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PAN AFRICAN RESOURCES PLC - Provisional audited results for the year ended 30 June 2016 and final dividend announcement

Release Date: 21/09/2016 08:00
Code(s): PAN     PDF:  
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Provisional audited results for the year ended 30 June 2016 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 2016 and final dividend announcement



Cobus Loots, CEO of Pan African Resources commented: “The Pan African Resources group delivered an 

outstanding set of results for the 2016 financial year. These results include a year of record gold 

production and profits and the largest dividend payment to date.



Our gold mining operations delivered exceptional results, producing in excess of 200,000oz of gold 

for the financial year. The performance from Evander Mines, in particular, demonstrated the 

potential of the operation, with production increasing by 30.8% year-on-year. Results were also 

assisted by the Rand gold price and a full year’s production from the Evander tailings retreatment 

plant.



Our robust financial position, well-established cash-generative operations, decentralised hands-on 

management structure and cost-conscious culture differentiate us from our peers. These attributes 

give Pan African Resources a competitive advantage for further growth through our project pipeline 

and also position the group to capitalise on potential acquisition opportunities.”

Key features reported in South African Rand (‘ZAR or R’) and Pound Sterling (‘GBP’) 



Financial key features

– The group’s profit after taxation in ZAR terms increased by 160.2% to R547.0 million (2015: 

R210.2 million), while in GBP terms, the group’s profit after taxation increased by

117.9% to GBP25.5 million (2015: GBP11.7 million).

– Earnings per share (‘EPS’) increased by 163.1% to 30.20 cents per share (2015: 11.48 cents per 

share), while in GBP terms, EPS increased by 120.3% to 1.41 pence per share (2015:0.64 pence 

per share).

– Group revenue increased by 43.1% to R3,632.8 million (2015: R2,539.4 million) as a result of the 

materially improved operational performance, the higher prevailing effective ZAR

gold price and the incorporation of the Uitkomst Colliery (‘Uitkomst’) revenue.

– The Pan African Resources’ board of directors (‘board’) has proposed an increased final dividend 

of R300 million or approximately GBP16.0 million (2015: R210 million or GBP9.7 million), equating 

to R0.15438 per share or approximately 0.82338 pence per share (2015: R0.11466 per share or 0.53108 

pence per share). This dividend is subject to approval at the annual general meeting (‘AGM’), which 

will take place on 25 November 2016. (note 1)

– The group completed the Shanduka Gold Pty Ltd (‘Shanduka Gold’) transaction which resulted in the 

company acquiring an effective 23.8% (post dilution 22.5%) of its issued shares on

7 June 2016 for a total consideration of R546.9 million. Shanduka Gold is, from an accounting 

perspective, deemed to be controlled by Pan African Resources and Shanduka Gold’s full shareholding 

of 436.4 million shares in Pan African Resources will eliminate upon consolidation. Shanduka Gold 

has been subsequently renamed to PAR Gold Pty Ltd (‘PAR Gold’).



Operational key features

– Group delivered record gold production, with gold sales increasing by 16.5% to 204,928oz 

(2015: 175,857oz).

– Effective ZAR gold price received increased by 21.6% to R542,850/kg (2015: R446,274/kg), however 

in USD terms it decreased to USD1,164/oz (2015:USD1,212/oz).

– All-in sustaining cost per kilogramme increased marginally in ZAR terms to R405,847/kg 

(2015: R402,221/kg), however in USD terms all-in sustaining cost per ounce decreased to

USD870/oz (2015:USD1,093/oz).

– The group concluded the acquisition of Uitkomst for a cash purchase consideration of R148 million 

effective 31 March 2016. Uitkomst contributed R11.4 million to the group’s profit after taxation in 

the current year.

– The group’s gold resources increased to 34.9Moz (2015: 31.9Moz).

– The group regrets to report one fatality during the year under review (2015: one fatality).

  

            Year      Year                                                     Year      Year

           ended     ended                                                    ended     ended

         30 June   30 June                  Summary of                      30 June   30 June

Movement    2016      2015        Metric    key features    Metric             2016      2015 Movement  

 16.5%     6,374     5,470  (Kilogrammes)   Gold sold       (Oz)            204,928   175,857    16.5%

 43.1%   3,632.8   2,539.4   (R millions)   Revenue         (GBP millions)    169.4     141.1    20.1%

 21.6%   542,850   446,274         (R/kg)   Average gold    (USD/oz)          1,164     1,212    (4.0%)

                                            price received       

 (3.2%)  338,242   349,410         (R/kg)   Cash costs      (USD/oz)            725       949   (23.6%)

  0.9%   405,847   402,221         (R/kg)   All-in          (USD/oz)            870     1,093   (20.4%)

                                            sustaining costs          

 (3.5%)  410,206   425,084         (R/kg)   All-in costs    (USD/oz)            879     1,155   (23.9%)

 89.3%     969.5     512.1   (R millions)   Adjusted EBITDA (GBP millions)     45.2      28.4    59.2%

                                            (note 2)         

160.2%     547.0     210.2   (R millions)   Profit after    (GBP millions)     25.5      11.7   117.9%

                                            taxation         

156.1%     547.1     213.6   (R millions)   Headline        (GBP millions)     25.5      11.9   114.3%

                                            earnings           

163.1%     30.20     11.48        (cents)   EPS             (pence)            1.41      0.64   120.3%

158.8%     30.20     11.67        (cents)   Headline        (pence)            1.41      0.65   116.9%

                                            earnings per 

                                            share (‘HEPS’)

  5.8%     339.6     321.1   (R millions)   Net debt        (GBP millions)     17.2      16.6     3.4%

  9.7%     265.7     242.3   (R millions)   Total           (GBP millions)     12.4      13.5    (8.1%)

                                            sustaining 

                                            capital 

                                            expenditure    

(14.1%)    302.4     352.0   (R millions)   Total capital   (GBP millions)     14.0      19.6   (28.6%)

                                            expenditure                    

 27.6%     190.8     149.5        (cents)   Net asset       (pence)            10.0       8.0    25.0%

                                            value per share        

 (1.0%) 1,811.40  1,830.40     (millions)   Weighted        (millions)      1,811.4  1,830.40    (1.0%)

                                            average number 

                                            of shares 

                                            in issue               

 26.7%     14.51     11.45        (R/USD)   Average         (R/GBP)           21.45     18.00     19.2%

                                            exchange 

                                            rate          

 20.3%     14.78     12.29        (R/USD)   Closing         (R/GBP)           19.78     19.30      2.5%

                                            exchange rate          

                 

Note 1: The GBP proposed final dividend was calculated based on 1,943,206,554 total shares in issue 

and an illustrative exchange rate of R18.75:1. Shareholders on the London register are to note that 

a revised exchange rate will be communicated prior to approval at the AGM.

Note 2: Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and 

amortisation, impairments and loss on disposal of associate.



CEO STATEMENT

The past year has been an exceptionally successful period for Pan African Resources and for most of 

our stakeholders. The group has delivered a year of record gold production and profits and 

successfully concluded the Shanduka Gold transaction. This transaction enables the group to 

preserve and protect its black economic empowerment (‘BEE’) status on an earnings accretive basis. 

Despite maintaining our focus on gold assets, the finalisation of the Uitkomst acquisition provides 

an opportunistic expansion into the coal sector and a natural hedge against rising energy prices. 

The group also benefitted from the rising USD gold price and rand depreciation, which factors 

resulted in a bull market in gold at the beginning of 2016. At the end of the financial year, the 

spot gold price closed at USD1,325/oz – an increase of approximately 25% from the prior year end. 

The combined impact of the group’s excellent operating performance and favourable economic 

conditions resulted in an outstanding financial performance. Our share price reflected this 

positive momentum, with a year-end price of R3.75 and 0.19 pence per share.



We continue to acknowledge our shareholders’ desire for an attractive cash return on their 

investment. To this end, the Pan African Resources board is pleased to recommend the largest ever 

dividend payment of R300 million (GBP16.0 million) for approval at the upcoming AGM. We have also 

revisited our dividend policy, as detailed below, to provide the market with more certainty on 

future payments and to ensure that our dividend is sustainable.



Notwithstanding the impact of these favourable tailwinds, we continue to be mindful that the local 

and global mining industry remains a challenging operating environment. Certain analysts believe 

the higher gold price should not only be attributed to factors such as the market view that 

interest rates will remain at record lows and the recent decision by the United Kingdom (‘UK’) to 

exit the European Union (‘EU’), but also predict a continued period of geopolitical uncertainty 

that could result in increased global instability and volatility. Locally, South Africa faces a 

possible sovereign credit rating downgrade to sub-investment grade as well as heightened political 

tension, which could lead to further depreciation in the ZAR. It is therefore vital that we remain 

vigilant and continue to look for opportunities to differentiate ourselves and continue to further 

profitably grow our business and provide shareholder returns in the form of dividends and capital 

appreciation in our share.



Safety

Regrettably, we experienced a regression in our group safety accident rates at Evander Mines. In 

particular the lost-time injury frequency rate (‘LTIFR’) and reportable-injury frequency rate 

(‘RIFR’) increased. The safety of our people is our main concern, and we are actively pursuing 

measures to reduce injury frequency rates by, inter-alia, stepping up management oversight, 

technological enhancements, training and control of safety across all operations.



Safety remains a focus at all our operations and we endeavour to ensure the group’s culture, 

behaviour and values align to our safety objectives. However, we regret to report that one of our 

employees, Mr JA Muxhanga, was fatally injured at Evander Mines on 26 June 2016 following a 

tramming accident. Pan African Resources’ management and board express their sincere condolences to 

the family, friends and colleagues of Mr Muxhanga.



Production highlights and challenges

We are pleased to report the excellent operational performance across our gold mining operations. 

Total gold production was 204,928oz, with Barberton Mines contributing 113,281oz and Evander Mines 

contributing a total of 91,647oz. Underground head grades at Barberton Mines improved to 11.0g/t 

(2015: 10.9g/t), while head grades at Evander Mines improved to 5.7g/t (2015: 4.6g/t). We also 

delivered important operational improvements at Evander Mines, with gold sales and revenue 

increasing significantly. In addition, the Evander tailings retreatment plant (‘ETRP’) assisted our 

production growth by achieving full nameplate capacity, producing 18,151oz of gold from tailings 

and surface feedstock material.



Uitkomst produced 87,538 tonnes of coal from its underground operations, and acquired 48,564 tonnes 

of coal for further processing and blending, resulting in total coal sold of 136,102 tonnes.



Phoenix Platinum’s performance was hampered by the business rescue proceedings announced by 

International Ferro Metals Limited in August 2015 regarding its South African subsidiary, 

International Ferro Metal (SA) Proprietary Limited (‘IFMSA’), as well as the drought and associated 

water shortages affecting re-mining and processing. In terms of a 2010 agreement between Pan 

African Resources and IFMSA, Phoenix Platinum, which is situated on IFMSA property, obtained a 

portion of its feedstock from IFMSA’s processing activities, as well as electricity, water and 

other services. In terms of the 2015 business rescue proceedings, Samancor Chrome Limited was 

selected as the successful bidder to acquire IFMSA’s assets and subsequently nominated its 

subsidiary, TC Smelters Proprietary Limited (‘TC Smelters’), as the acquirer of the IFMSA business 

and assets. In July 2016, Pan African Resources reached an agreement with TC Smelters, assigning 

the tailings treatment agreement to TC Smelters. Although the agreement does not guarantee 

current arising feedstock to Phoenix Platinum– this will be dependent on the manner in which 

TC Smelters uses the IFMSA assets – it places Phoenix Platinum in a better position where it 

should be able to continue operations under similar conditions to those prior to the business 

rescue proceedings. Further, it ensures that Phoenix´s Platinum operations and interests are 

safeguarded. Phoenix Platinum also has alternative sources of feedstock, which are currently 

being processed.



Wage negotiations successfully concluded

The group successfully concluded its gold wage negotiations during October 2015, with Barberton 

Mines securing a two year agreement ending in June 2017 and Evander Mines securing a three year 

agreement ending in June 2018.



Mineral reserves and resources

We recognise that, together with our people and infrastructure, our mineral reserves and resources 

are a key asset to the group. In the year under review, the group’s total gold resources increased 

by 9.4% to 34.9Moz (2015: 31.9Moz).



The group’s mineral resources and reserves are summarised as follows:

– Gold reserves decreased to 10.0Moz (2015: 10.4Moz), we plan to increase these reserves in the 

next financial year

– Gold resources increased to 34.9Moz (2015: 31.9Moz)

– PGE reserves decreased 0.2Moz (2015: 0.5Moz)

– PGE resources remained at 0.6Moz (2015: 0.6Moz)

– Coal resources were 23.3Mt



We use what we deem to be a conservative ZAR gold price estimate when modelling reserves and 

resources, and in the current year reserves were modelled at R450,000/kg and gold resources at 

R550,000/kg.



Corporate activity

Shanduka Gold (now PAR Gold) is Pan African Resources’ primary BEE shareholder, with its sole 

assets being a 22.5% interest in Pan African Resources’ issued share capital (post conclusion of 

the Shanduka Gold transaction) and a notional vendor loan of R558 million to its BEE shareholder, 

the Mabindu Business Development Trust (‘Mabindu Trust’) as at 30 June 2016. Following a merger 

between Shanduka Group Proprietary Limited and the Pembani Group Proprietary Limited in 

December 2015, Pan African Resources engaged with Shanduka Gold shareholders and concluded an 

agreement to assist in preserving the group’s BEE ownership in a meaningful and mutually beneficial 

manner by means of an acquisition of a material interest in Shanduka Gold. Prior to the transaction 

with Pan African Resources, Shanduka Gold’s shareholders were Standard Bank of South Africa Limited 

(‘Standard Bank’) (16.9%), Jadeite Limited (33.6%) and the Mabindu Trust (49.5%). Pan African 

Resources acquired Standard Bank’s 16.9% and Jadeite Limited’s 33.6% interest in Shanduka Gold 

for R182.5 million and R364.4 million, respectively. Approximately 0.6% of the Shanduka Gold 

shares acquired from Jadeite Limited have been retained by Jadeite Limited for sale, at a future 

date, to an independent third party nominated by Pan African Resources. Pursuant to the transactions, 

Pan African Resources acquired a 49.9% direct interest in Shanduka Gold but consolidates the full 

interest in Shanduka Gold for accounting purposes.



Pan African Resources assumed effective control of Uitkomst on 31 March 2016 for a cash purchase 

consideration of R148 million, which was funded from existing debt facilities and internally 

generated cash flows. The Uitkomst coal mine is situated in Utrecht, KwaZulu-Natal, South Africa 

and employs 115 plant and administration employees and 326 contractors. It produces approximately 

30,000-35,000 tonnes of saleable coal per month from its underground mining operation and has 

approximately 23.3Mt of coal resources, with an estimated life-of-mine of 22 years at current 

production rates.



Following receipt of a positive high-level economic and technical assessment of the Elikhulu 

tailings retreatment project (‘Elikhulu’) at Evander Mines, the company has mandated DRA Projects 

(Pty) Limited to complete a definitive feasibility study on the project. The results of the study 

will be available in November 2016, at which time shareholders will be appraised. Elikhulu will 

potentially treat slimes at a processing capacity of up to 12 million tonnes per annum, at a head 

grade of 0.29g/t from the Winkelhaak, Leslie and Kinross tailings storage facilities. The total 

mineral resource for Elikhulu is 178.7 million tonnes at 0.29g/t (1.7M in-situ ounces) with a 

life-of-operation of approximately 14 years and 1.7Moz of contained gold. The project is estimated 

to yield approximately 50,000oz of gold per annum in the initial 8 years of production while 

treating the Kinross and Leslie tailings storage facilities and then approximately 38,000oz per 

annum for the remaining 6 years from processing the Winkelhaak tailings storage facility.



The Evander 2010 pay channel is a potentially attractive ore body that runs parallel to the Kinross 

pay channel and is accessible via Evander Mines 7 Shaft. Harmony Gold historically developed 

towards the orebody before halting all mining operations on 7 Shaft and allowing flooding of the 

infrastructure to 18 level. The Evander Mines’ 2010 pay channel resources are classified in an 

inferred category and surface drilling is currently underway to improve confidence in the resource. 

The initial results of the drilling programme will also be available during November 2016. The 2010 

pay channel may offer Evander Mines the possibility of establishing a new mine area without having 

to incur the cost of sinking a new shaft from surface.



During the next year we will also investigate further medium- to long-term underground production 

increases from sources such as 9 Shaft and projects such as Evander South at Evander Mines.



Outlook

The group is well positioned to increase profitable production through organic and acquisitive 

growth, while continuing to create shareholder value. 



In the next year, the key focus areas for the group, from an operational perspective, include:

– Safety and compliance across operations.

– Barberton Mines: Renewed focus on creating additional flexibility and efficiencies to improve 

tonnages mined and gold produced from underground operations. The management team is currently 

considering options to improve the future tonnage output at Fairview Mines’ deeper levels and 

assessing future exploration targets.

– Evander Mines: The operation will continue to invest in development capital expenditure to ensure 

improved flexibility is achieved to maintain current levels of production.

– Phoenix Platinum aims to optimise resources from Elandskraal and Kroondal to maintain and improve 

production and cash flows.

– Uitkomst will focus on ensuring that stable production is maintained and review the possibility 

of expanding run-of-mine production to 900,000t per annum.



From an internal growth perspective, the following opportunities will be prioritised:

– Finalising the feasibility study on the Elikhulu project and, if the feasibility is successful, 

progressing towards full-scale production within two years.

– Drilling the Evander 2010 pay channel for grade continuity and assessing options to exploit this 

orebody.

– Assessing further growth projects at Evander Mines.



The group will also continue to evaluate acquisitive gold opportunities. Any project considered 

will however be subject to the group’s stringent capital allocation criteria, which requires any 

investment to be in a position to contribute profitable production ounces within a short- to 

medium-term timeframe and deliver the requisite returns to our shareholders.



Financial performance



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 operational results 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 R21.45:1 (2015: R18.00:1) and the 

closing ZAR/GBP exchange rate was R19.78:1 (2015: R19.30:1). The year-on-year change in the 

average and closing exchange rates of 19.2% and 2.5%, 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 

revenue received. The average ZAR/USD exchange rate was 26.7% weaker at R14.51:1 (2015: R11.45:1).



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.



Analysing the group’s financial performance



Revenue

The group’s revenue, year-on-year, increased by 43.1% to R3,632.8 million (2015: R2,539.4 million). 

The increase was predominantly due to:

1) Gold ounces sold increased by 16.5% to 204,928oz (2015: 175,857oz).

2) The average ZAR gold price received by the group increased by 21.6% to R542,850/kg (2015: 

R446,274/kg), as a result of the weakening of the ZAR/USD exchange rate.

3) Consolidation of Uitkomst revenue of R98 million, effective from 1 April 2016.



The increase in the average ZAR gold price was due to the following movements:

1) The group realised an average gold price of USD1,164/oz, a decrease of 4.0% from the USD1,212/oz 

achieved in the prior reporting period.

2) The average ZAR/USD exchange rate was 26.7% weaker at R14.51:1 (2015: R11.45:1).



Cost of production and realisation costs

The group’s total cost of production increased by 16.8% to R2,321.4 million (2015: R1,987.4 

million). The group’s cost of production incorporated a full year’s production costs for the ETRP 

of R154.8 million (2015: R54.1 million), and Uitkomst coal production costs of R91.8 million 

(2015: nil).



Pan African Resources’ gold cost of production per the statement of comprehensive income increased 

by 12.3% to R2,155.5 million (2015: R1,919.6 million) as a result of the following:

– The group’s gold operations salaries and wages increased by 12.5% to R967.7 million (2015: 

R860.1 million), predominately due to:

* The increase in salaries and wages following the gold wage agreements of Barberton Mines and 

Evander Mines.

* Higher production incentives following increased productivity at the gold operations. Barberton 

Mines’ production incentives increased by R13.7 million equating to 1.6% of the total year-on-year 

increase. Evander Mines’ production incentives increased by R4.3 million, contributing an 

additional 0.5% to the labour costs year-on-year increase.

* The ETRP salary and wage bill increased by R4.7 million, resulting in an additional 0.6% increase 

year-on-year following a full a production year.

– The group’s electricity costs increased by 16.8% to R317.3 million (2015: R271.6 million). The 

National Energy Regulator of South Africa’s approved increases applied to electricity consumption 

was 12.7% for the year under review. The additional increase was predominantly as a result of the 

electricity costs associated with the ETRP being in production for the full year, amounting to 

R9.9 million (2015: R2.1 million).

– The ETRP and associated surface feedstock material cost of production was R154.8 million (2015: 

R54.1 million) following a full year’s production (in the prior year the ETRP cost production 

related to a four month period only).



The gold cost of production excluding ETRP and surface feedstock was well controlled and increased 

by 7.2% to R2,000.7 million (2015: R1,865.5 million). The group’s gold cost of production per 

kilogramme declined by 3.2% to R338,242/kg (2015: R349,410/kg). The decline is attributed to:

– Gold sold increasing by 16.5% to 204,928/oz (2015: 175,857/oz), resulting in a lower unit cost of 

production.

– Improved head grades mined compared to the previous year, which also impacted the gold sold.



The group’s gold all-in sustaining cost of production per kilogram (including direct cost of 

production, royalties, associated corporate costs and overheads and sustaining capital expenditure) 

increased by 0.9% to R405,847/kg (2015: R402,221/kg). The group’s all-in sustaining costs were 

primarily impacted by an increase in gold production and the improved head grades, compared to the 

prior year.



The all-in gold cost per kilogram (sustaining cost of production and once-off expansion capital) 

declined by 3.5% to R410,206/kg (2015: R425,084/kg), due to the increase in gold production and the 

completion of the ETRP in the prior year, which contributed R95.1 million in capital costs to the 

2015 cost base.



The PGE cost of production increased by 9.3% to R74.1 million (2015: R67.8 million), predominately 

due to:

– Salaries and wages increasing by 3.1% to R20.2 million (2015: R19.6 million). The Phoenix 

Platinum employee incentives decreased in the current year following lower production levels.

– Refining and processing costs increased by 10.8% to R48.3 million (2015: R43.6 million), 

following additional transporting costs to move tailings material from the Elandskraal/Kroondal 

tailings sites as well as higher chrome refining costs due to a higher chrome prevalence in the 

tailings processed.

– Electricity costs increased by 13.5% to R4.2 million (2015: R3.7 million).



The groups’ realisation costs increased by 65.3% to R20.5 million (2015: R12.4 million) due to 

additional refining costs associated with the extraction and recovery of gold contained at Evander 

Mines’ processing plants floors.



Depreciation increased by 20.5% to R224.3 million (2015: R186.1 million), following increased 

charges associated with the commissioning of the ETRP and Evander Mines’ 8 Shaft 25 level 

development.



Other expenditure and income

Barberton Mines entered into a short-term strategic hedge (‘the Cost Collar’) in July 2015, when 

the prevailing spot gold price was R440,000/kg, to protect its cash flows and the group’s annual 

dividend against severe adverse movements in the ZAR gold price. During the current reporting 

period, the group recorded a pre-tax net unrealised mark-to-market fair value loss of 

R117.6 million on the Cost Collar, offset by a realised Cost Collar derivative income of 

R3.8 million, resulting in a net pre-tax fair value Cost Collar loss for the year of R113.8 million 

(2015: pre-tax realised Cost Collar derivative income of R44.8 million). The economic consequence 

of the mark-to-market fair value adjustment is to lock in revenue on 25,000oz of gold production from 

Barberton Mines at R625,000/kg (the closing ZAR gold price at 30 June 2016) for the twelve month 

period commencing 1 October 2016. The group currently only has this gold collar derivative in 

place.



Pan African Resources’ share price increased significantly by 108% to R3.75 from R1.80 during the 

current reporting period, which resulted in an increase in the group’s cash settled share option 

costs. The pre-tax effect of cash settled share option costs for the current reporting period 

amounted to R100.6 million (2015: pre-tax R6.1 million gain).



The fair value adjustment of the group’s rehabilitation liability resulted in the liability 

reducing by R38.2 million (2015: increased by R19.7 million). The rehabilitation investment 

increased by R9.2 million (2015: R33.9 million).



Finance costs decreased to R31.1 million (2015: R44.2 million), following improved cash flows 

generated to reduce net debt during the year. 



Profit after tax and headline earnings

Profit after taxation increased by 160.2% to R547.0 million (2015: R210.2 million) and the 

corresponding headline earnings increased by 156.1% to R547.1 million (2015: R213.6 million),

primarily impacted by the following:

1) Revenue increased by R1,093.4 million supported by higher gold production and an increase in the 

effective ZAR gold price received.

2) Cost of production increased by R334.0 million.

3) Depreciation increased by R38.2 million following increased charges associated with the 

commissioning of the ETRP and Evander Mines’ 8 Shaft 25 level development.

4) Other income and expenditure increased by R265.8 million, due to the pre-tax net Cost Collar 

mark-to-market fair value adjustment of R113.8 million (2015: realised cost collar derivative 

income of R44.8 million), and higher cash settled share option costs linked to the increase in the 

share price amounting to R100.6 million (2015: R6.1 million gain).

5) Royalty costs increased by R30.4 million linked to the increased gold revenues.

6) Taxation increased by R102.2 million due to the improved operational performance.



EPS and HEPS

The group’s EPS in ZAR increased by 163.1% to 30.20 cents (2015: 11.48 cents). The group’s HEPS in 

ZAR increased by 158.8% to 30.20 cents (2015: 11.67 cents). The difference between the EPS and HEPS 

resulted from adjusting the profit after taxation for the loss on the disposal of fixed assets and 

the associated impairment on the sale of Auroch Minerals Limited in the prior reporting period. 

Refer to the statement of comprehensive income for the reconciliation between EPS and HEPS.



The EPS and HEPS is calculated by applying the group’s weighted average number of shares to the 

attributable and headline earnings, which decreased by 1% to 1,811.4 million shares

(2015:1,830.0 million shares). The decrease in shares was attributed to eliminating the PAR Gold 

shares held in Pan African Resources with effect from 7 June 2016.



Headline earnings per share is calculated as follows:





                                     30 June         30 June           30 June         30 June 

                                        2016            2015              2016            2015

                                         GBP             GBP               ZAR             ZAR

Basic earnings                    25,501,817      11,669,967       547,014,018     210,198,254

Adjustments: (note 1)

Loss on disposal of associate              -         139,970                 -       2,429,880

Loss on disposal of property 

plant, mineral right 

and equipment                          2,767             149            59,360           2,679

Impairments                                -          58,424                 -       1,014,239

Headline earnings                 25,504,584      11,868,510       547,073,378     213,645,052

Headline earnings per share             1.41            0.65             30.20           11.67

Diluted headline earnings

per share                               1.41            0.65             30.19           11.67



Note 1: The adjustments accounted for, did not have any taxation impact to the group.



Had the Shanduka Gold transaction been effective on 1 July 2015, the number of shares that would 

have been taken into account for calculating EPS and HEPS would have been reduced as follows:



Pan African Resources’Shares                       Shares               % Change

Opening balance shares - 1 July 2015        1,831,494,763                      -

Issue of shares – vendor 

consideration placement                       111,711,791                   6.1%

Elimination of shares held by 

Shanduka Gold                                (436,358,058)                (23.8%)

Closing balance shares                      1,506,848,496                     -

Reduction in number of shares                 324,646,267                  17.7%



Taxation

The group’s total taxation charge increased by 137.4% to R176.6 million (2015: R74.4 million) 

due to higher gold revenues and improved profit margins.



The taxation charge comprised of:

– An increase in the current taxation charge of 113.7% to R206.6 million (2015: R96.7 million).

– A marginal increase in the deferred taxation income to R30.0 million (2015: R22.3 million).



Historical dividends

The group paid a final dividend of R210 million or GBP9.7 million (2014: R258 million or 

GBP14.9 million) on 24 December 2015 relating to the 2015 financial year, equating to 

R0.11466 per share or 0.53 pence per share (2014: R0.14100 per share or 0.82 pence per share).



Dividend policy

Pan African Resources aspires to pay a regular dividend to shareholders. In balancing this cash 

return to shareholders with the group’s strategy of generic and acquisitive growth, it believes 

that a target pay-out ratio of 40% of net cash generated from operating activities, after allowing 

for the cash flow impact of sustaining capital, contractual debt repayments and also the cash flow 

impact of once-off items, is appropriate. This measure aligns dividend distributions with the cash 

generation potential of the business. In proposing a dividend, the board will also take into 

account the company’s financial condition, future prospects, satisfactory solvency and liquidity 

assessments and other factors deemed by the board to be relevant at the time.



Proposed dividend for approval at the AGM

The board has proposed a final dividend of R300 million or approximately GBP16.0 million, equating 

to R0.15438 per share or approximately 0.82338 pence per share. This dividend is subject to 

approval at the AGM, which will take place on Friday, 25 November 2016.



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

apply: 

Currency conversion date                       05 December, Monday

Last date to trade on the exchanges            06 December, Tuesday

Ex-Dividend date on the JSE                    07 December, Wednesday

Ex-Dividend date on the LSE                    08 December, Thursday

Record date                                    09 December, Friday

Payment date                                   22 December, Thursday



The GBP proposed final dividend was calculated based on 1,943,206,554 total shares in issue and an 

illustrative exchange rate of R18.75:1. Shareholders on the London register should note that a 

revised exchange rate will be communicated prior to approval at the AGM.



No transfers between the Johannesburg and London registers between the commencement of trading on 

Monday, 5 December 2016 and close of business on Friday, 9 December 2016 will be permitted.



No shares may be dematerialised or rematerialised between Wednesday, 7 December 2016 and Friday, 

9 December 2016, both days inclusive.



The South African dividends tax rate is fifteen percent per ordinary share for shareholders who are 

liable to pay the dividends tax, resulting in a net dividend of R0.13123 per share for these 

shareholders. Foreign investors may qualify for a lower dividend tax rate, subject to completing a 

dividend tax declaration and submitting it to Computershare Limited or Capita Plc who manage the SA 

and UK register, respectively. The company’s South African income tax reference number is 

9154588173 and it has 1,943,206,554 shares currently in issue.



Debt facilities

The group’s net debt increased marginally to R339.6 million (2015: R321.1 million) following the 

dividend payment of R210 million, the Uitkomst acquisition of R148 million and the cash funded 

portion of the Shanduka Gold transaction of R182.5 million.



Summary of the long-term debt liabilities:

                     Revolving credit facility  Evander Mines gold loan             Total  

                        30 June      30 June      30 June      30 June      30 June      30 June

                           2016         2015         2016         2015         2016         2015 

                            ZAR          ZAR          ZAR          ZAR          ZAR          ZAR

                      (millions)   (millions)   (millions)   (millions)   (millions)   (millions)    

Non-current portion       279.3        224.1         26.6         82.0        305.9        306.1

Current portion            31.1         21.6         55.2         58.0         86.3         79.6

Total                     310.4        245.7         81.8        140.0        392.2        385.7



Cash flow summary

Net cash flow generated by operations (after dividends) and before investing and financing 

activities increased to R581.4 million (2015: R95.7 million). The cash outflows from investing 

activities increased to R969.0 million (2015: 366.0 million), predominately due to:

– Capital expenditure incurred decreasing to R302.4 million (2015: R352.0 million).

– The conclusion of the Shanduka Gold transaction for R546.9 million (2015: nil).

– The net cash consideration of R120 million for the acquisition of Uitkomst, being the purchase 

consideration of R148 million less cash acquired of R28 million on 31 March 2016. 



Net cash flows from financing activities increased to R375.9 million (2015: R233.4 million), 

predominately due to:

– Cash raised for the Shanduka Gold transaction amounting to R339.8 million.



Operational performance

The groups operational and production summaries are disclosed on the Pan African Resources website 

at http://www.panafricanresources.com/investors/financial-reports/ 



Review of Barberton Mines

Safety

– The operation reported no fatalities (2015: one fatality).

– Total recordable injury frequency rate per 1,000,000 man hours worked (‘TRIFR’) improved to 15.00 

(2015: 15.87).

– LTIFR improved to 1.86 (2015: 1.87).

– RIFR remained at 0.62  (2015: 0.62).



Operational performance

– Average underground head grade achieved of 11.0g/t (2015: 10.9g/t).

– Gold sold increased by 7.1% to 113,281oz (2015: 105,776oz).

– Revenue increased by 30.8% to R1,921.8 million (2015: R1,469.0 million), as a result of the 

improved gold sales and the higher effective ZAR gold price.

– Cash cost per kilogramme increased marginally to R279,226/kg (2015: R278,859/kg), and in USD term 

the cash cost per ounce decreased to USD599/oz (2015: USD758/oz), due to improved gold ounce 

production.

– All-in sustaining cost per kilogramme increased by 4.8% to R348,231/kg (2015: R332,151/kg), and 

in USD terms the all-in sustaining cost per ounce decreased to USD746/oz (2015:USD902/oz).

– All-in cost per kilogramme increased by 5.1% to R354,417/kg (2015: R337,317/kg), and in USD terms 

the all-cost per ounce decreased to USD760/oz (2015: USD916/oz).

– Adjusted EBITDA increased to R729.8 million (2015: R505.5 million).

– Capital expenditure increased to R139.7 million (2015: R112.6 million) summarised in the 

following categories:

– Sustaining development capital expenditure was R63.4 million (2015: R53.7 million).

– Sustaining maintenance capital expenditure was R54.5 million (2015: R44.2 million).

– Once-off expansion capital was R21.8 million (2015 R14.7 million), which relates to the Royal 

Sheba development costs and the completion of the BTRP power line extension and installation. In 

the prior year R14.7 million was spent on the development of the Fairview ventilation raise 

borehole project to improve operating conditions.

– Effective from 1 July 2016 the life-of-mine of respective operations at Barberton Mines are:

* Fairview mine        22 years (2015: 20 years)

* Sheba mine           18 years (2015: 20 years)

* New Consort mine     5 years  (2015: 7 years)

* BTRP                 14 years (2015: 15 years)



Review of Evander Mines



Safety

– The operation reported one fatality detailed above in the CEO statement (2015: nil).

– TRIFR increased to 14.18 (2015: 6.87).

– LTIFR increased to 4.96 (2015: 2.66).

– RIFR increased to 3.31 (2015: 1.54).



Operational performance

– Underground head grade improved to 5.7g/t (2015: 4.6g/t), principally due to establishing mining 

on 8 Shaft’s new 25 level.

– Gold sold increased substantially by 30.8% to 91,647oz (2015: 70,081oz), primarily due to 

improved production associated with an increase in tonnages mined and head grades.

– Revenue increased by 58.3% to R1,538.3 million (2015: R972.0 million) as a result of improved 

gold production and an increase in the effective ZAR gold price.

– The ETRP produced 18,151oz (2015: 16,336oz), following an increase in gold produced from tailings 

to 6,724oz (2015: 2,494oz) and surface feedstock contributing 11,427oz (2015: 13,842oz).

– Cash costs per kilogramme decreased by 9.8% to R411,168/kg (2015: R455,896/kg), and in USD terms 

the cash cost per ounce decreased to USD881/oz (2015:USD 1,238/oz), due to additional gold 

production from the ETRP and higher grades mined at 8 Shaft.

– All-in sustaining cost per kilogramme decreased by 6.1% to R477,044/kg (2015: R507,980/kg), and 

in USD terms the all-in sustaining cost per ounce decreased to USD1,023/oz (2015:USD1,380/oz), 

in line with the decrease in cash costs.

– All-in cost per kilogramme decreased by 14.1% to R479,145/kg (2015: R557,553/kg), and in USD 

terms the all-in cost per ounce decreased to USD1,027/oz (2015:USD1,515/oz), in addition to the 

factors detailed above, the prior year included once-off ETRP expansionary capital of R95.1 million 

during the prior reporting period.

– Adjusted EBITDA increased to R357.7 million (2015: R47.4 million).

– Capital expenditure decreased to R153.8 million (2015: R238.2 million) summarised in the 

following categories:

– Sustaining development capital expenditure was R118.4 million (2015: R104.4 million).

– Sustaining maintenance capital expenditure was R29.4 million (2015: R38.7 million).

– Once-off expansion capital expenditure was R6.0 million (2015 R95.1 million), relating to 

development costs associated with 8 Shafts’ 26 level in the current financial year and the 

completion of the ETRP, which contributed R95.1 million in capital costs to the 2015 cost base.

– On 1 July 2015, Evander Mines implemented an employee share ownership programme, which is similar 

to the scheme implemented at Barberton Mines in June 2015. A newly established employee trust 

acquired 5% of the issued share capital of Evander Mines.

– Effective from 1 July 2016, the life-of-mine of 8 Shaft and the ETRP remained at 16 years 

(2015: 16 years). 



Review of Phoenix Platinum



Safety

No safety incidents were reported during the financial year.



Operational performance

– Phoenix Platinum’s profitability was negatively impacted during the reporting period due to a 

curtailment in current arisings from IFMSA Lesedi mine, following the initiation of business rescue 

proceedings by IFMSA. Tonnages processed were also adversely impacted by the drought and associated 

water shortages affecting re-mining and processing.

– Phoenix Platinum’s loss after taxation was R9.6 million (2015: R12.3 million profit after 

taxation).

– PGE production decreased by 18.6% to 8,339oz (2015: 10,245oz).

– Revenue decreased by 24.1% to R74.7 million (2015: R98.4 million) due to lower tonnages processed 

as result of the operational challenges highlighted above and the lower effective

PGE net revenue price received of R8,952/oz (2015: R9,603/oz).

– The average PGE net revenue price received decreased by 6.8% to R8,952/oz (2015: R9,603/oz), and 

in USD terms the average PGE net revenue per ounce decreased to USD617/oz (2015: USD839/oz).

– Cost per tonne increased by 15.1% to R298/t (2015: R259/t), mainly due to tonnages processed 

decreasing by 5.0% to 248,981t (2015: 262,119t).

– Cost per ounce of production increased by 34.3% to R8,890/oz (2015: R6,621/oz), and in USD terms 

the cost per ounce increased to USD613/oz (2015: USD578/oz).

– Adjusted EBITDA decreased to a loss of R4.8 million (2015: R27.7 million).

– Capital expenditure incurred was R6.8 million (2015: R0.6 million).

– Effective from 1 July 2016 the life-of-operation decreased to 9 years (2015: 28 years) as a 

result of taking into account surface material available to process, excluding current arisings.



Review of Uitkomst

Pan African Resources completed the acquisition of Uitkomst from Oakleaf Investments Holding 109 

Proprietary Limited (‘Oakleaf’) and Shanduka Resources Proprietary Limited for a final net cash 

consideration of R148 million on 31 March 2016. Uitkomst is located close to the town of Utrecht in 

KwaZulu-Natal, South Africa, and is a high grade thermal export quality coal deposit with 

metallurgical applications.



The acquisition was funded from an existing revolving credit facility and internally generated cash 

flows. Uitkomst is, for accounting and production reporting purposes, consolidated effectively from 

1 April 2016.



Summary of the purchase price allocation:

                                   Fair value                Fair value  

                               at acquisition            at acquisition

                                          ZAR                       GBP

Non-current assets                      191.9                       9.1

Current assets                           67.0                       3.2

Non-current liabilities                 (67.5)                     (3.2)

Current liabilities                     (43.4)                     (2.1)

Net assets at fair value                148.0                       7.0

Net cash consideration paid             148.0                       7.0



Safety

– The operation reported no fatalities.

– TRIFR per 200,000 man hours for the three month period was 5.59.

– LTIFR per 200,000 man hours for the three month period was 2.79.

– RIFR per 200,000 man hours for the three month period was 0.93.



Operational performance

– Profit after taxation for the period 1 April 2016 to 30 June 2016 was R11.4 million.

– Underground coal plant feed was 128,022t and also acquired third party coal for processing 

of 38,354t.

– Coal sold was 136,102t.

– Revenue amounted to R98 million.

– Cost of production of R91.8 million.

– The average revenue per ton received was R720/t or USD48/t.

– Cost per tonne was R674/t or USD45/t.

– All-in sustaining costs and all-costs per tonnes were R657/t or USD44/t. The all-in sustaining 

costs and all-in costs were marginally lower than the direct cost per tonne as result of other 

income earned by the logistics department of Uitkomst.

– Adjusted EBITDA was R10.8 million.

– Capital expenditure incurred was R0.9 million.

– Effective from 1 July 2016 the life-of-operation was 22 years for a run-of-mine coal production 

profile of 600,000t per annum.



Commitments reported in Rand 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 R12.7 million (2015: 

R22.8 million) or GBP0.6 million (2015: GBP1.2 million).



Authorised commitments for the new financial year, not yet contracted for, totalled 

345.9 million (2015: R271.1 million) or GBP17.5 million (2015: GBP14 million).



At 30 June 2016, the group had guarantees in place of R24.6 million (2015: R24.6 million) or 

GBP1.2 million (2015: GBP1.3 million) in favour of Eskom, R20.3 million (2014: R14.0 million) or 

GBP1.0 million (2015: GBP0.8 million) in favour of the Department of Mineral Resources, and 

R6.6 million (2015: Nil) or GBP0.3 (2015: nil) in favour of Transnet SOC Limited.



Operating lease commitments, which fall due within the next year, amounted to R3.5 million 

(2015: R4.0 million) or GBP0.2 million (2015: GBP0.2 million). 



Fair value instruments

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.



Level 1 financial instruments:

The group’s rehabilitation trust funds are valued at R321.5 million (2015: R312.3 million) or 

GBP16.3 million (2015: GBP16.2 million), which comprise of investments in guaranteed equity-linked 

notes, government bonds and equities, according to quoted prices in an active market.



During the prior financial year, the company purchased 1,750,850 shares for R18.9 million (GBP1 

million) in a listed available-for-sale investment. The investment is valued according to quoted 

prices in an active market currently valued at R25.1 million (GBP1.3 million).



Level 2 financial instruments:

During the financial period, the company entered into a Cost Collar derivative with a financial 

institution. At the end of the period under review the financial instrument was not closed out and 

settled, therefore resulting in a financial exposure to be fair value on a mark-to-market basis. 

The financial instrument was valued according to quoted prices in an active market resulting in a 

Cost Collar mark-to-market liability of R117.6 million (2015: Nil).



The group’s cash settled share option liability which is valued on a mark-to-market basis according 

to the Pan African Resources quoted share price amounted to R104.0 million (2015: R23.7 million).



Level 3 financial instruments:

The group’s ESOP liability is accounted on a cash settled share option basis and valued on a 

mark-to-market on the net present value of the discounted future cash flows applicable to the 

beneficiaries to the schemes. The ESOP liability was R5.6 million (2015: R0.2 million).



Basis of preparation of the financial statements and accounting policies

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 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 prior years ended 30 June 2015 and 30 June 2014.



The provisional audited results announcement is only a summary of the information in the Integrated 

Report and does not contain full or complete details. Any investment decision by investors and/or 

shareholders should be based on consideration of the final Integrated Report to be published on 

SENS and the company’s website as a whole.



Jse Limited Listing

The company has a dual primary listing on JSE Limited (‘JSE’) in South Africa and the AIM market 

(‘AIM’) of the London Stock Exchange (‘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 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 2016. The audits were for both the summarised and full set of 

financial statements 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 has 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 company’s registered office.



These provisional summarised consolidated financial statements are extracted from the audited group 

consolidated financial statements. The directors take full responsibility for the preparation of 

the provisional summarised audited results and confirm that the financial information and related 

commentary has been correctly extracted from the underlying group consolidated financial 

statements.



AIM Listing

The financial information for the year ended 30 June 2016 does not constitute statutory accounts as 

defined in sections 435(1) and 435(2) of the UK Companies Act 2006 (‘Companies Act 2006’) but has 

been derived from those accounts. Statutory accounts for the year ended 30 June 2015 have been 

delivered to the Registrar of Companies and those for 2016 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 2016. 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 498(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 EU, with those parts of the UK Companies Act 2006 applicable to companies reporting 

under IFRS.



Directorship changes and dealings

No changes took place during the year and there were no director dealings in securities during the 

period under review.



Shares issued

On 3 June 2016 Pan African Resources issued 111,711,791 shares for R339.8 million to fund the 

Shanduka Gold transaction.



Going concern

The board confirms that the business is a going concern and that it has reviewed the group’s 

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 R800 million revolving credit 

facility from a consortium of South African banks (and a two year accordion option, subject to the 

bank’s credit committee approval, for an additional R300 million facility), as well as access to 

general banking facilities of R100 million. At 30 June 2016 the group had borrowing capacity on the 

revolving credit facility and general banking facilities of R490 million (GBP24.8 million) and 

R50 million (GBP2.5 million), respectively, toassist in funding working capital requirements. 

On 1 July 2016 the group finalised the general banking facility of R85 million (GBP4.3 million) 

for Uitkomst. Management is 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 discretionary exploration and certain capital expenditure activities to conserve cash on 

the short to medium term.



Events after the reporting period

No material events occurred after the reporting period.





Cobus Loots                                    Deon Louw

Chief Executive Officer                        Financial Director



21 September 2016



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) 207 796 8644

Facsimile: + 44 (0) 207 796 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

St James’s Corporate Services Limited            Numis Securities Limited

Company Secretary                                Nominated Adviser and Joint Broker

Office: + 44 (0) 207 796 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) 207 418 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) 203 772 2500



Jeffrey Couch/Neil Haycock/Thomas Rider

BMO Capital Markets Limited

Joint Broker

Office: +44 (0) 207 236 1010

www.panafricanresources.com





Financial statements: Summarised financial information



Summarised consolidated statement of financial position as at 30 June 2016





                            30 June 2016     30 June 2015       30 June 2016       30 June 2015

                                (Audited)        (Audited)        (Unaudited)        (Unaudited)

                                     GBP              GBP                ZAR                ZAR

Assets

Non-current assets

Property, plant and 

equipment and mineral 

rights                       190,725,199      181,532,780      3,772,544,439      3,503,582,652

Other intangible assets          123,235          202,488          2,437,592          3,908,021

Deferred taxation              1,117,092          327,748         22,096,084          6,325,533

Long term inventory              186,861                -          3,696,114                  -

Goodwill                      21,000,714       21,000,714        303,491,812        303,491,812

Investments                    1,269,228          904,818         25,105,331         17,462,996

Rehabilitation trust fund     16,253,708       16,181,925        321,498,339        312,311,153

                             230,676,037      220,150,473      4,450,869,711      4,147,082,167

Current assets

Inventories                    4,398,813        3,502,569         87,008,537         67,599,584

Current tax asset                848,946          827,298         16,792,156         15,966,858

Trade and other 

receivables                   14,042,357        9,559,010        277,757,811        184,488,890

Cash and cash equivalents      2,658,947        3,328,850         52,593,979         64,246,802

                              21,949,063       17,217,727        434,152,483        332,302,134

Non-current assets 

held for sale                     66,873                -          1,322,750                  -

Total assets                 252,691,973      237,368,200      4,886,344,944      4,479,384,301

Equity and liabilities

Capital and reserves

Share capital                 19,432,065       18,314,947        269,660,040        244,752,779

Share premium                108,936,082       94,846,046      1,638,563,371      1,323,632,626

Translation reserve          (58,583,849)     (56,402,515)                 -                  -

Share option reserve           1,035,888        1,035,888         13,957,178         13,957,178

Retained earnings            126,620,651      110,850,201      1,789,877,978      1,452,863,957

Realisation of equity 

reserve                      (10,701,093)     (10,701,093)      (140,624,130)      (140,624,130)

Treasury capital reserve     (25,376,743)               -       (548,619,802)                 -

Merger reserve               (10,705,308)     (10,705,308)      (154,707,759)      (154,707,759)

Other reserves                   317,509          (70,679)         6,280,332         (1,364,097)

Equity attributable to 

owners of the parent         150,975,202      147,167,487      2,874,387,208      2,738,510,554

Total equity                 150,975,202      147,167,487      2,874,387,208      2,738,510,554

Non-current liabilities

Long term provisions          10,432,986       12,249,367        206,364,460        236,412,781

Long term liabilities         18,456,309       16,312,982        362,640,753        314,840,546

Deferred taxation             40,616,337       39,288,059        803,391,140        758,259,537

                              69,505,632       67,850,408      1,372,396,353      1,309,512,864

Current liabilities

Trade and other payables      18,743,235       16,799,043        370,741,187        324,221,523

Financial instrument   

liabilities                    5,945,399                -        117,600,000                  -

Current portion of  

long term liabilities          6,980,711        5,047,478        140,503,506         97,416,327

Current tax liability            541,794          503,784         10,716,690          9,723,033

                              32,211,139       22,350,305        639,561,383        431,360,883

Total equity and 

liabilities                  252,691,973      237,368,200      4,886,344,944      4,479,384,301





Summarised consolidated statement of profit or loss and other comprehensive income for the year 

ended 30 June 2016

                           30 June 2016      30 June 2015       30 June 2016       30 June 2015

                               (Audited)         (Audited)        (Unaudited)        (Unaudited)

                                    GBP               GBP                ZAR                ZAR

Revenue                     169,360,532       141,076,883      3,632,783,424      2,539,383,882

Gold sales                  161,312,220       135,611,436      3,460,147,123      2,441,005,844

Platinum sales                3,480,338         5,465,447         74,653,256         98,378,038

Coal sales                    4,567,974                -          97,983,045                  -

Realisation costs              (956,709)        (690,538)        (20,521,416)       (12,429,687)

On - mine revenue           168,403,823      140,386,345       3,612,262,008      2,526,954,195

Gold cost of production    (100,487,340)    (106,644,655)     (2,155,453,481)    (1,919,603,779)

Platinum cost of 

production                   (3,456,007)      (3,768,530)        (74,131,334)       (67,833,541)

Coal cost of production      (4,279,735)               -         (91,800,287)                 -

Mining depreciation         (10,456,129)     (10,337,211)       (224,283,967)      (186,069,804)

Mining profit                49,724,612       19,635,949       1,066,592,939        353,447,071

Other (expenses)/income     (12,182,895)         249,776        (261,323,095)         4,495,974

Loss in associate                     -         (127,950)                  -         (2,291,239)

Loss on disposal of 

associate                             -         (139,970)                  -         (2,429,880)

Impairments                           -          (58,424)                  -         (1,014,239)

Royalty costs                (2,799,947)      (1,647,297)        (60,058,865)       (29,651,339)

Net income before finance 

income and finance costs     34,741,770       17,912,084         745,210,979        322,556,348

Finance income                  442,616          348,959           9,494,114          6,281,253

Finance costs                (1,448,738)      (2,458,287)        (31,075,424)       (44,249,162)

Profit before taxation       33,735,648       15,802,756         723,629,669        284,588,439

Taxation                     (8,233,831)      (4,132,789)       (176,615,651)       (74,390,185)

Profit after taxation        25,501,817       11,669,967         547,014,018        210,198,254

Other comprehensive income:

Fair value movement on 

available for sale 

investment                      388,188          (70,679)          7,644,429         (1,364,097)

Other movements                       -            5,529                   -             99,569

Foreign currency translation 

differences                  (2,181,333)      (8,857,195)                  -                  -

Total comprehensive income 

for the year                 23,708,672        2,747,622         554,658,447        208,933,726

Profit attributable to:

Owners of the parent         25,501,817       11,669,967         547,014,018        210,198,254

Total comprehensive 

income attributable to:

Owners of the parent         23,708,672        2,747,622         554,658,447        208,933,726

Earnings per share                 1.41             0.64               30.20              11.48

Diluted earnings  

per share                          1.41             0.64               30.19              11.48

Weighted average number 

of shares in issue        1,811,427,377    1,830,422,160       1,811,427,377      1,830,422,160

Diluted number of 

shares in issue           1,811,916,935    1,830,967,266       1,811,916,935      1,830,967,266



Note 1: The adjustments accounted for, did not have any taxation impact to the group.



Summarised audited GBP consolidated statement of changes in equity 

for the year ended 30 June 2016

                                                                         Share

                             Share          Share   Translation         option        Retained

                           capital        premium       reserve        reserve        earnings

Group                          GBP            GBP           GBP            GBP             GBP

Balance at 

30 June 2014            18,299,947     94,792,516    (47,545,320)     1,154,891     114,106,005

Issue of shares             15,000         53,530              -              -               -  

Total comprehensive

income                           -              -     (8,857,195)             -      11,669,967

Dividends paid                   -              -              -              -     (14,925,771)

Share based payment

- charge for the year            -              -              -       (119,003)              -  

Balance at 

30 June 2015            18,314,947     94,846,046    (56,402,515)     1,035,888     110,850,201  

Issue of shares          1,117,118     15,011,206              -              -               -  

Share issue costs                -       (921,170)             -              -               -  

Total comprehensive

income                           -              -     (2,181,333)             -      25,501,817  

Dividends paid                   -              -              -              -      (9,731,368)  

Share buyback                    -              -              -              -               -  

Balance at 

30 June 2016            19,432,065    108,936,082    (58,583,848)     1,035,888     126,620,650 





                       Realisation       Treasury 

                         of equity        capital        Merger          Other   

                           reserve        reserve       reserve        reserve           Total

Group                          GBP            GBP           GBP            GBP             GBP

Balance at 

30 June 2014           (10,701,093)             -   (10,705,308)        (5,529)    159,396,109

Issue of shares                  -              -             -              -          68,530

Total comprehensive

income                           -              -             -        (65,150)      2,747,622

Dividends paid                   -              -             -                    (14,925,771)

Share based payment

- charge for the year            -              -             -              -        (119,003)

Balance at 

30 June 2015           (10,701,093)             -   (10,705,308)       (70,679)    147,167,487

Issue of shares                  -              -             -              -      16,128,324

Share issue costs                -              -             -              -        (921,170)

Total comprehensive

income                           -              -             -        388,188      23,708,672

Dividends paid                   -              -             -              -      (9,731,368)

Share buyback                    -    (25,376,743)            -              -     (25,376,743)

Balance at 

30 June 2016           (10,701,093)   (25,376,743)   (10,705,308)      317,509     150,975,202





Summarised unaudited ZAR consolidated statement of changes in equity 

for the year ended 30 June 2016

                                                          Share                    Realisation

                             Share          Share        option       Retained       of equity

                           capital        premium       reserve       earnings         reserve

Group                          ZAR            ZAR           ZAR            ZAR             ZAR

Balance at 

30 June 2014           244,480,271  1,322,660,134    15,965,957  1,500,694,965    (140,624,130)

Issue of shares            272,508        972,492             -              -               -

Total comprehensive 

income                           -              -             -    210,198,257               -

Dividends paid                   -              -             -   (258,029,262)              -

Share based payment 

– charge for the year            -              -    (2,008,779)             -               -

Balance at 

30 June 2015           244,752,779  1,323,632,626    13,957,178  1,452,863,960    (140,624,130)

Issue of shares         24,907,261    334,689,839             -              -               -

Share issue costs                -    (19,759,094)            -              -               -

Total comprehensive

income                           -              -             -     547,014,018              -

Dividends paid                   -              -             -    (210,000,000)             -

Share buyback                    -              -             -               -              -

Balance at 

30 June 2016           269,660,040  1,638,563,371    13,957,178   1,789,877,978   (140,624,130)



                                      Treasury      

                                       capital        Merger           Other 

                                       reserve       reserve         reserve             Total

Group                                      ZAR           ZAR             ZAR               ZAR

Balance at 30 June 2014                      -  (154,707,759)        (99,569)    2,788,369,869

Issue of shares                              -             -               -         1,245,000

Total comprehensive income                   -             -      (1,264,528)      208,933,729

Dividends paid                               -             -               -      (258,029,262)

Share based payment – charge

for the year                                 -             -               -        (2,008,779)

Balance at 30 June 2015                      -  (154,707,759)     (1,364,097)    2,738,510,557

Issue of shares                              -             -                       359,597,100

Share issue costs                            -             -               -       (19,759,094)

Total comprehensive income                   -             -       7,644,429       554,658,447

Dividends paid                               -             -                      (210,000,000)

Share buyback                     (548,619,802)            -               -      (548,619,802)

Balance at 30 June 2016           (548,619,802)  154,707,759)      6,280,332     2,874,387,208





Summarised consolidated statement of cash flows for the year ended 30 June 2016



                            30 June 2016     30 June 2015       30 June 2016       30 June 2015

                                (Audited)        (Audited)        (Unaudited)        (Unaudited)

                                     GBP              GBP                ZAR                ZAR

Net cash generated from 

operating activities          28,464,205        5,364,480        581,423,450         95,659,360

Investing activities

Additions to property, 

plant and equipment and 

mineral rights               (14,079,918)     (19,528,616)      (302,014,225)      (351,515,099)

Additions to other 

intangible assets                (17,248)         (25,740)          (369,970)          (463,320)

Investments acquired                   -       (1,037,677)                 -        (18,825,000)

Proceeds on disposals of 

property plant and equipment      14,620                -            313,600                  -

Acquisition of Uitkomst       (5,700,402)               -       (120,013,429)                 -

Shanduka Gold transaction    (25,299,095)               -       (546,941,145)                 -

Proceeds on disposals 

of associate                           -          277,732                  -          4,834,253

Net cash used in investing 

activities                   (45,082,043)     (20,314,301)      (969,025,169)      (365,969,166)

Financing activities

Proceeds from borrowings      38,061,147       27,898,927        840,000,000        500,000,000

Borrowings repaid            (38,131,957)     (14,728,154)      (803,889,110)      (262,552,468)

Settlement of equity 

share option costs                     -         (303,067)                 -         (5,321,928)

Shares issued                 16,128,324           68,530        359,597,100          1,245,000

Share issue costs               (921,170)               -        (19,759,094)                 -

Net cash from financing 

activities                    15,136,344       12,936,236        375,948,896        233,370,604

Net (decrease)/increase 

in cash and cash

equivalents                   (1,481,494)      (2,013,585)       (11,652,823)       (36,939,202)

Cash and cash equivalents 

at the beginning of 

the year                       3,328,850        5,618,323         64,246,802        101,186,004

Effect of foreign 

exchange rate changes            811,591         (275,888)                 -                  -

Cash and cash equivalents 

at the end of the year         2,658,947        3,328,850         52,593,979         64,246,802





Summarised audited consolidated GBP segment report for the year ended 30 June 2016



                                                    Year ended 30 June 2016

                                                                    Corporate    

                                                                   office and     Funding 

                 Barberton      Evander     Phoenix                    Growth     Company       Consoli-

                     Mines        Mines    Platinum     Uitkomst     Projects     (Note 3)         dated

                       GBP          GBP         GBP          GBP          GBP         GBP            GBP

Revenue

Gold sales1      89,596,24   71,715,975           -             -           -           -    161,312,220

Platinum sales           -            -           -     3,480,338           -           -      3,480,338

Coal sales               -            -           -     4,567,974           -           -      4,567,974

Realisation costs (398,937)    (557,772)          -             -           -           -       (956,709)

On-mine 

revenue         89,197,308     71,158,2   3,480,338     4,567,974           -           -    168,403,823

Cost of 

production     (45,461,824) (55,025,516) (3,456,007)   (4,279,735)          -           -   (108,223,082)

Depreciation    (3,562,121)  (6,433,405)   (311,870)     (148,733)          -           -    (10,456,129)

Mining profit   40,173,363    9,699,282    (287,539)      139,506           -           -     49,724,612   

Other 

expenses2      (7,253,912)     873,481    (249,773)      233,905  (5,867,371)     80,775    (12,182,895)

Loss from 

associate                -            -           -             -           -           -              -

Loss on disposal 

of associate/

asset held

for sale                 -            -           -             -           -           -              -

Impairment costs         -            -           -             -           -           -              -

Royalty costs   (2,450,505)    (332,918)          -       (16,524)          -           -     (2,799,947)

Net income/(loss) 

before finance 

income and 

finance costs   30,468,946   10,239,845    (537,312)       356,887 (5,867,371)     80,775      34,741,770

Finance income      13,380       27,840         448          8,823     79,755     312,370         442,616

Finance costs       (6,048)      (7,383)       (489)             -         (7) (1,434,811)     (1,448,738)

Profit/(loss) 

before taxation 30,476,278   10,260,302    (537,353)       365,710 (5,787,623  (1,041,666)     33,735,648

Taxation        (8,492,721)    (757,683)    118,266        226,037    701,414     (29,144)     (8,233,831)

Profit/(loss) 

after taxation 

before inter-

company charges 21,983,557     9,502,61     (419,087)       591,747 (5,086,209) (1,070,810)    25,501,817

Inter-company 

transactions

Management 

fees           (1,439,394)   (1,137,529)     (107,226)       (65,734) 2,749,883           -             -

Inter-company 

interest 

charges          (331,029)     (750,800)       79,849          7,489   (135,868)  1,130,359             -

Profit after 

taxation after 

inter-company 

charges        20,213,134     7,614,290      (446,464)       533,502 (2,472,194)     59,549    25,501,817

Segmental assets 

(Total assets 

excluding 

goodwill)      56,651,503   146,201,423     9,991,120     15,034,211  3,180,048     632,954   231,691,259

Segmental      27,035,796    48,372,120       883,249      4,545,415  5,154,888  15,725,303   101,716,771

Goodwill       21,000,714             -             -              -          -           -    21,000,714

Net assets

(excluding

goodwill)      29,615,707    97,829,303      9,107,871    10,488,796 (1,974,840) (15,092,349) 129,974,488

Adjusted 

EBITDA         34,031,067    16,673,250       (225,442)      505,620 (5,867,371)      80,775   45,197,899

Capital 

expenditure     6,513,408     7,179,831        316,726        40,251     46,950            -   14,097,166





                                                    Year ended 30 June 2015

                                                                 Corporate

                                                                office and       Funding  

                       Barberton        Evander       Phoenix       Growth       Company        Consoli-

                           Mines          Mines      Platinum     Projects       (Note 3)          dated

                             GBP            GBP           GBP          GBP           GBP             GBP

Revenue

Gold sales1           81,609,692     54,001,744             -            -             -     135,611,436

Platinum sales                 -              -     5,465,447            -             -       5,465,447

Coal sales                     -              -             -            -             -               -

Realisation costs       (534,421)      (156,117)            -            -             -        (690,538)

On-mine revenue       81,075,271     53,845,627     5,465,447            -             -     140,386,345

Cost of production   (50,434,360)   (56,210,295)   (3,768,530)           -             -    (110,413,185)

Depreciation          (4,008,467)    (5,963,752)     (364,992)           -             -     (10,337,211)

Mining profit         26,632,444     (8,328,420)    1,331,925            -             -      19,635,949

Other expenses2        (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/asset 

held for sale                  -              -             -     (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     (3,322,334)    1,168,535   (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     (4,074,210)    1,178,585   (3,962,997)   (1,271,981)     15,802,756

Taxation              (5,956,861)     2,270,046      (336,438)     (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 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           21,528,152     52,987,201        933,751   1,973,835    12,777,774      90,200,713

Goodwill              21,000,714              -              -           -             -      21,000,714

Net assets 

(excluding goodwill)  33,895,436     93,718,164      9,917,142     481,098   (11,845,067)    126,166,773

Adjusted EBITDA       28,078,406      2,641,418      1,533,527  (3,804,729)         (933)     28,447,689

Capital expenditure    6,258,248     13,231,962         31,355      32,791             -      19,554,356



Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was 

generated from selling gold to South African institutions through the group’s Funding

Company.

Note 2: Other expenses exclude inter-management fees and dividend received

Note 3: Pan African Resources Funding Company (Pty) Ltd (‘Funding Company’) manages the group’s 

treasury function.



Summarised unaudited consolidated ZAR segment report for the year ended 30 June 2016



                                                    Year ended 30 June 2016

                                                                    Corporate

                                                                   office and     Funding       

                 Barberton      Evander     Phoenix                    Growth     Company

                    Mines         Mines    Platinum     Uitkomst     Projects     (Note 3)         Group

                      ZAR           ZAR         ZAR          ZAR          ZAR         ZAR            ZAR

                   million      million     million      million      million     million        million

Revenue

Gold sales1        1,921.8      1,538.3           -            -            -           -        3,460.1

Platinum Sales           -            -        74.7            -            -           -           74.7

Coal sales               -            -           -         98.0            -           -           98.0

Realisation costs     (8.6)       (11.9)          -            -            -           -          (20.5)

On-mine revenue    1,913.2      1,526.4        74.7         98.0            -           -        3,612.3

Gold cost of 

production          (975.2)    (1,180.3)          -            -            -           -       (2,155.5)

Platinum cost 

of production            -           -        (74.1)           -            -           -          (74.1)

Coal cost 

of production            -           -            -        (91.8)           -           -          (91.8)

Depreciation         (76.4)     (138.0)        (6.7)        (3.2)           -           -         (224.3)

Mining profit        861.6       208.1         (6.1)         3.0            -           -        1,066.6

Other expenses2     (155.6)       18.7         (5.4)         5.0       (125.7)        1.7         (261.3)

Bargain purchase         -           -            -            -            -           -              -

Loss from associate      -           -            -            -            -           -              -

Loss on disposal 

of associate             -           -            -            -            -           -              -

Impairment costs         -           -            -            -            -           -              -

Royalty costs        (52.6)       (7.1)           -         (0.4)           -           -          (60.1)

Net income/(loss)

before finance 

income and

finance costs        653.4       219.7        (11.5)         7.6       (125.7)        1.7          745.2

Finance income         0.3         0.6            -          0.2          1.7         6.7            9.5

Finance costs         (0.1)       (0.2)           -            -            -       (30.8)         (31.1)

Profit/(loss) 

before taxation      653.6       220.1        (11.5)         7.8       (124.0)      (22.4)         723.6

Taxation            (182.2)      (16.3)         2.5          4.8         15.2        (0.6)        (176.6)

Profit/(loss) 

after taxation       471.4       203.8         (9.0)        12.6       (108.8)      (23.0)         547.0

Inter-company 

transactions

Management fees      (30.9)      (24.4)        (2.3)        (1.4)        59.0           -              -

Inter-company 

interest charges      (7.1)      (16.1)         1.7          0.2         (2.9)       24.2              -

Profit/(loss) after 

taxation after 

inter-company

charges              433.4       163.3         (9.6)        11.4        (52.7)        1.2          547.0

Segmental assets 

(Total assets 

excluding 

goodwill)          1,120.6     2,891.9        198.6        297.4         61.6        12.5        4,582.6

Segmental 

liabilities          534.8       956.8         17.5         92.9         98.9       311.0        2,011.9

Goodwill             303.5           -            -            -            -           -          303.5

Net assets 

(excluding 

goodwill)            585.8     1,935.1        181.1        204.5        (37.3)     (298.5)       2,570.7

Adjusted EBITDA      729.8       357.7         (4.8)        10.8       (125.7)        1.7          969.5

Capital expenditure  139.7       154.0          6.8          0.9          1.0           -          302.4



                                                    Year ended 30 June 2015

                                                                 Corporate

                                                                office and       Funding       

                      Barberton       Evander       Phoenix         Growth       Company

                          Mines         Mines      Platinum       Projects       (Note  3)        Group

                            ZAR           ZAR           ZAR            ZAR            ZAR           ZAR

                        million       million       million        million        million       million



Revenue

Gold sales1             1,469.0         972.0             -              -              -       2,441.0

Platinum Sales                -             -          98.4              -              -          98.4

Coal sales                    -             -             -              -              -             -

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)

Coal cost of production       -             -             -              -              -              -

Depreciation              (72.2)       (107.3)         (6.6)             -              -         (186.1)

Mining Profit             479.4        (149.9)         24.0              -              -          353.5

Other expenses2           (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)            -           (0.3)         (23.1)         (44.3)

Profit/(loss)

before taxation           430.9         (73.4)         21.3          (71.2)         (23.0)         284.6

Taxation                 (107.2)         40.9          (6.1)          (1.7)          (0.3)         (74.4)

Profit/(loss) 

after taxation            323.7         (32.5)         15.2          (72.9)         (23.3)         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          (18.0)           0.3           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

Adjusted EBITDA           505.5          47.4          27.7          (68.5)             -           512.1

Capital expenditure       112.6         238.2           0.6            0.6              -           352.0



Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was 

generated from selling gold to South African institutions through the group’s Funding

Company.

Note 2: Other expenses exclude inter-management fees and dividend received

Note 3: Pan African Resources Funding Company (Pty) Ltd (‘Funding Company’) manages the group’s 

treasury function.


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