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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”)
TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 AND NOTICE OF RESULTS
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%)
Notes
(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
www.panafricanresources.com
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
info@paf.co.za 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: www.panafricanresources.com
Buchanan
Public and Investor Relations UK
Office: +44 (0)20 7466 5000
paf@buchanan.uk.com
Date: 11/09/2019 02:00:00
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