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PAN AFRICAN RESOURCES PLC - Provisional audited results for the year ended 30 June 2017 and proposed final dividend announcement

Release Date: 20/09/2017 08:00
Code(s): PAN     PDF:  
Wrap Text
Provisional audited results for the year ended 30 June 2017 and proposed 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 2017 and proposed final dividend announcement

Cobus Loots, CEO of Pan African Resources commented: "The 2017 financial year was operationally challenging. 
The remedial actions successfully implemented by management are however delivering the expected results. 
We have appropriately addressed critical shaft infrastructure repairs at Evander Mines, and the 
operation's cost base is now leaner, without compromising the safety or sustainability of the business.
Pan African Resources looks forward to a much improved performance from Evander Mines in the 2018 financial 
year, with a substantial increase in expected gold production. Despite mining flexibility challenges, 
Barberton Mines, our flagship long-life cash flow producer, is currently mining high-grade panels in 
its Fairview 11-block and is poised to contribute substantially to our production guidance of 190,000oz 
for the 2018 financial year. The Elikhulu Project is on schedule, with environmental approvals now in 
place, and is expected to produce first gold in the final quarter of the 2018 calendar year. 
Additionally, we are excited about the prospects for Evander Mines' 2010 Pay Channel project and 
our team has commenced a feasibility study on this project.

The disposal of the Uitkomst Colliery on 30 June 2017 to Coal of Africa realised a profit of R91.3 million, 
demonstrating the value created over the 15 months of our ownership. The recently announced disposal of 
Phoenix Platinum to Sylvania reaffirms our focus on core operations and the cash consideration will 
further strengthen our financial position. The benefits of the PAR Gold transaction, completed in the prior
financial year, has the accounting effect of reducing the issued share capital by 436.4-million shares 
in the 2017 financial year, equating to 19.53% of the issued share capital of the company.

The board is proposing a final dividend of R185 million, or GBP10.9 million, which again results in an 
attractive cash return to our shareholders."

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

Financial key features
- Group revenue from continuing operations decreased by 15.5% to R2,925.3 million (2016: 
R3,460.1 million). In GBP terms, group revenue increased by 5.1% to GBP169.6 million (2016: 
GBP161.3 million), the GBP percentage movement was positive due to the appreciation of the
ZAR/GBP exchange rate.
- In ZAR terms, group profit after taxation decreased by 43.3% to R309.9 million (2016: 
R547.0 million), while in GBP terms, group profit after taxation decreased by 29.8% to GBP17.9 million 
(2016: GBP25.5 million). Profits were adversely impacted by reduced gold production and a flat 
rand gold price during the year.
- Earnings per share ('EPS') decreased by 34.4% to 19.81 cents per share (2016: 30.20 cents 
per share), while in GBP terms, EPS decreased by 19.1% to 1.14 pence per share (2016: 1.41 pence 
per share).
- Gold production and realisation costs were well contained, increasing by only 7.7% to 
R2,343.1 million (2016: R2,176.0 million).
- The Pan African Resources board of directors (the 'board') approved the R1.74 billion Elikhulu 
tailings retreatment project ('Elikhulu Project') during the 2017 financial year. The project is 
now fully funded with all environmental approvals in place and construction commenced in August 2017.
- Uitkomst Colliery Proprietary Limited ('Uitkomst Colliery') performed well and contributed 
R35.4 million (2016: R12.7 million), or 11.4%, to group profit after taxation, before its disposal 
to Coal of Africa Limited ('Coal of Africa') on 30 June 2017. The disposal of Uitkomst Colliery 
to Coal of Africa realised a profit on sale of R91.3 million. (Note 1)
-The statement of financial position is robust with net debt reducing to R67.6 million (2016: 
R339.6 million) at year end.
- The board has proposed a final dividend of R185 million, or approximately GBP10.9 million
(2016: R300 million or GBP17.1 million), equating to R0.08279 per share, or approximately 
0.48697 pence per share (2016: R0.1544 per share or0.88 pence per share) for the 2017 financial 
year. This dividend is subject to shareholder approval at the annual general meeting ('AGM'),
 which will take place on Tuesday, 21 November 2017. (Note 2)
- Post year end, Pan African Resources concluded a sale agreement to dispose of Phoenix Platinum 
Proprietary Limited ('Phoenix Platinum') to Sylvania Platinum Limited ('Sylvania') for a cash 
consideration of R89 million. This transaction remains subject only to Competition Commission approval. 
The transaction resulted in an impairment of Phoenix Platinum by R100.9 million at year end.

Operational key features
- Following a challenging operational year, group gold production decreased by 15.4% to 173,285oz 
(2016: 204,928oz).
- Effective ZAR gold price received remained unchanged at R542,773/kg (2016: R542,850/kg), with the 
average ZAR/USD exchange rate being 6.3% stronger at R13.59:1 (2016: R14.51:1) and the USD gold price 
increasing by only 6.7% to USD1,242/oz (2016: USD1,164/oz).
- Cash cost per kilogramme increased in ZAR terms to R430,863/kg (2016: R338,242/kg) and, in USD terms, 
cash costs per ounce increased to USD986/oz (2016: USD725/oz), predominantly due to lower gold production.
- All-in sustaining cost per kilogramme increased in ZAR terms to R514,435/kg (2016: R405,847/kg) and, in
USD terms, all-in sustaining cost per ounce increased to USD1,177/oz (2016: USD870/oz).
- Pan African Resources advised shareholders on 25 August 2017 that the Integrated Water Use Licence 
for the Elikhulu Project had been granted by the Department of Water and Sanitation, for a period of 
20 years. Furthermore, the Integrated Environmental Authorisation was also issued in terms of the 
National Environmental Management Act 107 of 1998. All environmental regulatory permits are therefore 
in place for the group to commence construction and operation of the Elikhulu Project, which will 
add approximately 56,000oz per annum to the group’s production profile from the last quarter of 
the 2018 calendar year.
- At 30 June 2017, group gold resources were relatively unchanged at 34.4Moz (30 June 2016: 34.9Moz).
- The group unfortunately had three employees fatally injured in the current financial year (2016: 
one employee fatally injured), and remains focused on reducing the severity of accidents. The group’s 
lost-time injury frequency rate ('LTIFR') remained stable at 3.51 (2016: 3.50) whilst the reportable 
injury frequency rate ('RIFR') improved to 1.53 (2016: 2.04). Significant progress has been made on 
ensuring the on-mine safety management teams are appropriately staffed and skilled to drive our 
safety improvement campaigns. The safety performance at Barberton Mines Proprietary Limited 
('Barberton Mines') and Evander Gold Mines Limited ('Evander Mines') is better than the average 
industry safety rates, and the focus remains on improving safety year-on-year.
- Uitkomst Colliery produced and sold 326,744 tonnes of coal (2016: 87,538t) from the underground 
mining operations, and 343,466 tonnes of coal (2016:48,564t) acquired from third parties for 
blending and processing, prior to the conclusion of the sale to Coal of Africa.
- Tonnes processed by Phoenix Platinum increased by 13.7% to 283,067t (2016: 248,981t), and 
platinum group elements ('PGEs') sold increased by 4.4% to 8,709oz (2016: 8,339oz). The plant 
recoveries improved by 20.9% to 52.0% (2016: 43.0%) following the installation of high-energy 
cells, but this was offset by the head grade reducing by 21.1% to 2.43g/t (2016:3.08g/t).
- The group's detailed operational and financial summaries per entity are disclosed on the 
Pan African Resources website at http://www.panafricanresources.com/investors/financial-reports/.


            For the   For the                                               For the   For the
               year      year                                                  year      year
              ended     ended                                                 ended     ended
            30 June   30 June                Salient                        30 June   30 June
Movement       2017      2016          Unit  features        Unit              2016      2017  Movement
  (15.4%)     5,390     6,374 (Kilogrammes)  Gold sold       (Oz)           204,928   173,285    (15.4%) 
  (15.5%)   2,925.3   3,460.1  (R millions)  Revenue         (GBP millions)   161.3     169.6      5.1%
    0.0%    542,773   542,850        (R/kg)  Average gold    (USD/oz)         1,164     1,242      6.7%
                                             price received  
   27.4%    430,863   338,242        (R/kg)  Cash costs      (USD/oz)           725       986     36.0%
   26.8%    514,435   405,847        (R/kg)  All-in          (USD/oz)           870     1,177     35.3%
                                             sustaining 
                                             costs           
   31.8%    540,693   410,206        (R/kg)  All-in costs    (USD/oz)           879     1,237     40.7%
  (45.6%)     524.6     963.5  (R millions)  Adjusted EBITDA (GBP millions)    44.9      30.4    (32.3%) 
                                             (Note 3)          
  (43.3%)     309.9     547.0  (R millions)  Attributable    (GBP millions)    25.5      17.9    (29.8%)
                                             earnings              
  (42.3%)     315.6     547.1  (R millions)  Headline        (GBP millions)    25.5      18.3    (28.2%)
                                             earnings         
  (34.4%)     19.81     30.20       (cents)  Earnings per    (pence)           1.41      1.14    (19.1%)
                                             share (‘EPS’)        
  (33.2%)     20.17     30.20       (cents)  Headline        (pence)           1.41      1.17    (17.0%)
                                             earnings per 
                                             share (‘HEPS’)
  (80.1%)     67.6      339.6  (R millions)  Net debt        (GBP millions)    17.2       4.0    (76.8%)
   24.2%     330.0      265.7  (R millions)  Total           (GBP millions)    12.4      19.1     54.3%
                                             sustaining 
                                             capital
                                             expenditure
  102.7%     613.1      302.4  (R millions)  Total capital   (GBP millions)    14.0      35.5    153.6%
                                             expenditure 
                                             (Note 4)                                  
    5.5%     201.3      190.8      (cents)   Net asset       (pence)           10.0      12.0     20.0%
                                             value per share          
  (13.6%)  1,564.3    1,811.4   (millions)   Weighted        (millions)     1,811.4   1,564.3    (13.6%)
                                             average number
                                             of shares
                                             in issue                           
   (6.3%)    13.59      14.51      (R/USD)   Average         (R/GBP)          21.45     17.25    (19.6%)
                                             exchange rate               
  (11.8%)    13.04      14.78      (R/USD)   Closing         (R/GBP)          19.78     16.96    (14.3%)
                                             exchange rate              

Note 1: The Uitkomst Colliery contribution excludes corporate management fees and inter-company interest 
on-charged to the operation during year.
Note 2: The GBP proposed final dividend was calculated based on 2,234,687,537 total shares in issue 
and an illustrative exchange rate of R17:1. Shareholders on the United Kingdom register are to note 
that a revised exchange rate will be communicated prior to approval of the final dividend at the AGM.
Note 3: Adjusted EBITDA is represented by earnings before interest, taxation, depreciation and amortisation, 
impairments, discontinued operations and profit/(loss) on disposal of investments.
Note 4: The Elikhulu Project incurred R175.5 million in capital expenditure to 30 June 2017 on civil 
engineering works and the procurement of long-lead-time items, such as the tower crane and the 
carbon-in-leach tanks, which are critical to ensuring construction deadlines are met.

CEO statement
Pan African Resources experienced a difficult year operationally, with lower gold production and a flat ZAR gold 
price environment. Regrettably three employees were fatally injured while on duty underground. We have conducted 
internal assessments to take procedural learnings from each fatal incident. Despite the severe setback related 
to the employee fatalities, our safety performance rates relative to prior years have improved, with our LTIFR 
stabilising and the RIFR improving year-on-year. The improvement in the group’s overall safety performance is 
encouraging and we continue to strive towards a zero-harm environment. Gold production was lower than expected 
as Evander Mines suspended production for 55 days to carry out critical refurbishments to its shaft 
infrastructure, and production at Barberton Mines was below target due to logistical and flexibility constraints 
at Fairview, compounded by community unrest in the Barberton Mines area and Department of Mineral Resources
('DMR') safety stoppages ('Section 54 regulatory notices') during the first half of the financial year.

Evander Mines restructured its operations during the reporting period, which has resulted in improved operational 
efficiencies and a leaner and more sustainable cost base. The shaft failure at Evander Mines, as reported in 
February 2017, prompted a review of the mine's engineering functions to ensure similar problems are detected 
timeously in future. Evander Mines' shaft infrastructure has also been subject to a number of internal and 
external engineering reviews and we believe the risk of another failure is materially reduced. Our engineering 
reviews have identified further infrastructural issues, which are being addressed to ensure the risk associated 
with the mine's infrastructure is further reduced.

These challenges, which were well flagged during the year, impacted the group's results, with gold revenues 
decreasing by 15.5% to R2,925.3 million (2016: R3,460.1 million), mostly due to the 15.4% decrease in gold 
production. The average ZAR gold price received remained relatively unchanged at R542,773/kg (2016: R542,850/kg) 
in a particularly volatile environment, and the ZAR ended the financial year stronger against the US dollar 
at R13.59, compared to R14.51 at the prior year end. Looking ahead, the outlook for the ZAR is predominantly 
negative due to ongoing political, economic and social uncertainties facing South Africa.

Despite the challenges and setbacks, at the end of the 2017 financial year the group has emerged stronger, 
with reduced debt levels, and a renewed focus on core operations and its strategic growth path. Developments 
at our Evander Mines include the approval and commencement of construction (after year end) of the Elikhulu 
Project and improvements to the reliability of mine infrastructure, with the completion of critical 
structural and engineering refurbishments at Evander Mines' No 7 Shaft during March and April 2017. The 
exploration programme at Evander Mines' 2010 Pay Channel has commenced, and if this area is proven to be 
a viable mining proposition, the orebody will be mined from the existing No 7 Shaft, thereby saving the 
cost of sinking another deep-level shaft. Work is progressing well at Barberton Mines' Fairview shaft, with 
the development of a sub-vertical shaft to improve access capacity in mining the 11-block high-grade and 
long-life orebody.

The sale of Uitkomst Colliery in KwaZulu-Natal to Coal of Africa realised a profit on sale of R91.3 million 
and further boosted the group's already strong financial position. The group announced on 31 July 2017 that 
it will dispose of all of its shares and loan accounts in Phoenix Platinum to Sylvania for a total cash 
consideration of R89 million. The transaction remains subject only to Competition Commission approval. 
The results for Uitkomst Colliery and Phoenix Platinum were reclassified to discontinued operations in 
the current and prior financial year on the statement of comprehensive income.

An important development during the financial year under review was the gazetting of the revised Mining 
Charter by the Minister of Mineral Resources in June 2017, amid controversies surrounding the lack of 
consultation between the government and other stakeholders, including the labour and mining industry, 
as well as concerns about specific impositions in this new charter.  The revised Mining Charter was 
subsequently suspended in July 2017, and is now the subject of discussions as well as legal actions by 
industry stakeholders. Pan African Resources is supportive of constructive engagement that results in 
a Mining Charter geared to the revitalisation of the mining industry and which underpins job creation 
and much-needed economic growth. While we closely monitor developments regarding the revised Mining 
Charter, we are proud of the progress made in our transformation during the past years, which include 
our involvement in the communities in which we operate, and the establishment of employee ownership 
structures at all our gold operations.

In the 2017 financial year, the group's gold production decreased by 15.4% to 173,285oz (2016: 204,928oz), 
primarily due to the following challenges:
- The suspension of production for 55 days at Evander Mines to complete the refurbishment of critical 
shaft infrastructure at No 7 Shaft. The consistent review and inspection of critical infrastructure to 
manage and ensure limited loss of production going forward is progressing well.
- Loss of production shifts due to frequent instances of community unrest in the Barberton Mines area 
as a result of service delivery protests, compounded by Section 54 regulatory notices issued at both 
Barberton Mines and Evander Mines during the first half of the financial year. The group continues to 
engage with all stakeholders to ensure its operations can function in a stable and consistent manner.
- Barberton Mines experienced flexibility issues at Fairview, specifically at its high-grade 11-block, 
which resulted in lower grades being mined. Work is underway to develop additional production platforms 
to expose further high-grade panels to increase mining grades and flexibility.

Uitkomst Colliery produced and sold 326,744 tonnes of coal from its underground mining operations, and 
343,466 tonnes of third-party coal acquired for blending and processing, during the current reporting 
period. The operation contributed to profitability during the 2017 financial year prior to the 
conclusion of its sale to Coal of Africa on 30 June 2017.

Phoenix Platinum's production increased by 4.4% to 8,709oz (2016: 8,339oz), and its recoveries increased 
significantly to 52% from 43%, following the implementation of high-energy agitation cells in the plant. 
Production in the current reporting period was however negatively affected by a reduction in the head 
grade achieved on the tailings processed from the Kroondal and Elandskraal tailings.

Mineral reserves and resources
The group's mineral resources and reserves in compliance with the South African Code for Reporting of 
Mineral Resources and Mineral Reserves (the SAMREC Code) are summarised as follows:
- Gold resources of 34.4Moz (2016: 34.9Moz)
- Gold reserves of 11.2Moz (2016: 10.0Moz)
- PGE resources of 0.6Moz (2016: 0.6Moz)
- PGE reserves of 0.2Moz (2016: 0.2Moz)

In determining our reserves and resources in the 2017 financial year, gold reserves were modelled at R550,000/kg 
and gold resources at R600,000/kg. During the current year the group's mineral resources and reserves were 
independently reviewed by SRK Consulting (South Africa) (Pty) Ltd.

Near- to medium-term growth projects
Elikhulu Project
Following the successful R696 million equity raise in April 2017, Pan African Resources commenced capital 
expenditure on the project's civil engineering works and the procurement of long-lead-time items, such as the 
tower crane and the carbon-in-leach tanks, which are critical to ensuring project deadlines are met. The Elikhulu 
Project is progressing according to schedule and is on budget. As announced on 25 August 2017, all environmental 
regulatory approvals have been received, allowing construction to begin, with project completion and first gold 
expected in the last quarter of the 2018 calendar year.

Capital expenditure of R175.5 million was incurred on the Elikhulu Project during the current reporting period, 
and capital spend remains on track relative to the total initial forecast capital expenditure of R1.74 billion, 
which includes contingencies of R200 million.

The R1 billion term debt facility agreement, which was underwritten by Rand Merchant Bank, a division of 
FirstRand Bank Limited, has also become effective and was successfully syndicated, with an 
over-subscription of more than 50%.

Together with the group's existing R1 billion revolving credit facility, these facilities comprise the core debt 
instruments for funding the group's capital expenditure programmes. The low-cost, long-life Elikhulu Project is 
expected to increase the group's annual gold production by 56,000oz per annum in the initial eight years and 
substantially reduce the group's weighted average all-in cost of production. 

Evander Mines' 2010 Pay Channel
The 2010 Pay Channel resource is adjacent to the No 7 Shaft infrastructure and extends from the boundary 
of Taung Gold International Limited's No 6 Shaft project and mining rights. The Resources for this project 
are summarised in the table below:

No 7 Shaft: No 3 Decline and 2010 Pay Channel resources

                      Tonnes                 Grade                  Contained gold
Category             Million                   g/t               Tonnes             Moz
Measured                0.45                  8.94                  4.0             0.13
Indicated               0.70                  7.11                  5.0             0.16
Inferred                4.13                  8.93                 36.9             1.19
Total                   5.28                  8.69                 45.9             1.48

As previously reported, Evander Mines embarked on an exploration programme to drill a further exploration 
borehole from surface. During 2017, the exploration borehole successfully intersected the Kimberley reef 
at a depth of approximately two kilometres. Refer below to the table highlighting reef intersections 
and deflections. The previous borehole into the 2010 Pay Channel yielded a reef intersection with 
a 49cm width at 36.0g/t.

2010 Pay Channel exploration borehole results
                                                               Core width                   Grades
Detail            Intersection       Depth (metres)            (centimetres)             g/t        cmg/t                                                                    
Original               1                    2059.3                       49            36.0        1,766
Intersection           2                    2014.6                      5.7            36.8          210
Deflection 1           3                    2014.9                      5.7            33.2          189
Deflection 2           4                    2014.8                      4.8           144.7          694


Harmony Gold Mining Company Limited ('Harmony') previously started development from the No 7 Shaft mine 
workings towards the 2010 Pay Channel. Due to financial constraints and a reassessment of capital 
expenditure priorities, Harmony halted all development on the Evander Mines' shafts (other than No 8 Shaft) 
in 2009, resulting in the controlled flooding of the development ends and No 7 Shaft's No 3 Decline, 
from 21 Level up to 18 Level. Following dewatering, only standard footwall and on-reef development 
would need to be completed by Evander Mines, with the associated engineering infrastructure, before 
mining can commence.

The 2010 Pay Channel is approximately 4.5 kilometres in tramming distance from No 7 Shaft, which is 
currently used by Evander Mines for hoisting to the Kinross metallurgical plant. This compares 
favourably with the No 8 Shaft mining areas, which are approximately 12 kilometres in tramming 
distances from No 7 Shaft.The group's project team has commenced a feasibility study on No 7 Shaft's 
No 3 Decline and 2010 Pay Channel resource, which will address the following critical issues:
- Collation of geological data from the drill-hole intersection and deflections.
- The cost and timing of dewatering and re-equipping the No 7 Shaft's No 3 Decline from 18 Level to 21 Level.
- The development cost and timing to access the 2010 Pay Channel.
- The economic viability of the project.

The 2010 Pay Channel can potentially increase Evander Mines' underground gold production significantly 
at a relatively low capital cost, using Evander Mines' established shaft and metallurgical facilities.  
The feasibility study for the project is expected to be completed during the first quarter of the 2018 
financial year.

Barberton Mines' sub-vertical shaft project at Fairview
The Fairview mining operation is currently restricted by the hoisting capacity of its No 3 Decline, 
which is used to access workings below 42 Level.  This decline is currently used to transport employees 
and material and for rock hoisting.  The 11-block of the main reef complex orebody has an average grade 
of 31.3 g/t and current life-of-mine of 20 years.  With no intervention, future mining at depth will 
result in increased travelling distance, reduce employee face time, and cause a lack of capacity to 
ensure both ore replacement and exploration development.

Pan African Resources, with the assistance of DRA Projects SA Proprietary Limited ('DRA'), has completed a 
feasibility study on the construction of a raise-bored, sub-vertical shaft from Fairview's 42 Level to 64 Level, 
with the potential of continuing the vertical shaft to 68 Level in future.  This sub-vertical shaft will be used 
to transport employees and material to the working areas, which will allow the No 3 Decline to be used 
exclusively for rock hoisting, increasing overall capacity and production from this mining area.

DRA has reviewed the technical and commercial aspects of the project and the supporting feasibility study has 
yielded very positive results. The estimated capital expenditure for the project, including contingencies, is 
approximately R105 million, to be incurred over a two-year period. The productivity improvements for Fairview 
are estimated to yield an additional 7,000oz of gold per annum, which can be optimised further to more 
than 10,000oz per annum.

Outlook
In the 2018 financial year, the key focus areas for the group, from an operational perspective, include:
- Continuing to improve our safety and regulatory compliance across all operations.
- Achieving its gold production guidance of 190,000oz for the 2018 financial year.
- Ensuring construction of the Elikhulu Project progresses according to the original schedule and budget.
- Completing the drilling programme deflections on the Evander Mines 2010 Pay Channel and finalising the 
technical and economic evaluation of the project.
- Commencing construction of the Barberton Mines' sub-vertical shaft project at Fairview.
- Ensuring sustainable and optimal operating performance at our gold mining operations.
- Further improving stakeholder engagement to minimise operational stoppages.
- Concluding the R89 million disposal of Phoenix Platinum to Sylvania.

The group continues to evaluate acquisitive opportunities, particularly within other African jurisdictions, 
in accordance with the group's rigorous capital allocation criteria.

We extend our appreciation to our management teams and all other staff for their hard work and persistence 
during this challenging period. Their commitment and perseverance has enabled Pan African Resources to 
continue operating successfully. We also thank our fellow directors for their support and guidance.

Financial performance
When assessing and discussing Pan African Resources reported financial performance, financial position and cash 
flows, management refers to Alternative Performance Measures ('APMs') of historical or future financial 
performance, financial position or cash flows that are not defined or specified under International Financial 
Reporting Standards ('IFRS'). Examples of APMs are headline earnings and adjusted EBITDA and net debt. These APMs 
have been described and reconciled in accordance with the respective listing requirements for this announcement. 
The Integrated Annual Report which will be published prior to the AGM and will have all the APMs reconciled 
to the closest IFRS term.

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 United Kingdom ('UK') and South Africa.

During the period under review the average ZAR/GBP exchange rate was R17.25:1 (2016: R21.45:1) and the 
closing ZAR/GBP exchange rate was R16.96:1 (2016: R19.78:1). The year-on-year change in the average and 
closing exchange rates of 19.6% and 14.3%, 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 strength in the value of the ZAR/USD 
exchange rate during the period under review had a negative impact on the USD revenue received when translated 
into ZAR. The average ZAR/USD exchange rate was 6.3% stronger at R13.59:1 (2016: R14.51:1).

The commentary below analyses the current and prior comparative 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 total revenue from continuing and discontinued operations, year-on-year, decreased in ZAR terms by 
5.3% to R3,440.4 million (2016: R3,632.8 million) and in GBP terms increased by 17.7% to GBP199.4 million
(2016: GBP169.4 million).  Group revenue was mainly impacted by:
1) The average ZAR gold price received decreased marginally to R542,773/kg (2016: R542,850/kg), as a result 
of the average ZAR/USD exchange rate strengthening by 6.3% to R13.59:1 (2016: R14.51:1) and the USD gold 
price received increasing by 6.7% to USD1,242/oz (2016: USD1,164/oz). The GBP revenue figures were positively 
impacted by the ZAR/GBP average exchange rate strengthening by 19.6% year-on-year.
2) Gold ounces sold decreased by 15.4% to 173,285oz (2016: 204,928oz), as result of the operational challenges 
highlighted.
3) Uitkomst Colliery revenue of R432.8 million (2016: R98.0 million), or GBP25.1 million
(2016: GBP4.6 million), disclosed in discontinued operations, following the conclusion of the disposal to Coal 
of Africa on 30 June 2017.
4) Phoenix Platinum revenue of R82.2 million (2016: R74.7 million) or GBP4.8 million (2016: GBP3.5 million) 
disclosed in discontinued operations, following its classification as an asset held for sale ahead of the 
signing of a disposal agreement with Sylvania.

Cost of production
Gold operations cost of production
The group's total cost of production (including realisation costs) for gold operations was well controlled 
and increased by 7.7% to R2,343.1 million (2016: R2,176.0 million).

Pan African Resources' gold cost of production (excluding realisation costs), per the statement of comprehensive 
income, increased by 7.2% to R2,311.6 million (2016: R2,155.5 million).  The main cost contributors that impacted 
the year-on-year cost increase during the current reporting period are summarised as follows:
- Group gold operations' salaries and wages (represents 43.1% of the total gold cost of production) increased by 
4.5% to R1,010.8 million (2016: R967.7 million). Salaries and wages increased in line with the gold labour 
agreements signed in the 2016 financial year, but this was off-set by the reduction in labour costs at Evander 
Mines due to the retrenchment of 628 employees at the operation.
- The group's electricity costs (represents 13.8% of the total gold cost of production) increased by 2.1% to 
R324.0 million (2016: R317.3 million). The National Energy Regulator of South Africa approved an increase of 
7.9% for the period 1 July 2016 to 31 March 2017, and 2.2% from 1 April 2017. Production challenges detailed 
previously also contributed to lower power consumption, specifically at Evander Mines during the 55-day 
suspension of underground operations.
- The group's mining and processing costs (represents 28.3% of total gold cost of production) increased by 
18.0% to R662.6 million (2016: R561.3 million), mainly due to the following material expenses:
- The Evander Tailings Retreatment Plant's ('ETRP') processing costs increased by R60.4 million or 44.2% due 
to treating additional surface feedstock material. The tonnes of surface feedstock processed increased by 
17.8% to 467,610 tonnes (2016: 396,942 tonnes) and this contributed an additional R33.4 million to the 
group's adjusted EBITDA.
- Maintenance of Evander Mines' No 7 Shaft infrastructure resulted in an additional R4.5 million 
expenditure being incurred.
- In the comparative reporting period the gold operations recorded an inventory adjustment in operational 
costs of R4.6 million, due to releasing gold inventory at 30 June 2016, whilst in the current financial 
year the gold inventory adjustment was a R12.7 million credit to costs due to holding more gold inventory 
at financial year end.

The group's gold cost of production per kilogramme increased by 27.4% to R430,863/kg (2016: R338,242/kg). 
The increase is attributed to:
- Gold sold decreasing by 15.4% to 173,285oz (2016: 204,928oz).
- The 7.7% increase in gold production and realisation costs as a result of the reasons highlighted above.

The group's all-in sustaining cost of production per kilogramme of gold (including direct cost of production, 
royalties, associated corporate costs and overheads, and sustaining capital expenditure, excluding cost-collar 
mark-to-market expenses) increased by 26.8% to R514,435/kg (2016: R405,847/kg). In USD terms the all-in 
sustaining cost per ounce increased to USD1,177/oz (2016: USD870/oz). The group’s all-in sustaining costs 
were primarily impacted by an increase in gold production costs and a decrease in gold sold.

The all-in gold cost per kilogramme (sustaining cost of production and once-off expansion capital, but 
excluding the Elikhulu Project capital) increased by 31.8% to R540,693/kg (2016: R410,206/kg), due to the 
increase in once-off capital expansion costs to R100.8 million (2016: R27.8 million), which related mostly 
to the construction of the Barberton Tailings Retreatment Plant’s ('BTRPs') cyanide detoxification plant of 
R17.8 million and Fairview's ventilation refrigeration and infrastructure of R41.5 million. In USD terms, 
the all-in cost per ounce increased to USD1,237/oz (2016: USD879/oz).

PGE cost of production
Phoenix Platinum's cost of production is disclosed within discontinued operations on the statement of 
comprehensive income, following the announcement on 31 July 2017 that a sale agreement, for R89 million cash 
consideration, was signed with Sylvania, and now remains subject to Competition Commission approval. Phoenix 
Platinum is classified as an asset held for sale on the statement of financial position in the current 
reporting period, as Pan African Resources' intent is to dispose of the operation within the next 12 months.

The PGE cost of production increased by 16.6% to R86.4 million (2016: R74.1 million), largely due to refining 
and processing costs increasing by 18.2% to R57.1 million (2016: R48.3 million). Higher refining costs
were incurred due to higher chrome prevalence in the tailings processed from the Elandskraal/Kroondal 
tailings prior to entering into a new refining agreement effective in December 2016. Additional transport 
costs were also incurred to deliver tailings material from the more distant Elandskraal/Kroondal 
tailings sites.

Coal cost of production
The Uitkomst Colliery's production cost in the current financial year of R375 million (2016: R91.8 million) 
is disclosed within the discontinued line item on the statement of comprehensive income while, in the 
comparative period, production costs was only for three months from 1 April 2016 to 30 June 2016.

Realisations costs
The group's realisation costs increased to R31.5 million (2016: R20.5 million) due to an additional R15.4 million 
in refining costs associated with the extraction and recovery of gold from various sections of the Evander Mines' 
processing plant by a contractor.  This initiative contributed 160.5kg (5,160.9oz) of gold to Evander Mines' 
production over the life of the project.

Depreciation costs
Depreciation from continuing operations decreased by 15.6% to R181.0 million (2016: R214.4 million). The 
depreciation charge is based on the available units of production over the life of the operations and, with the 
reduced mining tonnages and gold production for the reasons mentioned in the CEO statement, the gold operations' 
depreciation reduced commensurately. The depreciation was further reduced by an adjustment to residual values of 
property, plant and equipment on the gold operations.

Other expenditure and income
The group had no outstanding short-term hedges at 30 June 2017. In July 2015, Barberton Mines entered in a 
cost collar, 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 realised mark-to-market fair-value gain of R94.7 million on this cost collar
(2016: pre-tax realised cost-collar derivative fair-value loss of R113.8 million). This gain resulted from a 
reversal of the prior financial year's cost-collar mark-to-market liability, which was valued at a R625,000/kg 
gold price, which regressed to an average gold price received of R542,773/kg in the current financial year.

The fair-value adjustment of the group's rehabilitation liability resulted in an increase of R0.4 million
(2016: R38.2 million decrease in liability). The rehabilitation investment decreased by R0.9 million
(2016: R9.2 million increase in the investment) due to movements in the market values of the underlying 
investments.

Finance costs increased to R48.6 million (2016: R31.1 million), following increased revolving credit facility 
utilisation during the period under review.

During December 2016, the group disposed of an investment in a listed entity. The investment represented 
1,750,850 shares, which were sold for R23.4 million, and resulted in a profit of R4.6 million being recognised 
in the statement of comprehensive income during the period under review. Dividends received for the period 
under review, prior to disposal, amounted to R0.6 million (2016: R1.0 million).

Taxation
The group's total taxation charge decreased to R4.2 million (2016: R184 million). 

The taxation charge comprised of:
- A decrease in the current taxation charge by 60.1% to R80.4 million (2016: R203.9 million).
- An increase in the deferred taxation credit to R76.2 million (2016: deferred taxation credit of 
R19.9 million), predominantly due to the deferred taxation associated with the pre-tax realised 
mark-to-market fair-value gain of R94.7 million, and a reduction of the long-term deferred taxation rate 
to 23.1% from 28% and 25.5% for Barberton Mines and Evander Mines, respectively.

EPS and HEPS
The group's EPS in ZAR decreased by 34.4% to 19.81 cents (2016: 30.20 cents). The group's HEPS in ZAR 
decreased by 33.2% to 20.17 cents (2016: 30.20 cents). The difference between the EPS and HEPS has been
reconciled below.

The EPS and HEPS are calculated by applying the group's weighted average number of shares in issue to the 
attributable and headline earnings. The weighted average number of shares in issue decreased by 13.6% to 
1,564.3 million shares (2016: 1,811.4 million shares). The decrease in shares was attributed to eliminating 
the PAR Gold Proprietary Limited ('PAR Gold') shares held in Pan African Resources, whilst including the 
additional 291.5 million shares issued in the equity raise concluded on 12 April 2017.

The weighted average number of shares in issued for calculating earnings per share is reconciled below:

                                                                                30 June 2017     30 June 2016
Shares in issue at beginning of year                                                 1,943.2          1,831.5
Issue of 291,5 million shares - vendor placement (date 12 April 2017) (Note 1)          57.5                - 
Issue of 111.7 million shares - vendor placement (date 3 June 2016)                        -              8.5
Elimination of shares held by PAR Gold (Note 2)                                      ( 436.4)           (28.6)
Weighted average shares in issue at end of year                                      1,564.3          1,811.4


Note 1: On 12 April 2017 the group issued 291,480,983 ordinary shares to fund the equity component of the 
Elikhulu Project's construction.
Note 2: The PAR Gold shares were acquired on 7 June 2016 and, in the current reporting period, the group 
benefitted from a full year exclusion of these shares in the calculation of the weighted average number of 
shares compared to the period of less than a month in the corresponding results.

Total headline earnings per share is calculated as follows:

                                                    30 June 2017    30 June 2016    30 June 2017   30 June 2016
                                                     GBP million     GBP million     ZAR million    ZAR million
Basic earnings                                              17.9            25.5           309.9          547.0
Adjustments:
Profit on disposal of investment                            (0.2)              -            (4.6)             - 
Taxation on profit realised on disposal of investment        0.1               -             1.0              - 
Profit on disposal of Uitkomst Colliery                     (5.4)              -           (91.3)             - 
Profit on disposal of property plant and equipment          (0.1)              -            (0.4)             - 
Taxation on profit realised on property plant and 
equipment sale                                                 -               -             0.1              - 
Impairment of Phoenix Platinum                               6.0               -           100.9              -
Headline earnings                                           18.3            25.5           315.6          547.0
Headline earnings per share                                 1.17            1.41           20.17          30.20
Diluted headline earnings per share                         1.17            1.41           20.17          30.19

Continuing operations headline earnings per share is calculated as follows:

                                                     30 June 2017     30 June 2016   30 June 2017  30 June 2016
                                                      GBP million      GBP million    ZAR million   ZAR million
Basic earnings for continuing operations                     22.8             25.3          391.9         543.3
Adjustments:
Profit on disposal of Investment                             (0.2)               -           (4.6)            - 
Taxation on profit on disposal of Investment                    -                -            1.0             - 
Profit on disposal of subsidiary                             (5.4)               -          (91.3)            - 
Profit on disposal of  property plant and equipment             -                -              -           0.1
Headline earnings for continuing operations                  17.2             25.3          297.0         543.4
Headline earnings per share for continuing operations        1.10             1.40          18.98         30.00
Diluted headline earnings per share for continuing           1.10             1.40          18.97         29.99
operations                                                   


Historical dividends paid
The group paid a final dividend of R300 million or GBP17.1 million on 22 December 2016, relating to the 2016 
financial year. This dividend equated to R0.1544 per share, or 0.88 pence per share.

Following the PAR Gold transaction, the company received 22.46% or R67.4 million of the R300 million dividend, 
resulting in a net dividend of R232.6 million paid to external shareholders.

Dividend policy
Pan African Resources aspires to pay a regular dividend to its shareholders. In balancing this cash return 
to shareholders with the group's strategy of generic and acquisitive growth, Pan African Resources believes 
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 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 position, 
future prospects, satisfactory solvency and liquidity assessments and other factors deemed relevant at the 
time. The board also allows itself flexibility to deviate from the above policy, when deemed appropriate.

Although cash generated by operating activities for the period were below expectations, the cash flow generated 
by the sale of Uitkomst Colliery and other investments amounted to R148.4 million and largely constitutes the 
return to shareholders of the profits realised on the original investments. Whilst this is a deviation from 
the group's stated dividend policy, the board considered that the exceptional circumstances warrant the proposed 
dividend as the Elikhulu Project debt facility has been closed and sustaining capital can be funded from 
operational cash flows at the prevailing gold price.

Net debt
Total debt facilities utilised at 30 June 2017 amounted to R227.8 million (2016: R392.2 million), and cash 
holdings were R160.2 million (2016: R52.6 million), resulting in a decrease in net debt to R67.6 million 
(2016: R339.6 million). The decrease in net debt was predominantly as a result of the gross proceeds 
received from the R696 million equity raised on 12 April 2017.
 
Summary of the long-term debt liabilities:

                         Revolving credit facility        Evander Mines gold loan                 Total
                      30 June 2017   30 June 2016     30 June 2017    30 June 2016   30 June 2017  30 June 2016
                      ZAR millions   ZAR millions     ZAR millions    ZAR millions   ZAR millions  ZAR millions
Non-current portion          180.5          279.3                -            26.6          180.5         305.9
Current portion               20.7           31.1             26.6            55.2           47.3          86.3
Total                        201.2          310.4             26.6            81.8          227.8         392.2


The group's performance against the revolving credit facility debt covenant limits are summarised below:

                                                         30 June     30 June   
                             Measurement                    2017        2016   Description
Net-debt-to-equity ratio     Must be less than 1:1          0.01        0.11   Improvement
Net-debt-to-adjusted         Must be less than 2.5:1        0.05        0.38   Improvement
EBITDA ratio                 
Interest cover ratio         Must be greater than 4 times     10          26   Regression due to reduced 
                                                                               profits and higher
                                                                               interest expense

Capital expenditure
Group capital expenditure for the 2017 financial year has been summarised per operation in the table below:

                         Continuing Operations                                  Discontinued
                       Barberton        Evander 
                          Mines          Mines                             Phoenix     Uitkomst
                        (Note 1)       (Note 2)  Elikhulu   Corporate     Platinum     Colliery   Group Total 
                              ZAR          ZAR        ZAR         ZAR          ZAR          ZAR           ZAR
                          million      million    million     million      million      million       million 
Development capital          65.7         79.8          -                        -          7.0         152.5
Maintenance capital          50.8        118.6          -         1.4          3.4          3.3         177.5
Sustaining capital 
total                       116.5        198.4          -         1.4          3.4         10.3         330.0
Expansion capital            77.0         23.8      175.5           -          2.0          4.8         283.1
Total capital 
expenditure                 193.5        222.2      175.5         1.4          5.4         15.1         613.1


Note 1: The R77 million once-off expansion capital related to the construction of the BTRP detoxification plant 
for R17.1 million and the acquisition of additional tailings resources for R5 million. Barberton Mines incurred 
R41.5 million for the construction of the installation of refrigeration at Fairview, and R13.4 million on 
development of Royal Sheba.

Note 2: Evander Mines incurred R15.8 million on 25 A Block and 26 Level decline development, and R8 million on 
the 2010 Pay Channel project drilling programme. Evander Mines also incurred an additional R42 million in 
relation to maintenance capital following the refurbishment of No 7 Shaft infrastructure.

Cash flow summary
Cash generated by operations before dividends decreased by R452.4 million to R339.0 million (2016: 
R791.4 million), due to lower gold production following the operational disruptions and challenges noted 
previously. Cash generated by operations after taking into account net dividends paid to shareholders of 
R232.6 million (2016: R210 million), decreased to R106.5 million (2016: R581.4 million).

The cash outflows from investing activities was R491 million (2016: R969 million), predominantly due to:
- Capital expenditure incurred increased to R613.1 million (2016: R302.4 million), due to the Elikhulu Project 
and higher once-off capital expenditure predominantly due to the construction of the BTRP cyanide detoxification 
plant and Fairview's ventilation refrigeration and infrastructure.
- Proceeds on the sale of a listed investment of R23.4 million, and proceeds on the sale of property plant and 
equipment of R7 million at Uitkomst Colliery.
- Inflow of funds of R125 million following the sale of Uitkomst Colliery, with net proceeds of the disposal 
being R111.7 million, net of the cash transferred within the business.

Net cash inflows from financing activities was R493 million (2016: R375.9 million outflow), predominantly 
due to:
- The utilisation of the revolving credit facility to fund operational capital expenditure.
- Share issues resulting in gross proceeds of R696 million, and R672 million net of share issue costs.

Evander Mines incurred cash outflows of R345.2 million during the financial year, following the refurbishment 
of critical shaft infrastructure which resulted in lower gold production.

The R345.2 million cash outflows is summarised as follows:
- Cash outflows of Evander Mines operations of R116.3 million;
- Cash outflows from investing activities in capital expenditure (excluding the Elikhulu Project) of 
R222.2 million, of which R42 million related to the refurbishment of critical No 7 Shaft's infrastructure and 
R180.2 million was normalised operational capital expenditure;
- Cash outflows from financing activities of R6.7 million.

Commitments reported in ZAR and GBP
The group identified no contingent liabilities in the current or prior financial period.

The group had outstanding open orders contracted for at period end of R1.22 billion (2016: R12.7 million), or 
GBP72 million (2016: GBP0.6 million). Outstanding orders in the current reporting period related mostly to the 
Elikhulu Project.

Authorised commitments for the 2018 financial period, not yet contracted for, totalled R328.7 million 
(2016: R345.9 million) or GBP19.4 million (2016: GBP17.5 million).

At 30 June 2017, the group had guarantees in place of R24.6 million (2016: R24.6 million) or GBP1.4 million 
(2016: GBP1.2 million) in favour of Eskom Holdings SOC Limited and R14.0 million (2016: R14.0 million) or 
GBP0.8 million (2016: GBP1.0 million) in favour of the DMR.

Operating lease commitments, which fall due within the next financial year, amounted to R2.7 million 
(2016: R2.9 million) or GBP0.16 million (2016: GBP0.16 million).

Fair value instruments
Financial instruments measured at fair value are 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.
Level 3 - fair value is determined on inputs not based on observable market data.

Level 1 financial instruments:
Pan African Resources hold 261,287,625 shares in Coal of Africa (9.3% shareholding), which is fair valued at 
R127.6 million (GBP7.5 million). The fair value of the listed investment is treated as Level 1 of the fair
value hierarchy, as the share price is quoted on a stock exchange.

The group's rehabilitation trust funds are valued at R320.6 million (2016: R321.5 million) or GBP18.9 million 
(2016: GBP16.2 million), which comprise investments in guaranteed equity-linked notes, bonds and 
interest-bearing call accounts.

Level 2 financial instruments:
During the financial year under review, the cost collar referred to earlier was settled, resulting in no 
financial exposure to be fair valued on a mark-to-market basis, whilst in the prior financial year the 
cost-collar mark-to-market liability was R117.6 million.

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 R46.4 million (2016: R104 million).

Level 3 financial instruments:
The group's employee share ownership plan ('ESOP') liability is accounted for on a cash settled share option 
basis and valued on a mark-to- market basis on the net present value of the discounted future cash flows 
applicable to the beneficiaries of the schemes. The ESOP liability was R1.9 million (2016: R5.6 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 2016 and 30 June 2015.

The provisional audited results announcement is only a summary of the information in the Integrated Annual 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 Annual Report to be published on the company's website as a whole.

JSE Limited ('JSE') Listing
The company has a dual primary listing on the 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 
accounting policies are in terms of IFRS and are consistent with those applied in the 2016 consolidated 
financial statements.

The group's South African external auditors, Deloitte & Touche, have issued their opinions on the consolidated 
financial statements and the provisional summarised consolidated financial statements for the year ended 
30 June 2017. 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 consolidated financial statements and the provisional summarised consolidated financial statements. 
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 consolidated 
financial statements. The directors take full responsibility for the preparation of the provisional summarised 
audited results and confirm 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 2017 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 2016 have been delivered to the Registrar of Companies 
and those for 2017 will be delivered following the company's AGM. Deloitte LLP, the external auditor registered 
in the UK, has reported on these accounts for the year ended 30 June 2017.

Deloitte LLP's 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 Companies Act
2006 applicable to companies reporting under IFRS.

Directorship changes and dealings
No directorship changes took place during the period under review. However, the following director dealings
in securities took place:

During the period under review Mr JAJ Loots participated in the following company shares transactions:
- On 27 September 2016, purchased 20,000 shares and 200,000 shares at R3.57 per share and R3.58 per share, 
respectively.
- On 28 September 2016, purchased 28,609 shares at R3.48 per share.
- On 29 September 2016, purchased 491 shares at R3.59 per share.
- On 30 September 2016, purchased 25,000 shares at R3.70 per share.
- On 3 October 2016, purchased 25,000 shares at R3.78 per share.
- On 5 October 2016, purchased 30,000 shares at R3.55 per share.

Mr JAJ Loots had 560,675 shares outstanding at period end, representing 0.03% of total issued shares.
 
During the year under review Mr GP Louw participated in the following company shares transactions.
On 27 September 2016, purchased the following shares:
- 4,300 shares at R3.57 per share.
- 3,150 shares at R3.58 per share.
- 35,000 shares at R3.62 per share.
- 40,000 shares at R3.64 per share.
- 12,836 shares at R3.66 per share.
- 42,164 shares at R3.67 per share.

Mr GP Louw had 137,450 shares outstanding at period end, representing 0.01% of total issued shares. 

Shares issued 
On 12 April 2017, Pan African Resources issued 291,480,983 new ordinary shares of 1 pence each at 
an issue price of 14 pence per share or R2.39 per share, raising gross proceeds of R696 million 
(GBP40.8 million).

Going concern
The group closely monitors and manages its liquidity risk by means of a centralised treasury function. Cash 
forecasts are regularly produced and sensitivities run for different scenarios including, but not limited to, 
changes in commodity prices and different production profiles from the group's producing assets. The group 
had R800 million of available debt liquidity headroom and R160.2 million in cash and cash equivalents at 
30 June 2017, and has also secured a further R1 billion committed term facility to fund the Elikhulu Project. 
Based on the current status of the group's finances, having considered going concern forecasts and reasonably
possible downside scenarios after considering the principal risks associated with the business, and in 
particular relating to gold prices and production volumes, the group's forecasts show it will have sufficient 
liquidity headroom for the 12 months from the date of approval of the financial statements to meet all its 
obligations in the ordinary course of business.

The board has a reasonable expectation that the company has adequate resources to continue in operational 
existence for the foreseeable future. Accordingly the group continues to adopt the going concern basis of 
accounting in preparation of the 30 June 2017 financial statements.

Events after the reporting period
The group announced on 31 July 2017 that it will dispose of all of its shares and loan accounts in Phoenix 
Platinum Mining to Sylvania for a total cash consideration of R89 million. The transaction remains subject 
only to Competition Commission approval.

Segment reporting
A segment is a distinguishable component of the group engaged in providing products or services in a 
particular business sector or segment, which is subject to risks and rewards different from those of 
other segments. The group's business activities were conducted through the following business segments:

Continuing operations:
- Barberton Mines (including BTRP), located in Barberton, South Africa;
- Evander Mines (including ETRP), located in Evander, South Africa;
- Corporate; and
- Pan African Resources Funding Company Proprietary Limited ('Funding Company').

Discontinued operations:
- Uitkomst Colliery, located in Newcastle, South Africa; and
- Phoenix Platinum, located near Rustenburg, South Africa.

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

Proposed dividend for approval at the AGM
The board has analysed the group performance and dividend policy and has proposed a final dividend 
of R185 million or approximately GBP10.9 million, equating to R0.08279 per share or approximately 
0.48697 pence per share. This dividend is subject to approval at the AGM, which will take place on 
Tuesday, 21 November 2017. 

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

Currency conversion date                               Tuesday, 21 November 2017
Last date to trade on the exchanges                    Tuesday, 5 December 2017
Ex-dividend date on the JSE                            Wednesday, 6 December 2017
Ex-dividend date on the LSE                            Thursday, 7 December 2017
Record date                                            Friday, 8 December 2017
Payment date                                           Thursday, 21 December 2017


The GBP proposed final dividend was calculated based on 2,234,687,537 total shares in issue and an 
illustrative exchange rate of R17:1. 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, 
4 December 2017 and close of business on Friday, 8 December 2017 will be permitted.

No shares may be dematerialised or rematerialised between Wednesday, 6 December 2017 and Friday, 
8 December 2017, both days inclusive.

The South African dividends tax rate is 20% per ordinary share for shareholders who are liable to pay the 
dividends tax, resulting in a net dividend of R0.06623 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 Investor Services Proprietary 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 
2,234,687,537 shares currently in issue.


Cobus Loots                                         Deon Louw
Chief Executive Officer                             Financial Director
20 September 2017

Contact details:

Corporate Office                                    Registered Office
The First Office Building                           Suite 31
1st Floor, Office 101                               Second Floor 
Cnr. Cradock and Biermann Avenues                   107 Cheapside 
Rosebank, Johannesburg                              London
South Africa                                        EC2V 6DN 
Office:   + 27 (0) 11 243 2900                      United Kingdom
Facsimile: + 27 (0) 11 880 1240                     Office:   + 44 (0) 20 7796 8644
www.panafricanresources.com                         Facsimile: + 44 (0) 20 7796 8645

Cobus Loots                                         Deon Louw
Pan African Resources PLC                           Pan African Resources PLC 
Chief Executive Officer                             Financial Director
Office: + 27 (0) 11 243 2900                        Office: + 27 (0) 11 243 2900

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

Sholto Simpson                                      Ross Allister 
One Capital                                         Peel Hunt LLP 
JSE Sponsor                                         Joint Broker
Office: + 27 (0) 11 550 5009                        Office: +44 (0) 20 7418 8900

Julian Gwillim                                      Jeffrey Couch / Neil Haycock / Thomas Rider
Aprio Strategic Communications                      BMO Capital Markets Limited
Public & Investor Relations SA                      Joint Broker
Office: +27 (0)11 880 0037                          Office: +44 (0) 20 7236 1010

Bobby Morse / Chris Judd
Buchanan Communications
Public & Investor Relations UK 
Office: +44 (0) 207 466 5000



Pan African Resources PLC
Summarised consolidated statement of profit or loss and other comprehensive income 
for the year ended 30 June 2017 
                            
                                          30 June 2017     30 June 2016     30 June 2017     30 June 2016
                                              (Audited)        (Audited)      (Unaudited)      (Unaudited)
Continuing operations                              GBP              GBP              ZAR              ZAR
Gold sales                                 169,584,586      161,312,220    2,925,334,113    3,460,147,123
Realisation costs                           (1,826,043)        (956,709)     (31,499,250)     (20,521,416)
On-mine revenue                            167,758,543      160,355,511    2,893,834,863    3,439,625,707
Gold cost of production                   (134,006,583)    (100,487,340)  (2,311,613,568)  (2,155,453,481)
Mining depreciation                        (10,493,064)      (9,995,526)    (181,005,351)    (214,404,023)
Mining profit                               23,258,896       49,872,645      401,215,944    1,069,768,203
Other expenses                              (2,002,545)     (12,167,011)     (34,543,908)    (260,982,390)
Profit on disposal of investment               222,571                -        4,582,844                -
Profit on disposal of subsidiary             5,385,915                -       91,345,123                -
Royalty costs                               (1,335,031)      (2,783,423)     (23,029,288)     (59,704,418)
Net income before finance income 
and finance costs                           25,529,806        34,922,211      439,570,715      749,081,395
Finance income                                 291,912           433,344        5,035,474        9,295,228
Finance costs                               (2,815,223)       (1,448,248)     (48,562,604)     (31,064,929)
Profit before taxation                      23,006,495        33,907,307      396,043,585      727,311,694
Taxation                                      (242,942)       (8,578,135)      (4,190,728)    (184,000,970)
Profit after taxation from 
continuing operations                       22,763,553        25,329,172      391,852,857      543,310,724
Discontinued operations
(Loss)/profit for the period from 
discontinued operations 
(including impairments)                     (4,853,517)          172,645      (81,997,446)       3,703,294
Profit after taxation                       17,910,036        25,501,817      309,855,411      547,014,018
Other comprehensive income:
Fair-value movement on 
available-for-sale investment                  (94,938)          388,188       (1,697,487)       7,644,429
Recycling of gain on disposal of
available-for-sale investment                 (222,571)                -       (4,582,845)               -
Foreign currency translation difference     21,681,108        (2,181,333)               -                -
Total comprehensive income for the year     39,273,635        23,708,672      303,575,079      554,658,447
Profit attributable to:
Owners of the parent                        17,910,036        25,501,817      309,855,411      547,014,018
Total comprehensive income 
attributable to:
Owners of the parent                        39,273,635        23,708,672      303,575,079      554,658,447
Earnings per share                                1.14              1.41            19.81            30.20
Diluted earnings per share                        1.14              1.41            19.80            30.09
Weighted average number of 
shares in issue                          1,564,346,115     1,811,427,377    1,564,346,115    1,811,427,377
Diluted number of shares in issue        1,565,075,434     1,811,916,935    1,565,075,434    1,811,916,935


Summarised consolidated statement of financial position as at 30 June 2017  
                             
                                          30 June 2017      30 June 2016     30 June 2017     30 June 2016
                                              (Audited)         (Audited)      (Unaudited)      (Unaudited)
                                                   GBP               GBP              ZAR              ZAR
Assets
Non-current assets
Property, plant and equipment 
and mineral rights                         224,687,447       190,725,199    3,810,699,097    3,772,544,439
Other intangible assets                         72,426           123,235        1,228,340        2,437,592
Deferred taxation                              762,503         1,117,092       12,932,051       22,096,084
Long-term inventory                            684,432           186,861       11,607,974        3,696,114
Long-term receivables                        2,535,378                 -       43,000,000                -
Goodwill                                    21,000,714        21,000,714      303,491,812      303,491,812
Investments                                  7,522,632         1,269,228      127,583,839       25,105,331
Rehabilitation trust fund                   18,904,554        16,253,708      320,621,235      321,498,339
                                           276,170,086       230,676,037    4,631,164,348    4,450,869,711
Current assets
Inventories                                  5,047,416         4,398,813       85,604,171       87,008,537
Current tax asset                            1,068,496           848,946       18,121,694       16,792,156
Trade and other receivables                 13,744,108        14,042,357      233,100,052      277,757,811
Cash and cash equivalents                    9,447,144         2,658,947      160,223,562       52,593,979
                                            29,307,164        21,949,063      497,049,479      434,152,483
Assets held for sale                         5,610,475            66,873       95,153,662        1,322,750
Total assets                               311,087,725       252,691,973    5,223,367,489    4,886,344,944
Equity and liabilities
Capital and reserves
Share capital                               22,346,875        19,432,065      318,766,602      269,660,040
Share premium                              145,400,890       108,936,082    2,261,421,031    1,638,563,371
Translation reserve                        (36,902,740)      (58,583,848)               -                -
Share option reserve                         1,221,395         1,035,888       17,157,178       13,957,178
Retained earnings                          131,297,799       126,620,650    1,867,141,585    1,789,877,978
Realisation of equity reserve              (10,701,093)      (10,701,093)    (140,624,131)    (140,624,130)
Treasury capital reserve                   (25,376,743)      (25,376,743)    (548,619,802)    (548,619,802)
Merger reserve                             (10,705,308)      (10,705,308)    (154,707,759)    (154,707,759)
Other reserves                                       -           317,509                         6,280,332
Equity attributable to owners 
of the parent                              216,581,075       150,975,202    3,620,534,704    2,874,387,208
Total equity                               216,581,075       150,975,202    3,620,534,704    2,874,387,208
Non-current liabilities
Long-term provisions                        11,655,325        10,432,986      197,674,310      206,364,460
Long-term liabilities                       12,290,302        18,456,309      208,443,509      362,640,753
Deferred taxation                           38,947,226        40,616,337      660,544,960      803,391,140
                                            62,892,853        69,505,632    1,066,662,779    1,372,396,353
Current liabilities
Trade and other payables                    27,056,598        18,743,235      458,879,917      370,741,187
Financial instrument liabilities                     -         5,945,399                -      117,600,000
Current portion of long-term liabilities     4,145,679         6,980,711       70,310,720      140,503,506
Current tax liability                           48,686           541,794          825,707       10,716,690
                                            31,250,963        32,211,139      530,016,344      639,561,383
Liabilities directly associated 
with assets held for sale                      362,834                 -        6,153,662                -
Total equity and liabilities               311,087,725       252,691,973    5,223,367,489    4,886,344,944


Summarised consolidated statement of changes in equity for the year ended 30 June 2017

                                                                                    Share
                                   Share           Share      Translation          option         Retained
                                 capital         premium          reserve         reserve         earnings
Group                                  £               £                £               £                £  
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)               -               -                -
Profit for the year                    -               -                -               -       25,501,817
Total other comprehensive 
income                                 -               -      (2,181,333)               -                -
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
Issue of shares                2,914,810      37,892,528                -               -                -
Share issue costs                      -      (1,427,720)               -               -                -
Profit for the year                    -               -                -               -       17,910,036
Total other comprehensive 
income                                 -               -       21,681,108               -                -
Dividends paid                         -               -                -               -      (17,067,953)
Reciprocal dividends                   -               -                -               -        3,835,066
Share based payment  
- charge for the year                  -               -                -         185,507                -
Balance at 30 June 2017       22,346,875     145,400,890      (36,902,740)      1,221,395      131,297,799


                             Realisation        Treasury   
                               of equity         capital           Merger           Other
                                 reserve         reserve          reserve         reserve            Total
Group                                  £               £                £               £                £
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)
Profit for the year                    -               -                -               -       25,501,817
Total other comprehensive 
income                                 -               -                -         388,188       (1,793,145)
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
Issue of shares                        -               -                -               -       40,807,338
Share issue costs                      -               -                -               -       (1,427,720)
Profit for the year                    -               -                -               -       17,910,036
Total other comprehensive 
income                                 -               -                -        (317,509)      21,363,599
Dividends paid                         -               -                -               -      (17,067,953)
Reciprocal dividends                   -               -                -               -        3,835,066
Share based payment 
- charge for the year                  -               -                -               -          185,507
Balance at 30 June 2017      (10,701,093)    (25,376,743)    (10,705,308)               -      216,581,075


Summarised unaudited consolidated statement of changes in equity for the year ended 30 June 2017
                                                                                 Share
                                                Share           Share           option           Retained
                                              capital         premium          reserve           earnings
Group                                             ZAR             ZAR              ZAR                ZAR
Balance at 30 June 2015                   244,752,779   1,323,632,626       13,957,178      1,452,863,960
Issue of shares                            24,907,261     334,689,839                -                  -
Share issue costs                                   -     (19,759,094)               -                  -
Profit for the year                                 -               -                -        547,014,018
Total other comprehensive income                    -               -                -                  -
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
Issue of shares                            49,106,562     646,861,194                -                  -
Share issue costs                                   -     (24,003,534)               -                  -
Profit for the year                                 -               -                -        309,855,411
Total other comprehensive income                    -               -                -                  -
Dividends paid                                      -               -                -       (300,000,000)
Reciprocal dividends                                -               -                -         67,408,196
Share based payment - charge for 
the year                                            -               -        3,200,000                  -
Balance at 30 June 2017                   318,766,602   2,261,421,031       17,157,178      1,867,141,585


                             Realisation        Treasury   
                               of equity         capital           Merger           Other
                                 reserve         reserve          reserve         reserve            Total
Group                                ZAR             ZAR              ZAR             ZAR              ZAR
Balance at 30 June 2015     (140,624,130)              -     (154,707,759)     (1,364,097)   2,738,510,557
Issue of shares                        -               -                -               -      359,597,100
Share issue costs                      -               -                -               -      (19,759,094)
Profit for the year                    -               -                -               -      547,014,018
Total other comprehensive 
income                                 -               -                -       7,644,429        7,644,429
Dividends paid                         -               -                -               -     (210,000,000)
Share buyback                          -    (548,619,802)               -               -     (548,619,802)
Balance at 30 June 2016     (140,624,130)   (548,619,802)    (154,707,759)      6,280,332    2,874,387,208
Issue of shares                        -               -                -               -      695,967,756
Share issue costs                      -               -                -               -      (24,003,534)
Profit for the year                    -               -                -               -      309,855,411
Total other comprehensive 
income                                 -               -                -      (6,280,332)      (6,280,332)
Dividends paid                         -               -                -               -     (300,000,000)
Reciprocal dividends                   -               -                -               -       67,408,196
Share based payment 
- charge for the year                  -               -                -               -        3,200,000
Balance at 30 June 2017     (140,624,130)   (548,619,802)    (154,707,759)              -    3,620,534,705


Summarised consolidated statement of cash flows for the year ended 30 June 2017

                                          30 June 2017     30 June 2016     30 June 2017     30 June 2016
                                              (Audited)        (Audited)      (Unaudited)      (Unaudited)
                                                   GBP              GBP              ZAR              ZAR
Net cash generated from operations          29,945,218       51,056,970      516,393,818    1,082,923,023
Income taxes paid                           (6,324,864)      (9,998,969)    (105,790,084)    (208,209,553)
Royalties paid                              (1,678,474)      (2,916,283)     (28,283,550)     (61,423,325)
Net finance costs                           (2,141,151)        (652,680)     (43,272,552)     (21,866,695)
Net cash generated from operations 
after tax, royalties and finance costs      19,800,729       37,489,038      339,047,632      791,423,450
Dividends paid net of PAR Gold 
reciprocal dividend                        (13,290,429)      (9,024,833)    (232,591,804)    (210,000,000)
Net cash generated from 
operating activities                         6,510,300       28,464,205      106,455,828      581,423,450
Investing activities
Additions to property, plant and 
equipment and mineral rights               (35,518,177)     (14,079,918)    (612,688,544)    (302,014,225)
Additions to other intangible assets           (22,817)         (17,248)        (393,593)        (369,970)
Proceeds on disposal of investment           1,381,005                -       23,407,843                -
Proceeds on disposals of 
property, plant and equipment                  396,604           14,620        7,000,000          313,600
Proceeds on disposal of 
Uitkomst Colliery, net of cash               6,586,262                -      111,702,967                -
Acquisition of Uitkomst Colliery                     -       (5,700,402)               -     (120,013,429)
Treasury share buy back transaction                  -      (25,299,095)               -     (546,941,145)
Increase in long 
term-loans receivable                       (1,207,492)               -      (20,000,000)               -
Net cash used in 
investing activities                       (28,384,615)     (45,082,043)    (490,971,327)    (969,025,169)
Financing activities
Proceeds from borrowings                    47,750,265       38,061,147      817,000,000      840,000,000
Borrowings repaid                          (53,964,004)     (38,131,957)    (915,000,000)    (803,889,110)
Settlement of cash settled 
share option costs                          (3,299,545)               -      (58,013,879)               -
Shares issued                               40,807,338       16,128,324      695,967,756      359,597,100
Share issue costs                           (1,427,720)        (921,170)     (24,003,534)     (19,759,094)
Repayment of financial instruments          (1,389,720)               -      (22,924,978)               -
Net cash from financing activities          28,476,614       15,136,344      493,025,365      375,948,896
Net increase/(decrease) in cash 
and cash equivalents                         6,602,297       (1,481,494)     108,509,866      (11,652,823)
Cash and cash equivalents at 
the beginning of the year                    2,658,947        3,328,850       52,593,979       64,246,802
Cash and cash equivalents 
attributed to discontinued operations         (51,903)                -         (880,283)               -
Effect of foreign exchange 
rate changes                                  237,801           811,591                -                -
Cash and cash equivalents 
at the end of the year                      9,447,144         2,658,947      160,223,562       52,593,979


Summarised audited consolidated segment report for the year ended 30 June 2017

                                                                   30 June 2017
                                                              Continuing operations
                                                                               Corporate
                                             Barberton          Evander       and Growth          Funding
                                                 Mines            Mines         Projects          Company
                                                   GBP              GBP              GBP              GBP
Revenue
Gold sales (Note 1)                         97,343,927       72,240,659                -                -
Platinum sales                                       -                -                -                -
Coal sales                                           -                -                -                -
Realisation costs                             (606,367)      (1,219,676)               -                -
On-mine revenue                             96,737,560       71,020,983                -                -
Gold cost of production                    (61,229,000)     (72,777,583)               -                -
Platinum cost of production                          -                -                -                -
Coal cost of production                              -                -                -                -
Depreciation                                (4,749,422)      (5,743,642)               -                -
Mining profit                               30,759,138       (7,500,242)               -                -
Other income/(expenses) (Note 2)             4,705,042       (1,255,689)      (5,542,295)          90,397
Profit on disposal of investment                     -                -          222,571                -
Profit on disposal of subsidiary                     -                -        5,385,915                -
Impairment costs                                     -                -                -                -
Royalty costs                               (1,015,352)        (319,679)               -                -
Net income/(loss) before finance 
income and finance costs                    34,448,828       (9,075,610)          66,191           90,397
Finance income                                   9,949           51,811           51,496          178,656
Finance costs                                  (18,652)         (12,244)         (14,202)      (2,770,125)
Profit/(loss) before taxation 
and inter-company
charges from continuing operations          34,440,125       (9,036,043)         103,485       (2,501,072)
Taxation                                    (5,654,821)       6,006,087         (531,248)         (62,960)
Profit/(loss) after taxation 
from continuing
operations before inter-company charges     28,785,304       (3,029,956)        (427,763)      (2,564,032)
(Loss)/profit after taxation from 
discontinued operations                              -                -                -                -
Profit/(loss) after taxation 
before inter-company
charges after discontinued 
operations                                  28,785,304       (3,029,956)        (427,763)      (2,564,032)
Inter-company transactions
Management fees                             (2,805,797)      (2,075,362)       5,673,540          (92,522)
Inter-company interest charges                (760,141)      (1,513,938)        (654,122)       2,778,372
Profit/(loss) after taxation 
after inter-company
charges after discontinued operations       25,219,366       (6,619,256)       4,591,655          121,818
Segmental assets (total 
assets excluding goodwill)                  73,762,949      190,009,717       19,611,819        1,092,051
Segmental liabilities                       25,157,858       52,481,513        4,589,589       11,914,856
Goodwill                                    21,000,714                -                -                -
Net assets (excluding goodwill)             48,605,091      137,528,204       15,022,230      (10,822,805)
Capital expenditure                         11,216,853       23,054,756           79,285                -
Adjusted EBITDA                             39,198,250       (3,331,968)      (5,542,295)          90,397


                                                                   30 June 2017
                                                              Discontinued operations
                                              Uitkomst          Phoenix 
                                              Colliery         Platinum          Reclass
                                               (Note 3)         (Note 4)         journal            Group
                                                   GBP              GBP              GBP              GBP
Revenue
Gold sales (Note 1)                                  -                -                -      169,584,586
Platinum sale                                        -        4,766,689       (4,766,689)               -
Coal sales                                  25,089,705                -      (25,089,705)               -
Realisation costs                                    -                -                -       (1,826,043)
On-mine revenue                             25,089,705        4,766,689      (29,856,394)     167,758,543
Gold cost of production                              -                -                -     (134,006,583)
Platinum cost of production                          -       (5,007,705)       5,007,705                -
Coal cost of production                    (21,741,484)               -       21,741,484                -
Depreciation                                  (706,407)        (870,020)       1,576,427      (10,493,064)
Mining profit                                2,641,814       (1,111,036)      (1,530,778)      23,258,896
Other income/(expenses) (Note 2)               156,333         (117,318)         (39,015)      (2,002,545)
Profit on disposal of investment                     -                -                -          222,571
Profit on disposal of subsidiary                     -                -                -        5,385,915
Impairment costs                                     -       (5,950,757)       5,950,757                -
Royalty costs                                  (70,218)               -           70,218       (1,335,031)
Net income/(loss) before finance 
income and finance costs                     2,727,929       (7,179,111)       4,451,182       25,529,806
Finance income                                 102,850            180.0         (103,030)         291,912
Finance costs                                        -                -                -       (2,815,223)
Profit/(loss) before taxation 
and inter-company
charges from continuing operations           2,830,779       (7,178,931)       4,348,152       23,006,495
Taxation                                      (782,022)         276,657          505,365         (242,942)
Profit/(loss) after taxation from 
continuing operations before 
inter-company charges                        2,048,757       (6,902,274)       4,853,517       22,763,553
(Loss)/profit after taxation from 
discontinued operation                               -                -       (4,853,517)      (4,853,517)
Profit/(loss) after taxation 
before inter-company charges after 
discontinued operations                      2,048,757       (6,902,274)               -       17,910,036
Inter-company transactions
Management fees                               (438,989)        (260,870)               -                -
Inter-company interest charges                  28,225          121,604                -                -
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                      1,637,993       (7,041,540)               -       17,910,036
Segmental assets (total 
assets excluding goodwill)                           -        5,610,475                -      290,087,011
Segmental liabilities                                -          362,834                -       94,506,650
Goodwill                                             -                -                -       21,000,714
Net assets (excluding goodwill)                      -        5,247,641                -      195,580,361
Capital expenditure                            875,298          314,802                -       35,540,994
Adjusted EBITDA                              3,434,336         (358,334)      (3,076,002)      30,414,384



                                                                   30 June 2016
                                                              Continuing operations
                                                                               Corporate
                                             Barberton          Evander       and Growth          Funding
                                                 Mines            Mines         Projects          Company
                                                   GBP              GBP              GBP              GBP
Revenue
Gold sales (Note 1)                         89,596,245       71,715,975                -                -
Platinum sales                                       -               -                 -                -
Coal sales                                           -               -                 -                -
Realisation costs                             (398,937)        (557,772)               -                -
On-mine revenue                             89,197,308       71,158,203                -                -
Gold cost of production                    (45,461,824)     (55,025,516)               -                -
Platinum cost of production                          -                -                -                -
Coal cost of production                              -                -                -                -
Depreciation                                (3,562,121)      (6,433,405)               -                -
Mining profit                               40,173,363        9,699,282                -                -
Other (expenses)/income (Note 2)            (7,253,912)         873,481       (5,867,355)          80,775
Profit on disposal of investment                     -                -                -                -
Profit on disposal of subsidiary                     -                -                -                -
Impairment costs                                     -                -                -                -
Royalty costs                               (2,450,505)        (332,918)               -                -
Net income/(loss) before finance 
income and finance costs                    30,468,946       10,239,845       (5,867,355)          80,775
Finance income                                  13,380           27,840           79,754          312,370
Finance costs                                   (6,048)          (7,383)              (7)      (1,434,811)
Profit/(loss) before taxation and 
inter-company charges from 
continuing operations                       30,476,278       10,260,302       (5,787,608)      (1,041,666)
Taxation                                    (8,492,721)        (757,683)         701,414          (29,144)
Profit/(loss) after taxation 
from continuing operations before 
inter-company charges                       21,983,557        9,502,619       (5,086,194)      (1,070,810)
(Loss)/profit after taxation from 
discontinued operations                              -                -                -                -
Profit/(loss) after taxation before 
inter-company charges after 
discontinued operations                     21,983,557        9,502,619       (5,086,194)         (29,144)
Inter-company transactions
Management fees                             (1,439,394)      (1,137,529)       2,749,883                -
Inter-company interest charges                (331,029)        (750,800)        (135,868)       1,130,359
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                     20,213,134        7,614,290       (2,472,194)          59,549
Segmental assets (total assets
excluding goodwill)                         56,651,503      146,201,423        3,180,048          632,954
Segmental liabilities                       27,035,796       48,372,120        5,154,888       15,725,303
Goodwill                                    21,000,714                -                -                -
Net assets (excluding goodwill)             29,615,707       97,829,303       (1,974,840)     (15,092,349)
Capital expenditure                          6,513,408        7,179,831           46,950                -
Adjusted EBITDA                             34,031,067       16,673,250       (5,867,355)          80,775



                                                                   30 June 2016
                                                              Discontinued operations
                                               Phoenix         Uitkomst          Reclass
                                              Platinum         Colliery          journal            Group
                                                   GBP              GBP              GBP              GBP
Revenue
Gold sales (Note 1)                                  -                -                -      161,312,220
Platinum sales                               3,480,338                -       (3,480,338)               -
Coal sales                                           -        4,567,974       (4,567,974)               -
Realisation costs                                    -                -                -         (956,709)
On-mine revenue                              3,480,338        4,567,974       (8,048,312)     160,355,511
Gold cost of production                              -                -                -     (100,487,340)
Platinum cost of production                 (3,456,007)               -        3,456,007                -
Coal cost of production                              -       (4,279,735)       4,279,735                -
Depreciation                                  (311,870)        (148,733)         460,603       (9,995,526)
Mining profit                                 (287,539)         139,506          148,033       49,872,645
Other (expenses)/income (Note 2)              (249,773)         233,889           15,884      (12,167,011)
Profit on disposal of investment                     -                -                -                -
Profit on disposal of subsidiary                     -                -                -                -
Impairment cost                                      -                -                -                -
Royalty costs                                        -          (16,524)          16,524       (2,783,423)
Net income/(loss) before finance 
income and finance costs                      (537,312)         356,871          180,441       34,922,211
Finance income                                     448            8,824           (9,272)         433,344
Finance costs                                     (489)               -              489       (1,448,249)
Profit/(loss) before taxation 
and inter-company charges from 
continuing operations                         (537,353)         365,695          171,658       33,907,306
Taxation                                       118,266          226,037         (344,303)      (8,578,134)
Profit/(loss) after taxation 
from continuing operations before 
inter-company charges                         (419,087)         591,732         (172,645)      25,329,172
(Loss)/profit after taxation from 
discontinued operations                              -                -          172,645          172,645
Profit/(loss) after taxation 
before inter-company charges after 
discontinued operations                       (419,087)         591,732                -       25,501,817
Inter-company transactions
Management fees                               (107,226)         (65,734)               -                -
Inter-company interest charges                  79,849            7,489                -                -
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                       (446,464)         533,502                -       25,501,817
Segmental assets (total assets 
excluding goodwill)                          9,991,120       15,034,211                -      231,691,259
Segmental liabilities                          883,249        4,545,415                -      101,716,771
Goodwill                                             -                -                -       21,000,714
Net assets (excluding goodwill)              9,107,871       10,488,796                -      129,974,488
Capital expenditure                            316,726           40,251                -       14,097,166
Adjusted EBITDA                               (225,442)         505,604         (280,162)      44,917,737

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: Uitkomst Colliery disposal was effective on 30 June 2017. The disposal of Pan African Resources 
Coal Holdings Proprietary Limited and Uitkomst Colliery was completed on 30 June 2017 and this business 
was classified as a discontinued operation. 
Note 4: Phoenix Platinum was classified as held for sale and as a discontinued operation at 30 June 2017.



Summarised unaudited consolidated ZAR segment report for the year ended 30 June 2017

                                                                   30 June 2017
                                                              Continuing operations
                                                                               Corporate
                                             Barberton          Evander       and Growth          Funding
                                                 Mines            Mines         Projects          Company
                                           ZAR million      ZAR million      ZAR million      ZAR million
Revenue
Gold sales (Note 1)                            1,679.2          1,246.1                -                -
Platinum sales                                       -                -                -                -
Coal sales                                           -                -                -                -
Realisation costs                                (10.5)           (21.0)               -                -
On-mine revenue                                1,668.7          1,225.1                -                -
Gold cost of production                       (1,056.2)        (1,255.4)               -                -
Platinum cost of production                          -                -                -                -
Coal cost of production                              -                -                -                -
Depreciation                                     (81.9)           (99.1)               -                -
Mining profit                                    530.6           (129.4)               -                -
Other expenses (Note 2)                           81.3            (21.8)           (95.6)             1.6
Profit on disposal of investment                     -                -              4.6                -
Profit on disposal of subsidiary                     -                -             91.3                -
Impairment costs                                     -                -                -                -
Royalty costs                                    (17.5)            (5.5)               -                -
Net income/(loss) before finance 
income and finance costs                         594.4           (156.7)             0.3              1.6
Finance income                                     0.1              0.9              0.9              3.1
Finance costs                                     (0.4)            (0.2)            (0.2)           (47.8)
Profit/(loss) before taxation and 
inter-company charges                            594.1           (156.0)             1.0            (43.1)
Taxation                                         (97.5)           103.6             (9.2)            (1.1)
Profit/(loss) after taxation 
before inter-company charges                     496.6            (52.4)            (8.2)           (44.2)
Loss after taxation from 
discontinued operations                              -                -                -                -
Profit/(loss) after taxation 
before inter-company charges after 
discontinued operations                          496.6            (52.4)            (8.2)           (44.2)
Inter-company transactions
Management fees                                  (48.4)           (35.8)            97.9             (1.6)
Inter-company interest charges                   (13.1)           (26.1)           (11.3)            47.9
Profit/(loss) after taxation after 
inter-company charges
after discontinued operations                    435.1           (114.3)            78.4              2.1
Segmental assets (total assets 
excluding goodwill)                            1,251.0          3,222.6            332.6             18.5
Segmental liabilities                            426.7            890.1             77.8            202.0
Goodwill                                         303.5                -                -                -
Net assets (excluding goodwill)                  824.3          2,332.5            254.8           (183.5)
Capital expenditure                              193.5            397.7              1.4                -
Adjusted EBITDA                                  676.2            (57.6)           (95.6)             1.6



                                                                   30 June 2017
                                                              Discontinued operations
                                              Uitkomst          Phoenix 
                                              Colliery         Platinum          Reclass
                                               (Note 3)         (Note 4)         journal            Group
                                           ZAR million      ZAR million      ZAR million      ZAR million
Revenue
Gold sales (Note 1)                                  -                -                -          2,925.3
Platinum sales                                       -             82.2            (82.2)               -
Coal sales                                       432.8                            (432.8)               -
Realisation costs                                    -                -                -            (31.5)
On-mine revenue                                  432.8             82.2           (515.0)         2,893.8
Gold cost of production                              -                -                -         (2,311.6)
Platinum cost of production                          -            (86.4)            86.4                -
Coal cost of production                         (375.0)               -            375.0                -
Depreciation                                     (12.2)           (15.0)            27.2           (181.0)
Mining profit                                     45.6            (19.2)           (26.4)           401.2
Other expenses (Note 2)                            2.7             (2.0)            (0.7)           (34.6)
Profit on disposal of investment                     -                -                -              4.6
Profit on disposal of subsidiary                     -                -                -             91.3
Impairment costs                                     -           (100.9)           100.9                -
Royalty costs                                     (1.2)               -              1.2            (23.0)
Net income/(loss) before finance 
income and finance costs                          47.1           (122.1)            75.0            439.6
Finance income                                     1.8                -             (1.8)             5.0
Finance costs                                        -                -                -            (48.6)
Profit/(loss) before taxation and 
inter-company charges                             48.9           (122.1)            73.2            396.0
Taxation                                         (13.5)             4.8              8.7             (4.2)
Profit/(loss) after taxation before 
inter-company charges                             35.4           (117.3)            81.9            391.8
Loss after taxation from 
discontinued operations                              -                -            (81.9)           (81.9)
Profit/(loss) after taxation before 
inter-company charges after 
discontinued operations                           35.4           (117.3)               -            309.9
Inter-company transactions
Management fees                                   (7.6)            (4.5)               -                -
Inter-company interest charges                     0.5              2.1                -                -
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                           28.3           (119.7)               -            309.9
Segmental assets (total assets 
excluding goodwill)                                  -             95.2                -          4,919.9
Segmental liabilities                                -              6.2                -          1,602.8
Goodwill                                             -                -                -            303.5
Net assets (excluding goodwill)                      -             89.0                -          3,317.1
Capital expenditure                               15.1              5.4                -            613.1
Adjusted EBITDA                                   59.3            (6.2)            (53.1)           524.6



                                                                   30 June 2016
                                                              Continuing operations
                                                                               Corporate
                                             Barberton          Evander       and Growth          Funding
                                                 Mines            Mines         Projects          Company
                                           ZAR million      ZAR million      ZAR million      ZAR million
Revenue
Gold sales (Note 1)                            1,921.8         1,538.3                 -                -
Platinum sales                                       -               -                 -                -
Coal sales                                           -               -                 -                -
Realisation costs                                 (8.6)          (11.9)                -                -
On-mine revenue                                1,913.2         1,526.4                 -                -
Gold cost of production                         (975.2)       (1,180.3)                -                -
Platinum cost of production                          -               -                 -                -
Coal cost of production                              -               -                 -                -
Depreciation                                     (76.4)         (138.0)                -                -
Mining Profit                                    861.6           208.1                 -                -
Other expenses (Note 2)                         (155.6)           18.7            (125.7)             1.7
Profit on disposal of investment                     -               -                 -                -
Profit on disposal of subsidiary                     
Impairment costs                                     -               -                 -                -
Royalty costs                                    (52.6)           (7.1)                -                -
Net income/(loss) before finance 
income and finance costs                         653.4           219.7            (125.7)             1.7
Finance income                                     0.3             0.6               1.7              6.7
Finance costs                                     (0.1)           (0.2)                -            (30.8)
Profit/(loss) before taxation and 
inter-company charges                            653.6           220.1            (124.0)           (22.4)
Taxation                                        (182.2)          (16.3)             15.1             (0.6)
Profit/(loss) after taxation before 
inter-company charges                            471.4           203.8            (108.9)           (23.0)
Loss after taxation from 
discontinued operations                              -               -                 -                -
Profit/(loss) after taxation before 
inter-company charges after 
discontinued operations                          471.4           203.8            (108.9)           (23.0)
Inter-company transactions
Management fees                                  (30.9)          (24.4)             59.0                -
Inter-company interest charges                    (7.1)          (16.1)             (2.8)            24.2
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                          433.4           163.3             (52.7)             1.2
Segmental assets (total assets 
excluding goodwill)                            1,120.6         2,891.9              61.6             12.5
Segmental liabilities                            534.8           956.8              98.9            311.0
Goodwill                                         303.5               -                 -                -
Net assets (excluding goodwill)                  585.8         1,935.1             (37.3)          (298.5)
Capital expenditure                              139.7           154.0               1.0                -
Adjusted EBITDA                                  729.8           357.7            (125.7)             1.7



                                                                  30 June 2016
                                                              Discontinued operations
                                               Phoenix         Uitkomst          Reclass
                                              Platinum         Colliery          journal            Group
                                           ZAR million      ZAR million      ZAR million      ZAR million
Revenue
Gold sales (Note 1)                                 -                 -                -          3,460.1
Platinum sales                                   74.7                 -            (74.7)               -
Coal sales                                          -              98.0            (98.0)               -
Realisation costs                                   -                 -                -            (20.5)
On-mine revenue                                  74.7              98.0           (172.7)         3,439.6
Gold cost of production                             -                 -                -         (2,155.5)
Platinum cost of production                     (74.1)                -             74.1                -
Coal cost of production                             -             (91.8)            91.8                -
Depreciation                                     (6.7)             (3.2)             9.9           (214.4)
Mining Profit                                    (6.1)              3.0              3.1          1,069.7
Other expenses (Note 2)                          (5.4)              5.0              0.4           (260.9)
Profit on disposal of investment                    -                 -                -                -
Profit on disposal of subsidiary                    -                 -
Impairment costs                                    -                 -                -                -
Royalty costs                                       -              (0.4)             0.4            (59.7)
Net income/(loss) before finance 
income and finance costs                        (11.5)              7.6              3.9            749.1
Finance income                                      -               0.2             (0.2)             9.3
Finance costs                                       -                 -                -            (31.1)
Profit/(loss) before taxation and 
inter-company charges                           (11.5)              7.8              3.7            727.3
Taxation                                          2.5               4.9             (7.4)          (184.0)
Profit/(loss) after taxation before
inter-company charges                            (9.0)             12.7             (3.7)           543.3
Loss after taxation from 
discontinued operations                             -                 -              3.7              3.7
Profit/(loss) after taxation before 
inter-company charges after 
discontinued operations                          (9.0)             12.7                -            547.0
Inter-company transactions
Management fees                                  (2.3)             (1.4)               -                -
Inter-company interest charges                    1.7               0.1                -                -
Profit/(loss) after taxation after 
inter-company charges after 
discontinued operations                          (9.6)             11.4                -            547.0
Segmental assets (total assets 
excluding goodwill)                             198.6             297.4                -          4,582.6
Segmental liabilities                            17.5              92.9                -          2,011.9
Goodwill                                            -                 -                -            303.5
Net assets (excluding goodwill)                 181.1             204.5                -          2,570.7
Capital expenditure                               6.8               0.9                -            302.4
Adjusted EBITDA                                  (4.8)             10.8             (6.0)           963.5


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: Uitkomst Colliery disposal was effective on 30 June 2017. The disposal of Pan African Resources 
Coal Holdings Proprietary Limited and Uitkomst Colliery was completed on 30 June 2017 and this business 
was classified as a discontinued operation. 
Note 4: Phoenix Platinum was classified as held for sale and as a discontinued operation at 30 June 2017.

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