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PAN AFRICAN RESOURCES PLC - Provisional audited results for the year ended 30 June 2015 and final dividend announcement

Release Date: 16/09/2015 08:00
Code(s): PAN     PDF:  
Wrap Text
Provisional audited results for the year ended 30 June 2015 and final dividend announcement

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 2015 and final dividend announcement

Key features reported in South African Rand (‘ZAR’) and Pound Sterling (‘GBP’)
- The group headline earnings in ZAR terms was ZAR213.6 million (2014: ZAR452.0 million) and in GBP terms 
  was GBP11.9 million (2014: GBP26.8 million)(note 1).
- Gold production and earnings for the year were impacted negatively by inter alia, the lower grade mining 
  cycle at Evander Gold Mining Proprietary Limited (‘Evander Mines’).
- The board has proposed a dividend of ZAR210 million or GBP9.9 million (2014: ZAR258 million or 
  GBP14.9 million), equating to ZAR0.11466 per share or 0.53958p per share (2014: ZAR0.1410 per share or 
  0.82p per share). This dividend is subject to approval at the annual general meeting (‘AGM’), which will 
  take place on 27 November 2015. 
  The reduced dividend is not a departure from the group’s progressive dividend policy and the board 
  will consider an interim dividend in the 2016 financial year (note 8).
- Evander Tailings Treatment Plant (‘ETRP’) construction was completed ahead of schedule and within 
  budget with steady state production achieved by the end of February 2015. The ETRP was the third 
  surface tailings retreatment plant successfully commissioned by the group, and in addition to underground 
  mining expertise, Pan African Resources is now firmly established as a tailings retreatment operator.
- The group’s net debt increased to ZAR321.1 million or GBP16.6 million (2014:ZAR101 million or 
  GBP5.6 million), but improved substantially from ZAR458.6 million (GBP25.4 million)in December 2014.
- Phoenix Platinum Proprietary Limited (‘Phoenix Platinum’) PGE production increased significantly 
  by 42.2% to 10,245oz (2014: 7,204oz) (note 2).
- Barberton Tailings Retreatment Plant (‘BTRP’) gold sold increased by 6.1% to 24,283oz (2014: 22,885oz).
- Overall group safety statistics improved with the group’s lost time injury frequency rate (‘LTIFR’) and 
  reportable injury frequency rate (‘RIFR’) per 1,000,000 man hours decreasing to 2.29 (2014:2.97) and 1.11
  (2014:1.52) respectively.
- The group regrets to report one fatality during the year under review (2014: four fatalities).

                                                          For the year ended   For the year ended
                    Metric                           30 June 2015         30 June 2014           Movement
Revenue            (ZAR millions - GBP millions)  2,539.4     141.1    2,608.8     154.6    (2.7%)    (8.7%)
Average gold price 
received           (ZAR/kg – USD/oz)              446,274     1,212    433,437     1,303     3.0%     (7.0%)
Cash costs         (ZAR/kg – USD/oz)              349,410       949    298,345       897    17.1%      5.8%
All-in sustaining 
cash cost          (ZAR/kg – USD/oz)              402,221     1,093    349,008     1,049    15.2%      4.2%
All-in costs 
(note 6)           (ZAR/kg – USD/oz)              425,084     1,155    374,015     1,124    13.7%      2.8%
Adjusted EBITDA 
(note 3)           (ZAR million – GBP millions)     512.1      28.4      745.5      44.2   (31.3%)   (35.7%)
Attributable 
earnings           (ZAR millions – GBP millions)    210.2      11.7      452.1      26.8    53.5%)   (56.3%)
Earnings per share 
(‘EPS’)            (cents – pence)                  11.48      0.64      24.74      1.47   (53.6%)   (56.5%)
Headline earnings 
per share(‘HEPS’)  (cents – pence)                  11.67      0.65      24.74      1.47   (52.8%)   (55.8%)
Net debt           (ZAR millions – GBP millions)    321.1      16.6      101.0       5.6  (217.9%)  (196.4%)
Total sustaining 
capital 
expenditure        (ZAR millions – GBP millions)    242.3      13.5      164.5       9.7    (47.3)   (39.2%)
Total capital 
expenditure        (ZAR millions – GBP millions)    352.0      19.6      363.0      21.5    (3.0%)    (8.8%)
Net asset value 
per share          (cents – pence)                  149.5       8.0      152.4       8.7    (1.9%)    (8.0%)
Weighted average 
number of
shares in issue    (millions)                     1,830.4   1,830.4    1,827.2   1,827.2     0.2%      0.2%
Average exchange 
rate               (ZAR:GBP – ZAR:USD)              18.00     11.45      16.88     10.35     6.6%     10.6%
Closing exchange 
rate               (ZAR:GBP – ZAR:USD)              19.30     12.29      18.01     10.59     7.2%     16.1%

Cobus Loots, CEO of Pan African Resources commented: “Despite a very difficult financial year, the board 
has proposed an attractive final dividend to shareholders.  This proposed dividend demonstrates our 
confidence in the robust nature of our operations. Having implemented a number of corrective measures to 
resolve the issues that impacted on the 2015 financial year, the group is well positioned to deliver an 
improved performance in 2016. The successful commissioning of the ETRP together with Phoenix Platinum’s 
production and profitability ramp-up, confirms the group’s ability to grow in a value-accretive manner 
and to continue to enhance stakeholder value. The group’s existing cash flow generative mines and project pipeline
enables us to execute our strategy of growing production with robust economics for the benefit of all 
our stakeholders.”

Operational
Barberton Mines Proprietary Limited (‘Barberton Mines’) (note 5)
- The operation reported one fatality for the year (2014: three fatalities).
- Average underground head grade of 10.9g/t (2014: 11.5g/t).
- As previously reported, production was negatively affected by an oil contamination within the BIOX® 
  plant and Section 54 safety stoppages issued by the Department of Minerals Resources (‘DMR’), which 
  resulted in the loss of 11 production days.
- Gold sold decreased by 5.2% to 105,776oz (2014: 111,623oz) (note 7).
- Revenue decreased by 2.8% to ZAR1,469 million (2014: ZAR1,511.1 million), as a result of the decrease 
  in gold sales.
- Cash cost per kilogramme increased by 16.4% to ZAR278,859/kg (2014: ZAR239,496/kg), due to a 5.2% 
  decrease in gold sold and a 10.3% increase in the cost of production.
- All-in sustaining cash cost per kilogramme increased by 17.5% to ZAR332,151/kg (2014: ZAR282,716/kg).
- All-in cost per kilogramme increased by 11.7% to ZAR337,317/kg (2014: ZAR302,058/kg).
- Adjusted EBITDA decreased by 17.7% to ZAR505.5 million (2014: ZAR614 million) (note 3).
- Capital expenditure incurred was lower at ZAR112.6 million (2014: ZAR151 million), the decrease was 
  due to Barberton Mines incurring once-off capital completing the BTRP construction of ZAR40.7 million in 
  the 2014 financial year.
- Life of mine increased to 20 years (2014: 19 years), the increased in life of mine to 20 years was due 
  to the down dip extension of the high grade 11 Block of the main reef complex (‘MRC’) ore body by a 
  further 170 metres. This extension to the MRC orebody has resulted in an annual increase in Barberton’s 
  Mine mineral reserves by 236,162 ounces, thereby extending the life of mine.

Evander Mines
- The operations improved safety performance resulted in no fatalities reported for the year (2014: 
  one fatality).
- As a result of the lower grade mining cycle the underground headgrade decreased to 4.6g/t (2014: 5.2g/t).
- Gold sold decreased by 8.5% to 70,081oz (2014: 76,556oz) largely due to the lower grade mining cycle and 
  Section 54 safety stoppages issued by the DMR, which resulted in the loss of 9 production days.
- Revenue decreased by 5.2% to ZAR972 million (2014: ZAR1,025.8 million).
- The ETRP reached steady state production by the end of February 2015, contributing an additional 6,523oz 
  of gold (2,494oz from tailings and 4,029oz from surface feedstock).
- Cash costs per kilogramme increased by 18.7% to ZAR455,896/kg (2014: ZAR384,150/kg), as a result of the 
  low grade mining cycle and resultant decrease in gold sold.
- All-in sustaining cash costs per kilogramme increased by 14.0% to ZAR507,980/kg (2014: ZAR445,665/kg).
- All-in cost per kilogramme increased by 16.4% to ZAR557,553/kg (2014: ZAR478,933/kg) (note 6).
- Adjusted EBITDA decreased by 63.1% to ZAR47.4 million (2014: ZAR128.3 million) (note 3).
- Capital expenditure incurred was ZAR238.2 million (2014: ZAR210.5 million), which includes the once-off 
  capital expenditure of ZAR95.1 million (2014: ZAR79.2 million), spent on the construction of the ETRP.
- Life of mine decreased to 16 years (2014: 17 years).

Phoenix Platinum
- Phoenix Platinum’s profitability and cash generation increased significantly during the year under review.
- Phoenix Platinum headline earnings increased significantly to ZAR15.2 million (2014: ZAR3.7 million).
- PGE production increased by 42.2% to 10,245oz (2014: 7,204oz) (note 2).
- Revenue increased by 36.9% to ZAR98.4 million (2014: ZAR71.9 million).
- The average PGE net revenue price received decreased by 3.8% to ZAR9,603/oz (2014: ZAR9,987/oz) (note 4).
- Cost per ton increased by 16.7% to ZAR259/t (2014: ZAR222/t).
- Cost per ounce of production decreased by 14.3% to ZAR6,621/oz (2014: ZAR7,723/oz).
- Adjusted EBITDA increased by 73.1% to ZAR27.7 million (2014: ZAR16 million) (note 3).
- Capital expenditure incurred was ZAR 0.6 million (2014: ZAR 0.4 million).
- Life of operation remained at 28 years (2014: 28 years).

Notes:
1. Refer to the statement of comprehensive income for a reconciliation of profit after taxation to headline 
   earnings.
2. PGEs are platinum, palladium, rhodium, iridium, ruthenium and gold.
3. Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and amortisation, 
   impairments and loss on disposal of associate.
4. Phoenix Platinum’s average PGE net revenue price received represents the value received per ounce post 
   refining and is therefore disclosed net of refining charges.
5. Combined Barberton Mines operations include Barberton Mines mining operations and the BTRP.
6. The all-in cost per kilogramme includes once-off capital expenditure of ZAR95.1 million (2014: 
   ZAR79.2 million), spent on the construction of the ETRP. The capital expenditure amounted to ZAR17,389/kg 
   (2014:ZAR13,534/kg) and ZAR43,634/kg (2014:ZAR33,268/kg) of the group’s and Evander Mines’ all-in cost 
   per kilogramme, respectively.
7. Barberton Mine’s gold sold during the current period includes 60 kilogrammes (1,929oz) of gold sold to 
   Rand Merchant Bank (a division of FirstRand Bank Limited) in concentrate form at 30 June 2015.
8  The GBP proposed dividend was calculated based on an exchange rate of ZAR21.25:1. 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 0.53958p per share.

Nature of business
Pan African Resources is a mid-tier African-focused precious metals producer with a production 
capacity in excess of 200,000oz gold and 12,000oz of PGE’s perannum. The group’s assets include:

- Barberton Mines : three gold mines and the BTRP in Mpumalanga
- Evander Mines : a gold mine and the ETRP in Mpumalanga
- Phoenix Platinum : a Chrome Tailing Retreatment Plant (‘CTRP’) in the North West province

Pan African Resources’ growth strategy is aimed at identifying and exploiting mining opportunities at 
margins that create stakeholder value by driving growth in our earnings, cash flows, production and in 
our mineral reserve and resource base, and by capturing the full precious metals mining value chain.

The group is profitable and cash generative at current gold prices, with the ability to fund all 
on-mine sustaining 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, 
being incorporated in England and Wales and being dual-listed in the UK and South Africa.

In the year under review the average ZAR/GBP exchange rate was ZAR18.00:1 (2014: ZAR16.88:1) and 
the closing ZAR/GBP exchange rate was ZAR19.30:1 (2014: ZAR18.01:1). The year-on-year change in the 
average and closing exchange rates of 6.6% and 7.2%, respectively, must be taken into account for the 
purposes of translating and comparing year-on-year results.

The group 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 10.6% weaker at ZAR11.45:1 (2014: ZAR10.35:1).

The commentary below analyses the current and prior period’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 the average USD gold and PGE basket prices achieved were substantially 
lower than the previous year. The group realised an average gold price of USD1,212/oz, a decrease of 
7.0% from the USD1,303/oz achieved in the prior year. The market PGE basket price (applying the Phoenix 
Platinum prill split) during the year decreased by 10.2% to USD1,008/oz (2014: USD1,122/oz). 
Phoenix Platinum achieved an average PGE basket price of USD839/oz (2014: USD965/oz), 
after taking into account the terms of its off-take agreement with Western Platinum Limited, a 
subsidiary of Lonmin Plc.

Despite the lower USD gold price, the average ZAR gold price received by the group increased 
by 3.0% to ZAR446,274/kg (2014: ZAR433,437/kg), as a result of the weakening of the ZAR against 
the USD exchange rate.

The average ZAR PGE basket price received by the group decreased by 3.8% to ZAR9,603/oz (2014: 
ZAR9,987/oz), also benefiting to some extent from the weaker ZAR.

Statement of profit or loss and other comprehensive income

                               For the year ended       For the year ended
                                   30 June 2015             30 June 2014            Movement
                                  ZAR         GBP          ZAR         GBP
                            (millions)   (millions)   (millions)  (millions)      ZAR      GBP
Revenue                       2,539.4        141.1      2,608.8       154.6     (2.7%)    (8.7%)
Cost of production           (1,987.4)      (110.4)    (1,795.9)     (106.4)    10.7%      3.8%
Mining profit                   353.4         19.6        637.8        37.8    (44.6%)   (48.1%)
EBITDA                          512.1         28.4        745.5        44.2    (31.3%)   (35.7%)
Profit after taxation           210.2         11.7        452.1        26.8    (53.5%)   (56.3%)
Headline earnings               213.6         11.9        452.0        26.8    (52.7%)   (55.6%)
EPS (cents/pence)               11.48         0.64        24.74        1.47    (53.6%)   (56.5%)
HEPS (cents/pence)              11.67         0.65        24.74        1.47    (52.8%)   (55.8%)
Weighted average number of 
shares in issue (millions)    1,830.4      1,830.4      1,827.2     1,827.2      0.2%      0.2%

Analysing the group’s financial performance

Revenue, costs, profitability and dividends

Performance         2015 financial year commentary

Revenue             The group’s revenue, year-on-year, decreased by 2.7% to ZAR2,539.4 million 
                   (2014: ZAR2,608.8 million). The decrease was predominantly due to the following 
                    reasons:
                    1) Gold sold decreased by 6.5% to 175,857oz (2014:188,179oz).
                    2) The average ZAR gold price received increased by 3% to ZAR446,274/kg 
                       (2014:433,437/kg). 
                       This increase was driven by the weakening of the average ZAR/USD exchange 
                       rate by 10.6% to ZAR11.45:1 (2014: ZAR10.35:1) and the USD gold price 
                       decreasing by 7.0% to USD1,212/oz(2014: USD1,303/oz).
                    3) Increased PGE revenues contributed an additional 1% year on year to the group 
                       revenue.

Average gold price  The group realised an average gold price increase of 3% to ZAR446,274/kg (2014:
and PGE price       ZAR433,437/kg) and an average PGE basket price received was ZAR9,603/oz (2014: 
                    ZAR9,987/oz).

Cost of production  Pan African Resources’ year-on-year total cost of production increased by 10.7% 
                    to ZAR1,987.4 million (2014: ZAR1,795.9 million).
                    - The cost of production increased with the addition of the new ETRP which 
                      reached steady state production by the end of February 2015. Additional 
                      tailing and surface feedstock processed resulted in a ZAR54.1 million increase 
                      in production costs. Excluding the ETRP, the effective cost increase was 7.7% 
                      year-on-year.
                    - The group’s salaries and wages remained well controlled and increased by 5.1% 
                      to ZAR910.8 million(2014: ZAR866.7 million). This increase was due to:
                    - The wage agreement increase being linked to the consumer price index (‘CPI’) 
                      plus 1% (7.15% and 6.6% granted to National Union of Mineworkers (‘NUM’) and 
                      United Association of South Africa (‘UASA’)).
                    - The average number of employee’s (excluding capital employees) decreased by 
                      2% to 3,939 (2014: 4,020).
                    - The group’s electricity costs increased by 8.6% to ZAR275.4 million 
                      (2014:ZAR253.7 million), being lower the Eskom increases of 12.7% as result 
                      of reduced electricity consumption, load clipping and Section 54 safety 
                      stoppages issued by the DMR.

Cash costs         The group’s cost of production per kilogramme increased by 17.1% to ZAR349,410/kg (2014: ZAR298,345/kg).
                   The 17.1% increase was due to:
                   - Gold sold decreasing by 6.5% to 175,857oz (2014:188,179oz);
                   - The group’s total cost of production, as highlighted above, increasing by 10.7%.

All-in-sustaining  The group’s all-in sustaining cash cost of production per kilogramme (including 
cash costs         direct cost of production, royalties, associated corporate costs and overheads 
                   and sustaining capital expenditure) increased by 15.2% to ZAR402,221/kg 
                   (2014: ZAR349,008/kg). The group’s all-in-sustaining cash costs were primarily 
                   impacted by:
                   - Evander Mines’ lower grade mining cycle and resultant decrease in the 
                     group’s gold sold.
                   - The group’s total cost of production increasing by 10.7%.

All-in-cost       The all-in cost per kilogramme (sustaining cost of production and once-off 
                  expansion capital) increased by 13.7% to ZAR425,084/kg (2014: ZAR374,015/kg), 
                  due to:
                  - Gold sold decreasing by 6.5% to 175,857oz (2014:188,179oz);
                  - Once-off capital expenditure to complete the construction the ETRP which amounted 
                    ZAR95.1 million (2014: ZAR79.2 million). The ETRP capital expenditure equated to 
                    ZAR17,389/kg (2014: ZAR13,534/kg) of the group’s all-in cost per kilogramme.

Gold collar       The group entered into short term strategic hedges to protect its Evander Mines and
derivatives       other operations’ revenue, cash flows and dividends payments against severe adverse 
                  price movements in the ZAR price of gold. During the current financial year, the
                  group realised a pre-tax profit of ZAR44.7 million (2014: ZAR39 million) from these 
                  transactions, which are recorded under other income and expense line in the 
                  statement of comprehensive income. The transaction income was also factored into 
                  Evander Mines all-in sustaining costs.

Profit after      Profit after taxation decreased by 53.5% to ZAR210.2 million (2013: ZAR452.1 million)
tax and           and the corresponding headline earnings decreased to ZAR213.6 million 
headline          (2014: ZAR452.0 million), primarily due to:
earnings          - The group’s revenue decreasing by ZAR69.4 million.
                  - The group’s cost of production increasing by ZAR191.5 million.

EPS and HEPS      The group’s EPS in ZAR was 11.48 cents (2014: 24.74 cents), a decrease of 53.6%. 
                  The group’s HEPS in ZAR terms decreased by 52.8% to 11.67 cents (2014: 24.74 cents). 
                  The difference between the EPS and HEPS, was as result of adjusting the 
                  attributable earnings for the loss on disposal and the associated impairment upon 
                  the sale of Auroch Minerals NL. Refer to the statement of comprehensive income 
                  for the reconciliation between EPS and HEPS. The EPS and HEPS is calculated by 
                  applying the groups weighted average number of shares to the attributable and 
                  headline earnings, which increased by 0.2% to 1,830.4 million (2014:1,827.2 million)

Taxation          The group’s total taxation charge decreased by 38.4% to ZAR74.4 million (2014: 
                  ZAR120.8 million) due to: A reduction in gold profit margins due to the cost of 
                  production increases and lower gold ounces sold relative to the prior year.
                  - A reduction in gold profit margins due to the cost of production increases and 
                    lower gold ounces sold relative to the prior year.
                  - A decrease in deferred taxation as a result of Evander Mines recognising 
                    unredeemed capital of ZAR322 million (2014: ZAR139.1 million) as well as an 
                    assessed loss to be carried forward of ZAR88.1 million (2014: Nil).

Dividend         The group paid a final dividend of ZAR258 million (GBP14.9 million) during 
                 December 2014 equating to ZAR0.1410 per share (0.82p per share), and in the 
                 prior financial year ZAR240.3 million (GBP14.9 million), equating to ZAR0.1314 
                 per share (0.80p per share). In light of market uncertainties, the board has 
                 proposed a reduced dividend of ZAR210 million or GBP9.9 million (2014: ZAR258 
                 million or GBP14.9 million), equating to ZAR0.11466 per share or 0.53958p per 
                 share (2014: ZAR0.1410 per share or 0.82p per share). This final dividend is 
                 subject to approval at the AGM which will take place on 27 November 2015.
                 The reduced dividend is however not a departure from the group’s progressive 
                 dividend policy and the board will consider an interim dividend in the 2016
                 financial year. Note: The GBP proposed dividend was calculated based on an exchange 
                 rate of ZAR21.25:1. 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 0.53958p per share.

Statement of financial position

                               For the year ended      For the year ended          Movement
                                    30 June 2015           30 June 2014
                                  ZAR         GBP         ZAR          GBP
                            (millions)  (millions)  (millions)   (millions)     ZAR         GBP
Non-current assets            4,147.1       220.2     3,941.5        223.4      5.2%       (1.4%)
Current assets                  332.3        17.2       423.4         23.5    (21.5%)     (26.8%)
Total equity                  2,738.5       147.2     2,788.4        159.4     (1.8%)      (7.7%)
Non-current liabilities       1,309.5        67.9     1,144.1         63.5     14.5%        6.9%
Current liabilities             431.4        22.4       432.4         24.0     (0.2%)      (6.7%)

Non-current assets increased by 5.2% to ZAR4,147.1 billion (2014: ZAR3,941.5 billion). The increase 
was partly attributable to further capital expenditure during the year amounting to ZAR352.0 million 
(2014: ZAR363.0 million), and is detailed by operation below:

Group capital expenditure

                                 For the year ended      For the year ended         Movement
                                    30 June 2015              30 June 2014
                                   ZAR         GBP          ZAR         GBP
                             (millions)  (millions)   (millions)  (millions)      ZAR         GBP
Barberton Mines                  109.3         6.1        110.3         6.5     (0.9%)      (6.2%)
BTRP                               3.3         0.2         40.7         2.4    (91.9%)     (91.7%)
Evander Mines                    143.1         7.9        131.3         7.8      9.0%        1.3%
ETRP                              95.1         5.3         79.2         4.7     20.1%       12.8%
Phoenix Platinum                   0.6           -          0.4           -     50.0%          -
Corporate                          0.6         0.1          1.1         0.1    (45.5%)         -
Total capital expenditure        352.0        19.6        363.0        21.5     (3.0%)      (8.9%)

Included in non-current assets is the rehabilitation trust fund balance of ZAR312.3 million 
(2014: ZAR278.4 million), which increased by ZAR33.9 million as a result of growth in the 
underlying investment portfolio. The rehabilitation trust fund’s investment portfolio comprises 
investments in guaranteed equity linked notes, government bonds and equities.

Current assets decreased by 21.5% to ZAR332.3 million (2014: ZAR423.4 million). This was as a result 
of inter-alia:
- A decrease in cash on hand to ZAR64.2 million (2014: ZAR101.2 million).
- Accounts receivable decreased to ZAR184.5 million (2014: ZAR210.7 million) as a result of lower 
  outstanding gold shipments at year end relative to the prior year.
- Inventory decreased to ZAR67.6 million (2014: ZAR96.2 million) due to the Evander Mines holding 
  lower quantities of gold bearing inventory at year end.

The group remains liquid with a net debt position of ZAR321.1 million (2014:ZAR101.0 million) at 
year-end, which includes a gold loan of ZAR139.6 million. The group continues to be profitable 
and cash flow generative, which has resulted in group’s net debt being reduced from ZAR458.6 million 
at December 2014 to ZAR321.1 million at the end of the 2015 financial year.

Non-current liabilities increased by 14.5% to ZAR1,309.5 million (2014: ZAR1,144.1 million). 
The increase is largely attributable to the increase in the non- current portion of the revolving 
credit facility balance and the gold loan of ZAR314.8 million (2014: ZAR146.6 million).

Current liabilities remained relatively constant at ZAR431.4 million (2014: ZAR432.4 million), with 
an increase in the current portion of the revolving credit facility, the gold loan and accounts payable, 
off-set by a reduction in the year-end tax liability.

The decrease in the group’s equity is a result of a decrease in retained earnings, due to the dividend 
paid of ZAR258 million (2014:ZAR240.3 million) for the 2015 financial year being more than the profit 
after taxation of ZAR210.2 million (2014: ZAR452.1 million) for the 2015 financial year. 

Treasury and group funding 

Revolving credit facility

The group has refinanced its existing revolving credit facility with a consortium of local banks. The 
new facility has a tenure of five years, and increases the revolving credit facility’s limit from ZAR600 
million to ZAR800 million, with a two year option at Pan African Resources’ election (subject to the bank’s 
credit committee approval) to increase the facility to ZAR1.1 billion. The revolving credit facility comes 
at a reduced margin (JIBAR plus 2.5% compared to 2.8%) and facility fee and provides Pan African Resources 
with access to a long-term debt facility with flexible terms at a competitive rate, which will be used to 
fund its organic and acquisitive growth aspirations. 

Working capital and debt management

The group implemented a centralised treasury function in Pan African Resources Funding Company Proprietary 
Limited (‘Funding Company’), a wholly-owned subsidiary of Pan African Resources, with the objective of 
centrally managing all aspects of the group’s financial risk.

Operational performance

Review of group gold operations production summary

                                               Underground and surface           Tailings                  Total 
                                                       operations                operations       continuing operations
                           Year ended        Barberton   Evander                              Barberton    Evander       
                              30 June  Units     Mines     Mines     Total     BTRP      ETRP     Mines     Mines       Group
                                                                                                  Total     Total       Total
Tonnes milled - underground      2015    (t)   254,673   381,986   636,659       -         -    254,673   381,986     636,659
                                 2014    (t)   263,574   395,127   658,701       -         -    263,574   395,127     658,701
Tonnes milled – surface (note 1) 2015    (t)     6,076   266,223   272,299       -         -      6,076   266,223     272,299
                                 2014    (t)    28,547   260,901   289,448       -         -     28,547   260,901     289,448
Tonnes milled - total
underground and surface          2015    (t)   260,749   648,209   908,958       -         -    260,749   648,209     908,958
                                 2014    (t)   292,121   656,028   948,149       -         -    292,121   656,028     948,149
Tonnes processed – tailings
(note 2)                         2015    (t)         -         -         -  971,627  507,444    971,627   507,444   1,479,071
                                 2014    (t)         -         -         -  815,736        -    815,736         -     815,736
Tonnes processed - surface
feedstock                        2015    (t)         -         -         -        -  139,723          -   139,723     139,723
                                 2014    (t)         -         -         -        -        -          -         -           -
Tonnes processed - total
tailings and surface feedstock   2015    (t)         -         -         -  971,627  647,167    971,627   647,167   1,618,794
                                 2014    (t)         -         -         -  815,736        -    815,736         -     815,736
Tonnes milled and processed 
- total                          2015    (t)   260,749   648,209   908,958  971,627  647,167   1,232,376 1,295,376  2,527,752
                                 2014    (t)   292,121   656,028   948,149  815,736        -   1,107,857   656,028  1,763,885
Headgrade - underground          2015  (g/t)      10.9       4.6       7.1        -                 10.9       4.6        7.1
                                 2014  (g/t)      11.5       5.2       7.7        -        -        11.5       5.2        7.7
Headgrade - surface              2015  (g/t)       1.4       1.1       1.1        -        -         1.4       1.1        1.1
                                 2014  (g/t)       1.3       1.4       1.4        -        -         1.3       1.4        1.4
Headgrade - total underground
and surface                      2015  (g/t)      10.7       3.2       5.3        -        -        10.7       3.2        5.3
                                 2014  (g/t)      10.5       3.7       5.8        -        -        10.5       3.7        5.8
Headgrade - tailings             2015  (g/t)         -         -         -      1.4      0.3         1.4       0.3        1.0
                                 2014  (g/t)         -         -         -      1.6        -         1.6         -        1.6
Headgrade - surface feedstock    2015  (g/t)         -         -         -        -      1.1           -       1.1        1.1
                                 2014  (g/t)         -         -         -        -        -           -         -          -
Headgrade - total tailings and
surface feedstock                2015  (g/t)         -         -         -      1.4      0.5         1.4       0.5        1.0
                                 2014  (g/t)         -         -         -      1.6        -         1.6         -        1.6
Headgrade - total                2015  (g/t)      10.7       3.2       5.3      1.4      0.5         3.3       1.8        2.6
                                 2014  (g/t)      10.5       3.7       5.8      1.6        -         3.9       3.7        3.8
Recovered grade                  2015  (g/t)       9.7       3.0       5.0      0.8      0.3         2.7       1.7        2.2
                                 2014  (g/t)       9.4       3.6       5.4      0.9        -         3.1       3.6        3.3
Overall recovery - underground
operations                       2015    (%)        91%       97%       93%        -       -          80%       93%        85%
                                 2014    (%)        90%       96%       92%        -       -          80%       96%        86%
Overall recovery - tailings
operations                       2015    (%)         -         -         -        57%     54%         57%       54%        56%
                                 2014    (%)         -         -         -        56%      -          56%        0%        56%
Gold production - underground
operations                       2015   (oz)    81,315    53,746   135,061         -       -       81,315    53,746    135,061
                                 2014   (oz)    87,979    65,956   153,935         -       -       87,979    65,956    153,935
Gold production - surface
operations                       2015   (oz)       178  9,812.53     9,990         -       -          178     9,813      9,990
                                 2014   (oz)       759    10,600    11,359         -       -          759    10,600     11,359
Gold production - tailings
operations                       2015   (oz)         -         -         -    24,283    2,494      24,283     2,494     26,776
                                 2014   (oz)         -         -         -    22,885        -      22,885         -     22,885
Gold production - surface
feedstock                        2015   (oz)         -         -         -         -    4,029           -     4,029      4,029
                                 2014   (oz)         -         -         -         -        -           -         -          -
Gold sold(note 2)                2015   (oz)    81,493    63,558   145,051    24,283    6,523     105,776     70,081   175,857
                                 2014   (oz)    88,738    76,556   165,294    22,885        -     111,623     76,556   188,179
Average ZAR gold price received  2015(ZAR/KG)  446,246   447,474   446,784   447,387  430,797     446,508    445,922   446,274
                                 2014(ZAR/KG)  435,464   430,801   433,304   434,394        -     435,244    430,801   433,437
Average USD gold price received  2015(USD/oz)    1,212     1,216     1,214     1,215    1,113       1,213      1,216     1,212
                                 2014(USD/oz)    1,309     1,295     1,302     1,305        -       1,346      1,295     1,303
ZAR cash cost                    2015(ZAR/KG)  309,289   475,338   382,048   176,734  266,453     278,859    455,896   349,410
                                 2014(ZAR/KG)  258,972   384,150   316,948   163,977        -     239,496    384,150   298,345
ZAR all-in sustaining 
cash costs                       2015(ZAR/KG)  375,914   532,767   444,644   185,280  266,453     332,151    507,980   402,221
                                 2014(ZAR/KG)  311,756   445,665   373,776   170,111        -     282,716    445,665   349,008
ZAR all-in cost                  2015(ZAR/KG)  382,620   539,315   451,280   185,280  735,262     337,317    557,553   425,084
                                 2014(ZAR/KG)  321,342   478,933   394,330   227,286        -     302,058    478,933   374,015
USD cash cost                    2015(USD/oz)      840     1,291     1,038       480      688         758      1,238       949
                                 2014(USD/oz)      778     1,154       952       493                  740      1,154       897
USD all-in sustaining cash cost  2015(USD/oz)    1,021     1,447     1,208       503      688         902      1,380     1,093
                                 2014(USD/oz)      937     1,339     1,123       511                  874      1,339     1,049
USD all-in cost                  2015(USD/oz)    1,039     1,465     1,226       503    1,899         916      1,515     1,155
                                 2014(USD/oz)      966     1,439     1,185       683                  934      1,439     1,124
ZAR cash cost per tonne (note 3) 2015 (ZAR/t)    3,007     1,450     1,896       137       84         744        767       756
                                 2014 (ZAR/t)    2,447     1,394     1,719       143        -         751      1,394       990
Capital expenditure (note 4)     2015    (ZAR
                                      million)   109.3     143.1     252.5       3.3     95.1       112.6      238.2     350.8
                                 2014    (ZAR
                                      million)   110.3     210.5     320.8      40.7        -       151.0      210.5     361.5
Average exchange rate            2015(ZAR/USD)   11.45     11.45     11.45     11.45    12.04       11.45      11.45     11.45
                                 2014(ZAR/USD)   10.35     10.35     10.35     10.35        -       10.35      10.35     10.35
Revenue                          2015    (ZAR
                                      million) 1,131.1     884.6   2,015.7     337.9     87.4     1,469.0      972.0   2,441.0
                                 2014    (ZAR
                                      million) 1,201.9   1,025.8   2,227.7     309.2        -     1,511.1    1,025.8   2,536.9
Cost of production               2015    (ZAR
                                      million)   783.9     939.7   1,723.7     133.5     54.1       917.4      993.8   1,911.2
                                 2014    (ZAR
                                      million)   714.8     914.7   1,629.5     116.7        -       831.5      914.7   1,746.2

All-in sustainable cost of
production                       2015    (ZAR
                                      million)   952.8   1,053.2   2,006.0     139.9     54.1     1,092.7    1,107.3   2,200.0
                                 2014    (ZAR
                                      million)   860.5   1,061.2   1,921.7     121.1        -       981.6    1,061.2   2,042.8
All-in cost of production        2015    (ZAR
                                      million)   969.8   1,066.2   2,036.0     139.9    149.2     1,109.7    1,215.4   2,325.1
                                 2014    (ZAR
                                      million)   886.9   1,140.4   2,027.3     161.8        -     1,048.7    1,140.4   2,189.1
Adjusted EBITDA (note 5)         2015    (ZAR
                                      million)   301.8      32.4     334.3     203.7     15.0       505.5       47.4     552.9
                                 2014    (ZAR
                                      million)   420.9     128.3     549.2     193.1        -       614.0      128.3     742.3


Note 1: Surface source tonnes allocated to ETRP from 1 March 2015.
Note 2: ETRP production for January and February 2015 was capitalised according to IAS16 (204,024t producing 17kg or 
547oz gold). Note 3: Split between ETRP and Surface feedstock cost per tonne is R40.9/t and R238.3/t respectively, 
averaging at R84/t.
Note 4: Included in the Evander Mines capital for the prior year is an amount of ZAR79.2 million relating to the 
construction of the ETRP.
Note 5: Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and amortisation, bargain 
purchase gain, impairments and loss on disposal of associate. 

Review of Barberton Mines 

Safety

Safety is our primary priority and we strive to achieve zero fatalities in our operations. It is therefore with 
deep regret that we report that one of our employees, Mr Cyprein Solomon Mkhathswa (a diesel mechanic), was 
fatally injured on 23 April 2015. The deceased was replacing a lift cylinder by hitting the pin into position 
with a hammer. A tiny piece of the pin splintered and pierced his chest, resulting in Mr Mkhathswa losing his 
life. Subsequently, risk assessments were reviewed and precautionary measures were put in place to prevent a 
reoccurrence of this nature. These measures were communicated to employees and retraining of relevant staff 
was conducted.

Barberton Mines’ total recordable injury frequency rate (‘TRIFR’) increased to 15.87 (2014: 13.53) per 1,000,000 
man hours worked, and the LTIFR increased marginally to 1.87 (2014: 1.85) per 1,000,000 man hours worked. The 
RIFR increased to 0.62 (2014: 0.46) per 1,000,000 man-hours worked. Barberton Mines safety record over the past 
three years reflects the management team’s focus on continually improving on their safety performance:

                                                                  Three year safety trend
Frequency rate per 1,000,000 man hours             30 June 2012       30 June 2015                %
TRIFR                                                     19.22              15.87            17.4%
LTIFR                                                      3.26               1.87            74.3%
RIFR                                                       0.74               0.62            16.2%
Fatality injury frequency rate (‘FIFR’)                    0.18               0.16            11.1%

Operating performance

Barberton Mines’ (including BTRP) gold sold decreased by 5.2% to 105,776oz (2014: 111,623oz). The total combined 
ZAR cash cost per kilogramme terms, increased by 16.4% to ZAR278,859 (2014: ZAR239,496/kg). The combined USD 
cash costs per ounce increased by 2.4% to USD758/oz (2014: USD740/oz).

Barberton Mines’ (excluding BTRP) gold sold decreased by 8.2% to 81,493oz (2014: 88,738oz). Tonnes milled 
from mining operations decreased by 10.7% to 260,749t (2014: 292,121t), due to surface tonnes milled decreased 
to 6,076t (2014: 28,547t) and the underground mining operations tonnes decreased to 254,673t (2014: 263,574t). 
The underground head grade dropped to 10.9g/t (2014: 11.5g/t). The decrease in gold sold from underground and 
surface mining operations was largely due to the BIOX® plant oil contamination and operational Section 54 
safety stoppages enforced by the DMR. Operational and maintenance systems have been implemented to mitigate 
the risk of future oil contaminations.

Gold sold from the BTRP was 24,283oz (2014: 22,885oz) for the year. Tonnes processed improved to 971,627t 
(2014: 815,736t) at a lower head grade of 1.4g/t (2014: 1.6g/t) which was off-set by an increase tonnes 
processed and an increase in plant recoveries to 57% (2014: 56%).

Barberton Mines’ (excluding BTRP) ZAR cash costs per kilogramme increased by 19.4% to ZAR309,289/kg (2014: 
ZAR258,972/kg), while USD cash costs per ounce increased by 8.0% to USD840/oz (2014: USD778/oz). The cash 
cost increases were worsened by lower gold production due to the BIOX® plant’s oil contamination and the 
DMR stoppages affecting tonnage production.

The BTRP’s ZAR cash costs increased by 7.8% to ZAR176,734/kg (2014: ZAR163,977/kg) and USD cash costs 
per ounce were USD480/oz (2014: USD493/oz). 

The total cost of production (including off-mine costs) increased by 10.3% to ZAR917.4 million (2014: 
ZAR831.5 million). The main year-on-year cost contributors were the following:
- Salaries and wages increased by 4.7% to ZAR387.2 million (2014: ZAR369.9 million). The salary and wages 
  increased as a result of the wage agreement settlement, which was average CPI plus 1% (7.15% and 6.6% 
  granted to NUM and UASA respectively). The total increase in salaries and wages was lower than the increase 
  in the wage agreement as a result of lower incentives paid (which are linked to the mine’s productivity and 
  profitability). In addition to this the average number of employees (excluding capital employees) employed 
  during the year decreased by 1% to 1,675 (2014: 1,690).
- Mining costs increased by 5.3% to ZAR108 million (2014: ZAR102.6 million), mainly due to an increase in 
  vamping contractor’s costs of 6.5%. The mining costs excluding the vamping contractors’ remained flat 
  year-on-year as a result of the lower tonnages mined.
- Processing costs (excluding the BTRP) decreased by 1.6% to ZAR60.8 million (2014: ZAR61.8 million) 
  because of the lower tonnages mined and therefore processed.
- Engineering and technical services costs increased by 12.2% to ZAR71.8 million (2014: ZAR64.0 million). 
  Barberton Mines incurred an additional cost of ZAR7.4 million for secondary support on Fairview mine to 
  assist in accessing additional high grade pillars and panels.
- The cost of electricity increased by 11.5% to ZAR95.8 million (2013: ZAR85.9 million). Electricity 
  costs excluding the BTRP increased by 9.3% to ZAR83.8 million (2014: ZAR76.7 million), which was lower 
  than the average 12.7% increase in Eskom tariffs due to lower tonnages mined from underground. The 
  electricity cost of the BTRP increased by 30.4% to ZAR12.0 million (2014: ZAR9.2 million), due to 
  throughput tonnes processed increasing by 19.1%, combined with Eskom tariff increases of 12.7%.
- Security costs were well controlled and only increased by 3.0% to ZAR27.6 million (2014: ZAR26.8 million).
- Administration and other costs increased by 0.6% to ZAR33.4 million (2014: ZAR33.2 million).
- The BTRP operating costs increased by 14.4% to ZAR133.5 million (2014: ZAR116.7 million) as a result 
  of the additional 155,891 tonnes processed for the year under review. There was an additional increase 
  in the lime costs of ZAR6.1 million to assist with the BTRP thickener settlement. Installation and equipping 
  costs also increased by ZAR7.2 million mainly due to corrosion maintenance performed on the three carbon in 
  leach tanks at the BTRP to sustain production levels.

Barberton Mines’ ZAR combined all-in cash cost per kilogramme increased by 11.7% to ZAR337,317/kg (2014: 
ZAR302,058/ kg). The total combined USD all-in cash cost per ounce decreased by 1.9% to USD916/oz (2014: 
USD934/oz).  This increase in all-in cash costs was mainly as a result of the following:
- Decrease in gold sold by 5.2% to 105,776oz (2014: 111,623oz).
- Cost of production increased by 10.3% to ZAR917.4 million (2014: ZAR831.5 million).
- The increase was off-set by a decrease in capital expenditure to ZAR112.6 million (2014: ZAR151 million) 
  with the finalisation of the BTRP construction of ZAR40.7 million in the prior year. 

Capital expenditure

Total capital expenditure at Barberton Mines decreased by 25.4% to ZAR112.6 million (2014: ZAR151 million). 
Maintenance capital expenditure of ZAR44.2 million (2014: ZAR33.3 million) and development capital 
expenditure of ZAR53.7 million (2014: ZAR50.5 million) was incurred.

Expansion capital of ZAR14.7 million (2014: ZAR67.2 million) was spent on the development of the Fairview 
ventilation raise borehole project to improve operating environmental conditions. Expansion capital 
incurred in the prior year was ZAR26.5 million for Fairview ventilation raise borehole project and 
ZAR40.7 million for the finalisation and commissioning of the BTRP.

New ore reserve and exploration drilling projects have yielded positive results, confirming the down 
dip extension of the high grade 11 Block of the MRC ore body by a further 170 metres. This extension 
to the MRC orebody has resulted in an annual increase in Barberton’s Mine mineral reserves by 236,162 
ounces, thereby extending the life of mine of Barberton Mines to 20 years.

The Fairview MRC orebody has been the primary gold contributor towards gold produced at Barberton Mines. 
This orebody is an epigenetic hydrothermal lode-gold deposit with a strike length that ranges between 
70 – 120 metres and also extending to depth. Gold mineralisation is associated with arsenopyrite and 
pyrite with an average reserve grade of 35 g/t that has been declared for the MRC. The mineralised 
widths range between 7 – 15 metres. 

Recent borehole results of the 11 Block are detailed hereunder:

Borehole number                Channel width (cm)             Grade (g/t)
Bh 5940                                      687                   53.30
Bh 5816                                      691                  120.03
Bh 5849                                     1626                   50.22
Bh 5864                                     1383                   43.82

Looking ahead

Barberton aims to improve levels of production by focussing on BIOX® recoveries, increased tonnages aligned 
with our incentive system, in conjunction with cost containment in order to avoid margin erosion. 
The management team remains committed to improving their safety performance and working with the DMR 
to reduce safety stoppages.

The Sheba and New Consort tailings dams will provide potential future sources of tailings which has
supported the increased BTRP life of operation to 15 years (2014: 12 years) The BTRP has a mineral 
reserve of 0.6Moz (13.4Mt @ 1.5 g/t). The BTRP payback period was 18 months since commissioning on 
1 July 2013, therefore the increase in the BTRP life of operation will result in further surplus 
free cash flows.

Review of Evander Mines

Safety

The in-house training programme Vuka-Sizwe (Vuka means “wake up” and Sizwe means “people”) continued to 
promote an ongoing culture of safety awareness and teamwork. All employees at the mine completed phase 
four of the programme during the year, which focused on behaviour and associated consequences and 
choices in safety.

Evander Mines’ TRIFR increased to 6.87 (2014: 6.04) per 1,000,000 man hours worked, and the LTIFR improved 
to 2.66 (2014: 4.08) per 1,000,000 man hours worked. The RIFR improved to 1.54 (2014: 2.57) per 1,000,000 
man hours worked.  Evander Mines safety record over the past three years reflects management’s focus on 
continually improving on their safety performance:

                                                                Three year safety trend
Frequency rate per 1,000,000 man hours        30 June 2012      30 June 2015             %
TRIFR                                                 7.99              6.87         14.0%
LTIFR                                                 4.00              2.66         33.5%
RIFR                                                  3.07              1.54         99.4%
FIFR                                                  0.77                 -          100%

Operating performance

Pan African Resources previously communicated that Evander Mines was in a low grade mining cycle. 
This cycle had reduced gold production and resulted in reduced profit margins and net profits generated 
by Evander Mines, in comparison to the previous corresponding reporting period.

In June 2015 Pan African Resources informed shareholders that Evander Mines had now exited the low grade 
mining cycle and was returning to a higher grade mining areas. The turnaround at the mine has been slower 
than previously anticipated.

For the year under review Evander Mines’ gold sold decreased by 8.5% to 70,081oz (2014: 76,556oz). 
Underground and surface sources tonnes milled decreased by1.2% to 648,209t (2014: 656,028t). The decrease 
in tonnes milled was largely due to challenges related to underground mining operations and infrastructure 
constraints, Eskom power interruptions and DMR safety stoppages.

These issues adversely impacted production output. The mine has implemented corrective actions, including 
improved maintenance protocols on the underground conveyor belt system, thereby improving availability of the 
conveyor belts from 60% to 80%. The mine also improved the monitoring and pump infrastructure of its 8 Shaft 
dewatering pumps, thereby reducing the risk of shaft flooding. The on-site management team has been 
strengthened with a renewed management focus on achieving operational and production targets.

The total cost of production (including off-mine costs) increased by 8.6% to ZAR993.8 million (2014: 
ZAR914.7 million). The cost of production includes additional cost in relation to the new ETRP plant 
and related surface feedstock. The cost of production (excluding the ETRP costs) therefore only 
increased by 2.7% to ZAR939.7 million. The combined ZAR cash costs per kilogramme increased by 18.7% 
to ZAR455,896/kg (2014: ZAR384,150/kg). USD cash costs per ounce increased by 7.3% to USD1,238/oz 
(2014: USD1,154/oz). This increase was mainly as a result of the lower grade cycle which led to gold 
sales decreasing by 8.5% to 70,081oz (2014: 76,556oz) and the cost of production increasing by 8.6% 
to ZAR993.8 million (2014: ZAR914.7 million). The main year-on-year cost contributors were the 
following:
- Salaries and wages increased by 5.4% to ZAR473.0 million (2014: ZAR448.9 million). The salaries and 
  wages costs increased as a result of the chamber of mines wage agreement which was average CPI plus 1% 
  (7.15% and 6.6% granted to NUM and UASA respectively). The increase was lower than the average chamber 
  increase, due to the implementation of a voluntary separation programme to optimise employee numbers. The average number of employees (excluding 
  capital employees) employed during year decreased by 2.8% to 2,247 (2014: 2,312). The ETRP employed an additional 
  13 employees during the year. The cost of the voluntary separation programme was ZAR12.9 million and was 
  recorded in other income and expenses on the statement of comprehensive income and factored into Evander 
  Mines all-in sustaining costs per kilogramme.
- Mining costs increased by 6.2% to ZAR120.3 million (2014: ZAR113.3 million) due to additional vamping in 
  No. 2 and 3 declines, and inflationary linked cost increases.
- Processing costs increased by 174.3% to ZAR88.6 million (2014: ZAR32.3 million), due to the additional ETRP 
  costs of ZAR51 million.
- Engineering and technical services costs increased by 1.6% to ZAR64.9 million (2014: ZAR63.9 million).
- Electricity and water costs increased by 7.1% to ZAR175.8 million (2014: ZAR164.2 million). The electricity 
  costs that related to the ETRP amounted to ZAR2.1 million for the four months ended 30 June 2015. The increase 
  in electricity and water excluding the ETRP increased by 5.8% to ZAR173.7 million (2014: ZAR164.2 million). 
  The electricity Eskom tariff increase implemented for the period under review was 12.7%, however Evander 
  Mines electricity consumption decreased due to power optimisation projects, load clipping, and Section 54 safety 
  stoppages issued by the DMR.
- Security costs decreased by 11.8% to ZAR11.2 million (2014: ZAR12.7 million) as a result of re-negotiated rates.
- Administration and other costs decreased by 13.1% to ZAR51.3 million (2014: ZAR59.0 million) as result of 
  management’s drive to reduce unnecessary overheads during the low grade cycle.
- ETRP cost of production which is incorporated in the production costs listed above amounted to ZAR54.1 million. 
  The ETRP costs comprises of ZAR51 million for processing costs, ZAR2.1 million for electricity and 
  ZAR1 million for salaries.

Evander Mines’ ZAR combined all-in cash cost per kilogramme increased by 16.4% to ZAR557,553/kg 
(2014: ZAR478,933/kg). The total combined USD all-in cash cost per ounce decreased by 5.3% to USD1,515/oz 
(2014: USD1,439/oz). This increase in all-in cash costs was mainly as a result of the following:
- Decrease in gold produced by 8.5% to 70,081oz (2014: 76,556oz);
- cost production increased by 8.6% to ZAR993.8 million (2014: ZAR914.7 million); and
- once-off expansion capital related to the ETRP plant construction of ZAR95.1 million (2014: ZAR79.2 million), 
  equating to ZAR43,597/kg (2014: ZAR33,268/kg). 

ETRP 

Pan African Resources remains focused on creating stakeholder value through unlocking the potential 
of its organic surface and brownfields exploration projects. In this regard, Evander Mines successfully 
commissioned its ETRP and the first gold was eluted in January 2015. The ETRP has now ramped-up processing 
to its capacity of 180,000 to 200,000 tonnes per month at 0.3g/t of tailings and 1.1g/t of surface feedstock. 
Gold production from the ETRP was on target and its recoveries from tailings sources are currently above 
plan at 48% (plan 42%), while additional surface sources aided in increasing the ETRP overall recovery to 53.7%.

The ETRP was operational for four months of the current financial year and its ZAR cash costs per kilogramme 
amounted to ZAR266,453/kg, equating to USD cash costs per ounce of USD688/oz. The ETRP contributed an additional 
2,494 ounces of gold from its tailings sources and 4,029 ounces from surface feedstock.

The total construction capital spend on the ETRP was approximately ZAR174.3 million, which was substantially 
below the original ZAR200 million project budget. 

Capital expenditure

Total capital expenditure at Evander Mines was ZAR238.2 million (2014: ZAR210.5 million). Maintenance 
capital expenditure was ZAR38.6 million (2014: ZAR27.9 million) and development capital expenditure was 
ZAR104.5 million (2014: ZAR103.4 million). Expansion capital related to the ETRP plant construction was 
ZAR95.1 million (2014: ZAR79.2 million).

Looking ahead

Evander Mines will assess the merits of developing the Evander South brownfield project (‘Evander South Project’) 
to further boost production levels. Evander Mines will continue to investigate the viability of constructing 
the Elikhulu tailings retreatment plant to treat slimes at about 12 million tonnes per annum at a headgrade of 
0.28g/t, with a specific focus on reducing the overall project capital.


Review of platinum tailings operations

Review of Phoenix Platinum

                                  Year ended 
                                     30 June      Units         Tailings operations
                                                               Phoenix Platinum
Tonnes processed - tailings             2015        (t)                    262,119
                                        2014        (t)                    251,182
Headgrade - tailings                    2015      (g/t)                       3.31
                                        2014      (g/t)                       3.65
Overall recovery                        2015        (%)                         44%
                                        2014        (%)                         29%
PGE Sold                                2015       (oz)                     10,245
                                        2014       (oz)                      7,204
Average ZAR PGE price received          2015       (oz)                      9,603
                                        2014       (oz)                      9,987
Average USD PGE price received          2015   (USD/oz)                        839
                                        2014   (USD/oz)                        965
ZAR cash cost                           2015   (ZAR/Oz)                      6,621
                                        2014   (ZAR/Oz)                      7,723
ZAR all-in sustaining cash costs        2015   (ZAR/KG)                      7,016
                                        2014   (ZAR/KG)                      7,977
ZAR all-in cost                         2015   (ZAR/KG)                      7,016
                                        2014   (ZAR/KG)                      7,977
USD cash cost                           2015   (USD/oz)                        578
                                        2014   (USD/oz)                        746
USD all-in sustaining cash cost         2015   (USD/oz)                        613
                                        2014   (USD/oz)                        771
USD all-in cost                         2015   (USD/oz)                        613
                                        2014   (USD/oz)                        771
ZAR cash cost per tonne                 2015    (ZAR/t)                        259
                                        2014    (ZAR/t)                        222
Capital expenditure                     2015      (ZAR 
                                               million)                        0.6
                                        2014      (ZAR 
                                               million)                        0.4
Average exchange rate                   2015  (ZAR/USD)                      11.45
                                        2014  (ZAR/USD)                      10.35
Revenue                                 2015       (ZAR 
                                                million)                      98.4
                                        2014       (ZAR 
                                                million)                      71.9

Cost of Production                      2015       (ZAR
                                                million)                      67.8
                                        2014       (ZAR 
                                                million)                      55.6

All-in sustainable cost of production   2015       (ZAR 
                                                million)                      71.9
                                        2014      (ZAR 
                                                million)                      57.5
All-in cost of production               2015       (ZAR 
                                                million)                      71.9
                                        2014       (ZAR 
                                                million)                      57.5
Adjusted EBITDA                         2015        (ZAR 
                                                 million)                     27.7
                                        2014        (ZAR 
                                                 million)                     16.0

Safety

Phoenix maintained its excellent safety record, with no injuries recorded. 

Operating performance

Phoenix Platinum made good progress on improving operations in the year under review, with PGE ounces 
sold increased by 42.2% to 10,245oz PGE (2014: 7,204oz PGE). Overall plant recoveries increased 
significantly to 44% (2014: 29%). The cessation of International Ferro Metals Limited (‘IFL’) 
operations at Skychrome, which mined mainly oxidised material, was replaced with sulphide material 
from its underground operation at Lesedi mine. This increase in sulphide material resulted in an 
improvement in the quality of feedstock being treated and was the main contributor to the higher 
plant recoveries achieved.

Pan African Resources’ shareholders are referred to the regulatory announcement published on 26 August 2015 
by IFL, and a follow-on announcement by Pan African Resources on the 27 August 2015, whereby IFL announced 
that as a result of deteriorating business conditions, its South African subsidiary, International Ferro 
Metals (SA) Proprietary Limited (‘IFMSA’), has entered into Business Rescue.  Business Rescue is a statutory 
means of enabling a financially distressed company to continue business, under the supervision of a Business 
Rescue Practitioner, protected from its creditors.

Phoenix Platinum is situated on the IFMSA property and a portion of the feedstock for the Phoenix Platinum’s 
operation (currently approximately 20%) is obtained from tailings arising from IFMSA’s current processing 
activities. Phoenix Platinum is not solely reliant on material from IFMSA and has alternative sources of 
feedstock. Phoenix Platinum sources electricity, water and certain other services from IFMSA.

At this stage, Phoenix Platinum is not in a position to fully assess the impact of the Business Rescue 
proceedings in relation to the operation. Phoenix Platinum and Pan African Resources will work closely 
with the IFMSA Business Rescue Practitioner to ensure that the operations and interests of Phoenix Platinum 
are safeguarded, which includes the services currently provided by IFMSA. All stakeholders will be kept 
informed as these discussions progress.

Phoenix Platinum will be looking at alternative feedstock from its Elandskraal and Kroondal tailings 
dams to maintain production and mitigate any shortfalls arising from IFMSA.

The effective average ZAR PGE basket price received decreased by 3.8% to ZAR9,603/oz (2014: ZAR9,987/oz). 
Cost per ounce of production decreased by 14.3% to ZAR6,621/oz (2014: ZAR7,723/oz). In USD terms the PGE 
basket price received decreased by 13.1% to USD839/oz (2014: USD965/oz). The USD cash costs per ounce 
decreased by 22.5% to USD578/oz (2014: USD746/oz).

The total cost of production increased by 21.9% to ZAR67.8 million (2014: ZAR55.6 million). The main 
year-on-year cost contributors were the following:

- Salary and wages increased by 10.7% to ZAR19.6 million (2014: ZAR17.7 million), comprising a standard 
  increase of 7.5% granted to the employees and also incentive bonus scheme for achieving production and 
  profit targets.
- Processing costs increased by 30.9% to ZAR43.6 million (2014: ZAR33.3 million). The plant produced 
  concentrate with a higher chrome content, this together with increased tonnages delivered to the smelter, 
  resulted in additional chrome and refining charges of ZAR13.7 million (2014: ZAR7.2 million).
- Electricity costs increased by 2.8% to ZAR3.7 million (2014: ZAR3.6 million). Phoenix Platinum electricity 
  costs increases were below Eskom’s tariff increase of 12.7% due to the optimisation of the plants mill to 
  reduce power consumption. 

Capital expenditure 

Total capital expenditure at Phoenix Platinum remained steady at ZAR0.6 million (2014: ZAR0.4 million). 

Looking ahead

Phoenix Platinum aims to optimise resources from Elandskraal and Kroondal to maintain production and 
profitability. On 29 June 2015 Phoenix Platinum signed a new agreement to secure the PGE rights to the 
Elandskraal surface resource. The haulage contract to transport the Elandskraal material to Phoenix Platinum
has been awarded and processing will commence during September 2015. During the new financial year the 
Elandskraal material will be batch treated in the CTRP to conduct re-agent suite test work.

During the 2016 financial year, 60,000 tonnes of the Kroondal surface resource will be processed in the 
CTRP. Re-agent test work will be conducted on this material during the latter part of year.

Group expansion/growth projects

An internal technical team from Evander Mines has been assigned to assess the merits of developing the 
Evander South Project to the level of a preliminary economic assessment. The Evander South Project is an 
attractive mining opportunity whereby the Kimberley reef can potentially be exploited at shallow depths, 
commencing at 300 metres below surface. Evander South has an estimated mineral resource of 4.9Moz 
(20.1Mt @ 7.7g/t).

In light of the positive results of the ETRP, Pan African Resources will undertake a preliminary 
economic assessment on the viability of constructing ‘Elikhulu’, a tailings retreatment plant at Evander 
Mines which can potentially treat slimes at a processing capacity of up to 12 million tonnes per annum 
and at a headgrade of 0.28g/t from the Winkelhaak, Leslie and Kinross tailings storage facilities. 
The total mineral resource for Elikhulu is 165 million tonnes at 0.28g/t (1.5Moz). 

Acquisition of Uitkomst Colliery

In executing our strategy of creating shareholder value by identifying and acquiring attractive, 
cash generative operating mining assets, the group entered into agreements to acquire the Uitkomst 
colliery (the ‘Colliery’) during June 2015. The Colliery, located close to the town of Utrecht in 
KwaZulu Natal in South Africa, is a high grade thermal export quality coal deposit with metallurgical 
applications. Once all the conditions precedent to the agreement are met, the Colliery will be acquired 
from Oakleaf Investments Holding 109 Proprietary Limited (‘Oakleaf’) and Shanduka Resources Proprietary 
Limited (‘Shanduka’)for a cash consideration of ZAR200 million. The Colliery is an existing operational 
mine and the acquisition is expected to be earnings and cash flow accretive to Pan African Resources. 
It contains a coal resource of 25.7 million tonnes, of which 22.1 million tonnes can be classed as 
measured or indicated, in accordance with the SAMREC code. The area also has additional exploration 
potential. Current operations at the Colliery demonstrate that it can readily produce yields of high 
grade coal suitable for export or local metallurgical markets. The Colliery currently sells approximately 
400,000 tonnes of coal per annum.

The acquisition will be funded from an existing RCF and internally generated cash flows. The acquisition 
still remains subject to approval by the DMR in terms of section 11 of the Mineral and Petroleum 
Resources Development Act (‘MPRDA’). The group’s exposure to coal, through this acquisition, also provides a
natural hedge against an anticipated increase in rising energy prices in South Africa. The Colliery 
acquisition is not a divergence of the group’s strategy and precious metals focus, but rather an 
opportunity to add to the group’s cash flow and earnings base.

Auroch Mineral NL (‘Auroch’)

Auroch is an exploration company focusing on developing and exploring the Manica Gold Project (‘Manica’) 
in Mozambique. Pan African Resources previously owned Manica. Manica was sold to Auroch during January 2013 
and, as part of the transaction consideration, Pan African Resources was issued 42% of the total issued 
share capital of Auroch.

On 17 November 2014, the Group announced the completion of the disposal of its interest in Auroch for a 
total amount of ZAR8.1 million (AUD0.85 million) in full and final settlement of all amounts owing.

Even though the total settlement was less than the AUD2 million settlement previously agreed upon, the 
transaction allowed for earlier payment and provided completion certainty for the group, enabling it to 
maintain its focus on the core asset portfolio.

During the reporting period prior to the date of disposal, the group consolidated ZAR2.3 million (2014: 
ZAR2.9 million) of Auroch’s exploration and corporate costs, which is disclosed in the statement of 
profit or loss and other comprehensive income under ‘Loss in Associate’. In derecognising the 42% investment 
in Auroch the group further recognised an impairment of ZAR1.0 million and a loss on disposal of investment 
of ZAR2.4 million in the statement of profit or loss and other comprehensive income.

Commitments reported in ZAR and GBP

The group had identified no contingent liabilities in the current or prior financial period.

The group had outstanding open orders contracted for at year end of ZAR22.8 million (2014: ZAR89.8 million) 
or GBP1.2 million (2014: GBP5 million). Authorised commitments for the new financial year not yet 
contracted for totalled ZAR271.1 million (2014: ZAR343.3 million) or GBP14 million (2014: GBP19 million).

The group had guarantees in place of ZAR24.6 million (2014: ZAR24.6 million) or GBP1.3 million (2014: 
GBP1.4 million) in favour of Eskom and ZAR14.0 million (2014: ZAR14.0 million) or GBP0.8 million 
(2014: GBP0.8 million) in favour of the DMR.

Operating lease commitments, which fall due within the next year, amounted to ZAR4.0 million 
(2014: ZAR2.6 million) or GBP0.2 million (2014: GBP0.1 million). 

The group has committed ZAR200 million (GBP10.4 million) in the financial year to Oakleaf and 
Shanduka, upon completion of the conditions precedent to the purchase agreement.

Fair value investments

Financial instruments that are measured at fair value grouped into levels 1 to 3 based on the extent 
to which fair value is observable.

The levels are classified as follows:

Level 1 - fair value is based on quoted prices in active markets for identical financial assets 
or liabilities;
Level 2 - fair value is determined using inputs other than quoted prices included within level 1 
that are observable for the asset or liability; and
Level 3 - fair value is determined on inputs not based on observable market data.

The group values its ZAR312.3 million (2014: ZAR278.4 million) or GBP16.2 million (2014:GBP15.5 million) 
rehabilitation trust funds which comprise of investments in guaranteed equity linked notes, government 
bonds and equities according to level 1 quoted prices in an active market.

During the year, the company purchased 1,750,850 shares for ZAR18.9 million (GBP1 million) in a listed 
available-for-sale investment. The investment is valued according to level 1 quoted prices in an 
active market.

Basis of preparation of the provisional summarised consolidated 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 theCompany’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 (‘LSE’).

This provisional announcement has been prepared in accordance with the framework concepts and the 
measurement and recognition requirements of IFRS and SAICA Financial Reporting Guides as issued by 
the Accounting Practice Committee and the Financial Pronouncements as issued by the Financial Reporting 
Standards Council, and the minimum information as required by International Accounting Standards 
(‘IAS’) 34: Interim Financial Reporting.

The group’s South African external auditors, Deloitte & Touche, have issued their opinions on the 
group’s consolidated financial statements and the provisional summarised consolidated financial 
statements for the year ended 30 June 2015. The audit was conducted in accordance with International 
Standards on Auditing. Deloitte & Touche have expressed unmodified opinions on the group’s consolidated 
financial statements and the provisional summarised 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 provisional summarised consolidated financial statements are extracted from the audited group 
consolidated financial statements. The directors takefull responsibility for the preparation of the 
provisional summarised audited results and confirm that the financial information has been correctly 
extracted from the underlying group consolidated financial statements.

AIM listing

The financial information for the year ended 30 June 2015 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 2014 have been delivered to 
the Registrar of Companies and those for 2015 will be delivered following the Company’s AGM. Deloitte LLP, 
the external auditor registered in the UK, have reported on these accounts for the year ended 30 June 2015.  
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 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 period under review: 

Appointments:

- Mr RM Smith was appointed as an independent non-executive director effective from 8 September 2014.
- Mr JAJ Loots was appointed the Chief executive officer effective 1 March 2015.
- Mr GP Louw was appointed Financial director effective 1 March 2015. 

Resignations:

- Mr RG Still resigned as a non-executive director effective 1 July 2014.
- Ms P Mahanyele resigned as a non-executive director effective 30 June 2015.
- Mr RA Holding resigned as Chief executive officer effective 1 March 2015. To ensure that MR RA Holdings 
experience and knowledge is retained by the group, an exclusive consulting agreement was concluded with him, 
effective 1 March 2015. This arrangement will be for a minimum period of one year.

Shares issued

On 19 March 2015 1,500,000 shares were issued at 5 pence per share to Mr KC Spencer’s family trust 
(‘Strode Trust’) upon exercising historical share options. During the prior financial year 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. Directors’ dealings

Financial Year 30 June 2015

On 19 March 2015 1,500,000 shares were issued at 5 pence per share to Mr KC Spencer’s Strode Trust, 
upon exercising historical share options. 

At 30 June 2015 the Strode Trust held a total of 3,000,000 shares (2014: 1,500,000). 

During the year under review Mr T Mosololi participated in the following transactions 
in the Company’s shares:

– On 6 March 2015, purchased 2,000 shares at ZAR2.04 per share.
– On 9 March 2015, purchased 28,000 shares at ZAR2.07 per share

At 30 June 2015 Mr T Mosololi held a total of 30,000 shares (2014: nil). Financial Year 30 June 2014
Mr JAJ Loots had purchased 50,000 shares at ZAR2.23 per share 17 September 2013. At 30 June 2014 Mr JAJ Loots 
held a total of 231,575 shares (2013: 181,575).

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). 

Dividend

The group paid a final dividend of ZAR258 million or GBP14.9 million (2013: ZAR240.3 million or GBP14.7 million) 
during December 2014 relating to the 2014 financial year, equating to ZAR0.1410 or 0.82p (2013: ZAR0.1314 
or 0.80p per share).

Proposed final dividend for approval at the AGM

In light of market uncertainties, the board has proposed a reduced dividend of ZAR210 million or GBP9.9 million 
(2014: ZAR258 million or GBP14.9 million), equating to ZAR0.11466 per share or 0.53958p per share 
(2014: ZAR0.1410 per share or 0.82p per share). This proposed final dividend is subject to approval at the 
AGM which will take place on 27 November 2015.  The reduced dividend is not a departure from the group’s 
progressive dividend policy and the board will consider an interim dividend in the 2016 financial year.

Assuming the dividend is approved by the shareholders, the following salient dates would apply:

Currency conversion date                          Friday, 27 November
Last date to trade on the exchanges               Friday, 4 December
Ex-Dividend date on the JSE                       Monday, 7 December
Ex-Dividend date on the LSE                       Thursday, 10 December
Record date                                       Friday, 11 December
Payment date                                      Thursday, 24 December

The GBP proposed dividend was calculated based on an exchange rate of ZAR21.25:1. 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 0.53958p per share.

The local dividends tax rate is fifteen percent per ordinary share for shareholders who are liable to pay 
the dividends tax would receive a net dividend of ZAR0.09746 per share (0.45864p per share). The Company’s 
South African income tax reference number is 9154588173 and it has 1,831,494,763 shares currently in issue.

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 ZAR800 billion revolving credit facility (‘RCF’) 
from a consortium of South African banks (and a two year accordion option subject to the banks credit 
committee approval of ZAR300 million), and access to general banking facilities (‘GBF’) of ZAR100 million. 
At 30 June 2015 the group had capacity on the RCF and GBF facilities of ZAR555.0 million and ZAR100.0 million, 
respectively, and cash on hand of ZAR64.2 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 
expenditure activities to conserve cash.

Events after the reporting period

Evander Mines employee share ownership programme

In the 2016 financial year, Evander Mines implemented an employee share ownership programme which is 
similar to that implemented at Barberton Mines in June 2015. A newly established employee trust will 
effectively own 5% of the issued share capital of Evander Mines. The transaction was financed by Evander Mines
with preference share funding attracting a real return of 2% per annum and with limited dilution to Pan African 
Resources’ shareholders. A portion of dividends declared is retained to repay the notional financing. The 
portion retained ranges from 50% to 80%, over the 10 year vesting period of the scheme. 

IFL announcement regarding business rescue 

Pan African Resources’ shareholders are referred to the regulatory announcement published on 
26 August 2015 by IFL, whereby IFL announced that as a result of deteriorating business conditions, 
its South African subsidiary IFMSA, has entered into Business Rescue.  Business Rescue is a statutory means 
of enabling a financially distressed Company to continue business, under the supervision of a Business 
Rescue Practitioner, protected from its creditors.

Phoenix Platinum is situated on the IFMSA property, and a portion of the feedstock for the Phoenix Platinum’s 
operation (currently approximately 20%) is obtained from tailings arising from IFMSA’s current processing 
activities. Phoenix Platinum is not solely reliant on material from IFMSA, and has alternative sources of 
feedstock. Phoenix Platinum sources electricity, water and certain other services from IFMSA.

At this stage, Phoenix Platinum is not in a position to fully assess the impact of the Business Rescue 
proceedings on the operation. Phoenix Platinum and Pan African Resources will work closely with the 
IFMSA Business Rescue Practitioner to ensure that the operations and interests of Phoenix Platinum 
are safeguarded, which includes the services currently provided by IFMSA.  All stakeholders will be kept 
informed as these discussions progress.

Acquisition of Uitkomst colliery

As detailed above, the group entered into agreements to acquire the Colliery during June 2015. Once all 
the conditions precedent to the agreement are met, the Colliery will be acquired from Oakleaf and Shanduka 
for a cash consideration of ZAR200 million. The Colliery is an existing operational mine and the acquisition 
is expected to be earnings and cash flow accretive to Pan African Resources. It contains a coal resource 
of 25.7 million tonnes, of which 22.1 million tonnes can be classed as measured or indicated, in accordance 
with the SAMREC code. The area also has additional exploration potential. Current operations at the Colliery 
demonstrate that it can readily produce yields of high grade coal suitable for export or local 
metallurgical markets. The Colliery currently sells approximately 400,000 tonnes of coal per annum.

The acquisition still remains subject to approval by the DMR in terms of the MPRDA section 11 mining 
rights transfer to Pan African Resources. 

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 2015 and prior year end 30 June 2014.

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 
from 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 Mines (including ETRP), located in Evander South Africa;
- Phoenix Platinum, located near Rustenburg South Africa;
- Corporate and growth projects and;
- Funding Company.

The Executive committee reviews the operations in accordance with the disclosures presented above. 

Pan African Resources outlook

Pan African Resources remains focused on creating stakeholder value through unlocking the potential 
of its organic surface and brownfields development projects. Some of the initiatives to positively 
enhance the life of mine of our assets include:
- Continued exploration at the Fairview Mine in Barberton, which has yielded positive results, 
  confirming the down dip extension of the high grade 11 Block of the MRC ore body by a further 170 metres. 
  This extension has resulted in an increase in the gold mineral reserves by 236,162 ounces, thereby 
  extending the life of mine to 20 years.
- A project team has been assembled at Evander Mines to conduct a preliminary economic assessment 
  for the Elikhulu project, the results of which will provide guidance on the merits of the project. 
  Elikhulu is a tailings retreatment plant which can potentially treat slimes at a processing capacity 
  of up to 12 million tonnes per annum and at a head grade of 0.28g/t from the Winkelhaak, Leslie and 
  Kinross tailings storage facilities. The total mineral resource for Elikhulu is 165Mt at 0.28g/t (1.5Moz).
- An internal technical team from Evander Mines has been assigned to assess the merits of developing 
  the Evander South Project to the level of a preliminary economic assessment. The Evander South Project 
  is an attractive mining opportunity whereby the Kimberley reef can potentially be exploited at shallow 
  depths of approximately 300 metres below surface.
- Completion of the acquisition and integration of the Uitkomst Colliery into the group. 

Appreciation

I extend my thanks and appreciation to Ron Holding, the outgoing chief executive officer. Ron’s 
experience and expertise remains available to the group, through an exclusive consulting arrangement 
as the group’s technical adviser.

We welcome Deon Louw who joined us on 1 March 2015 as financial director to further boost our 
executive management team.

On behalf of the executive team, we extend our thanks to our management, our mine managers and all 
staff for their hard work and persistence that continues to allow Pan African Resources to operate 
successfully. We also thank our fellow directors for their support and guidance.

We look forward to an exciting year ahead, despite the challenging environment for gold miners globally, 
and aim to further enhance shareholder value.

Cobus Loots                                       Deon Louw
Chief Executive Officer                           Financial Director

16 September 2015

Summary Consolidated Financial Statements

Summarised Consolidated Statement of Financial Position at 30 June 2015

                                  30 June 2015       30 June 2014      30 June 2015      30 June 2014
                                      (Audited)          (Audited)       (Unaudited)       (Unaudited)
                                           GBP                GBP        ZAR(note 1)       ZAR(note 1)
Assets
Non-current assets
Property, plant and 
equipment and mineral rights        181,532,780        185,375,968     3,503,582,652      3,338,621,179
Other intangible assets                 202,488            214,330         3,908,021          3,860,082
Deferred taxation                       327,748            366,567         6,325,533          6,601,879
Goodwill                             21,000,714         21,000,714       303,491,812        303,491,812
Investments                             904,818                  -        17,462,996                  -
Investments in associate                      -          1,009,545                 -         10,558,872
Rehabilitation trust fund            16,181,925         15,458,291       312,311,153        278,403,816
                                    220,150,473        223,425,415     4,147,082,167      3,941,537,640
Current assets
Inventories                           3,502,569          5,341,128        67,599,584         96,193,722
Current tax asset                       827,298            854,568        15,966,858         15,390,775
Trade and other receivables           9,559,010         11,696,380       184,488,890        210,651,809
Cash and cash equivalents             3,328,850          5,618,323        64,246,802        101,186,004
                                     17,217,727         23,510,399       332,302,134        423,422,310
Non-current assets held for sale              -                  -                 -                  -
Total assets                        237,368,200        246,935,814     4,479,384,301      4,364,959,950
Equity and liabilities
Capital and reserves
Share capital                        18,314,947         18,299,947       244,752,779        244,480,271
Share premium                        94,846,046         94,792,516     1,323,632,626      1,322,660,134
Translation reserve                 (56,402,515)       (47,545,320)                -                  -
Share option reserve                  1,035,888          1,154,891        13,957,178         15,965,957
Retained income                     110,850,201        114,106,005     1,452,863,957      1,500,694,965
Realisation of equity reserve       (10,701,093)       (10,701,093)     (140,624,130)      (140,624,130)
Merger reserve                      (10,705,308)       (10,705,308)     (154,707,759)      (154,707,759)
Other reserves                          (70,679)            (5,529)       (1,364,097)           (99,569)
Equity attributable to 
owners of the parent                147,167,487        159,396,109     2,738,510,554      2,788,369,869
Total equity                        147,167,487        159,396,109     2,738,510,554      2,788,369,869
Non-current liabilities
Long term provisions                 12,249,367         12,033,167       236,412,781        216,717,341
Long term liabilities                16,312,982          8,141,317       314,840,546        146,625,129
Deferred taxation                    39,288,059         43,353,577       758,259,537        780,797,921
                                     67,850,408         63,528,061     1,309,512,864      1,144,140,391
Current liabilities
Trade and other payables             16,797,600         17,219,749       324,193,676        310,127,663
Short term liabilities - 
Interest bearing                          1,443                  -            27,847                  -
Current portion of long 
term liabilities                      5,047,478          4,754,803        97,416,327         85,634,001
Current tax liability                   503,784          2,037,092         9,723,033         36,688,026
                                     22,350,305          24,011,64       431,360,883        432,449,690
Total equity and liabilities        237,368,200        246,935,814     4,479,384,301      4,364,959,950

Note 1: The ZAR figures have been included for illustrative purposes only.

Summarised Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2015

                                  30 June 2015       30 June 2014      30 June 2015       30 June 2014
                                      (Audited)          (Audited)       (Unaudited)        (Unaudited)
                                           GBP                GBP               ZAR                ZAR
Revenue
Gold sales                         135,611,436        150,288,898      2,441,005,844     2,536,876,593
Platinum sales                       5,465,447          4,262,160         98,378,038        71,945,269
Realisation costs                     (690,538)          (349,454)       (12,429,687)       (5,898,786)
On - mine revenue                  140,386,345        154,201,604      2,526,954,195     2,602,923,076
Gold cost of production           (106,644,655)      (103,099,110)    (1,919,603,778)   (1,740,312,981)
Platinum cost of production         (3,768,530)        (3,294,975)       (67,833,541)      (55,619,174)
Mining depreciation                (10,337,211)       (10,023,361)      (186,069,804)     (169,194,334)
Mining profit                       19,635,949         37,784,158        353,447,072       637,796,587
Other income (expenses)                249,776         (1,449,853)         4,495,973       (24,473,514)
Loss in associate                     (127,950)          (173,177)        (2,291,239)       (2,923,222)
Loss on disposal of associate         (139,970)           (11,848)        (2,429,880)         (200,000)
Impairments                            (58,424)                 -         (1,014,239)                -
Royalty costs                       (1,647,297)        (2,019,066)       (29,651,339)      (34,081,834)
Net income before finance
income and finance costs            17,912,084         34,130,214        322,556,348       576,118,017
Finance income                         348,959            687,185          6,281,253        11,599,688
Finance costs                       (2,458,287)          (878,064)       (44,249,162)      (14,821,716)
Profit before taxation              15,802,756         33,939,335        284,588,439       572,895,989
Taxation                            (4,132,789)        (7,154,742)       (74,390,185)     (120,772,050)
Profit after taxation               11,669,967         26,784,593        210,198,254       452,123,939
Other comprehensive income:
Fair value adjustment 
on investments                        (70,679)                  -         (1,364,097)                -
Other Movements                         5,529              (5,529)            99,569           (99,569)
Foreign currency translation 
differences                        (8,857,195)        (25,378,975)                 -                 -
Total comprehensive income 
for the year                        2,747,622           1,400,089        208,933,726       452,024,370
Profit attributable to:
Owners of the parent               11,669,967          26,784,593        210,198,254       452,123,939
Total comprehensive income 
attributable to:
Owners of the parent                2,747,622           1,400,089        208,933,726       452,024,370
Earnings per share                       0.64                1.47              11.48             24.74
Diluted earnings per share               0.64                1.46              11.48             24.69
Weighted average number 
of shares in issue              1,830,422,160       1,827,207,555      1,830,422,160     1,827,207,555
Diluted number of shares 
in issue                        1,830,967,266       1,831,339,174      1,830,967,266     1,831,339,174
Headline earnings per 
share is calculated : 
Basic earnings                     11,669,967          26,784,593        210,198,254       452,123,939

Adjustments(note 1):
Loss on disposal of associate         139,970              11,848          2,429,880           200,000
Loss on disposal of property 
plant, mineral right and
equipment                                 149              (20,497)            2,679          (345,982)
Impairments                            58,424                    -         1,014,239                 -
Headline earnings                  11,868,510           26,775,944       213,645,052       451,977,957
Headline earnings per share              0.65                 1.47             11.67             24.74
Diluted headline earnings 
per share                                0.65                 1.46             11.67             24.68

Note 1: The headline earnings adjustments highlighted above did not have any taxation implications 
to the group.

Summarised Consolidated Statement of cash flows
For the year ended 30 June 2015

                                  30 June 2015       30 June 2014      30 June 2015       30 June 2014
                                      (Audited)          (Audited)       (Unaudited)        (Unaudited)
                                           GBP                GBP               ZAR                ZAR
Net cash generated from 
operating activities                 5,364,480         22,170,353        95,659,359        360,338,271
Investing activities
Additions to property, 
plant and equipment and 
mineral rights                     (19,528,616)       (21,461,839)     (351,515,099)      (362,275,828)
Additions to other 
intangible assets                      (25,740)           (38,617)         (463,320)          (651,859)
Investments acquired                (1,037,677)                 -       (18,825,000)                 -
Proceeds on disposals 
of Associate                           277,732            145,366         4,834,253          3,387,086
Net cash used in 
investing activities               (20,314,301)       (21,355,090)     (365,969,166)      (359,540,601)
Financing activities
Proceeds from borrowings            27,898,927         22,955,725       500,000,000        400,000,000
Borrowings repaid                  (14,728,154)      (22,431,453)      (262,552,468)      (376,881,317)
Settlement of equity share 
option costs                          (303,067)                -         (5,321,928)                 -
Shares issued                           68,530           348,559          1,245,000          5,688,215
Net cash from financing 
activities                          12,936,236           872,831        233,370,604         28,806,898
Net (decrease)/increase in 
cash and cash equivalents           (2,013,585)        1,688,094        (36,939,203)        29,604,568
Cash and cash equivalents at 
the beginning of the year            5,618,323         4,768,916        101,186,004         71,581,436
Effect of foreign 
exchange rate changes                 (275,888)         (838,687)                 -                  -
Cash and cash equivalents at 
the end of the year                  3,328,850         5,618,323         64,246,801        101,186,004

Summarised Audited GBP Consolidated Statement of Changes in Equity for the period 30 June 2015

                                                          Share              Realisation
                     Share       Share  Translation      option    Retained    of equity       Merger      Other
                   Capital     Premium      reserve     reserve      income      reserve      reserve   reserves         Total
                       GBP         GBP          GBP         GBP         GBP          GBP          GBP        GBP           GBP
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
income                  -            -  (25,378,975)          -   26,784,593            -              -   (5,529)    1,400,089
Dividends paid          -            -            -           -  (14,683,712)           -              -        -   (14,683,712)
Share based payment
- charge for the
year                    -            -            -     122,936            -            -              -        -       122,936
Balance at 
30 June 2014   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
Issue of 
shares             15,000       53,530            -           -             -            -             -        -        68,530
Total 
comprehensive
income                  -            -    (8,857,195)         -     11,669,967            -            -   (65,150)   2,747,622
Dividends paid          -            -             -          -    (14,925,771)           -            -            (14,925,771)
Share based 
payment
- charge for 
the
year                    -            -              -   (119,003)            -             -            -        -     (119,003)
Balance at 
30 June
2015           18,314,947   94,846,046    (56,402,515)  1,035,888   110,850,201  (10,701,093) (10,705,308) (70,679) 147,167,487

Summarised Unaudited ZAR Consolidated Statement of Changes in Equity for the period 30 June 2015

                                                     Share                 Realisation
                          Share          Share      option       Retained    of equity         Merger    Other
                        Capital        Premium     reserve         income      reserve        reserve reserves           Total    
                            ZAR            ZAR         ZAR            ZAR          ZAR            ZAR      ZAR             ZAR   
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
Other reserve                 -              -           -              -             -              -   (99,569)       (99,569)
Total comprehensive 
income                        -              -           -    452,123,939             -              -         -    452,123,939
Dividends paid                -              -           -   (240,263,712)            -              -         -   (240,263,712)
Share based payment -
charge for the year           -              -   2,075,159              -             -              -         -      2,075,159
Balance at 
30 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
Issue of shares         272,508        972,492           -              -             -              -         -      1,245,000
Total 
comprehensive 
income                        -             -            -    210,198,254             -              - (1,264,528)  208,933,726
Dividends paid                -             -            -   (258,029,262)            -              -          -  (258,029,262)
Share based payment 
- charge for the year         -             -   (2,008,779)             -             -              -          -    (2,008,779)
Balance at 
30 June 2015        244,752,779 1,323,632,626   13,957,178  1,452,863,957  (140,624,130) (154,707,759) (1,364,097) 2,738,510,554

Summarised Audited Consolidated GBP Segment Report for the period ended 30 June 2015

                                                                 30 June 2015
                                                                            Corporate and
                              Barberton           Evander         Phoenix          Growth        Funding
                                  Mines             Mines        Platinum        Projects        Company                Group
                                    GBP               GBP             GBP            GBP             GBP                  GBP
Revenue
Gold sales (note 1)          81,609,692        54,001,744               -              -              -           135,611,436
Platinum Sales                        -                 -       5,465,447              -              -             5,465,447
Realisation costs              (534,421)         (156,117)              -              -              -              (690,538)
On - mine revenue            81,075,271        53,845,627       5,465,447              -              -           140,386,345
Gold cost of production     (50,434,360)      (56,210,295)              -              -              -          (106,644,655)
Platinum cost of production           -                 -      (3,768,530)             -              -            (3,768,530)
Depreciation                 (4,008,467)       (5,963,753)       (364,991)             -              -           (10,337,211)
Mining Profit                26,632,444        (8,328,421)      1,331,926              -              -            19,635,949
Other expenses(note 2)        (966,703)         5,057,581        (163,390)    (3,676,779)          (933)              249,776
Loss from associate                  -                  -               -       (127,950)             -              (127,950)
Loss on disposal of
associate                            -                  -               -       (139,970)              -             (139,970)
Impairment costs                     -                  -               -        (58,424)              -              (58,424)
Royalty costs               (1,595,802)           (51,495)              -              -               -           (1,647,297)
Net income/(loss) 
before finance income 
and finance costs           24,069,939         (3,322,335)      1,168,536     (4,003,123)           (933)           17,912,084
Finance income                 109,514            167,047          11,186         53,290           7,922               348,959
Finance costs                 (246,094)          (918,923)         (1,136)       (13,164)     (1,278,970)           (2,458,287)
Profit/(loss) before
taxation                    23,933,359         (4,074,211)      1,178,586     (3,962,997)     (1,271,981)           15,802,756
Taxation                    (5,956,861)         2,270,047        (336,439)       (89,033)        (20,503)           (4,132,789)
Profit/(loss) after 
taxation before inter-
company charges             17,976,498         (1,804,164)        842,147     (4,052,030)      (1,292,484)          11,669,967
Inter-company 
transactions
Management fees             (1,666,667)        (1,248,661)       (152,777)     3,068,105                -                    -
inter-company interest
charges                        (57,776)        (1,230,251)         (4,605)       (16,450)        1,309,082                   -
Profit/(loss) after 
taxation after inter-
company charges             16,252,055         (4,283,076)        684,765     (1,000,375)           16,598          11,669,967
Segmental Assets (Total
assets excluding goodwill)  55,423,588        146,705,365      10,850,893      2,454,933           932,707         216,367,486
Segmental Liabilities       21,528,150         52,987,201         933,753      1,973,835        12,777,774          90,200,713
Goodwill                    21,000,714                  -               -              -                 -          21,000,714
Net Assets (excluding
goodwill)                   33,895,438         93,718,164       9,917,140         481,098      (11,845,067)        126,166,773
Capital Expenditure          6,255,556         13,233,333          33,333          33,333                -           19,555,55

                                                                 30 June 2014
                                                                            Corporate and
                              Barberton           Evander         Phoenix          Growth        Funding
                                  Mines             Mines        Platinum        Projects        Company                Group
                                    GBP               GBP             GBP            GBP             GBP                  GBP
Revenue
Gold sales (note 1)          89,520,058        60,768,840               -              -               -          150,288,898
Platinum Sales                        -                 -       4,262,160              -               -            4,262,160
Realisation costs              (269,403)          (80,051)              -              -               -             (349,454)
On - mine revenue            89,250,655        60,688,789       4,262,160              -               -          154,201,604
Gold cost of production     (48,989,722)      (54,109,388)              -              -               -         (103,099,110)
Platinum cost of production           -                 -      (3,294,975)             -               -           (3,294,975)
Depreciation                 (3,905,925)       (5,558,837)       (558,599)             -               -          (10,023,361)
Mining Profit                36,355,008         1,020,564         408,586              -               -           37,784,158
Other expenses(note 2)       (1,704,438)          857,879         (20,576)      (566,710)        (16,008)          (1,449,853)
Loss from associate                   -                 -               -       (173,177)              -             (173,177)
Loss on disposal of
associate                       (11,848)                -               -              -               -              (11,848)
Impairment costs                      -                 -               -              -               -                    -
Royalty costs                (2,185,136)          166,070               -              -               -           (2,019,066)
Net income/(loss) 
before finance 
income and finance
costs                        32,453,586         2,044,513          388,010      (739,887)        (16,008)          34,130,214
Finance income                  173,405           344,903                -       168,877               -              687,185
Finance costs                   (35,333)           (7,743)               -           (31)       (834,957)            (878,064)
Profit/(loss) before
taxation                     32,591,658         2,381,673          388,010       (571,041)       (850,965)         33,939,335
Taxation                     (8,969,604)        1,828,847         (172,379)       145,372          13,022          (7,154,742)
Profit/(loss) after
taxation before 
inter-company charges        23,622,054         4,210,520          215,631       (425,669)       (837,943)         26,784,593
Inter-company 
transactions
Management fees                (509,479)         (337,678)         (29,620)       876,777               -                   -
inter-company interest
charges                               -          (863,345)               -              -         863,345                   -
Profit/(loss) after 
taxation after inter-
company charges              23,112,575         3,009,497          186,011        451,108          25,402          26,784,593
Segmental Assets (Total
assets excluding goodwill)   57,519,959       152,476,424       12,427,761      3,482,325          28,631         225,935,100
Segmental Liabilities        23,135,981        62,144,046          622,536      1,519,598         117,544          87,539,705
Goodwill                     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
Capital Expenditure           8,944,360        12,468,962           24,027         63,107               -          21,500,456

Summarised Unaudited Consolidated ZAR Segment report for the period ended 30 June 2015

                                                                 30 June 2015
                                                                            Corporate and
                              Barberton           Evander         Phoenix          Growth        Funding
                                  Mines             Mines        Platinum        Projects        Company                Group
                            ZAR million       ZAR million     ZAR million     ZAR million     ZAR million         ZAR million
Revenue
Gold sales (note 1)             1,469.0             972.0               -              -                -             2,441.0
Platinum Sales                        -                 -            98.4              -                -                98.4
Realisation costs                  (9.6)             (2.8)              -              -                -               (12.4)
On - mine revenue               1,459.4             969.2            98.4              -                -             2,527.0
Gold cost of production          (907.8)         (1,011.8)              -              -                -            (1,919.6)
Platinum cost of production           -                 -           (67.8)             -                -               (67.8)
Depreciation                      (72.2)           (107.3)           (6.6)             -                -              (186.1)
Mining Profit                     479.4            (149.9)           24.0              -                -               353.5
Other (expenses)/income
(note 2)                          (17.4)             91.0            (2.9)         (66.2)               -                 4.5
Bargain purchase                      -                 -               -              -                -                   -
Loss from associate                   -                 -               -           (2.3)               -                (2.3)
Loss on disposal of
associate                             -                 -               -           (2.4)               -                (2.4)
Impairment costs                      -                 -               -           (1.0)               -                (1.0)
Royalty costs                     (28.7)             (1.0)              -              -                -               (29.7)
Net income/(loss) before 
finance income and finance
costs                             433.3             (59.9)           21.1          (71.9)                -              322.6
Finance income                      2.0               3.0             0.2            1.0               0.1                6.3
Finance costs                      (4.4)            (16.5)              -           (0.2)            (23.1)             (44.2)
Profit /(loss) before
taxation                          430.9             (73.4)           21.3          (71.1)            (23.0)             284.7
Taxation                         (107.2)             40.9            (6.1)          (1.7)             (0.4)             (74.5)
Profit /(loss) after
taxation                          323.7             (32.5)           15.2          (72.8)            (23.4)             210.2
Inter-company transactions
Management fees                   (30.0)            (22.5)           (2.7)          55.2                 -                  -
inter-company interest
charges                            (1.0)            (22.1)           (0.2)          (0.3)             23.6                  -
Profit/(loss) after taxation 
after inter-
company charges                   292.7             (77.1)           12.3          (17.9)              0.2              210.2
Segmental Assets (Total
assets excluding goodwill)      1,069.7           2,831.4           209.4           47.4              18.0            4,175.9
Segmental Liabilities             415.5           1,022.7            18.0           38.1             246.6            1,740.9
Goodwill                          303.5                 -               -              -                 -              303.5
Net Assets (excluding
goodwill)                         654.2           1,808.7           191.4            9.3            (228.6)           2,435.0
Capital Expenditure               112.6             238.2             0.6            0.6                 -              352.0

                                                                 30 June 2014
                                                                            Corporate and
                              Barberton           Evander         Phoenix          Growth        Funding
                                  Mines             Mines        Platinum        Projects        Company                Group
                            ZAR million       ZAR million     ZAR million     ZAR million     ZAR million         ZAR million

Revenue
Gold sales (note 1)             1,511.1            1,025.8              -               -               -             2,536.9
Platinum Sales                        -                  -           71.9               -               -                71.9
Realisation costs                  (4.5)              (1.4)             -               -               -                (5.9)
On - mine revenue               1,506.6            1,024.4           71.9               -               -             2,602.9
Gold cost of production          (826.9)            (913.4)             -               -               -            (1,740.3)
Platinum cost of production           -                  -          (55.6)              -               -               (55.6)
Depreciation                      (65.9)             (93.8)          (9.4)              -               -              (169.1)
Mining Profit                     613.8               17.2            6.9               -               -               637.9
Other (expenses)/income
(note 2)                          (28.8)              14.5           (0.3)           (9.8)           (0.3)              (24.7)
Bargain purchase                      -                  -              -               -               -                   -
Loss from associate                   -                  -              -            (2.9)              -                (2.9)
Loss on disposal of
associate                          (0.2)                 -              -               -               -                (0.2)
Impairment costs                      -                  -              -               -               -                   -
Royalty costs                     (36.9)               2.8              -               -               -               (34.1)
Net income/(loss) before 
finance income and finance
costs                             547.9               34.5            6.6           (12.7)              -                576.0
Finance income                      2.9                5.8              -             2.9               -                 11.6
Finance costs                      (0.6)              (0.1)             -               -           (14.1)               (14.8)
Profit/(loss) before
taxation                          550.2               40.2            6.6            (9.8)          (14.1)               572.8
Taxation                         (151.4)              30.9           (2.9)            2.5             0.2               (120.7)
Profit/(loss) after
taxation                          398.8               71.1            3.7            (7.3)          (13.9)               452.1
Inter-company transactions
Management fees                    (8.6)              (5.7)          (0.5)           14.8               -                    -
inter-company interest
charges                               -              (14.6)             -               -            14.6                    - 
Profit/(loss) after taxation 
after inter-company charges       390.2               50.8            3.2             7.5             0.7                452.1
Segmental Assets (Total
assets excluding goodwill)      1,035.9            2,746.1          223.8            55.1             0.5              4,061.4
Segmental Liabilities             416.7            1,119.2           11.2            27.4             2.1              1,576.6
Goodwill                          303.5                  -              -               -               -                303.5
Net Assets (excluding
goodwill)                         619.2            1,626.9          212.6            27.7            (1.6)             2,484.8
Capital Expenditure               151.0              210.5            0.4             1.1               -                363.0

Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was generated from 
sales via Rand Refinery (Pty) Ltd and Institutional banks.
Note 2: Other expenses exclude inter-management fees and dividend received

Contact information
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
Facsimile: + 27 (0) 11 880 1240

Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom

Office: +44 (0) 20 7796 8644
Facsimile: +44 (0) 20 7796 8645

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                                         John Prior / Paul Gillam / James Black
St James’s Corporate Services Limited               Numis Securities Limited
Company Secretary                                   Nominated Adviser & Joint Broker
Office: + 44 (0)20 7796 8644                        Office: +44 (0)20 7260 1000

Sholto Simpson                                      Matthew Armitt / Ross Allister
One Capital                                         Peel Hunt LLP
JSE Sponsor                                         Joint Broker
Office: +27 (0)11 550 5009                          Office: +44 (0)020 7418 8900

Julian Gwillim                                      Daniel Thöle
Aprio Strategic Communications                      Bell Pottinger PR
Public & Investor Relations SA                      Public & Investor Relations UK
Office: +27 (0)11 880 0037                          Office: + 44 (0)20 3772 2500

www.panafricanresources.com

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