) a decrease of 28.3%.
The group posted a 7.2% decrease in headline earnings to ZAR452.0 million (2013: ZAR487.0 million). The group's HEPS in ZAR terms decreased by 17.7% to 24.74
cents (2013: 30.07 cents).
The HEPS decreased due to the following reasons:
- The low grade mining cycle at Evander Mines, which resulted in reduced production and profits compared to the prior year;
- Barberton Mines underground production decreased largely as result of flooding at Sheba Mine during March 2014, this was however off-set by the additional
gold production contributed to the group by the commissioning of the BTRP;
- The group realised a 1.7% decrease in the average ZAR gold price received to ZAR433,437/kg (2013: ZAR440,824/kg), whilst our production costs were subject
to inflationary increases.
- The weighted average number of shares in issue increased by 12.8% during the year to 1,827.2 million (2013: 1,619.8 million). This increase was due to the
new shares issued in January 2013 in the rights issue to shareholders, to partly fund the acquisition of Evander Mines.
The group's total taxation charge decreased by 28.1% to ZAR120.8 million (2013: ZAR167.9 million) due to:
- a decrease in deferred taxation as result of an adjustment to Evander Mines' long-term deferred taxation rate to 26.5% (2013: 28%).
- a reduction in gold profit margins due to the lower average ZAR gold price and margins in the year under review when compared to the prior year.
Statement of Financial Position
For the year ended 30 For the year ended 30 June
June 2014 2013 Movement
ZAR GBP ZAR GBP
(millions) (millions) (millions) (millions) ZAR GBP
Non-current assets 3,941.5 223.4 3,726.2 249.3 5.8% (10.4%)
Current assets(1) 423.4 23.5 401.5 26.7 5.5% (12.0%)
Total equity 2,788.4 159.4 2,568.8 172.2 8.5% (7.4%)
Non-current
liabilities 1,144.1 63.5 1,200.9 80.0 (4.7%) (20.6%)
Current liabilities 432.4 24.0 361.2 24.1 19.7% (0.4%)
Notes:
1. Current assets at 30 June 2013 exclude non-current assets held for sale of ZAR3.2 million (GBP0.2 million),relating to Barberton Mines' Segalla Plant.
Non-current assets increased by 5.8% to ZAR3,941.5 million (2013: ZAR3726.2 million). The increase was partly attributable to further capital expenditure at
Evander Mines for the construction of the ETRP, expected to commence production in January 2015. The group's capital expenditure by operation of ZAR363.0 million
(2013: ZAR381.6 million) is disclosed below and also contributed to the increase in non-current assets. Included in non-current assets is also the rehabilitation
trust fund balance of ZAR278.4 million (2013: ZAR254.8 million), which increased by ZAR23.6 million as a result of growth in investments. The rehabilitation trust
fund's amount is invested in interest-bearing short-term investments or medium-term equity linked notes issued by commercial banks.
Capital expenditure during the year amounted to ZAR363.0 million (2013: ZAR381.6 million), and is detailed by operation below:
2014 2013
ZAR GBP ZAR GBP
Group capital expenditure (millions) (millions) (millions) (millions)
Barberton Mines 110.3 6.5 87.2 6.3
BTRP 40.7 2.4 229.6 16.6
Evander Mines 131.3 7.8 62.4 4.5
ETRP 79.2 4.7 - -
Phoenix Platinum 0.4 - 2.2 0.2
Corporate 1.1 0.1 0.2 -
Total capital expenditure 363.0 21.5 381.6 27.6
Current assets increased by 5.5% to ZAR423.4 million (2013: ZAR401.5 million) as a result of an increase in cash on hand to ZAR101.2 million (2013: ZAR71.6). The
group remains cash generative with a net debt position of ZAR101.0 million (2013: ZAR93.6 million) at year-end, which includes the gold loan outstanding with
ABSA.
The increase in the group's equity is a result of an increase in retained earnings, due to this year's profit after tax of ZAR452.1 million, less the dividend
paid of ZAR240.3 million in December 2013.
Non-current liabilities decreased by 4.7% to ZAR1,144.1 million (2013: ZAR1,200.9 million). The decrease is a result of a 3.8% decrease in the deferred taxation
liability to ZAR780.8 million (2013: ZAR811.3 million) due to a downward revision of the long-term effective tax rate at Evander Mines to 26.5% (2013: 28%). The
deferred taxation rate applied to calculate the deferred tax liability is based on the effective statutory taxation rate at which the deferred taxation liability
is estimated to be realised over the life of the operation.
Current liabilities increased by 19.7% to ZAR432.4 million (2013: ZAR361.2 million). The majority of the increase is attributable to an increase in the current
portion of new long-term debt related to ABSA gold loan and an increase in the current taxation liability from the prior year.
Operational Performance
Review of group gold operations production summary
Year Units Underground and surface operations Tailings Total continuing operations
ended operations
30 June Barberton Evander Total BTRP Barberton Evander Group
Mines Mines(1) Mines Total Mines Total
Total(1)
Tonnes milled – underground 2014 (t) 263,574 395,127 658,701 - 263,574 395,127 658,701
2013 (t) 274,398 127,957 402,355 - 274,398 127,957 402,355
Tonnes milled – surface 2014 (t) 28,547 260,901 289,448 - 28,547 260,901 289,448
2013 (t) 36,086 74,428 110,514 - 36,086 74,428 110,514
Tonnes milled - total underground and surface 2014 (t) 292,121 656,028 948,149 - 292,121 656,028 948,149
2013 (t) 310,484 202,385 512,869 - 310,484 202,385 512,869
Tonnes processed – tailings 2014 (t) - - - 815,736 815,736 - 815,736
2013 (t) - - - - - - -
Headgrade – underground 2014 (g/t) 11.5 5.2 7.7 - 11.5 5.2 7.7
2013 (g/t) 11.8 7.8 10.5 - 11.8 7.8 10.5
Headgrade – surface 2014 (g/t) 1.3 1.4 1.4 - 1.3 1.4 1.4
2013 (g/t) 1.5 1.2 1.3 - 1.5 1.2 1.3
Headgrade - total underground and surface 2014 (g/t) 10.5 3.7 5.8 - 10.5 3.7 5.8
2013 (g/t) 10.6 5.4 8.6 - 10.6 5.4 8.6
Headgrade – tailings 2014 (g/t) - - - 1.6 1.6 - 1.6
2013 (g/t) - - - - - - -
Recovered grade 2014 (g/t) 9.4 3.6 5.4 0.9 3.1 3.6 3.3
2013 (g/t) 9.6 5.1 7.9 - 9.6 5.1 7.9
Overall recovery 2014 (%) 90% 96% 92% 56% 80% 96% 86%
2013 (%) 91% 96% 92% - 91% 96% 92%
Gold production – underground 2014 (oz) 87,979 65,956 153,935 - 87,979 65,956 153,935
2013 (oz) 95,135 31,522 126,657 - 95,135 31,522 126,657
Gold production – surface 2014 (oz) 759 10,600 11,359 - 759 10,600 11,359
2013 (oz) 1,161 2,675 3,836 - 1,161 2,675 3,836
Gold production – tailings 2014 (oz) - - - 22,885 22,885 - 22,885
2013 (oz) - - - - - - -
Gold sold 2014 (oz) 88,738 76,556 165,294 22,885 111,623 76,556 188,179
2013 (oz) 96,296 34,197 130,493 - 96,296 34,197 130,493
Average ZAR gold price received 2014 (ZAR/KG) 435,464 430,801 433,304 434,394 435,244 430,801 433,437
2013 (ZAR/KG) 450,829 412,641 440,824 - 450,829 412,641 440,824
Average USD gold price received 2014 (USD/oz) 1,309 1,295 1,302 1,305 1,346 1,295 1,303
2013 (USD/oz) 1,588 1,454 1,553 - 1,588 1,454 1,553
ZAR cash cost 2014 (ZAR/KG) 258,972 384,150 316,948 163,977 239,496 384,150 298,345
2013 (ZAR/KG) 221,424 259,640 231,439 - 221,424 259,640 231,439
ZAR all-in sustaining cash costs 2014 (ZAR/KG) 311,756 445,665 373,776 170,111 282,716 445,665 349,008
2013 (ZAR/KG) 273,653 303,790 281,551 - 273,653 303,790 281,551
ZAR all-in cost 2014 (ZAR/KG) 321,342 478,933 394,330 227,286 302,058 478,933 374,015
2013 (ZAR/KG) 350,302 326,061 343,949 - 350,302 326,061 343,949
USD cash cost 2014 (USD/oz) 778 1,154 952 493 740 1,154 897
2013 (USD/oz) 780 915 815 - 780 915 815
USD all-in sustaining cash cost 2014 (USD/oz) 937 1,339 1,123 511 874 1,339 1,049
2013 (USD/oz) 964 1,070 992 - 964 1,070 992
USD all-in cost 2014 (USD/oz) 966 1,439 1,185 683 934 1,439 1,124
2013 (USD/oz) 1,234 1,149 1,212 - 1,234 1,149 1,212
ZAR cash cost per ton 2014 (ZAR/t) 2,447 1,394 1,719 143 751 1,394 990
2013 (ZAR/t) 2,153 1,366 1,832 - 2,153 1,366 1,832
Capital expenditure 2014 (ZAR million) 110.3 210.5 320.8 40.7 151.0 210.5 361.5
2013 (ZAR million) 316.8 62.4 379.2 - 316.8 62.4 379.2
Average exchange rate 2014 (ZAR/USD) 10.35 10.35 10.35 10.35 10.06 10.35 10.35
2013 (ZAR/USD) 8.83 8.83 8.83 8.83 8.83 8.83 8.83
Revenue 2014 (ZAR million) 1,201.9 1,025.8 2,227.7 309.2 1,511.1 1,025.8 2,536.9
2013 (ZAR million) 1,350.3 438.9 1,789.2 - 1,350.3 438.9 1,789.2
Cost of Production 2014 (ZAR million) 714.8 914.7 1,629.5 116.7 831.5 914.7 1,746.2
2013 (ZAR million) 663.2 276.2 939.4 - 663.2 276.2 939.4
All-in sustainable cost of production 2014 (ZAR million) 860.5 1,061.2 1,921.7 121.1 981.6 1,061.2 2,042.8
2013 (ZAR million) 819.6 323.1 1,142.7 - 819.6 323.1 1,142.7
All-in cost of production 2014 (ZAR million) 886.9 1,140.4 2,027.3 161.8 1,048.7 1,140.4 2,189.1
2013 (ZAR million) 1,049.2 346.8 1,396.0 - 1,049.2 346.8 1,396.0
Adjusted EBITDA(2) 2014 (ZAR million) 420.9 128.3 549.2 193.1 614.0 128.3 742.3
2013 (ZAR million) 622.9 152.2 775.1 - 622.9 152.2 775.1
Note:
1. Evander Mines 2013 production summary information represents 4 months production information following the acquisition of Evander Mines on 28 February
2013.
2. Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and amortisation, bargain purchase gain, impairments and loss on
disposal of assets held for sale.
Review of Barberton Mines
Safety
Although zero harm is the top priority at Pan African Resources, it is with deep regret that we reported three fatal accidents at Barberton Mines during the year.
Two of the incidents were fall of ground related and one involved Trackless Mobile Machinery ('TMM').
Subsequent to these accidents, employees were counselled and engaged as to possible causes and remedial actions to prevent similar accidents happening in the
future.
Barberton Mines' total recordable injury frequency rate ('TRIFR') decreased to 13.5 (2013: 19.2) per 1,000,000 man hours worked, and the lost time injury
frequency rate ('LTIFR') improved to 1.9 (2013: 2.6) per 1,000,000 man hours worked. The reportable injury frequency rate ('RIFR') improved to 0.5 (2013: 1.5) per
1,000,000 man hours worked.
Operating performance
Barberton Mines (including BTRP) gold sold increased by 15.9% to 111,623oz (2013: 96,296oz).
The total combined USD cash costs per ounce decreased by 5.1% to USD740/oz (2013: USD780/oz). In ZAR per kilogram terms, total cash costs increased by 8.2% to
ZAR239,496/kg (2013: ZAR221,424/kg).
The total cost of production (including off mine costs) increased by 25.4% to ZAR831.5 million (2013: ZAR663.2 million).
The main year-on-year cost contributors were the following:
- The BTRP operations resulted in additional processing costs amounting to ZAR97.1 million for the financial year.
- Salary and wages increased by 15.5% to ZAR369.9 million (2013: ZAR320.3 million). The increase was driven by additional employees for the management of
the BTRP, resulting in additional costs of ZAR9.5 million (or increase of 3.0%), coupled with a two year wage agreement in line with the Chamber of Mines.
Barberton Mines also introduced a medical aid scheme for category workers 4 to 8 of which the company contributes 60% towards each member's premium, this
added costs of ZAR6.7 million in the current year.
- Mining costs increased by only 4.1% to ZAR102.6 million (2013: ZAR98.6 million) due to the vamping contractors gold production having decreased from the
prior year by 7.4%. The mining costs excluding the vamping contractors costs increased by 8.9% year-on-year.
- Processing costs (excluding the BTRP reagents) increased by 8.4% to ZAR61.8 million (2013: ZAR57.0 million).
- Engineering and technical services costs increased by 12.5% to ZAR64.0 million (2013: ZAR56.9 million). The majority of this increase was for additional
secondary support installations required at Fairview mine, and increased maintenance on the TWM following the fatality as report above.
- Electricity costs excluding the BTRP increased by 6.4% to ZAR76.7 million (2013: ZAR72.1 million), which were lower than the average 8% increase in Eskom
tariffs. The decrease in electricity usage reflects the three week closure of Sheba Mine following flooding during March 2014. The electricity cost of the
BTRP amounted to ZAR9.2 million resulting in the total Barberton Mines electricity costs increasing by 19.1% to ZAR85.9 million (2013: ZAR72.1 million).
- Security costs were well controlled and only increased by 4.7% to ZAR26.8 million (2013: ZAR25.6 million).
- Administration and other costs increased by 10.3% to ZAR33.2 million (2013: ZAR30.1 million). The higher than CPI increase was mainly due to additional
insurance costs in relation to the BTRP.
- Barberton Mines had gold inventory movements decreasing the cost of production by ZAR14.4 million due to the BIOX® locking up gold concentrates equivalent
to 59.4 kilograms (1,910 ounces) of gold at year end. During the last quarter of the financial year, the Biox® experienced a temporary set-back in
recoveries, due to oil contamination resulting from a breakdown at the Fairview primary crusher. This necessitated the management team in having to
separate certain gold concentrates from the BIOX® at year end to stabilise the bacteria organisms. The gold concentrates will be reprocessed during the
new financial year. The overall recoveries as result of the incident decreased for the full year to 90% (2013: 91%).
The total combined USD all-in cash cost per ounce decreased by 24.3% to USD934/oz (2013: USD1,234/oz). Barberton Mines' ZAR combined all-in cash cost per kilogram
decreased by 13.8% to ZAR302,058/kg (2013: ZAR350,302/kg). This decrease in all-in cash costs was mainly as a result of the once-off non-sustainable capital
expenditure decreasing by ZAR188.9 million due to the BTRP construction in the prior year.
Mining operations
Barberton Mines' (excluding BTRP) gold sold decreased to 88,738oz (2013: 96,296oz). Mining operations tonnes milled decreased by 5.9% to 292,121t (2013:
310,484t). The decrease in tonnes milled was mostly as a result of the Sheba Mine flooding during March 2014, as a result of a cloud-burst, forcing the mine to
close for three weeks. This effectively reduced production tonnages by 9,000 tonnes (or 2.9% of the prior year's production tonnages), at an average Sheba Mine's
headgrade of 8.5g/t, resulting in an estimated reduction of 2,165 ounces of gold sold.
The decrease in gold sold from Barberton Mines underground and surface mining operations was therefore as a result of:
- Decrease in tonnes milled due to the Sheba Mine flooding.
- Gold ounces in Biox® lock up, due to oil contamination from the breakdown at the Fairview primary crusher.
The underground head grade reduced marginally to 11.5g/t (2013: 11.8g/t), and gold recoveries decreased to 90% (2013: 91%) as a result of the BIOX® incident
mentioned above.
The total underground and surface USD cash costs per ounce decreased by 0.3% to USD778/oz (2013: USD780/oz). In ZAR per kilogram terms, total cash costs increased
by 17.0% to ZAR258,972/kg (2013: ZAR221,424/kg).
Tailing operations - BTRP
The BTRP construction was completed in the prior financial year and production commenced on 1 July 2013.
BTRP gold sold was 22,885oz for the year. The plant processed 815,736t of tailings at a headgrade of 1.6g/t and achieved a higher than expected recovery of 56%
(originally planned recovery: 50%).
The BTRP USD cash costs per ounce were USD493/oz. In ZAR per kilogram terms, total cash costs were ZAR163,977/kg.
Capital expenditure
Total capital expenditure at Barberton Mines decreased by 52.3% to ZAR151.0 million (2013: ZAR316.8 million). Maintenance capital expenditure of ZAR33.3 million
(2013: ZAR45.1 million) and development capital expenditure of ZAR50.5 million (2013: ZAR42.1 million) was incurred. Expansion capital incurred on the BTRP
construction totalled ZAR40.7 million (2013: ZAR229.6 million), and capital on the development of four new raise boreholes at Fairview Mine to improve
environmental conditions was ZAR26.5 million (2013: ZAR2.6 million).
Review of Evander Mines
Safety
It is with deep regret that we report one fatal accident at Evander Mines during the financial year. The incident related to a fall of ground accident. Preventing
fall of ground accidents remains a focus area within the group, in order to ensure a safe working environment. Evander Mines is in the process of improving its
safety statistics by implementing phase four of its safety programme ('Vuka Sizwe').
Evander Mines' TRIFR improved to 6.0 (2013: 7.7) per 1,000,000 man hours worked, and the LTIFR increased to 4.1 (2013: 2.9) per 1,000,000 man hours worked. The
RIFR has shown a regression to 2.6 (2013: 1.7) per 1,000,000 man hours worked.
Operating performance
Evander Mines gold sold decreased to 76,556oz (2013: 95,089oz1). Mining operations tonnes milled increased by 10.7% to 656,028t (2013: 592,484t1). The increase in
tonnes milled was mostly due to an increase in surface stockpiles processed of 58,789t, whilst underground tonnes milled increased by 4,755t.
As a result of the low grade mining cycle, the underground head grade decreased to 5.2g/t (2013: 7.4g/t1). The Kinross processing plant performed well, and
achieved improved plant recoveries of 96% (2013: 95%1).
As previously announced, this low grade mining cycle at Evander Mines is expected to continue until February 2015, and will therefore also impact group results
and earnings for the first eight months of the 2015 financial year. Measures implemented, or in progress, to mitigate the impact of the current low grade cycle
at Evander Mine's include the following:
- The construction of the ETRP to yield an estimated 10,000oz of gold per annum, with a life of mine of 17 years. The ETRP project is progressing well and
expected to be in production by January 2015.
- Surface sources throughput in the Evander plant has been increased from 18,000 tonnes per month to approximately 30,000 tonnes per month. To maintain these
tonnages for the full 2015 financial year, additional sources are being investigated.
- Vamping (the mining of historical “leftovers” remaining after previous mining operations) at Evander No 7 Shaft has been expanded to include the 15 Level
return airway mud accumulation project. This has been contributing additional ounces from July 2014.
- Management is concentrating efforts to increase availability of conveyor belts in the Evander No 8 Shaft declines. A refurbishment program has been
implemented to effect the necessary mechanical improvements and upgrades.
- Management has rescheduled the mine planning and improved mining flexibility by increasing development rates on 25 and 25A Levels at Evander No 8 Shaft to
access more stoping areas.
The total cost of production including off mine costs increased by 9.5% to ZAR914.7 million (2013: ZAR835.4 million1). The Evander Mines management team
successfully focused on containing their costs whilst in the lower grade mining cycle, resulting in their cost per ton decreasing by 1.1% to ZAR1,394/t (2013:
ZAR1,410/t).
The main year-on-year cost contributors were the following:
- Salary and wages increased by 7.1% to ZAR448.9 million (2013: ZAR419.0 million). The salary and wages increased as result of the Chamber of Mines
wage settlement.
- Mining costs increased by 28.1% to ZAR89.4 million (2013: ZAR69.8 million) due to additional vamping occurring in 7 Shaft, and additional
maintenance on blasting barricades.
- Processing costs increased by 22.3% to ZAR33.5 million (2013: ZAR27.4 million), due to the additional surface tonnages being processed through the
plant.
- Engineering and technical services costs increased by 26.6% to ZAR86.6 million (2013: ZAR68.4 million). The majority of this increase related to
additional costs to improve maintenance of the 11 conveyor belts on 8 Shaft, which has a total length of 14 kilometres, as well maintaining and
improving the trackless fleet.
- Electricity and water costs were well controlled and decreased by 3.2% to ZAR164.2 million (2013: ZAR169.7 million) due to benefits realised from
the load clipping optimisation program that manages and improves the consumption of power.
- The security costs remained well controlled and decreased by 22.6% to ZAR12.7 million (2013: ZAR16.4 million), highlighting the cost benefits of a
centralised security monitoring team for both Barberton Mines and Evander Mines.
- Administration and other costs decreased by 24.5% to ZAR57.7 million (2013: ZAR76.4 million) as result of not sharing in Harmony's corporate and
other costs in the current year.
- Off mines costs decreased by 23.5% to ZAR1.3 million (2013: ZAR1.7 million) in line with the lower gold production supplied to the refinery.
- Evander Mines had gold inventory movements increasing the cost of production by ZAR20.5 million (2013: ZAR13.4 million decrease in production
costs).
The total underground and surface USD cash costs per ounce decreased by 16.0% to USD1,154/oz (2013: USD995/oz1). However, in ZAR per kilogram terms, total cash
costs increased by 36.0% to ZAR384,150/kg (2013: ZAR282,451/kg1).
Capital expenditure
Total capital expenditure at Evander Mines was ZAR210.5 million (2013: ZAR201.1 million1). Maintenance capital expenditure was ZAR27.9 million (2013: ZAR65.0
million1) and development capital expenditure was ZAR103.4 million (2013: ZAR54.2 million1). Expansion capital related to the ETRP plant construction was ZAR79.2
million. In the prior year Evander Mines spent expansion capital on the shaft deepening project of ZAR81.9 million1.
Note:
1. The prior year Evander Mines values were obtained from historical financial records to allow for consistent reporting with the group's current gold
operations costs. Therefore the values may vary from Harmony's previously announced values.
Review of platinum tailings operations
Review of Phoenix Platinum
Safety
Phoenix maintained its excellent safety record, with no injuries recorded.
Operating performance
An improved performance at Phoenix Platinum in the year under review resulted in PGE ounces sold increasing by 11.2% to 7,204oz PGE (2013: 6,480oz PGE). Several
challenges were encountered during November 2013 as a result of furnace ash and talc material which was historically deposited by IFM on the Buffelsfontein dumps
affecting plant recoveries. Furnace ash and talc dilutes the final concentrate grade and must be chemically modified to prevent a negative effect on the plant
recoveries. The problem was identified by a process of elimination and by metallurgical test work carried out, and an estimated 500 PGE ounces were lost during
the year under review as a result of this contamination. Despite this, Phoenix Platinum was still able to improve its recoveries to 29% (2013: 21%) and improve
PGE ounce production.
The CTRP was designed to treat sulphide material from the Lesedi Mine, which initially supplied Phoenix Platinum with sulphide-rich material. However subsequent
to commissioning the plant, IFM stopped its underground operations at Lesedi and focussed on oxidised material from their open cast operation. This resulted in
oxidised tailings being blended into the Phoenix Platinum feedstock during the year under review. The metallurgy of oxidised tailings negatively affects the
recovery and concentrate grade in the CTRP. This in turn results in poor PGM concentrate production. In July 2014, IFM resumed mining at Lesedi Mine and the
expected tonnages from this sulphide material should improve Phoenix Platinum production and plant recoveries.
In the year under review, the effective average PGE basket price received increased by 9.8% ZAR9,987/oz (2013: ZAR9,093/oz). Cost per ounce of production
increased by 2.3% to ZAR7,723/oz (2013: ZAR7,551/oz). This marginal increase in costs was offset by improved production. The plant feed decreased during the
period by 8.4% to 251,182t (2013: 274,190t) as result of the talc and furnace ash complications highlight above.
The total cost of production increased by 13.7% to ZAR55.6 million (2013: ZAR48.9 million).
The main year-on-year cost contributors were the following:
- Salary and wages of 9.9% to ZAR17.7 million (2013: ZAR16.1 million), comprising a standard increase of 7.5% granted to the employees in line with
the gold operations and an incentive bonus scheme for achieving targets and realising a profit.
- Processing costs increased by 16.0% to ZAR33.3 million (2013: ZAR28.7 million) as result of increased reagent costs and consumption to address the
talc and furnace ash in the tailings processed, whilst additional processing costs were incurred due to higher chrome content fees charged during
the refining process.
- Administration costs increased by 50.0% to ZAR0.6 million (2013: ZAR0.4 million), due to an increase in consulting fees.
- Security cost remained well controlled at ZAR0.5 million (2013: ZAR0.5 million).
- Electricity costs increased by 12.5% to ZAR3.6 million (2013: ZAR3.2 million). Phoenix Platinum sources electricity from IFM and the effective cost
per kWh increased as result of IFM no longer benefitting from a historical Eskom rebate.
Phoenix Platinum was able to achieve its maiden headline profit of ZAR3.7 million (2013: ZAR6.4 million headline loss) for the financial year, despite challenges
highlighted above and the five month platinum industrial action that occurred during the financial year.
Year ended Units Tailings
30 June operations
Phoenix
Platinum
Tonnes processed – tailings 2014 (t) 251,182
2013 (t) 274,190
Headgrade – tailings 2014 (g/t) 3.7
2013 (g/t) 3.7
Overall recovery 2014 (%) 29%
2013 (%) 21%
PGE Sold 2014 (oz) 7,204
2013 (oz) 6,480
Average ZAR PGE price received 2014 (oz) 9,987
2013 (oz) 9,093
Average USD gold price received 2014 (USD/oz) 965
2013 (USD/oz) 1,030
ZAR cash cost 2014 (ZAR/oz) 7,723
2013 (ZAR/oz) 7,551
ZAR all-in sustaining cash costs 2014 (ZAR/oz) 7,977
2013 (ZAR/oz) 8,632
ZAR all-in cost 2014 (ZAR/oz) 7,977
2013 (ZAR/oz) 8,632
USD cash cost 2014 (USD/oz) 746
2013 (USD/oz) 855
USD all-in sustaining cash cost 2014 (USD/oz) 771
2013 (USD/oz) 978
USD all-in cost 2014 (USD/oz) 771
2013 (USD/oz) 978
ZAR cash cost per ton 2014 (ZAR/t) 222
2013 (ZAR/t) 178
Capital expenditure 2014 (ZAR million) 0.4
2013 (ZAR million) 2.2
Average exchange rate 2014 (ZAR/USD) 10.35
2013 (ZAR/USD) 8.83
Revenue 2014 (ZAR million) 71.9
2013 (ZAR million) 58.9
Cost of Production 2014 (ZAR million) 55.6
2013 (ZAR million) 48.9
All-in sustainable cost of production 2014 (ZAR million) 57.5
2013 (ZAR million) 55.9
All-in cost of production 2014 (ZAR million) 57.5
2013 (ZAR million) 55.9
Adjusted EBITDA1 2014 (ZAR million) 16.0
2013 (ZAR million) 6.9
The capital expenditure is projected to be approximately ZAR200 million, with a construction period of less than 12 months to first gold production. The group had
spent ZAR79.2 million of the project value during the 2014 financial year.
Auroch
Auroch is an exploration company focused on developing and exploring the Manica Gold Project ('Manica') in Mozambique. Manica was previously owned by Pan African
Resources. After its sale of Manica to Auroch during January 2013, as part of the transaction consideration, Pan African Resources was issued 42% of the total
issued share capital of Auroch. During the reporting period, the group consolidated ZAR2.9 million (2013: ZAR2.1 million) of Auroch's exploration and corporate
costs incurred, this is disclosed in the Statement of comprehensive income under 'Loss in Associate'.
The group announced on 26 November 2013 that Pan African entered into an amending agreement with Auroch:
1. Per this amendment to the agreement dated 23 May 2014, Auroch shall pay Pan African an amount of AUD2 million in cash, of which AUD0.55 million is payable
prior to 30 June 2014, in relation to option payments and the balance AUD1.45 million is a final payment due by 30 September 2015.
2. If Auroch settles the full cash consideration in accordance with the amending agreement, Pan African shall allow Auroch to reacquire or cancel the
consideration shares at no additional cost or consideration.
In the event that Auroch fails to settle the cash consideration pursuant to the amended agreement, the amendment will expire and the provisions of the Original
Agreement will be restored. Any payment made under the amending agreement is non-refundable.
Commitments
The group's commitments have been presented in both ZAR and GBP for ease of review for both UK and SA shareholders. The group had no contingent liabilities in the
current financial year or prior year.
Commitments reported in ZAR
The group had outstanding open orders contracted for at year end of ZAR89.8 million (2013: ZAR72.7 million).
Authorised commitments for the new financial year not yet contracted for totalled ZAR343.3 million (2013: ZAR144.5 million).
The group had guarantees of ZAR24.6 million (2013: ZAR24.6 million) in favour of Eskom, and ZAR14.0 million (2013: ZAR14.0 million) in favour of the Department of
Mineral Resources at year end.
Operating lease commitments, which fall due within the next year, amounted to ZAR2.6 million (2013: ZAR1.6 million).
Commitments reported in GBP
The group had outstanding open orders contracted for at year end of GBP5.0 million (2013: GBP4.8 million).
Authorised commitments for the new financial year not yet contracted for totalled GBP19.1 million (2013: GBP9.6 million).
The group had guarantees of GBP1.4 million (2013: GBP1.6 million) in favour of Eskom, and GBP0.8 million (2012: GBP0.9 million) in favour of the Department of
Mineral Resources at year end.
Operating lease commitments, which fall due within the next year, amounted to GBP0.2 million (2013: GBP0.2 million).
Basis of preparation of financial statements
Investors should consider non-Generally Accepted Accounting Principles ('non-GAAP') financial measures shown in this provisional announcement in addition to, and
not as a substitute for or as superior to, measures of financial performance reported in accordance with International Financial Reporting Standards ('IFRS'). The
IFRS results reflect all items that affect reported performance and therefore it is important to consider the IFRS measures alongside the non-GAAP measures.
The provisional audited results announcement is only a summary of the information in the Integrated Report and does not contain full or complete details. Any
investment decision by investors and/or shareholders should be based on consideration of the final Integrated Report to be published on SENS and the company's
website as a whole.
JSE Limited listing
The company has a dual primary listing on JSE Limited ('JSE') in South Africa and the AIM market ('AIM') of the London Stock Exchange.
This provisional announcement has been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS and SAICA
financial reporting guidelines as issued by the accounting practice committee and financial reporting pronouncement as issued by the financial reporting standards
council, and the information as required by International Accounting Standards ('IAS') 34: Interim Financial Reporting.
The group's South African external auditors, Deloitte & Touché, have issued their opinions on the group's financial statements and the summary consolidated
financial statements for the year ended 30 June 2014. The audit was conducted in accordance with International Standards on Auditing. Deloitte and Touché have
expressed the unmodified opinions on the group's financial statements and the summary consolidated financial statements. The copies of their audit reports are
available for inspection at the company's registered office. Any reference to future financial performance included in this provisional report have not been
reviewed or reported on by the group's South African external auditors.
The auditor's report does not necessarily report on all of the information contained in this announcement/financial results. Shareholders are therefore advised
that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of that report together with the accompanying
financial information from the issuer's registered office.
These summarised consolidated financial statements are extracted from the audited group financial statements. The directors take full responsibility for the
preparation of the provisional audited results and confirm that the financial information has been correctly extracted from the underlying financial statements.
AIM listing
The financial information for the year ended 30 June 2014 does not constitute statutory accounts as defined in sections 435 (1) and (2) of the United Kingdom
('UK') Companies Act 2006 but has been derived from those accounts. Statutory accounts for the year ended 30 June 2013 have been delivered to the Registrar of
Companies and those for 2014 will be delivered following the company's annual general meeting. Deloitte LLP, the external auditor registered in the UK, have
reported on these accounts for the year ended 30 June 2014. Their report was unqualified, did not include a reference to any matters to which auditors draw
attention by way of emphasis of matter and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. These statutory accounts have been
prepared in accordance with IFRS and IFRS Interpretations Committee ('IFRIC') interpretations adopted for use by the European Union, with those parts of the UK
Companies Act 2006 applicable to companies reporting under IFRS.
Directorship Changes
The following changes took place during the year under review:
Appointments:
- RA Holding was appointed as a director and chief executive officer with effect from 1 September 2013.
- JAJ Loots was appointed as financial director effective 1 October 2013. JAJ Loots was previously a non-executive director of the group.
- TF Mosololi was appointed as an independent non-executive director effective 9 December 2013.
Resignations:
- B Sitole resigned as the financial director, effective 30 September 2013.
Shares Issued
During the financial year under review 7,160,500 shares were issued in relation to share options exercised:
- 9 September 2013 : 3,000,000 shares issued at 5 pence per share.
- 16 October 2013 : 2,063,000 shares were issued as follows:
- 1,213,000 shares issued at 5 pence per share.
- 850,000 shares issued at 4 pence per share.
- 10 February 2014 : 282,500 shares were issued at 4 pence per share.
- 20 February 2014 : 965,000 shares were issued at 4 pence per share.
- 5 June 2014 : 850,000 shares were issued at 4 pence per share.
Dividend
Historically, the board has recommended an annual dividend to shareholders, for approval at the AGM. The board recognises that where possible, shareholders
require a cash return on their investment. Pan African Resources has now revised and further clarified its dividend policy, going forward the company will pay a
progressive annual ZAR dividend. Any dividend recommendation and payment, however, will still be dependent on prevailing gold prices and other external factors,
as well as the performance of and outlook for the group.
The group paid a dividend of ZAR240.3 million (GBP14.7 million) for the 2013 year, equating to ZAR0.1314 per share (0.8030p per share).
The board has proposed a dividend of ZAR258.0 million (approximately GBP14.5 million1) for the 2014 financial year, equating to ZAR0.1410 per share (approximately
0.7898p per share1), resulting in a dividend cover of 1.8 times.
Note 1: The GBP proposed dividend was calculated based on an exchange rate of ZAR17.85:1. The UK shareholders are to note that a revised exchange rate will be communicated prior to
final approval at the AGM. Therefore the proposed dividend is approximately 0.7898p per share.
Going concern
The board confirms that the business is a going concern and that it has reviewed the business' working capital requirements in conjunction with its future funding
capabilities for at least the next 12 months, and has found them to be adequate. The group has a revolving credit facility with Nedbank Limited, ABSA Limited and
Rand Merchant Bank. The group at 30 June 2014 had unutilised RCF facilities of ZAR600 million and cash on hand of ZAR101.2 million to assist in funding working
capital requirements. Management are not aware of any material uncertainties which may cast significant doubt on the group's ability to continue as a going
concern. Should the need arise the group can cease most exploration and capital activities, and by doing so conserve cash.
Events after the reporting period
Mr RG Still resigned as a non-executive director with effect from 1 July 2014.
Mr R Smith was appointed as an independent non-executive director, with effect from 08 September 2014.
On 29 August 2014, Barberton Mines implemented a broad-based employee ownership scheme (ESOP). A newly established employee trust will own 5% of the issued share
capital of Barberton Mines. The transaction was fully vendor financed on a notional basis by Barberton Mines, the preference share funding attracts market
related returns and dilution effect to Pan African Resources is limited.
Accounting policies
The provisional announcement has been prepared using accounting policies that comply with the IFRS adopted by the European Union and South Africa, which are
consistent with those applied in the financial statements for the year ended 30 June 2014 and prior year end 30 June 2013.
Directors' dealings
Mr JAJ Loots had participated in the following transactions in the company's shares:
- 17 September 2013, purchased 50,000 shares at ZAR2.23 per share.
At 30 June 2014 Mr JAJ Loots held a total of 231,575 shares (2013: 181,575) representing 0.01% of the issued share capital.
Mr RG Still is a trustee of a family trust ('The Alexandra Trust'). Mr RG Still is therefore deemed to have an indirect, non-beneficial interest in The Alexandra
Trust's holding in the company.
The Alexandra trust had the following dealings in shares:
- 01 October 2013, sold 360,916 shares at ZAR2.70 per share.
- 02 to 06 May 2014, sold 4,312,700 shares at an average price of ZAR2.70 per share.
At 30 June 2014 the Alexandra Trust held a total of 7,000,000 shares (2013: 11,673,616) representing 0.38% of the issued share capital.
Segment Reporting
A segment is a distinguishable component of the group that is engaged in providing products or services in a particular business sector or segment, which is
subject to risk and rewards that are different to those of other segments. The group's business activities were conducted through five business segments:
- Barberton Mines (Including BTRP), located in Barberton South Africa,
- Evander Gold Mining (Pty) Ltd and Evander Gold Mines Ltd ('Collectively known as Evander Mines'), located in Evander South Africa,
- Phoenix Platinum, located near Rustenburg South Africa,
- Corporate and growth projects and,
- Pan African Resources Funding Company (Pty) Ltd ('Funding company').
The Executive committee ('Exco') reviews the operations in accordance with the disclosures presented above.
Pan African Resources Outlook
The board approved construction and commissioning of the ETRP is significant, as it has an estimated resource of 0.4 million ounces and adds immediate production
ounces to Evander Mines. Should the ETRP project meet targets, we will evaluate a project to commission a further, much larger plant – the Elikhulu Project -
situated at Evander to treat tailings from the Winkelhaak, Leslie, Bracken and Kinross Dam storage facilities, with an estimated resource of 1.5 million ounces.
Our long-term project pipeline at Evander Mines also includes the Evander South, Poplar and Rolspruit projects. Evander South has estimated resources of
5.2 million, Poplar 5.4 million ounces, and Rolspruit 8.9 million ounces.
The refurbishment of Fairview Number 2 and 3 Decline Shafts at Barberton Mines will continue for another 18 months, after which operations will revert to six
shifts per week.
Once the above plans are actioned we will be on track to achieve our targeted 250,000 ounces of annual production from our current portfolio of assets and
infrastructure.
Pan African Resources is also very well positioned to take advantage of further growth opportunities.
We extend our thanks to our management team, our mine managers and all their staff for their hard work and persistence that have allowed Pan African Resources to
continue growing from strength to strength. We also thank our fellow directors for their support and guidance.
Ronald Holding
Chief Executive Officer
Cobus Loots
Financial Director
16 September 2014
Summary Consolidated Financial Statements
Summarised Consolidated Statement of Financial Position at 30 June 2014
30 June 2014 30 June 2013
(Audited) (Audited)
GBP GBP
ASSETS
Non-current assets
Property, plant and equipment and mineral rights 185,375,968 209,489,677
Other intangible assets 214,330 340,484
Deferred taxation 366,567 312,798
Goodwill 21,000,714 21,000,714
Investments in associate 1,009,545 1,199,071
Rehabilitation trust fund 15,458,291 16,973,713
Current assets
Inventories 5,341,128 6,595,740
Current tax asset 854,568 1,479,339
Trade and other receivables 11,696,380 13,904,416
Cash and cash equivalents 5,618,323 4,768,916
Non-current assets held for sale - 213,191
TOTAL ASSETS 246,935,814 276,278,059
EQUITY AND LIABILITIES
Capital and reserves
Share capital 18,299,947 18,228,342
Share premium 94,792,516 94,515,562
Translation reserve (47,545,320) (22,166,345)
Share option reserve 1,154,891 1,031,955
Retained income 114,106,005 102,005,124
Realisation of equity reserve (10,701,093) (10,701,093)
Merger reserve (10,705,308) (10,705,308)
Other reserves (5,529) -
Total equity 159,396,109 172,208,237
Non-current liabilities
Long term provisions 12,033,167 14,821,152
Long term liabilities 8,141,317 11,132,960
Deferred taxation 43,353,577 54,049,440
Current liabilities
Trade and other payables 17,219,749 23,202,052
Current portion of long term liabilities 4,754,803 864,218
Current tax liability 2,037,092 -
TOTAL EQUITY AND LIABILITIES 246,935,814 276,278,059
Summarised Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2014
30 June 2014 30 June 2013
(Audited) (Audited)
GBP GBP
Revenue
Gold sales 150,288,898 129,277,438
Platinum sales 4,262,160 4,257,512
Realisation costs (349,454) (226,738)
On - mine revenue 154,201,604 133,308,212
Gold cost of production (103,099,110) (67,646,119)
Platinum cost of production (3,294,975) (3,535,046)
Mining depreciation (10,023,361) (5,998,267)
Mining profit 37,784,158 56,128,780
Other (expenses) (1,449,853) (5,652,226)
Bargain purchase consideration - 24,114,255
Loss in associate (173,177) (152,312)
Loss on disposal of asset held for sale (11,848) (586,138)
Impairments costs - (16,143,604)
Royalty costs (2,019,066) (3,198,622)
Net income before finance income and finance costs 34,130,214 54,510,133
Finance income 687,185 1,454,659
Finance costs (878,064) (1,257,696)
Profit before taxation 33,939,335 54,707,096
Taxation (7,154,742) (12,133,063)
Profit after taxation 26,784,593 42,574,033
Other comprehensive income:
Other movements (5,529) -
Foreign currency translation differences (25,378,975) (20,228,836)
Total comprehensive income for the year 1,400,089 22,345,197
Profit attributable to:
Owners of the parent 26,784,593 42,574,033
26,784,593 42,574,033
Total comprehensive income attributable to:
Owners of the parent 1,400,089 22,345,197
1,400,089 22,345,197
Earnings per share 1.47 2.63
Diluted earnings per share 1.46 2.62
Weighted average number of shares in issue 1,827,207,555 1,619,756,902
Diluted number of shares in issue 1,831,339,174 1,625,933,891
Headline earnings per share is calculated :
Basic earnings 26,784,593 42,574,033
Bargain purchase gain - (24,114,255)
Profit on disposal of property plant and
equipment and mineral resource (20,497) -
Loss on disposal of asset held for sale 11,848 586,138
Impairment costs - 16,143,604
Headline earnings 26,775,944 35,189,520
Headline earnings per share 1.47 2.17
Diluted headline earnings per share 1.46 2.16
Summarised Consolidated Statement of Cashflows
FOR THE YEAR ENDED 30 JUNE 2014
30 June 2014 30 June 2013
Audited Audited
GBP GBP
NET CASH GENERATED FROM OPERATING ACTIVITIES 22,170,837 48,265,537
INVESTING ACTIVITIES
Additions to property, plant and equipment and mineral rights (21,461,839) (27,566,533)
Net cash outflows from the acquisition of Evander - (96,006,400)
Additions to intangibles (38,617) -
Proceeds on disposals of assets 145,366 10,555
Funding of the rehabilitation trust fund - 359,172
NET CASH USED IN INVESTING ACTIVITIES (21,355,090) (123,203,206)
FINANCING ACTIVITIES
Proceeds from borrowings 22,955,725 34,763,874
Borrowings repaid (22,431,453) (22,545,100)
Shares issued 348,559 50,614,255
Share issue costs - (3,502,273)
NET CASH FROM FINANCING ACTIVITIES 872,831 59,330,756
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,688,578 (15,606,913)
Cash and cash equivalents at the beginning of the period 4,768,916 19,782,179
Effect of foreign exchange rate changes (839,171) 593,650
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5,618,323 4,768,916
Summarised Audited Consolidated Statement of Changes in Equity for
the period 30 June 2014
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Share Share Premium Translation Share option Retained Realisation of Merger Other
Capital account reserve reserve earnings equity reserve reserve reserves Total
Balance at 30 June 14,482,623 51,149,299 (1,937,509) 904,902 59,432,741 (10,701,093) (10,705,308) - 102,625,655
2012
Issue of shares 3,745,719 46,868,536 - - - - - - 50,614,255
Share issue costs - (3,502,273) - - - - - - (3,502,273)
Other reserves - - - - (1,650) - - (1,650)
Total comprehensive - - (20,228,836) - 42,574,033 - - - 22,345,197
income
Share based payment - - - - 127,053 - - - - 127,053
charge for the year
Balance at 30 June 18,228,342 94,515,562 (22,166,345) 1,031,955 102,005,124 (10,701,093) (10,705,308) - 172,208,237
2013
Issue of shares 71,605 276,954 - - - - - 348,559
Total comprehensive - - (25,378,975) - 26,784,593 - - (5,529) 1,400,089
income
Dividends paid (14,683,712) (14,683,712)
Share based payment - - - - 122,936 - - - 122,936
charge for the year
Balance at 30 June 18,299,947 94,792,516 (47,545,320) 1,154,891 114,106,005 (10,701,093) (10,705,308) (5,529) 159,396,109
2014
Summarised Audited Consolidated Segment Report for the Year Ended 30 June 2014
30 June 2014 30 June 2013
Barberton Evander Phoenix Corporate Funding Group Barberton Evander Phoenix Corporate Funding Group
Mines Mines Platinum office company** Mines Mines Platinum office and company**
and * Growth **
Growth Projects
Projects
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
Revenue
Gold sales** 89,520,058 60,768,840 - - - 150,288,898 97,564,881 31,712,557 - - - 129,277,438
Platinum sales - - 4,262,160 - - 4,262,160 - - 4,257,512 - - 4,257,512
Realisation costs (269,403) (80,051) - - - (349,454) (179,270) (47,468) - - - (226,738)
On - mine revenue 89,250,655 60,688,789 4,262,160 - - 154,201,604 97,385,611 31,665,089 4,257,512 - - 133,308,212
Cost of production (48,989,722) (54,109,388) (3,294,975) - - (106,394,085) (47,739,505) (19,906,614) (3,535,046) - - (71,181,165)
Depreciation (3,905,925) (5,558,837) (558,599) - - (10,023,361) (3,000,640) (2,056,566) (941,061) - - (5,998,267)
Mining profit 36,355,008 1,020,564 408,586 - - 37,784,158 46,645,466 9,701,909 (218,595) - - 56,128,780
Other expenses * (1,704,438) 857,879 (20,576) (566,710) (16,008) (1,449,853) (2,188,879) (8,783) (221,604) (3,231,154) (1,806) (5,652,226)
Bargain purchase - - - - - - - 24,114,255 - - - 24,114,255
Loss from associate - - - (173,177) - (173,177) - - - (152,312) - (152,312)
Loss on disposal of (11,848) - - - - (11,848) - - - (586,138) - (586,138)
asset held for sale
Impairment costs - - - - - - - - (2,495,480) (13,648,124) - (16,143,604)
Royalty costs (2,185,136) 166,070 - - - (2,019,066) (2,450,476) (748,146) - - - (3,198,622)
Net income / (loss) 32,453,586 2,044,513 388,010 (739,887) (16,008) 34,130,214 42,006,111 33,059,235 (2,935,679) (17,617,728) (1,806) 54,510,133
before finance
income and finance
costs
Finance income 173,405 344,903 - 168,877 - 687,185 77,463 283,229 - 1,093,967 - 1,454,659
Finance costs (35,333) (7,743) - (31) (834,957) (878,064) (107,810) (296,888) - - (852,998) (1,257,696)
Profit /(loss) 32,591,658 2,381,673 388,010 (571,041) (850,965) 33,939,335 41,975,764 33,045,576 (2,935,679) (16,523,761) (854,804) 54,707,096
before taxation
Taxation (8,969,604) 1,828,847 (172,379) 145,372 13,022 (7,154,742) (11,408,506) (962,917) (24,863) 286,257 (23,034) (12,133,063)
Profit /(loss) 23,622,054 4,210,520 215,631 (425,669) (837,943) 26,784,593 30,567,258 32,082,659 (2,960,542) (16,237,504) (877,838) 42,574,033
after taxation
* Other expenses exclude inter-company management fees and dividends
** All gold sales were made in the Republic of South Africa and the majority of revenue (more than 90%) was generated from a single customer, Rand Refinery.
***The Funding company was established during the 2013 financial year with effect from 1 March 2013.
Segmental assets
(Total assets
excluding goodwill) 57,519,959 152,476,424 12,427,761 3,482,325 28,631 225,935,100 63,530,231 172,971,365 13,897,511 4,867,060 11,178 255,277,345
Segmental
Liabilities 23,135,981 62,144,046 622,536 1,519,598 117,544 87,539,705 25,018,515 65,569,101 320,175 2,151,222 11,010,809 104,069,822
Goodwill 21,000,714 - - - - 21,000,714 21,000,714 - - - - 21,000,714
Net Assets
(excluding
goodwill) 34,383,978 90,332,378 11,805,225 1,962,727 (88,913) 138,395,395 38,511,716 107,402,264 13,577,336 2,715,838 (10,999,631) 151,207,523
Capital Expenditure 8,944,360 12,468,962 24,027 63,107 - 21,500,456 22,886,611 4,506,501 160,879 12,542 - 27,566,533
All assets are held within South Africa, with the exception of Auroch Minerals NL which is a company listed on the Australia
assets held in Mozambique.
The segmental assets and liabilities above, exclude inter-company balances.
Capital expenditure comprises of additions to property plant and equipment and mineral rights and intangible assets .
Summary Consolidated ZAR Unaudited Financial Statements
Summarised Consolidated ZAR Statement of Financial Position at 30 June 2014
30 June 2014 31 June 2013
(Unaudited) (Unaudited)
ZAR ZAR
ASSETS
Non-current assets
Property, plant and equipment and mineral rights 3,338,621,178 3,144,440,055
Other intangible assets 3,860,083 5,110,665
Deferred taxation 6,601,879 4,695,100
Goodwill 303,491,812 303,491,812
Investments in associate 10,558,872 13,727,146
Rehabilitation trust fund 278,403,816 254,775,427
3,941,537,640 3,726,240,205
Current assets
Inventories 96,193,722 99,002,052
Current tax asset 15,390,775 22,204,873
Trade and other receivables 210,651,809 208,705,296
Cash and cash equivalents 101,186,004 71,581,436
423,422,310 401,493,657
Non-current assets held for sale - 3,200,000
TOTAL ASSETS 4,364,959,950 4,130,933,862
EQUITY AND LIABILITIES
Capital and reserves
Share capital 244,480,271 243,305,216
Share premium 1,322,660,134 1,318,146,974
Translation reserve - -
Share option reserve 15,965,957 13,890,798
Retained income 1,500,694,965 1,288,834,738
Realisation of equity reserve (140,624,130) (140,624,130)
Merger reserve (154,707,759) (154,707,759)
Other reserves (99,569) -
Total equity 2,788,369,869 2,568,845,837
Non-current liabilities
Long term provisions 216,717,341 222,465,492
Long term liabilities 146,625,129 167,105,730
Deferred taxation 780,797,921 811,282,089
1,144,140,391 1,200,853,311
Current liabilities
Trade and other payables 310,127,663 348,262,806
Current portion of long term liabilities 85,634,001 12,971,908
Current tax liability 36,688,026 -
432,449,690 361,234,714
TOTAL EQUITY AND LIABILITIES 4,364,959,950 4,130,933,862
Summarised Consolidated ZAR Statement of Comprehensive Income for the Year Ended 30
June 2014
30 June 2014 30 June 2013
(Unaudited) (Unaudited)
ZAR ZAR
Revenue
Gold sales 2,536,876,593 1,789,199,741
Platinum sales 71,945,269 58,923,965
Realisation costs (5,898,786) (3,138,054)
On - mine revenue 2,602,923,076 1,844,985,652
Gold cost of production (1,740,312,981) (936,222,287)
Platinum cost of production (55,619,174) (48,925,034)
Mining depreciation (169,194,334) (83,016,020)
Mining profit 637,796,587 776,822,311
Other (expenses) (24,473,514) (78,226,814)
Bargain purchase consideration - 322,443,757
Loss in associate (2,923,222) (2,107,999)
Loss on disposal of asset held for sale (200,000) (8,221,588)
Impairments - (242,315,494)
Royalty costs (34,081,834) (44,268,923)
Net income before finance income and finance costs 576,118,017 724,125,250
Finance income 11,599,688 20,132,477
Finance costs (14,821,716) (17,406,512)
Profit before taxation 572,895,989 726,851,215
Taxation (120,772,050) (167,921,595)
Profit after taxation 452,123,939 558,929,620
Other comprehensive income:
Other movements (99,569) -
Foreign currency translation differences - (12,386,873)
Total comprehensive income for the year 452,024,370 546,542,747
Profit attributable to:
Owners of the parent 452,123,939 558,929,620
452,123,939 558,929,620
Total comprehensive income attributable to:
Owners of the parent 452,024,370 546,542,747
452,024,370 546,542,747
Earnings per share 24.74 34.51
Diluted earnings per share 24.69 34.38
Weighted average number of shares in issue 1,827,207,555 1,619,756,902
Diluted number of shares in issue 1,831,339,174 1,625,933,891
Headline earnings per share is calculated :
Basic earnings 452,123,939 558,929,620
Bargain purchase consideration - (322,443,757)
Profit on disposal of property plant and equipment
and mineral resource (345,982) -
Loss on disposal of asset held for sale 200,000 8,221,588
Impairment 0 242,315,494
Headline earnings 451,977,957 487,022,945
Headline earnings per share 24.74 30.07
Diluted headline earnings per share 24.70 29.95
Summarised Unaudited Consolidated ZAR Statement of Changes in Equity for
the Year Ended 30 June 2014
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
Share Realisation
Share Premium Translation option Retained of equity Merger Other
Share Capital account reserve reserve earnings reserve reserve reserves Total
Balance at 30 June 2012 190,646,748 707,810,082 12,386,873 12,105,628 729,929,882 (140,624,130) (154,707,759) - 1,357,547,324
Issue of shares 52,658,468 658,808,348 - - - - - - 711,466,816
Share issue costs - (48,471,456) - - - - - - (48,471,456)
Other reserves - - - - (24,764) - - (24,764)
Total Comprehensive income - - (12,386,873) - 558,929,620 - - - 546,542,747
Share based payment - - - - 1,785,170 - - - - 1,785,170
Charge for the year
Balance at 30 June 2013 243,305,216 1,318,146,974 - 13,890,798 1,288,834,738 (140,624,130) (154,707,759) - 2,568,845,837
Issue of shares 1,175,055 4,513,160 - - - - - 5,688,215
Share issue costs - - - - - - - -
Other reserves - - - - - - - (99,569) (99,569)
Total Comprehensive income - - - - 452,123,939 - - 452,123,939
Dividends paid (240,263,712) (240,263,712)
Share based payment - - - - 2,075,159 - - - 2,075,159
Charge for the year
Balance at 31 June 2014 244,480,271 1,322,660,134 - 15,965,957 1,500,694,965 (140,624,130) (154,707,759) (99,569) 2,788,369,869
Summarised Unaudited Consolidated ZAR Segment Report for
the Year Ended 30 June 2014
30 June 2014 30 June 2013
Barberton Evander Phoenix Corporat Funding Group Barbert Evander Phoenix Corporat Funding Group
Mines Mines Platinum e and company on Mines Platinum e and company
Growth Mines Growth
Projects Projects
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
million million million million million ZAR million million million million million million million
Revenue
Gold sales*** 1,511.1 1,025.8 - - - 2,536.9 1,350.3 438.9 - - - 1,789.2
Platinum Sales - - 71.9 - - 71.9 - - 58.9 - - 58.9
Realisation costs (4.5) (1.4) - - - (5.9) (2.5) (0.7) - - - (3.2)
On - mine revenue 1,506.6 1,024.4 71.9 - - 2,602.9 1,347.8 438.2 58.9 - - 1,844.9
Gold cost of production (826.9) (913.4) - - - (1,740.3) (660.7) (275.5) - - - (936.2)
Platinum cost of production - - (55.6) - - (55.6) (48.9) (48.9)
Depreciation (65.9) (93.8) (9.4) - - (169.1) (41.5) (28.5) (13.0) - - (83.0)
Mining Profit 613.8 17.2 6.9 - - 637.9 645.6 134.2 (3.0) - - 776.8
Other expenses ** (28.8) 14.5 (0.3) (9.8) (0.3) (24.7) (30.3) (0.1) (3.1) (44.7) - (78.2)
Bargain purchase - - - - - - - 322.4 - - - 322.4
Loss from associate - - - (2.9) - (2.9) - - - (2.1) - (2.1)
Loss on disposal of asset held for (0.2) - - - - (0.2) - - - (8.2) - (8.2)
sale
Impairment costs - - - - - - - - (37.5) (204.9) - (242.4)
Royalty costs (36.9) 2.8 - - - (34.1) (33.9) (10.4) - - - (44.3)
Net income / (loss) before finance 547.9 34.5 6.6 (12.7) (0.3) 576.0 581.4 446.1 (43.6) (259.9) - 724.0
income and finance costs
Finance income 2.9 5.8 - 2.9 - 11.6 1.1 3.9 - 15.1 - 20.1
Finance costs (0.6) (0.1) - - (14.1) (14.8) (1.5) (4.1) - - (11.8) (17.4)
Profit /(loss) before taxation 550.2 40.2 6.6 (9.8) (14.4) 572.8 581.0 445.9 (43.6) (244.8) (11.8) 726.7
Taxation (151.4) 30.9 (2.9) 2.5 0.2 (120.7) (157.9) (13.3) (0.3) 4.0 (0.3) (167.8)
Profit /(loss) after taxation 398.8 71.1 3.7 (7.3) (14.2) 452.1 423.1 432.6 (43.9) (240.8) (12.1) 558.9
* Other expenses exclude inter-company management fees and dividends
** All gold sales were made in the Republic of South Africa and the majority of revenue (more than 90%) was generated from a single customer, Rand Refinery.
***The Funding company was established during the 2013 financial year with effect from 1 March 2013.
Segmental Assets (Total assets
excluding goodwill) 1,035.9 2,746.1 223.8 55.1 0.5 4,061.4 953.6 2,596.3 208.6 68.8 0.2 3,827.5
Segmental Liabilities 416.7 1,119.2 11.2 27.4 2.1 1,576.6 375.5 984.2 4.8 32.3 165.3 1,562.1
Goodwill 303.5 - - - - 303.5 303.5 - - 303.5
Net Assets (excluding goodwill) 619.2 1,626.9 212.6 27.7 (1.6) 2,484.8 578.1 1,612.1 203.8 36.5 (165.1) 2,265.4
Capital Expenditure 151.0 210.5 0.4 1.1 - 363.0 316.8 62.4 2.2 0.2 - 381.6
All assets are held within South Africa, with the exception of Auroch Minerals NL which is a company listed on the Australian Securities Exchange , with assets
held in Mozambique.
The segmental assets and liabilities above, exclude inter-company balances.
Capital expenditure comprises of additions to property plant and equipment and mineral rights and intangible assets.
Contact Details
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsmile: + 27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 207 796 8644
Facsmile: + 44 (0) 207 796 8645
Ron Holding Cobus Loots
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 Neil Elliot/Peter Stewart
St James's Corporate Services Limited Canaccord Genuity Limited
Company Secretary Nominated Adviser
Office: + 44 (0)207 796 8644 Office: +44 (0)207 523 8350
Nigel Gordon Sholto Simpson
Fasken Martineau LLP One Capital
Solicitors in the UK JSE Sponsor
Office: +44 (0)207 917 8500 Office: + 27 (0)11 550 5009
Julian Gwillim Daniel Thole
Aprio Strategic Communications Bell Pottinger PR
Public & Investor Relations SA Public & Investor Relations UK
Office: +27 (0)11 880 0037 Office: + 44 (0)203 772 2500
Ross Allister
Peel Hunt
Public & Investor Relations UK
Office: +44 (0)20 7418 8818
www.panafricanresources.com
Date: 16/09/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
