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PAN AFRICAN RESOURCES PLC - Trading statement for the financial year ended 30 June 2019 and notice of results

Release Date: 11/09/2019 14:00
Code(s): PAN     PDF:  
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Trading statement for the financial year ended 30 June 2019 and notice of results

Pan African Resources PLC
(Incorporated and registered in England and Wales
under Companies Act 1985 with registered number
3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
(“Pan African” or “the Company”)


In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is
required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty
exists that the financial results for the period to be reported upon next, will differ by at least 20% from
those of the previous corresponding period.

The group’s presentation currency changed for the financial year ended 30 June 2019 (“current
reporting period”) to United States dollars (“USD”) from pounds sterling (“GBP”). Reporting in USD
provides a more comparable presentation currency for the group’s financial position, financial
performance and cash flow. All group subsidiaries are incorporated in South Africa and their functional
currency is South African rand (“ZAR”). The group’s business is conducted in ZAR and the accounting
records are maintained in this same currency, except precious metal product sales, which are
conducted in USD prior to conversion into ZAR.
The ZAR:USD exchange rate affects the reporting of results in USD. For the current reporting period,
the average ZAR:USD exchange rate is used and, in the event of material transactions, the exchange
rate on the date of the transaction is used to translate earnings from ZAR to USD.

During the current reporting period, the average ZAR:USD exchange rate was R14.19:1 (2018:
R12.85:1) and the closing ZAR:USD exchange rate was R14.08:1 (2018: R13.72:1). The year-on-
year change in the average and closing exchange rates of 10.4% and 2.6%, respectively, must be
taken into account for the purposes of translating and comparing year-on-year results. Furthermore,
the weighted average number of shares in issue increased by 6.6% to 1,928.3 million shares (2018:
1,809.7 million shares), following the disposal of 130 million Pan African shares held by PAR Gold
(Pty) Ltd on 29 May 2018.

Pan African advises shareholders that its USD earnings per share (“EPS”) and headline earnings per
share (“HEPS”) in respect of its total and continuing operations for the current reporting period are
expected to be as follows:

                                  Year ended                                             Year ended
                                 30 June 2019                Year ended                 30 June 2019
                               Expected results                                     Expected USD ranges
                                  (USD cents)               30 June 2018                  % change
                               Lower       Upper           GBP           USD         Lower        Upper
                               range       range         (pence)(4)    (cents)(3)    range        range
 Total operations
 EPS (1)                        1.63         2.32          (5.15)       (6.79)       124%         134%
 HEPS (2)                       1.14         1.24           0.73         0.99         15%         25%
 Continuing operations
 EPS(1)                         1.93         2.02           0.63         0.86        124%         134%
 HEPS (2)                       1.12         1.27           1.08         1.46        (23%)        (13%)


(1) EPS in the current reporting period includes the financial impact of a reversal of an impairment
    charge of USD17.9 million which was recognised following commencement of development at
    Evander Mines’ 8 Shaft Pillar Project (“Pillar Project”). In the corresponding reporting period,
    following the cessation of large-scale underground mining operations at Evander Mines in May
    2018, an impairment charge of USD140.3 million was recognised of which USD129.5 million
    related to discontinued operations and USD10.8 million, which related to the ETRP, was
    recognised as part of continuing operations. The reversal of the impairment charge relates
    specifically to the property, plant and equipment previously impaired at Evander Mines in the
    corresponding reporting period which will be utilised by the Pillar Project.

(2) The movement in continuing operations HEPS is predominantly due to:
       - The weighted average number of shares in issue increasing by 6.6%; and
       - The ZAR:USD exchange rate depreciating by 10.4% to R14.19:1 (2018: R12.85:1), with
          the average USD gold price received decreasing by 2.7% to USD1,266/oz
          (2018: USD1,301/oz).

(3) EPS and HEPS in USD, using the average exchange rates for the corresponding reporting period.

(4) As previously presented, given that the corresponding reporting period’s presentation currency
    was GBP.

The financial information contained in this announcement has neither been reviewed nor audited by
the company’s auditors. The group’s provisional summarised audited year-end results for the year
ended 30 June 2019 will be released on 18 September 2019.

For further information on Pan African, please visit the company’s website at

11 September 2019

Contact information
Corporate Office                                 Registered Office
The Firs Office Building                         Suite 31
2nd Floor, Office 204                            Second Floor
Cnr. Cradock and Biermann Avenues                107 Cheapside
Rosebank, Johannesburg                           London
South Africa                                     EC2V 6DN
Office: + 27 (0)11 243 2900                      United Kingdom                                   Office: + 44 (0)20 7796 8644
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/Jane Kirton                          John Prior
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
Ciska Kloppers                                   Ross Allister/David McKeown
Questco Corporate Advisory Proprietary Limited   Peel Hunt LLP
JSE Sponsor                                      Joint Broker
Office: + 27 (0)11 011 9200                      Office: +44 (0)20 7418 8900
Julian Gwillim                                   Jeffrey Couch/Thomas Rider/Niel Elliot
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                           Website:
Public and Investor Relations UK
Office: +44 (0)20 7466 5000

Date: 11/09/2019 02:00:00
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