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Unaudited Interim Financial Results for the six months ended 31 December 2021 - Short-Form Announcement
Pan African Resources PLC
(Incorporated and registered in England and Wales under the Companies Act 1985 with registered
number 3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
ADR ticker code: PAFRY
(Pan African or the Company or the Group)
(Key features are reported in US dollar (US$) and South African rand (ZAR))
UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 –
SHORT-FORM ANNOUNCEMENT
HIGHLIGHTS
• Excellent safety record maintained, and 81% COVID-19 vaccination rate achieved by the Group
• Group gold production increased by 9.9% to a record half-year production of 108,085oz (2020:
98,386oz)
• All-in sustaining costs (AISC) for the six months ended 31 December 2021 (Current Reporting
Period) of US$1,173/oz, an improvement of 6.3% when compared to US$1,252/oz for the six
months ended 31 December 2020
• Full-year production guidance increased to approximately 200,000oz
• Net cash generated by operating activities increased by 54.4% to US$43.4 million (2020:
US$28.1 million)
• Profit after taxation and headline earnings of US$46.1 million (2020: US$40.8 million)
• Earnings per share (EPS) and headline earnings per share (HEPS) increased by 13.3% to US
2.39 cents per share (2020: US 2.11 cents per share)
• Record net rand dividend payment in December 2021, converted to presentation currency of
US$21.6 million (2020: US$17.8 million)
• Net debt reduced by 56.7%
• Evander Mines’ underground life-of-mine (LoM) extended to 13 years, with increased
expected gold production and development capital internally funded
• Agreement for the evaluation of the Mintails tailings retreatment opportunity extended
• Environmental, social and governance (ESG) initiatives, including renewable energy and large-
scale agriculture projects, on track
• Share buy-back platform established for future implementation
This announcement contains inside information.
Cobus Loots, Pan African’s Chief Executive Officer, commented:
“Pan African has again delivered an excellent operational performance, achieving record gold
production in excess of 108,000oz for the Current Reporting Period, and exceeding our previous
guidance.
Safety remains our number-one priority, with targeted safety campaigns and incentives to encourage
and reward safe practices in pursuit of our ultimate goal of achieving zero harm. The Group has
maintained its commendable safety performance, with improvements in both the Group’s lost-time
injury frequency rate and reportable injury frequency rate. The Group has achieved a COVID-19
vaccination rate of 81% and continues to implement and maintain stringent policies and protocols to
mitigate the adverse impact of the ongoing COVID-19 pandemic on employees and production.
Group AISC was US$1,173/oz for the Current Reporting Period, which is in line with our target AISC of
approximately US$1,200/oz for the year ending 30 June 2022.
Net cash generated by operating activities increased by 54.4%, together with a 13.3% increase in EPS
and HEPS.
The reduction in the Group’s net senior debt to US$23.9 million represents a 60.1% decrease relative
to the outstanding net senior debt at 31 December 2020, notwithstanding the payment of a record
final rand dividend for the June 2021 financial year.
Barberton Mines produced 49,117oz of gold for the Current Reporting Period, and is on track to
achieve full-year production guidance of approximately 100,000oz. We are expecting an improved
performance from the Elikhulu Tailings Retreatment Plant during the second half of the financial year,
where production was adversely impacted as a result of inclement weather conditions experienced
during November and December 2021.
Evander Mines’ 8 Shaft (8 Shaft) pillar delivered an excellent performance during the Current
Reporting Period, again demonstrating the potential of this operation. Elevated grades and improved
mining rates, as a result of improved face availability, increased production from the pillar and surface
sources by 72.5% to 33,068oz for the Current Reporting Period.
Following the reprioritised capital programme, as announced in the Group’s 2021 final results, work
continues in preparation for the commencement of mining 8 Shaft’s 2 Decline on 24 Level. Mining
from this level is anticipated to commence in the 2023 financial year, as the current pillar mining
reaches completion. The board has now also approved the development capital for Evander Mines’
25 and 26 Level project, which is expected to increase the LoM for 8 Shaft to 13 years, with expected
annual production from these levels of approximately 65,000oz.
At Barberton Mines’ Royal Sheba project, development work is ongoing. Project Dibanisa, which
effectively connects the underground workings of the Fairview and Sheba Mines, is also progressing
on schedule and will reduce the operational cost of underground operations.
At Mintails, the definitive feasibility study on Mogale Gold’s tailings storage facilities (TSFs) is being
finalised, and we look forward to communicating the results of this study in due course.
At the end of last year, the Group announced the conditional acquisition of one of the last remaining
large-scale gold tailings resources available in South Africa; the Blyvoor Gold TSFs (Blyvoor assets). This
acquisition has the potential of further building on the Group’s track record of successfully bringing
tailings retreatment operations to fruition. An independent fatal flaw assessment and gap analysis has
commenced on the Blyvoor assets, with this study expected to be completed by April 2022.
The 9.975MW solar photovoltaic (PV) renewable energy plant at Evander Mines is on track to be
commissioned in March 2022, following minor delays due to port disruptions and inclement weather.
This plant, which will be delivered on budget, will be one of the first of its kind in the South African
mining sector and demonstrates our commitment to sustainable energy solutions, with the benefits
of cost savings and certainty of power supply. A feasibility study to expand the solar PV renewable
energy plant to 21.98MW is underway, with the additional capacity designated for Evander Mines’
underground growth projects. A feasibility study for a similar-size solar PV renewable energy plant at
Barberton Mines has been completed, with environmental permitting and detailed engineering design
work progressing to plan and, in conjunction with several other advanced ESG projects, these plants
will contribute to underpinning the Group’s profitability and sustainability in the longer term.
The Group is on track to produce approximately 200,000oz of gold for the financial year ending 30
June 2022, in line with our increased production guidance. We are committed to continuing to create
value for our stakeholders by positioning Pan African as a sustainable, safe, high-margin and long-life
gold producer with an attractive pipeline of growth projects.”
DIRECTORS’ RESPONSIBILITY
The information in this announcement has been extracted from the unaudited interim financial results
for the six months ended 31 December 2021. The short-form announcement has not been reviewed
by the Company’s auditors. The unaudited interim financial results have been prepared under the
supervision of the financial director, Deon Louw. This short-form announcement is the responsibility
of the directors of Pan African and is only a summary of the information contained in the full
announcement which was released on SENS on 16 February 2022.
Any investment decisions should be based on the full announcement and the Group’s detailed
operational and financial summaries.
AVAILABILITY OF FULL ANNOUNCEMENT
The full announcement is accessible via the JSE link at
https://senspdf.jse.co.za/documents/2022/jse/isse/pan/INT2021.pdf
and via the Company’s website at https://www.panafricanresources.com/wp-content/uploads/Pan-
African-Resources-interim-results-SENS-announcement-2021.pdf
Copies of the full announcement may also be requested by emailing ExecPA@paf.co.za and
electronically via the sponsor (sponsor@questco.co.za) at no charge during business hours.
The Company has a dual primary listing on the JSE in South Africa and the AIM market of the London
Stock Exchange, a secondary listing on the A2X Markets as well as a sponsored Level 1 ADR programme
in the USA through the Bank of New York Mellon.
Rosebank
16 February 2022
For further information on Pan African, please visit the Company's website at
www.panafricanresources.com
Corporate information
Corporate office Registered Office
The Firs Office Building Suite 31
2nd Floor, Office 204 Second Floor
Corner 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
Chief executive officer Financial director
Cobus Loots Deon Louw
Office: + 27 (0) 11 243 2900 Office: + 27 (0) 11 243 2900
Head: Investor relations Website: www.panafricanresources.com
Hethen Hira
Tel: + 27 (0)11 243 2900
E-mail: hhira@paf.co.za
Company secretary Nominated Adviser and Joint Broker
Phil Dexter/Jane Kirton Ross Allister/Alexander Allen
St James's Corporate Services Limited Peel Hunt LLP
Office: + 44 (0) 20 7796 8644 Office: +44 (0) 20 7418 8900
JSE Sponsor Joint Broker
Ciska Kloppers Thomas Rider/Nick Macann
Questco Corporate Advisory Proprietary Limited BMO Capital Markets Limited
Office: + 27 (0) 11 011 9200 Office: +44 (0) 20 7236 1010
Date: 16-02-2022 08:57:00
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