Pan African Resources PLC
('Pan African Resources' or the 'company' or the 'group')
(Incorporated and registered on 25
February 2000 in England
and Wales under the Companies Act
1985, registration number 3937466)
Share code on AIM |
: PAF |
Share code on JSE |
: PAN |
ISIN |
: GB0004300496 |
Provisional audited results for the
year ended 30 June 2016 and final
dividend announcement
Cobus Loots, CEO of Pan
African Resources commented: “The Pan African Resources group
delivered an outstanding set of results for the 2016 financial
year. These results include a year of record gold production and
profits and the largest dividend payment to date.
Our gold mining operations delivered exceptional results,
producing in excess of 200,000oz of gold for the financial year.
The performance from Evander Mines, in particular, demonstrated the
potential of the operation, with production increasing by 30.8%
year-on-year. Results were also assisted by the Rand gold price and
a full year’s production from the Evander tailings retreatment
plant.
Our robust financial position, well-established cash-generative
operations, decentralised hands-on management structure and
cost-conscious culture differentiate us from our peers. These
attributes give Pan African Resources a competitive advantage for
further growth through our project pipeline and also position the
group to capitalise on potential acquisition opportunities.”
Key features reported in South African
Rand (‘ZAR or R’) and Pound Sterling (‘GBP’)
Financial key features
- The group’s profit after taxation in ZAR terms increased by
160.2% to R547.0 million (2015: R210.2 million), while in GBP
terms, the group’s profit after taxation increased by 117.9% to
GBP25.5 million (2015: GBP11.7 million).
- Earnings per share (‘EPS’) increased by 163.1% to 30.20 cents per share (2015: 11.48 cents per share), while in GBP terms, EPS
increased by 120.3% to 1.41 pence per
share (2015: 0.64 pence per
share).
- Group revenue increased by 43.1% to R3,632.8 million (2015:
R2,539.4 million) as a result of the materially improved
operational performance, the higher prevailing effective ZAR gold
price and the incorporation of the Uitkomst Colliery (‘Uitkomst’)
revenue.
- The Pan African Resources’ board of directors (‘board’) has
proposed an increased final dividend of R300 million or
approximately GBP16.0 million (2015:
R210 million or GBP9.7 million),
equating to R0.15438 per share or approximately 0.82338 pence per share (2015: R0.11466 per share
or 0.53108 pence per share). This
dividend is subject to approval at the annual general meeting
(‘AGM’), which will take place on 25
November 2016. (note 1)
- The group completed the Shanduka Gold Pty Ltd (‘Shanduka Gold’)
transaction which resulted in the company acquiring an effective
23.8% (post dilution 22.5%) of its issued shares on 7 June 2016 for a total consideration of R546.9
million. Shanduka Gold is, from an accounting perspective, deemed
to be controlled by Pan African Resources and Shanduka Gold’s full
shareholding of 436.4 million shares in Pan African Resources will
eliminate upon consolidation. Shanduka Gold has been subsequently
renamed to PAR Gold Pty Ltd (‘PAR Gold’).
Operational key features
- Group delivered record gold production, with gold sales
increasing by 16.5% to 204,928oz (2015: 175,857oz).
- Effective ZAR gold price received increased by 21.6% to
R542,850/kg (2015: R446,274/kg), however in USD terms it decreased
to USD1,164/oz (2015:USD1,212/oz).
- All-in sustaining cost per kilogramme increased marginally in
ZAR terms to R405,847/kg (2015: R402,221/kg), however in USD terms
all-in sustaining cost per ounce decreased to USD870/oz (2015:USD1,093/oz).
- The group concluded the acquisition of Uitkomst for a cash
purchase consideration of R148 million effective 31 March 2016. Uitkomst contributed R11.4 million
to the group’s profit after taxation in the current year.
- The group’s gold resources increased to 34.9Moz (2015:
31.9Moz).
- The group regrets to report one fatality during the year under
review (2015: one fatality).
Movement |
Year
ended 30 June 2016 |
Year
ended 30 June 2015 |
Metric |
Summary of key features |
Metric |
Year
ended 30 June 2016 |
Year
ended 30 June 2015 |
Movement |
16.5% |
6,374 |
5,470 |
(Kilogrammes) |
Gold
sold |
(Oz) |
204,928 |
175,857 |
16.5% |
43.1% |
3,632.8 |
2,539.4 |
(R
millions) |
Revenue |
(GBP
millions) |
169.4 |
141.1 |
20.1% |
21.6% |
542,850 |
446,274 |
(R/kg) |
Average
gold price received |
(USD/oz) |
1,164 |
1,212 |
(4.0%) |
(3.2%) |
338,242 |
349,410 |
(R/kg) |
Cash
costs |
(USD/oz) |
725 |
949 |
(23.6%) |
0.9% |
405,847 |
402,221 |
(R/kg) |
All-in sustaining costs |
(USD/oz) |
870 |
1,093 |
(20.4%) |
(3.5%) |
410,206 |
425,084 |
(R/kg) |
All-in
costs |
(USD/oz) |
879 |
1,155 |
(23.9%) |
89.3% |
969.5 |
512.1 |
(R
millions) |
Adjusted
EBITDA (note 2) |
(GBP
millions) |
45.2 |
28.4 |
59.2% |
160.2% |
547.0 |
210.2 |
(R
millions) |
Profit
after taxation |
(GBP
millions) |
25.5 |
11.7 |
117.9% |
156.1% |
547.1 |
213.6 |
(R
millions) |
Headline
earnings |
(GBP
millions) |
25.5 |
11.9 |
114.3% |
163.1% |
30.20 |
11.48 |
(cents) |
EPS |
(pence) |
1.41 |
0.64 |
120.3% |
158.8% |
30.20 |
11.67 |
(cents) |
Headline
earnings per share (‘HEPS’) |
(pence) |
1.41 |
0.65 |
116.9% |
5.8% |
339.6 |
321.1 |
(R
millions) |
Net
debt |
(GBP
millions) |
17.2 |
16.6 |
3.4% |
9.7% |
265.7 |
242.3 |
(R
millions) |
Total
sustaining capital expenditure |
(GBP
millions) |
12.4 |
13.5 |
(8.1%) |
(14.1%) |
302.4 |
352.0 |
(R
millions) |
Total
capital expenditure |
(GBP
millions) |
14.0 |
19.6 |
(28.6%) |
27.6% |
190.8 |
149.5 |
(cents) |
Net
asset value per share |
(pence) |
10.0 |
8.0 |
25.0% |
(1.0%) |
1,811.40 |
1,830.40 |
(millions) |
Weighted
average number of shares in issue |
(millions) |
1,811.40 |
1,830.40 |
(1.0%) |
26.7% |
14.51 |
11.45 |
(R/USD) |
Average
exchange rate |
(R/GBP) |
21.45 |
18.00 |
19.2% |
20.3% |
14.78 |
12.29 |
(R/USD) |
Closing
exchange rate |
(R/GBP) |
19.78 |
19.30 |
2.5% |
Note 1: The GBP proposed final dividend was calculated
based on 1,943,206,554 total shares in issue and an illustrative
exchange rate of R18.75:1. Shareholders on the London register are to note that a revised
exchange rate will be communicated prior to approval at the
AGM.
Note 2: Adjusted EBITDA is represented by earnings before
interest, taxation, depreciation and amortisation, impairments and
loss on disposal of associate.
CEO STATEMENT
The past year has been an exceptionally successful period for
Pan African Resources and for most of our stakeholders. The group
has delivered a year of record gold production and profits and
successfully concluded the Shanduka Gold transaction. This
transaction enables the group to preserve and protect its black
economic empowerment (‘BEE’) status on an earnings accretive basis.
Despite maintaining our focus on gold assets, the finalisation of
the Uitkomst acquisition provides an opportunistic expansion into
the coal sector and a natural hedge against rising energy prices.
The group also benefitted from the rising USD gold price and rand
depreciation, which factors resulted in a bull market in gold at
the beginning of 2016. At the end of the financial year, the
spot gold price closed at USD1,325/oz
– an increase of approximately 25% from the prior year end. The
combined impact of the group’s excellent operating performance and
favourable economic conditions resulted in an outstanding financial
performance. Our share price reflected this positive
momentum, with a year-end price of R3.75 and 0.19 pence per share.
We continue to acknowledge our shareholders’ desire for an
attractive cash return on their investment. To this end, the
Pan African Resources board is pleased to recommend the largest
ever dividend payment of R300 million (GBP16.0 million) for approval at the upcoming
AGM. We have also revisited our dividend policy, as detailed
below, to provide the market with more certainty on future payments
and to ensure that our dividend is sustainable.
Notwithstanding the impact of these favourable tailwinds, we
continue to be mindful that the local and global mining industry
remains a challenging operating environment. Certain analysts
believe the higher gold price should not only be attributed to
factors such as the market view that interest rates will remain at
record lows and the recent decision by the United Kingdom (‘UK’) to exit the European
Union (‘EU’), but also predict a continued period of geopolitical
uncertainty that could result in increased global instability and
volatility. Locally, South Africa
faces a possible sovereign credit rating downgrade to
sub-investment grade as well as heightened political tension, which
could lead to further depreciation in the ZAR. It is therefore
vital that we remain vigilant and continue to look for
opportunities to differentiate ourselves and continue to further
profitably grow our business and provide shareholder returns in the
form of dividends and capital appreciation in our share.
Safety
Regrettably, we experienced a regression in our group safety
accident rates at Evander Mines. In particular the lost-time injury
frequency rate (‘LTIFR’) and reportable-injury frequency rate
(‘RIFR’) increased. The safety of our people is our main concern,
and we are actively pursuing measures to reduce injury frequency
rates by, inter-alia, stepping up management oversight,
technological enhancements, training and control of safety across
all operations.
Safety remains a focus at all our operations and we endeavour to
ensure the group’s culture, behaviour and values align to our
safety objectives. However, we regret to report that one of our
employees, Mr JA Muxhanga, was
fatally injured at Evander Mines on 26 June
2016 following a tramming accident. Pan African Resources’
management and board express their sincere condolences to the
family, friends and colleagues of Mr Muxhanga.
Production highlights and
challenges
We are pleased to report the excellent operational performance
across our gold mining operations. Total gold production was
204,928oz, with Barberton Mines contributing 113,281oz and Evander
Mines contributing a total of 91,647oz. Underground head grades at
Barberton Mines improved to 11.0g/t (2015: 10.9g/t), while head
grades at Evander Mines improved to 5.7g/t (2015: 4.6g/t). We also
delivered important operational improvements at Evander Mines, with
gold sales and revenue increasing significantly. In addition, the
Evander tailings retreatment plant (‘ETRP’) assisted our production
growth by achieving full nameplate capacity, producing 18,151oz of
gold from tailings and surface feedstock material.
Uitkomst produced 87,538 tonnes of coal from its underground
operations, and acquired 48,564 tonnes of coal for further
processing and blending, resulting in total coal sold of 136,102
tonnes.
Phoenix Platinum’s performance was hampered by the business
rescue proceedings announced by International Ferro Metals Limited
in August 2015 regarding its South
African subsidiary, International Ferro Metal (SA) Proprietary
Limited (‘IFMSA’), as well as the drought and associated water
shortages affecting re-mining and processing. In terms of a 2010
agreement between Pan African Resources and IFMSA, Phoenix
Platinum, which is situated on IFMSA property, obtained a portion
of its feedstock from IFMSA’s processing activities, as well as
electricity, water and other services. In terms of the 2015
business rescue proceedings, Samancor Chrome Limited was selected
as the successful bidder to acquire IFMSA’s assets and subsequently
nominated its subsidiary, TC Smelters Proprietary Limited (‘TC
Smelters’), as the acquirer of the IFMSA business and assets. In
July 2016, Pan African Resources
reached an agreement with TC Smelters, assigning the tailings
treatment agreement to TC Smelters. Although the agreement does not
guarantee current arising feedstock to Phoenix Platinum– this will
be dependent on the manner in which TC Smelters uses the IFMSA
assets – it places Phoenix Platinum in a better position where it
should be able to continue operations under similar conditions to
those prior to the business rescue proceedings. Further, it ensures
that Phoenix´s Platinum operations and interests are safeguarded.
Phoenix Platinum also has alternative sources of feedstock, which
are currently being processed.
Wage negotiations successfully
concluded
The group successfully concluded its gold wage negotiations
during October 2015, with Barberton
Mines securing a two year agreement ending in June 2017 and Evander Mines securing a three year
agreement ending in June 2018.
Mineral reserves and resources
We recognise that, together with our people and infrastructure,
our mineral reserves and resources are a key asset to the group. In
the year under review, the group’s total gold resources increased
by 9.4% to 34.9Moz (2015: 31.9Moz).
The group’s mineral resources and reserves are summarised as
follows:
- Gold reserves decreased to 10.0Moz (2015: 10.4Moz), we
plan to increase these reserves in the next financial year
- Gold resources increased to 34.9Moz (2015: 31.9Moz)
- PGE reserves decreased 0.2Moz (2015: 0.5Moz)
- PGE resources remained at 0.6Moz (2015: 0.6Moz)
- Coal resources were 23.3Mt
We use what we deem to be a conservative ZAR gold price estimate
when modelling reserves and resources, and in the current year
reserves were modelled at R450,000/kg and gold resources at
R550,000/kg.
Corporate activity
Shanduka Gold (now PAR Gold) is Pan African Resources’ primary
BEE shareholder, with its sole assets being a 22.5% interest in Pan
African Resources’ issued share capital (post conclusion of the
Shanduka Gold transaction) and a notional vendor loan of R558
million to its BEE shareholder, the Mabindu Business Development
Trust (‘Mabindu Trust’) as at 30 June
2016. Following a merger between Shanduka Group Proprietary
Limited and the Pembani Group Proprietary Limited in December 2015, Pan African Resources engaged with
Shanduka Gold shareholders and concluded an agreement to assist in
preserving the group’s BEE ownership in a meaningful and mutually
beneficial manner by means of an acquisition of a material interest
in Shanduka Gold. Prior to the transaction with Pan African
Resources, Shanduka Gold’s shareholders were Standard Bank of South
Africa Limited (‘Standard Bank’) (16.9%), Jadeite Limited (33.6%)
and the Mabindu Trust (49.5%). Pan African Resources acquired
Standard Bank’s 16.9% and Jadeite Limited’s 33.6% interest in
Shanduka Gold for R182.5 million and R364.4 million, respectively.
Approximately 0.6% of the Shanduka Gold shares acquired from
Jadeite Limited have been retained by Jadeite Limited for sale, at
a future date, to an independent third party nominated by Pan
African Resources. Pursuant to the transactions, Pan African
Resources acquired a 49.9% direct interest in Shanduka Gold but
consolidates the full interest in Shanduka Gold for accounting
purposes.
Pan African Resources assumed effective control of Uitkomst on
31 March 2016 for a cash purchase
consideration of R148 million, which was funded from existing debt
facilities and internally generated cash flows. The Uitkomst coal
mine is situated in Utrecht,
KwaZulu-Natal, South Africa and
employs 115 plant and administration employees and 326 contractors.
It produces approximately 30,000-35,000 tonnes of saleable coal per
month from its underground mining operation and has approximately
23.3Mt of coal resources, with an estimated life-of-mine of 22
years at current production rates.
Following receipt of a positive high-level economic and
technical assessment of the Elikhulu tailings retreatment project
(‘Elikhulu’) at Evander Mines, the company has mandated DRA
Projects (Pty) Limited to complete a definitive feasibility study
on the project. The results of the study will be available in
November 2016, at which time
shareholders will be appraised. Elikhulu will potentially treat
slimes at a processing capacity of up to 12 million tonnes per
annum, at a head grade of 0.29g/t from the Winkelhaak, Leslie and
Kinross tailings storage
facilities. The total mineral resource for Elikhulu is 178.7
million tonnes at 0.29g/t (1.7M in-situ ounces) with a
life-of-operation of approximately 14 years and 1.7Moz of contained
gold. The project is estimated to yield approximately 50,000oz of
gold per annum in the initial 8 years of production while treating
the Kinross and Leslie tailings
storage facilities and then approximately 38,000oz per annum for
the remaining 6 years from processing the Winkelhaak tailings
storage facility.
The Evander 2010 pay channel is a potentially attractive ore
body that runs parallel to the Kinross pay channel and is accessible via
Evander Mines 7 Shaft. Harmony Gold
historically developed towards the orebody before halting all
mining operations on 7 Shaft and allowing flooding of the
infrastructure to 18 level. The Evander Mines’ 2010 pay channel
resources are classified in an inferred category and surface
drilling is currently underway to improve confidence in the
resource. The initial results of the drilling programme will also
be available during November 2016.
The 2010 pay channel may offer Evander Mines the possibility of
establishing a new mine area without having to incur the cost of
sinking a new shaft from surface.
During the next year we will also investigate further medium- to
long-term underground production increases from sources such as 9
Shaft and projects such as Evander
South at Evander Mines.
Outlook
The group is well positioned to increase profitable production
through organic and acquisitive growth, while continuing to create
shareholder value.
In the next year, the key focus areas for the group, from an
operational perspective, include:
- Safety and compliance across operations.
- Barberton Mines: Renewed focus on creating additional
flexibility and efficiencies to improve tonnages mined and gold
produced from underground operations. The management team is
currently considering options to improve the future tonnage output
at Fairview Mines’ deeper levels and assessing future exploration
targets.
- Evander Mines: The operation will continue to invest in
development capital expenditure to ensure improved flexibility is
achieved to maintain current levels of production.
- Phoenix Platinum aims to optimise resources from Elandskraal
and Kroondal to maintain and improve production and cash
flows.
- Uitkomst will focus on ensuring that stable production is
maintained and review the possibility of expanding run-of-mine
production to 900,000t per annum.
From an internal growth perspective, the following opportunities
will be prioritised:
- Finalising the feasibility study on the Elikhulu project and,
if the feasibility is successful, progressing towards full-scale
production within two years.
- Drilling the Evander 2010 pay channel for grade continuity and
assessing options to exploit this orebody.
- Assessing further growth projects at Evander Mines.
The group will also continue to evaluate acquisitive gold
opportunities. Any project considered will however be subject to
the group’s stringent capital allocation criteria, which requires
any investment to be in a position to contribute profitable
production ounces within a short- to medium-term timeframe and
deliver the requisite returns to our shareholders.
FINANCIAL PERFORMANCE
Exchange rates and their impact on
results
All of the group’s subsidiaries are incorporated in South Africa and their functional currency is
ZAR. The group’s business is conducted in ZAR and the accounting
records are maintained in this same currency, with the exception of
precious metal product sales, which are conducted in USD prior to
conversion into ZAR. The ongoing review of the operational results
by executive management and the board is also performed in ZAR.
The group’s presentation currency is GBP due to its ultimate
holding company, Pan African Resources, being incorporated in
England and Wales and being dual-listed in the UK and
South Africa.
In the year under review the average ZAR/GBP exchange rate was
R21.45:1 (2015: R18.00:1) and the closing ZAR/GBP exchange rate was
R19.78:1
(2015: R19.30:1). The year-on-year change in the average and
closing exchange rates of 19.2% and 2.5%, respectively, must be
taken into account for the purposes of translating and comparing
year-on-year results.
The group records its revenue from precious metals sales in ZAR,
and the deterioration in the value of the ZAR/USD exchange rate
during the year had a compensating effect on the weaker USD metals
revenue received. The average ZAR/USD exchange rate was 26.7%
weaker at R14.51:1 (2015: R11.45:1).
The commentary below analyses the current and prior period’s
results. Key aspects of the group’s ZAR results appear in the body
of this commentary and have been used as the basis against which
its financial performance is measured. The gross GBP equivalent
figures can be calculated by applying the exchange rates as
detailed above.
Analysing the group’s financial
performance
Revenue
The group’s revenue, year-on-year, increased by 43.1% to
R3,632.8 million (2015: R2,539.4 million). The increase was
predominantly due to:
- Gold ounces sold increased by 16.5% to 204,928oz (2015:
175,857oz).
- The average ZAR gold price received by the group increased by
21.6% to R542,850/kg (2015: R446,274/kg), as a result of the
weakening of the ZAR/USD exchange rate.
- Consolidation of Uitkomst revenue of R98 million, effective
from 1 April 2016.
The increase in the average ZAR gold price was due to the
following movements:
- The group realised an average gold price of USD1,164/oz, a decrease of 4.0% from the
USD1,212/oz achieved in the prior
reporting period.
- The average ZAR/USD exchange rate was 26.7% weaker at R14.51:1
(2015: R11.45:1).
Cost of production and realisation
costs
The group’s total cost of production increased by 16.8% to
R2,321.4 million (2015: R1,987.4 million). The group’s cost of
production incorporated a full year’s production costs for the ETRP
of R154.8 million (2015: R54.1 million), and Uitkomst coal
production costs of R91.8 million (2015: nil).
Pan African Resources’ gold cost of production per the statement
of comprehensive income increased by 12.3% to R2,155.5 million
(2015: R1,919.6 million) as a result of the following:
- The group’s gold operations salaries and wages increased by
12.5% to R967.7 million (2015: R860.1 million), predominately due
to:
- The increase in salaries and wages following the gold wage
agreements of Barberton Mines and Evander Mines.
- Higher production incentives following increased productivity
at the gold operations. Barberton Mines’ production incentives
increased by R13.7 million equating to 1.6% of the total
year-on-year increase. Evander Mines’ production incentives
increased by R4.3 million, contributing an additional 0.5% to the
labour costs year-on-year increase.
- The ETRP salary and wage bill increased by R4.7 million,
resulting in an additional 0.6% increase year-on-year following a
full a production year.
- The group’s electricity costs increased by 16.8% to R317.3
million (2015: R271.6 million). The National Energy Regulator of
South Africa’s approved increases applied to electricity
consumption was 12.7% for the year under review. The additional
increase was predominantly as a result of the electricity costs
associated with the ETRP being in production for the full year,
amounting to R9.9 million (2015: R2.1 million).
- The ETRP and associated surface feedstock material cost of
production was R154.8 million (2015: R54.1 million) following a
full year’s production (in the prior year the ETRP cost production
related to a four month period only).
The gold cost of production excluding ETRP and surface feedstock
was well controlled and increased by 7.2% to R2,000.7 million
(2015: R1,865.5 million).
The group’s gold cost of production per kilogramme declined by
3.2% to R338,242/kg (2015: R349,410/kg). The decline is attributed
to:
- Gold sold increasing by 16.5% to 204,928/oz (2015: 175,857/oz),
resulting in a lower unit cost of production.
- Improved head grades mined compared to the previous year, which
also impacted the gold sold.
The group’s gold all-in sustaining cost of production per
kilogram (including direct cost of production, royalties,
associated corporate costs and overheads and sustaining capital
expenditure) increased by 0.9% to R405,847/kg (2015: R402,221/kg).
The group’s all-in sustaining costs were primarily impacted by an
increase in gold production and the improved head grades, compared
to the prior year.
The all-in gold cost per kilogram (sustaining cost of production
and once-off expansion capital) declined by 3.5% to R410,206/kg
(2015: R425,084/kg), due to the increase in gold production and the
completion of the ETRP in the prior year, which contributed R95.1
million in capital costs to the 2015 cost base.
The PGE cost of production increased by 9.3% to R74.1 million
(2015: R67.8 million), predominately due to:
- Salaries and wages increasing by 3.1% to R20.2 million (2015:
R19.6 million). The Phoenix Platinum employee incentives decreased
in the current year following lower production levels.
- Refining and processing costs increased by 10.8% to R48.3
million (2015: R43.6 million), following additional transporting
costs to move tailings material from the Elandskraal/Kroondal
tailings sites as well as higher chrome refining costs due to a
higher chrome prevalence in the tailings processed.
- Electricity costs increased by 13.5% to R4.2 million (2015:
R3.7 million).
The groups’ realisation costs increased by 65.3% to R20.5
million (2015: R12.4 million) due to additional refining costs
associated with the extraction and recovery of gold contained at
Evander Mines’ processing plants floors.
Depreciation increased by 20.5% to R224.3 million (2015: R186.1
million), following increased charges associated with the
commissioning of the ETRP and Evander Mines’ 8 Shaft 25 level
development.
Other expenditure and income
Barberton Mines entered into a short-term strategic hedge (‘the
Cost Collar’) in July 2015, when the
prevailing spot gold price was R440,000/kg, to protect its cash
flows and the group’s annual dividend against severe adverse
movements in the ZAR gold price. During the current reporting
period, the group recorded a pre-tax net unrealised mark-to-market
fair value loss of R117.6 million on the Cost Collar, offset by a
realised Cost Collar derivative income of R3.8 million, resulting
in a net pre-tax fair value Cost Collar loss for the year of R113.8
million (2015: pre-tax realised Cost Collar derivative income of
R44.8 million). The economic consequence of the mark-to-market fair
value adjustment is to lock in revenue on 25,000oz of gold
production from Barberton Mines at R625,000/kg (the closing ZAR
gold price at 30 June 2016) for the
twelve month period commencing 1 October
2016. The group currently only has this gold collar
derivative in place.
Pan African Resources’ share price increased significantly by
108% to R3.75 from R1.80 during the current reporting period, which
resulted in an increase in the group’s cash settled share option
costs. The pre-tax effect of cash settled share option costs for
the current reporting period amounted to R100.6 million (2015:
pre-tax R6.1 million gain).
The fair value adjustment of the group’s rehabilitation
liability resulted in the liability reducing by R38.2 million
(2015: increased by R19.7 million). The rehabilitation investment
increased by R9.2 million (2015: R33.9 million).
Finance costs decreased to R31.1 million (2015: R44.2 million),
following improved cash flows generated to reduce net debt during
the year.
Profit after tax and headline
earnings
Profit after taxation increased by 160.2% to R547.0 million
(2015: R210.2 million) and the corresponding headline earnings
increased by 156.1% to R547.1 million (2015: R213.6 million),
primarily impacted by the following:
- Revenue increased by R1,093.4 million supported by higher gold
production and an increase in the effective ZAR gold price
received.
- Cost of production increased by R334.0 million.
- Depreciation increased by R38.2 million following increased
charges associated with the commissioning of the ETRP and Evander
Mines’ 8 Shaft 25 level development.
- Other income and expenditure increased by R265.8 million, due
to the pre-tax net Cost Collar mark-to-market fair value adjustment
of R113.8 million (2015: realised cost collar derivative income of
R44.8 million), and higher cash settled share option costs linked
to the increase in the share price amounting to R100.6 million
(2015: R6.1 million gain).
- Royalty costs increased by R30.4 million linked to the
increased gold revenues.
- Taxation increased by R102.2 million due to the improved
operational performance.
EPS and HEPS
The group’s EPS in ZAR increased by 163.1% to 30.20 cents (2015: 11.48
cents). The group’s HEPS in ZAR increased by 158.8% to
30.20 cents (2015: 11.67 cents). The difference between the EPS and
HEPS resulted from adjusting the profit after taxation for the loss
on the disposal of fixed assets and the associated impairment on
the sale of Auroch Minerals Limited in the prior reporting period.
Refer to the statement of comprehensive income for the
reconciliation between EPS and HEPS.
The EPS and HEPS is calculated by applying the group’s weighted
average number of shares to the attributable and headline earnings,
which decreased by 1% to 1,811.4 million shares (2015:1,830.0
million shares). The decrease in shares was attributed to
eliminating the PAR Gold shares held in Pan African Resources with
effect from 7 June 2016.
Headline earnings per share is calculated as follows:
|
30
June 2016 |
30
June 2015 |
30
June 2016 |
30
June 2015 |
|
GBP |
GBP |
ZAR |
ZAR |
Basic earnings |
25,501,817 |
11,669,967 |
547,014,018 |
210,198,254 |
Adjustments: (note 1) |
|
|
|
|
Loss on disposal of associate |
- |
139,970 |
- |
2,429,880 |
Loss on disposal of property plant,
mineral right and equipment |
2,767 |
149 |
59,360 |
2,679 |
Impairments |
- |
58,424 |
- |
1,014,239 |
Headline earnings |
25,504,584 |
11,868,510 |
547,073,378 |
213,645,052 |
Headline earnings per share |
1.41 |
0.65 |
30.20 |
11.67 |
Diluted headline earnings per
share |
1.41 |
0.65 |
30.19 |
11.67 |
Note 1: The adjustments accounted for, did not have any taxation
impact to the group.
Had the Shanduka Gold transaction been effective on 1 July 2015, the number of shares that would have
been taken into account for calculating EPS and HEPS would have
been reduced as follows:
Pan African
Resources’ Shares |
Shares |
%
Change |
Opening balance shares
- 1 July 2015 |
1,831,494,763 |
- |
Issue of shares –
vendor consideration placement |
111,711,791 |
6.1% |
Elimination of shares
held by Shanduka Gold |
(436,358,058) |
(23.8%) |
Closing balance
shares |
1,506,848,496 |
- |
Reduction in number
of shares |
324,646,267 |
17.7% |
Taxation
The group’s total taxation charge increased by 137.4% to R176.6
million (2015: R74.4 million) due to higher gold revenues and
improved profit margins.
The taxation charge comprised of:
- An increase in the current taxation charge of 113.7% to R206.6
million (2015: R96.7 million).
- A marginal increase in the deferred taxation income to R30.0
million (2015: R22.3 million).
Historical dividends
The group paid a final dividend of R210 million or GBP9.7 million (2014: R258 million or
GBP14.9 million) on 24 December 2015 relating to the 2015 financial
year, equating to R0.11466 per share or 0.53
pence per share (2014: R0.14100 per share or 0.82 pence per share).
Dividend policy
Pan African Resources aspires to pay a regular dividend to
shareholders. In balancing this cash return to shareholders with
the group’s strategy of generic and acquisitive growth, it believes
that a target pay-out ratio of 40% of net cash generated from
operating activities, after allowing for the cash flow impact of
sustaining capital, contractual debt repayments and also the cash
flow impact of once-off items, is appropriate. This measure aligns
dividend distributions with the cash generation potential of the
business. In proposing a dividend, the board will also take into
account the company’s financial condition, future prospects,
satisfactory solvency and liquidity assessments and other factors
deemed by the board to be relevant at the time.
Proposed dividend for approval at the
AGM
The board has proposed a final dividend of R300 million or
approximately GBP16.0 million,
equating to R0.15438 per share or approximately 0.82338 pence per share. This dividend is subject
to approval at the AGM, which will take place on Friday,
25 November 2016.
Assuming the final dividend is approved by the shareholders, the
following salient dates would apply:
Currency conversion date |
05 December, Monday |
Last date to trade on the
exchanges |
06 December, Tuesday |
Ex-Dividend date on the JSE |
07 December, Wednesday |
Ex-Dividend date on the LSE |
08 December, Thursday |
Record date |
09 December, Friday |
Payment date |
22 December, Thursday |
The GBP proposed final dividend was calculated based on
1,943,206,554 total shares in issue and an illustrative exchange
rate of R18.75:1. Shareholders on the London register should note that a revised
exchange rate will be communicated prior to approval at the
AGM.
No transfers between the Johannesburg and London registers between the commencement of
trading on Monday, 5 December 2016
and close of business on Friday, 9 December
2016 will be permitted.
No shares may be dematerialised or rematerialised between
Wednesday, 7 December 2016 and
Friday, 9 December 2016, both days
inclusive.
The South African dividends tax rate is fifteen percent per
ordinary share for shareholders who are liable to pay the dividends
tax, resulting in a net dividend of R0.13123 per share for these
shareholders. Foreign investors may qualify for a lower dividend
tax rate, subject to completing a dividend tax declaration and
submitting it to Computershare Limited or Capita Plc who manage the
SA and UK register, respectively. The company's South African
income tax reference number is 9154588173 and it has 1,943,206,554
shares currently in issue.
Debt facilities
The group’s net debt increased marginally to R339.6 million
(2015: R321.1 million) following the dividend payment of R210
million, the Uitkomst acquisition of R148 million and the cash
funded portion of the Shanduka Gold transaction of R182.5
million.
Summary of the long-term debt liabilities:
|
Revolving credit facility |
Evander Mines gold loan |
Total |
|
30 June
2016 |
30
June 2015 |
30
June 2016 |
30
June 2015 |
30
June 2016 |
30
June 2015 |
|
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
Non-current
portion |
279.3 |
224.1 |
26.6 |
82.0 |
305.9 |
306.1 |
Current portion |
31.1 |
21.6 |
55.2 |
58.0 |
86.3 |
79.6 |
Total |
310.4 |
245.7 |
81.8 |
140.0 |
392.2 |
385.7 |
Cash flow summary
Net cash flow generated by operations (after dividends) and
before investing and financing activities increased to R581.4
million (2015: R95.7 million).
The cash outflows from investing activities increased to R969.0
million (2015: 366.0 million), predominately due to:
- Capital expenditure incurred decreasing to R302.4 million
(2015: R352.0 million).
- The conclusion of the Shanduka Gold transaction for R546.9
million (2015: nil).
- The net cash consideration of R120 million for the acquisition
of Uitkomst, being the purchase consideration of R148 million less
cash acquired of R28 million on 31 March
2016.
Net cash flows from financing activities increased to R375.9
million (2015: R233.4 million), predominately due to:
- Cash raised for the Shanduka Gold transaction amounting to
R339.8 million.
OPERATIONAL PERFORMANCE
The groups operational and production summaries are disclosed on
the Pan African Resources website at
http://www.panafricanresources.com/investors/financial-reports/
Review of Barberton Mines
Safety
- The operation reported no fatalities (2015: one
fatality).
- Total recordable injury frequency rate per 1,000,000 man
hours worked (‘TRIFR’) improved to 15.00 (2015: 15.87).
- LTIFR improved to 1.86 (2015: 1.87).
- RIFR remained at 0.62 (2015: 0.62).
Operational performance
- Average underground head grade achieved of 11.0g/t
(2015: 10.9g/t).
- Gold sold increased by 7.1% to 113,281oz (2015:
105,776oz).
- Revenue increased by 30.8% to R1,921.8 million (2015:
R1,469.0 million), as a result of the improved gold sales and the
higher effective ZAR gold price.
- Cash cost per kilogramme increased marginally to
R279,226/kg (2015: R278,859/kg), and in USD term the cash cost per
ounce decreased to USD599/oz (2015:
USD758/oz), due to improved gold
ounce production.
- All-in sustaining cost per kilogramme increased by 4.8%
to R348,231/kg (2015: R332,151/kg), and in USD terms the all-in
sustaining cost per ounce decreased to USD746/oz (2015:USD902/oz).
- All-in cost per kilogramme increased by 5.1% to
R354,417/kg (2015: R337,317/kg), and in USD terms the all-cost per
ounce decreased to USD760/oz (2015:
USD916/oz).
- Adjusted EBITDA increased to R729.8 million (2015:
R505.5 million).
- Capital expenditure increased to R139.7 million (2015:
R112.6 million) summarised in the following categories:
- Sustaining development capital expenditure was R63.4
million (2015: R53.7 million).
- Sustaining maintenance capital expenditure was R54.5
million (2015: R44.2 million).
- Once-off expansion capital was R21.8 million (2015 R14.7
million), which relates to the Royal Sheba development costs and
the completion of the BTRP power line extension and installation.
In the prior year R14.7 million was spent on the development of the
Fairview ventilation raise borehole project to improve operating
conditions.
- Effective from 1 July 2016
the life-of-mine of respective operations at Barberton Mines
are:
- Fairview mine 22 years (2015: 20
years)
- Sheba mine 18 years
(2015: 20 years)
- New Consort mine 5
years (2015: 7 years)
- BTRP
14
years (2015: 15 years)
Review of Evander Mines
Safety
- The operation reported one fatality detailed above in
the CEO statement (2015: nil).
- TRIFR increased to 14.18 (2015: 6.87).
- LTIFR increased to 4.96 (2015: 2.66).
- RIFR increased to 3.31 (2015: 1.54).
Operational performance
- Underground head grade improved to 5.7g/t (2015:
4.6g/t), principally due to establishing mining on 8 Shaft’s new 25
level.
- Gold sold increased substantially by 30.8% to 91,647oz
(2015: 70,081oz), primarily due to improved production associated
with an increase in tonnages mined and head grades.
- Revenue increased by 58.3% to R1,538.3 million (2015:
R972.0 million) as a result of improved gold production and an
increase in the effective ZAR gold price.
- The ETRP produced 18,151oz (2015: 16,336oz), following
an increase in gold produced from tailings to 6,724oz (2015:
2,494oz) and surface feedstock contributing 11,427oz (2015:
13,842oz).
- Cash costs per kilogramme decreased by 9.8% to
R411,168/kg (2015: R455,896/kg), and in USD terms the cash cost per
ounce decreased to USD881/oz
(2015:USD 1,238/oz), due to
additional gold production from the ETRP and higher grades mined at
8 Shaft.
- All-in sustaining cost per kilogramme decreased by 6.1%
to R477,044/kg (2015: R507,980/kg), and in USD terms the all-in
sustaining cost per ounce decreased to USD1,023/oz (2015:USD1,380/oz), in line with the decrease in cash
costs.
- All-in cost per kilogramme decreased by 14.1% to
R479,145/kg (2015: R557,553/kg), and in USD terms the all-in cost
per ounce decreased to USD1,027/oz
(2015:USD1,515/oz), in addition to
the factors detailed above, the prior year included once-off ETRP
expansionary capital of R95.1 million during the prior reporting
period.
- Adjusted EBITDA increased to R357.7 million (2015: R47.4
million).
- Capital expenditure decreased to R153.8 million (2015:
R238.2 million) summarised in the following categories:
- Sustaining development capital expenditure was R118.4
million (2015: R104.4 million).
- Sustaining maintenance capital expenditure was R29.4
million (2015: R38.7 million).
- Once-off expansion capital expenditure was R6.0 million
(2015 R95.1 million), relating to development costs associated with
8 Shafts’ 26 level in the current financial year and the completion
of the ETRP, which contributed R95.1 million in capital costs to
the 2015 cost base.
- On 1 July 2015, Evander
Mines implemented an employee share ownership programme, which is
similar to the scheme implemented at Barberton Mines in
June 2015. A newly established
employee trust acquired 5% of the issued share capital of Evander
Mines.
- Effective from 1 July
2016, the life-of-mine of 8 Shaft and the ETRP remained at
16 years (2015: 16 years).
Review of Phoenix Platinum
Safety
No safety incidents were reported during the financial year.
Operational performance
- Phoenix Platinum’s profitability was negatively impacted
during the reporting period due to a curtailment in current
arisings from IFMSA Lesedi mine, following the initiation of
business rescue proceedings by IFMSA. Tonnages processed were also
adversely impacted by the drought and associated water shortages
affecting re-mining and processing.
- Phoenix Platinum’s loss after taxation was R9.6 million
(2015: R12.3 million profit after taxation).
- PGE production decreased by 18.6% to 8,339oz (2015:
10,245oz).
- Revenue decreased by 24.1% to R74.7 million (2015: R98.4
million) due to lower tonnages processed as result of the
operational challenges highlighted above and the lower effective
PGE net revenue price received of R8,952/oz (2015: R9,603/oz).
- The average PGE net revenue price received decreased by
6.8% to R8,952/oz (2015: R9,603/oz), and in USD terms the average
PGE net revenue per ounce decreased to USD617/oz (2015: USD839/oz).
- Cost per tonne increased by 15.1% to R298/t (2015:
R259/t), mainly due to tonnages processed decreasing by 5.0% to
248,981t (2015: 262,119t).
- Cost per ounce of production increased by 34.3% to
R8,890/oz (2015: R6,621/oz), and in USD terms the cost per ounce
increased to USD613/oz (2015:
USD578/oz).
- Adjusted EBITDA decreased to a loss of R4.8 million
(2015: R27.7 million).
- Capital expenditure incurred was R6.8 million (2015:
R0.6 million).
- Effective from 1 July 2016
the life-of-operation decreased to 9 years (2015: 28 years) as a
result of taking into account surface material available to
process, excluding current arisings.
Review of Uitkomst
Pan African Resources completed the acquisition of Uitkomst from
Oakleaf Investments Holding 109 Proprietary Limited (‘Oakleaf’) and
Shanduka Resources Proprietary Limited for a final net cash
consideration of R148 million on 31 March
2016. Uitkomst is located close to the town of Utrecht in KwaZulu-Natal, South Africa, and is a high grade thermal
export quality coal deposit with metallurgical applications.
The acquisition was funded from an existing revolving credit
facility and internally generated cash flows. Uitkomst is, for
accounting and production reporting purposes, consolidated
effectively from 1 April 2016.
Summary of the purchase price allocation:
|
Fair
value at acquisition |
Fair
value at acquisition |
|
ZAR |
GBP |
Non-current
assets |
191.9 |
9.1 |
Current assets |
67.0 |
3.2 |
Non-current
liabilities |
(67.5) |
(3.2) |
Current
liabilities |
(43.4) |
(2.1) |
Net assets at fair
value |
148.0 |
7.0 |
Net cash consideration
paid |
148.0 |
7.0 |
Safety
- The operation reported no fatalities.
- TRIFR per 200,000 man hours for the three month period
was 5.59.
- LTIFR per 200,000 man hours for the three month period
was 2.79.
- RIFR per 200,000 man hours for the three month period
was 0.93.
Operational performance
- Profit after taxation for the period 1 April 2016 to 30 June
2016 was R11.4 million.
- Underground coal plant feed was 128,022t and also
acquired third party coal for processing of 38,354t.
- Coal sold was 136,102t.
- Revenue amounted to R98 million.
- Cost of production of R91.8 million.
- The average revenue per ton received was R720/t or
USD48/t.
- Cost per tonne was R674/t or USD45/t.
- All-in sustaining costs and all-costs per tonnes were
R657/t or USD44/t. The all-in
sustaining costs and all-in costs were marginally lower than the
direct cost per tonne as result of other income earned by the
logistics department of Uitkomst.
- Adjusted EBITDA was R10.8 million.
- Capital expenditure incurred was R0.9
million.
- Effective from 1 July 2016
the life-of-operation was 22 years for a run-of-mine coal
production profile of 600,000t per annum.
COMMITMENTS REPORTED IN RAND AND
GBP
The group had identified no contingent liabilities in the
current or prior financial period.
The group had outstanding open orders contracted for at year end
of R12.7 million (2015: R22.8 million) or GBP0.6 million (2015: GBP1.2 million).
Authorised commitments for the new financial year, not yet
contracted for, totalled R345.9 million (2015: R271.1 million) or
GBP17.5 million (2015: GBP14 million).
At 30 June 2016, the group had
guarantees in place of R24.6 million (2015: R24.6 million) or
GBP1.2 million (2015: GBP1.3 million) in favour of Eskom, R20.3 million
(2014: R14.0 million) or GBP1.0
million (2015: GBP0.8 million)
in favour of the Department of Mineral Resources, and R6.6 million
(2015: Nil) or GBP0.3 (2015: nil) in
favour of Transnet SOC Limited.
Operating lease commitments, which fall due within the next
year, amounted to R3.5 million (2015: R4.0 million) or GBP0.2 million (2015: GBP0.2 million).
FAIR VALUE INSTRUMENTS
Financial instruments that are measured at fair value grouped
into levels 1 to 3 based on the extent to which fair value is
observable.
The levels are classified as follows:
Level 1 - fair value is based on quoted prices in active markets
for identical financial assets or liabilities;
Level 2 - fair value is determined using inputs other than quoted
prices included within level 1 that are observable for the asset or
liability; and
Level 3 - fair value is determined on inputs not based on
observable market data.
Level 1 financial instruments:
The group’s rehabilitation trust funds are valued at R321.5
million (2015: R312.3 million) or GBP16.3
million (2015: GBP16.2
million), which comprise of investments in guaranteed
equity-linked notes, government bonds and equities, according to
quoted prices in an active market.
During the prior financial year, the company purchased 1,750,850
shares for R18.9 million (GBP1
million) in a listed available-for-sale investment. The
investment is valued according to quoted prices in an active market
currently valued at R25.1 million (GBP1.3
million).
Level 2 financial instruments:
During the financial period, the company entered into a Cost
Collar derivative with a financial institution. At the end of the
period under review the financial instrument was not closed out and
settled, therefore resulting in a financial exposure to be fair
value on a mark-to-market basis. The financial instrument was
valued according to quoted prices in an active market resulting in
a Cost Collar mark-to-market liability of R117.6 million (2015:
Nil).
The group’s cash settled share option liability which is valued
on a mark-to-market basis according to the Pan African Resources
quoted share price amounted to R104.0 million (2015: R23.7
million).
Level 3 financial instruments:
The group’s ESOP liability is accounted on a cash settled share
option basis and valued on a mark-to-market on the net present
value of the discounted future cash flows applicable to the
beneficiaries to the schemes. The ESOP liability was R5.6 million
(2015: R0.2 million).
BASIS OF PREPARATION OF THE FINANCIAL
STATEMENTS AND ACCOUNTING POLICIES
Investors should consider non-Generally Accepted Accounting
Principles ('non-GAAP') financial measures shown in this
provisional announcement in addition to, and not as a substitute
for or as superior to, measures of financial performance reported
in accordance with International Financial Reporting Standards
('IFRS'). The IFRS results reflect all items that affect reported
performance and therefore it is important to consider the IFRS
measures alongside the non-GAAP measures.
The provisional announcement has been prepared using accounting
policies that comply with the IFRS adopted by the European Union
and South Africa, which are
consistent with those applied in the financial statements for the
prior years ended 30 June 2015 and
30 June 2014.
The provisional audited results announcement is only a summary
of the information in the Integrated Report and does not contain
full or complete details. Any investment decision by investors
and/or shareholders should be based on consideration of the final
Integrated Report to be published on SENS and the company’s website
as a whole.
JSE LIMITED LISTING
The company has a dual primary listing on JSE Limited ('JSE') in
South Africa and the AIM market
('AIM') of the London Stock Exchange (‘LSE’).
This provisional announcement has been prepared in accordance
with the framework concepts and the measurement and recognition
requirements of IFRS and SAICA Financial Reporting Guides as issued
by the Accounting Practice Committee and the Financial
Pronouncements as issued by the Financial Reporting Standards
Council, and the minimum information as required by International
Accounting Standards 34: Interim Financial Reporting.
The group's South African external auditors, Deloitte &
Touche, have issued their opinions on the group's consolidated
financial statements and the provisional summarised consolidated
financial statements for the year ended 30
June 2016. The audits were for both the summarised and full
set of financial statements conducted in accordance with
International Standards on Auditing. Deloitte & Touche have
expressed unmodified opinions on the group’s consolidated financial
statements and the provisional summarised consolidated financial
statements. The copies of their audit reports are available
for inspection at the company's registered office. Any
reference to future financial performance included in this
provisional report has not been reviewed or reported on by the
group's South African external auditors.
The auditor’s report does not necessarily report on all of the
information contained in this announcement/financial results.
Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor’s engagement they should
obtain a copy of that report, together with the accompanying
financial information, from the company’s registered office.
These provisional summarised consolidated financial statements
are extracted from the audited group consolidated financial
statements. The directors take full responsibility for the
preparation of the provisional summarised audited results and
confirm that the financial information and related commentary has
been correctly extracted from the underlying group consolidated
financial statements.
AIM LISTING
The financial information for the year ended 30 June 2016 does not constitute statutory
accounts as defined in sections 435(1) and 435(2) of the UK
Companies Act 2006 (‘Companies Act 2006’) but has been derived from
those accounts. Statutory accounts for the year ended 30 June 2015 have been delivered to the Registrar
of Companies and those for 2016 will be delivered following the
company's AGM. Deloitte LLP, the external auditor registered in the
UK, have reported on these accounts for the year ended 30 June
2016. Their report was unqualified, did not include a
reference to any matters to which auditors draw attention by way of
emphasis of matter and did not contain a statement under section
498(2) or 498(3) of the Companies Act 2006. These statutory
accounts have been prepared in accordance with IFRS and IFRS
Interpretations Committee interpretations adopted for use by the
EU, with those parts of the UK Companies Act 2006 applicable to
companies reporting under IFRS.
DIRECTORSHIP CHANGES AND DEALINGS
No changes took place during the year and there were no director
dealings in securities during the period under review.
SHARES ISSUED
On 3 June 2016 Pan African
Resources issued 111,711,791 shares for R339.8 million to fund the
Shanduka Gold transaction.
GOING CONCERN
The board confirms that the business is a going concern and that
it has reviewed the group’s working capital requirements in
conjunction with its future funding capabilities for at least the
next 12 months and has found them to be adequate. The group has a
R800 million revolving credit facility from a consortium of South
African banks (and a two year accordion option, subject to the
bank’s credit committee approval, for an additional R300 million
facility), as well as access to general banking facilities of R100
million. At 30 June 2016 the group
had borrowing capacity on the revolving credit facility and general
banking facilities of R490 million (GBP24.8
million) and R50 million (GBP2.5
million), respectively, to assist in funding working capital
requirements. On 1 July 2016 the
group finalised the general banking facility of R85 million
(GBP4.3 million) for Uitkomst.
Management is not aware of any material uncertainties which may
cast significant doubt on the group’s ability to continue as a
going concern. Should the need arise the group can cease
discretionary exploration and certain capital expenditure
activities to conserve cash on the short to medium term.
EVENTS AFTER THE REPORTING PERIOD
No material events occurred after the reporting period.
Cobus Loots |
Deon Louw |
Chief Executive Officer |
Financial Director |
21 September 2016
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 207 796 8644
Facsimile: + 44 (0) 207 796 8645
Cobus Loots |
Deon Louw |
Pan African Resources PLC |
Pan African Resources PLC |
Chief Executive Officer |
Financial Director |
Office: + 27 (0) 11 243 2900 |
Office: + 27 (0) 11 243 2900 |
Phil Dexter |
John Prior / Paul Gillam |
St James's Corporate Services
Limited |
Numis Securities Limited |
Company Secretary |
Nominated Adviser and Joint
Broker |
Office: + 44 (0) 207 796 8644 |
Office: +44 (0) 20 7260 1000 |
Sholto Simpson |
Matthew Armitt / Ross Allister |
One Capital |
Peel Hunt LLP |
JSE Sponsor |
Joint Broker |
Office: + 27 (0) 11 550 5009 |
Office: +44 (0) 207 418 8900 |
Julian Gwillim |
Daniel Thöle |
Aprio Strategic Communications |
Bell Pottinger PR |
Public & Investor Relations
SA |
Public & Investor Relations
UK |
Office: +27 (0)11 880 0037 |
Office: + 44 (0) 203 772
2500 |
Jeffrey Couch/Neil Haycock/Thomas
Rider
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 207 236 1010
http://www.panafricanresources.com/
Financial statements: Summarised
financial information |
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Summarised consolidated statement
of financial position as at 30 June 2016 |
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30 June
2016 |
30 June
2015 |
|
30 June
2016 |
30 June
2015 |
|
(Audited) |
(Audited) |
|
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
|
ZAR |
ZAR |
ASSETS |
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|
Non-current assets |
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|
|
|
Property, plant and equipment and
mineral rights |
190,725,199 |
181,532,780 |
|
3,772,544,439 |
3,503,582,652 |
Other intangible assets |
123,235 |
202,488 |
|
2,437,592 |
3,908,021 |
Deferred taxation |
1,117,092 |
327,748 |
|
22,096,084 |
6,325,533 |
Long term inventory |
186,861 |
- |
|
3,696,114 |
- |
Goodwill |
21,000,714 |
21,000,714 |
|
303,491,812 |
303,491,812 |
Investments |
1,269,228 |
904,818 |
|
25,105,331 |
17,462,996 |
Rehabilitation trust fund |
16,253,708 |
16,181,925 |
|
321,498,339 |
312,311,153 |
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230,676,037 |
220,150,473 |
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4,450,869,711 |
4,147,082,167 |
Current assets |
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Inventories |
4,398,813 |
3,502,569 |
|
87,008,537 |
67,599,584 |
Current tax asset |
848,946 |
827,298 |
|
16,792,156 |
15,966,858 |
Trade and other receivables |
14,042,357 |
9,559,010 |
|
277,757,811 |
184,488,890 |
Cash and cash equivalents |
2,658,947 |
3,328,850 |
|
52,593,979 |
64,246,802 |
|
21,949,063 |
17,217,727 |
|
434,152,483 |
332,302,134 |
Non-current assets held for sale |
66,873 |
- |
|
1,322,750 |
- |
TOTAL ASSETS |
252,691,973 |
237,368,200 |
|
4,886,344,944 |
4,479,384,301 |
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EQUITY AND LIABILITIES |
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Capital and reserves |
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Share capital |
19,432,065 |
18,314,947 |
|
269,660,040 |
244,752,779 |
Share premium |
108,936,082 |
94,846,046 |
|
1,638,563,371 |
1,323,632,626 |
Translation reserve |
(58,583,849) |
(56,402,515) |
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- |
- |
Share option reserve |
1,035,888 |
1,035,888 |
|
13,957,178 |
13,957,178 |
Retained earnings |
126,620,651 |
110,850,201 |
|
1,789,877,978 |
1,452,863,957 |
Realisation of equity reserve |
(10,701,093) |
(10,701,093) |
|
(140,624,130) |
(140,624,130) |
Treasury capital reserve |
(25,376,743) |
- |
|
(548,619,802) |
- |
Merger reserve |
(10,705,308) |
(10,705,308) |
|
(154,707,759) |
(154,707,759) |
Other reserves |
317,509 |
(70,679) |
|
6,280,332 |
(1,364,097) |
Equity attributable to owners of the
parent |
150,975,202 |
147,167,487 |
|
2,874,387,208 |
2,738,510,554 |
Total equity |
150,975,202 |
147,167,487 |
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2,874,387,208 |
2,738,510,554 |
Non-current liabilities |
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Long term provisions |
10,432,986 |
12,249,367 |
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206,364,460 |
236,412,781 |
Long term liabilities |
18,456,309 |
16,312,982 |
|
362,640,753 |
314,840,546 |
Deferred taxation |
40,616,337 |
39,288,059 |
|
803,391,140 |
758,259,537 |
|
69,505,632 |
67,850,408 |
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1,372,396,353 |
1,309,512,864 |
Current liabilities |
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Trade and other payables |
18,743,235 |
16,799,043 |
|
370,741,187 |
324,221,523 |
Financial instrument liabilities |
5,945,399 |
- |
|
117,600,000 |
- |
Current portion of long term
liabilities |
6,980,711 |
5,047,478 |
|
140,503,506 |
97,416,327 |
Current tax liability |
541,794 |
503,784 |
|
10,716,690 |
9,723,033 |
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32,211,139 |
22,350,305 |
|
639,561,383 |
431,360,883 |
TOTAL EQUITY AND
LIABILITIES |
252,691,973 |
237,368,200 |
|
4,886,344,944 |
4,479,384,301 |
Summarised consolidated statement of profit or loss and other
comprehensive income for the year ended 30 June 2016 |
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21.45 |
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30 June
2016 |
30 June
2015 |
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30 June
2016 |
30 June
2015 |
|
(Audited) |
(Audited) |
|
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
|
ZAR |
ZAR |
Revenue |
169,360,532 |
141,076,883 |
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3,632,783,424 |
2,539,383,882 |
Gold sales |
161,312,220 |
135,611,436 |
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3,460,147,123 |
2,441,005,844 |
Platinum sales |
3,480,338 |
5,465,447 |
|
74,653,256 |
98,378,038 |
Coal sales |
4,567,974 |
- |
|
97,983,045 |
- |
Realisation costs |
(956,709) |
(690,538) |
|
(20,521,416) |
(12,429,687) |
On - mine
revenue |
168,403,823 |
140,386,345 |
|
3,612,262,008 |
2,526,954,195 |
Gold cost of
production |
(100,487,340) |
(106,644,655) |
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(2,155,453,481) |
(1,919,603,779) |
Platinum cost of
production |
(3,456,007) |
(3,768,530) |
|
(74,131,334) |
(67,833,541) |
Coal cost of
production |
(4,279,735) |
- |
|
(91,800,287) |
- |
Mining
depreciation |
(10,456,129) |
(10,337,211) |
|
(224,283,967) |
(186,069,804) |
Mining
profit |
49,724,612 |
19,635,949 |
|
1,066,592,939 |
353,447,071 |
Other
(expenses)/income |
(12,182,895) |
249,776 |
|
(261,323,095) |
4,495,974 |
Loss in associate |
- |
(127,950) |
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- |
(2,291,239) |
Loss on disposal of
associate |
- |
(139,970) |
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- |
(2,429,880) |
Impairments |
- |
(58,424) |
|
- |
(1,014,239) |
Royalty costs |
(2,799,947) |
(1,647,297) |
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(60,058,865) |
(29,651,339) |
Net income before
finance income and finance costs |
34,741,770 |
17,912,084 |
|
745,210,979 |
322,556,348 |
Finance income |
442,616 |
348,959 |
|
9,494,114 |
6,281,253 |
Finance costs |
(1,448,738) |
(2,458,287) |
|
(31,075,424) |
(44,249,162) |
Profit before
taxation |
33,735,648 |
15,802,756 |
|
723,629,669 |
284,588,439 |
Taxation |
(8,233,831) |
(4,132,789) |
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(176,615,651) |
(74,390,185) |
Profit after
taxation |
25,501,817 |
11,669,967 |
|
547,014,018 |
210,198,254 |
Other comprehensive
income: |
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Fair value movement on
available for sale investment |
388,188 |
(70,679) |
|
7,644,429 |
(1,364,097) |
Other movements |
- |
5,529 |
|
- |
99,569 |
Foreign currency
translation differences |
(2,181,333) |
(8,857,195) |
|
- |
- |
Total comprehensive
income for the year |
23,708,672 |
2,747,622 |
|
554,658,447 |
208,933,726 |
Profit attributable
to: |
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Owners of the
parent |
25,501,817 |
11,669,967 |
|
547,014,018 |
210,198,254 |
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Total comprehensive
income attributable to: |
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Owners of the
parent |
23,708,672 |
2,747,622 |
|
554,658,447 |
208,933,726 |
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Earnings per share |
1.41 |
0.64 |
|
30.20 |
11.48 |
Diluted earnings per
share |
1.41 |
0.64 |
|
30.19 |
11.48 |
Weighted average number
of shares in issue |
1,811,427,377 |
1,830,422,160 |
|
1,811,427,377 |
1,830,422,160 |
Diluted number of
shares in issue |
1,811,916,935 |
1,830,967,266 |
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1,811,916,935 |
1,830,967,266 |
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Note 1: The
adjustments accounted for, did not have any taxation impact to the
group. |
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Summarised audited GBP consolidated
statement of changes in equity for the year ended 30 June 2016
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GROUP |
Share
capital |
Share
premium |
Translation reserve |
Share
option reserve |
Retained earnings |
|
GBP |
GBP |
GBP |
GBP |
GBP |
Balance at 30 June
2014 |
18,299,947 |
94,792,516 |
(47,545,320) |
1,154,891 |
114,106,005 |
Issue of shares |
15,000 |
53,530 |
- |
- |
- |
Total comprehensive
income |
- |
- |
(8,857,195) |
- |
11,669,967 |
Dividends paid |
- |
- |
- |
- |
(14,925,771) |
Share based payment -
charge for the year |
- |
- |
- |
(119,003) |
- |
Balance at 30 June
2015 |
18,314,947 |
94,846,046 |
(56,402,515) |
1,035,888 |
110,850,201 |
Issue of shares |
1,117,118 |
15,011,206 |
- |
- |
- |
Share issue costs |
- |
(921,170) |
- |
- |
- |
Total comprehensive
income |
- |
- |
(2,181,333) |
- |
25,501,817 |
Dividends paid |
- |
- |
- |
- |
(9,731,368) |
Share buyback |
- |
- |
- |
- |
- |
Balance at 30 June
2016 |
19,432,065 |
108,936,082 |
(58,583,848) |
1,035,888 |
126,620,650 |
Summarised audited GBP consolidated
statement of changes in equity for the year ended 30 June 2016
GROUP |
Realisation of equity reserve |
Treasury capital reserve |
Merger reserve |
Other
reserves |
Total |
|
GBP |
GBP |
GBP |
GBP |
GBP |
Balance at 30 June
2014 |
(10,701,093) |
- |
(10,705,308) |
(5,529) |
159,396,109 |
Issue of shares |
- |
- |
- |
- |
68,530 |
Total comprehensive
income |
- |
- |
- |
(65,150) |
2,747,622 |
Dividends paid |
- |
- |
- |
|
(14,925,771) |
Share based payment -
charge for the year |
- |
- |
- |
- |
(119,003) |
Balance at 30 June
2015 |
(10,701,093) |
- |
(10,705,308) |
(70,679) |
147,167,487 |
Issue of shares |
- |
- |
- |
- |
16,128,324 |
Share issue costs |
- |
- |
- |
- |
(921,170) |
Total comprehensive
income |
- |
- |
- |
388,188 |
23,708,672 |
Dividends paid |
- |
- |
- |
- |
(9,731,368) |
Share buyback |
- |
(25,376,743) |
- |
- |
(25,376,743) |
Balance at 30 June
2016 |
(10,701,093) |
(25,376,743) |
(10,705,308) |
317,509 |
150,975,202 |
Summarised unaudited ZAR consolidated
statement of changes in equity for the year ended 30 June 2016
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GROUP |
Share
capital |
Share
premium |
Share
option reserve |
Retained earnings |
Realisation of equity reserve |
|
ZAR |
ZAR |
ZAR |
ZAR |
ZAR |
Balance at 30 June
2014 |
244,480,271 |
1,322,660,134 |
15,965,957 |
1,500,694,965 |
(140,624,130) |
Issue of shares |
272,508 |
972,492 |
- |
- |
- |
Total comprehensive
income |
- |
- |
- |
210,198,257 |
- |
Dividends paid |
- |
- |
- |
(258,029,262) |
- |
Share based payment -
charge for the year |
- |
- |
(2,008,779) |
- |
- |
Balance at 30 June
2015 |
244,752,779 |
1,323,632,626 |
13,957,178 |
1,452,863,960 |
(140,624,130) |
Issue of shares |
24,907,261 |
334,689,839 |
- |
- |
- |
Share issue costs |
- |
(19,759,094) |
- |
- |
- |
Total comprehensive
income |
- |
- |
- |
547,014,018 |
- |
Dividends paid |
- |
- |
- |
(210,000,000) |
- |
Share buyback |
- |
- |
- |
- |
- |
Balance at 30 June
2016 |
269,660,040 |
1,638,563,371 |
13,957,178 |
1,789,877,978 |
(140,624,130) |
Summarised unaudited ZAR consolidated
statement of changes in equity for the year ended 30 June 2016
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GROUP |
Treasury capital reserve |
Merger reserve |
Other
reserves |
Total |
|
ZAR |
ZAR |
ZAR |
ZAR |
Balance at 30 June
2014 |
- |
(154,707,759) |
(99,569) |
2,788,369,869 |
Issue of shares |
- |
- |
- |
1,245,000 |
Total comprehensive
income |
- |
- |
(1,264,528) |
208,933,729 |
Dividends paid |
- |
- |
- |
(258,029,262) |
Share based payment -
charge for the year |
- |
- |
- |
(2,008,779) |
Balance at 30 June
2015 |
- |
(154,707,759) |
(1,364,097) |
2,738,510,557 |
Issue of shares |
- |
- |
|
359,597,100 |
Share issue costs |
- |
- |
- |
(19,759,094) |
Total comprehensive
income |
- |
- |
7,644,429 |
554,658,447 |
Dividends paid |
- |
- |
|
(210,000,000) |
Share buyback |
(548,619,802) |
- |
- |
(548,619,802) |
Balance at 30 June
2016 |
(548,619,802) |
(154,707,759) |
6,280,332 |
2,874,387,208 |
Summarised
consolidated statement of cash flows for the year ended 30 June
2016 |
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30 June
2016 |
30 June
2015 |
|
30 June
2016 |
30 June
2015 |
|
(Audited) |
(Audited) |
|
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
|
ZAR |
ZAR |
NET CASH GENERATED
FROM OPERATING ACTIVITIES |
28,464,205 |
5,364,480 |
|
581,423,450 |
95,659,360 |
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INVESTING
ACTIVITIES |
|
|
|
|
|
Additions to property,
plant and equipment and mineral rights |
(14,079,918) |
(19,528,616) |
|
(302,014,225) |
(351,515,099) |
Additions to other
intangible assets |
(17,248) |
(25,740) |
|
(369,970) |
(463,320) |
Investments
acquired |
- |
(1,037,677) |
|
- |
(18,825,000) |
Proceeds on disposals
of Property plant and equipment |
14,620 |
- |
|
313,600 |
- |
Acquisition of
Uitkomst |
(5,700,402) |
- |
|
(120,013,429) |
- |
Shanduka Gold
transaction |
(25,299,095) |
- |
|
(546,941,145) |
- |
Proceeds on disposals
of associate |
- |
277,732 |
|
- |
4,834,253 |
NET CASH USED IN
INVESTING ACTIVITIES |
(45,082,043) |
(20,314,301) |
|
(969,025,169) |
(365,969,166) |
|
|
|
|
|
|
FINANCING
ACTIVITIES |
|
|
|
|
|
Proceeds from
borrowings |
38,061,147 |
27,898,927 |
|
840,000,000 |
500,000,000 |
Borrowings repaid |
(38,131,957) |
(14,728,154) |
|
(803,889,110) |
(262,552,468) |
Settlement of equity
share option costs |
- |
(303,067) |
|
- |
(5,321,928) |
Shares issued |
16,128,324 |
68,530 |
|
359,597,100 |
1,245,000 |
Share issue costs |
(921,170) |
- |
|
(19,759,094) |
- |
NET CASH FROM
FINANCING ACTIVITIES |
15,136,344 |
12,936,236 |
|
375,948,896 |
233,370,604 |
|
|
|
|
|
|
NET
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS |
(1,481,494) |
(2,013,585) |
|
(11,652,823) |
(36,939,202) |
Cash and cash
equivalents at the beginning of the year |
3,328,850 |
5,618,323 |
|
64,246,802 |
101,186,004 |
Effect of foreign
exchange rate changes |
811,591 |
(275,888) |
|
- |
- |
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR |
2,658,947 |
3,328,850 |
|
52,593,979 |
64,246,802 |
Summarised audited consolidated GBP
segment report for the year ended 30 June
2016
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|
|
Year ended
30 June 2016 |
|
Barberton
Mines |
Evander
Mines |
Phoenix
Platinum |
Uitkomst |
Corporate
office and Growth Projects |
Funding
Company
(Note 3) |
Consolidated |
|
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Gold
sales1 |
89,596,245 |
71,715,975 |
- |
- |
- |
- |
161,312,220 |
Platinum sales |
- |
- |
3,480,338 |
- |
- |
- |
3,480,338 |
Coal sales |
- |
- |
- |
4,567,974 |
- |
- |
4,567,974 |
Realisation costs |
(398,937) |
(557,772) |
- |
- |
- |
- |
(956,709) |
On - mine
revenue |
89,197,308 |
71,158,203 |
3,480,338 |
4,567,974 |
- |
- |
168,403,823 |
Cost of production |
(45,461,824) |
(55,025,516) |
(3,456,007) |
(4,279,735) |
- |
- |
(108,223,082) |
Depreciation |
(3,562,121) |
(6,433,405) |
(311,870) |
(148,733) |
- |
- |
(10,456,129) |
Mining
profit |
40,173,363 |
9,699,282 |
(287,539) |
139,506 |
- |
- |
49,724,612 |
Other expenses
2 |
(7,253,912) |
873,481 |
(249,773) |
233,905 |
(5,867,371) |
80,775 |
(12,182,895) |
Loss from
associate |
- |
- |
- |
|
- |
- |
- |
Loss on disposal of
associate/asset held for sale |
- |
- |
- |
|
- |
- |
- |
Impairment costs |
- |
- |
- |
- |
- |
- |
- |
Royalty costs |
(2,450,505) |
(332,918) |
- |
(16,524) |
- |
- |
(2,799,947) |
Net income/(loss)
before finance income and finance costs |
30,468,946 |
10,239,845 |
(537,312) |
356,887 |
(5,867,371) |
80,775 |
34,741,770 |
Finance income |
13,380 |
27,840 |
448 |
8,823 |
79,755 |
312,370 |
442,616 |
Finance costs |
(6,048) |
(7,383) |
(489) |
- |
(7) |
(1,434,811) |
(1,448,738) |
Profit/(loss) before
taxation |
30,476,278 |
10,260,302 |
(537,353) |
365,710 |
(5,787,623) |
(1,041,666) |
33,735,648 |
Taxation |
(8,492,721) |
(757,683) |
118,266 |
226,037 |
701,414 |
(29,144) |
(8,233,831) |
Profit/(loss) after
taxation before inter-company charges |
21,983,557 |
9,502,619 |
(419,087) |
591,747 |
(5,086,209) |
(1,070,810) |
25,501,817 |
|
|
|
|
|
|
|
|
Inter-company
transactions |
|
|
|
|
|
|
|
Management fees |
(1,439,394) |
(1,137,529) |
(107,226) |
(65,734) |
2,749,883 |
- |
- |
inter-company interest
charges |
(331,029) |
(750,800) |
79,849 |
7,489 |
(135,868) |
1,130,359 |
- |
Profit after
taxation after inter-company charges |
20,213,134 |
7,614,290 |
(446,464) |
533,502 |
(2,472,194) |
59,549 |
25,501,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental assets
(Total assets excluding goodwill) |
56,651,503 |
146,201,423 |
9,991,120 |
15,034,211 |
3,180,048 |
632,954 |
231,691,259 |
Segmental
Liabilities |
27,035,796 |
48,372,120 |
883,249 |
4,545,415 |
5,154,888 |
15,725,303 |
101,716,771 |
Goodwill |
21,000,714 |
- |
- |
- |
- |
- |
21,000,714 |
Net Assets
(excluding goodwill) |
29,615,707 |
97,829,303 |
9,107,871 |
10,488,796 |
(1,974,840) |
(15,092,349) |
129,974,488 |
Adjusted
EBITDA |
34,031,067 |
16,673,250 |
(225,442) |
505,620 |
(5,867,371) |
80,775 |
45,197,899 |
Capital
Expenditure |
6,513,408 |
7,179,831 |
316,726 |
40,251 |
46,950 |
- |
14,097,166 |
|
|
|
|
|
|
|
|
Year ended
30 June 2015 |
|
Barberton
Mines |
Evander
Mines |
Phoenix
Platinum |
Corporate
office and Growth Projects |
Funding
Company
(Note 3) |
Consolidated |
|
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Gold
sales1 |
81,609,692 |
54,001,744 |
- |
- |
- |
135,611,436 |
Platinum sales |
- |
- |
5,465,447 |
- |
- |
5,465,447 |
Coal sales |
- |
- |
- |
- |
- |
- |
Realisation costs |
(534,421) |
(156,117) |
- |
- |
- |
(690,538) |
On - mine
revenue |
81,075,271 |
53,845,627 |
5,465,447 |
- |
- |
140,386,345 |
Cost of production |
(50,434,360) |
(56,210,295) |
(3,768,530) |
- |
- |
(110,413,185) |
Depreciation |
(4,008,467) |
(5,963,752) |
(364,992) |
- |
- |
(10,337,211) |
Mining
profit |
26,632,444 |
(8,328,420) |
1,331,925 |
- |
- |
19,635,949 |
Other expenses
2 |
(966,703) |
5,057,581 |
(163,390) |
(3,676,779) |
(933) |
249,776 |
Loss from
associate |
- |
- |
- |
(127,950) |
- |
(127,950) |
Loss on disposal of
associate/asset held for sale |
- |
- |
- |
(139,970) |
- |
(139,970) |
Impairment costs |
- |
- |
- |
(58,424) |
- |
(58,424) |
Royalty costs |
(1,595,802) |
(51,495) |
- |
- |
- |
(1,647,297) |
Net income/(loss)
before finance income and finance costs |
24,069,939 |
(3,322,334) |
1,168,535 |
(4,003,123) |
(933) |
17,912,084 |
Finance income |
109,514 |
167,047 |
11,186 |
53,290 |
7,922 |
348,959 |
Finance costs |
(246,094) |
(918,923) |
(1,136) |
(13,164) |
(1,278,970) |
(2,458,287) |
Profit/(loss) before
taxation |
23,933,359 |
(4,074,210) |
1,178,585 |
(3,962,997) |
(1,271,981) |
15,802,756 |
Taxation |
(5,956,861) |
2,270,046 |
(336,438) |
(89,033) |
(20,503) |
(4,132,789) |
Profit/(loss) after
taxation before inter-company charges |
17,976,498 |
(1,804,164) |
842,147 |
(4,052,030) |
(1,292,484) |
11,669,967 |
|
|
|
|
|
|
|
Inter-company
transactions |
|
|
|
|
|
|
Management fees |
(1,666,667) |
(1,248,661) |
(152,777) |
3,068,105 |
- |
- |
inter-company interest
charges |
(57,776) |
(1,230,251) |
(4,605) |
(16,450) |
1,309,082 |
- |
Profit after
taxation after inter-company charges |
16,252,055 |
(4,283,076) |
684,765 |
(1,000,375) |
16,598 |
11,669,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental assets
(Total assets excluding goodwill) |
55,423,588 |
146,705,365 |
10,850,893 |
2,454,933 |
932,707 |
216,367,486 |
Segmental
Liabilities |
21,528,152 |
52,987,201 |
933,751 |
1,973,835 |
12,777,774 |
90,200,713 |
Goodwill |
21,000,714 |
- |
- |
- |
- |
21,000,714 |
Net Assets
(excluding goodwill) |
33,895,436 |
93,718,164 |
9,917,142 |
481,098 |
(11,845,067) |
126,166,773 |
Adjusted
EBITDA |
28,078,406 |
2,641,418 |
1,533,527 |
(3,804,729) |
(933) |
28,447,689 |
Capital
Expenditure |
6,258,248 |
13,231,962 |
31,355 |
32,791 |
- |
19,554,356 |
Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was
generated from selling gold to South African institutions through
the group's Funding Company.
Note 2: Other expenses exclude inter-management fees and
dividend received
Note 3: Pan African Resources Funding Company (Pty) Ltd
(‘Funding Company’) manages the group’s treasury function.
Summarised unaudited consolidated ZAR
segment report for the year ended 30 June
2016
|
|
|
|
|
|
|
|
|
30 June 2016 |
|
Barberton Mines |
Evander Mines |
Phoenix
Platinum |
Uitkomst |
Corporate and Growth Projects |
Funding
Company
(Note 3) |
Group |
|
ZAR'
million |
ZAR' million |
ZAR'
million |
ZAR' million |
ZAR'
million |
ZAR'
million |
ZAR' million |
Revenue |
|
|
|
|
|
|
|
Gold
sales1 |
1,921.8 |
1,538.3 |
- |
- |
- |
- |
3,460.1 |
Platinum Sales |
- |
- |
74.7 |
- |
- |
- |
74.7 |
Coal sales |
- |
- |
- |
98.0 |
- |
- |
98.0 |
Realisation costs |
(8.6) |
(11.9) |
- |
- |
- |
- |
(20.5) |
On - mine
revenue |
1,913.2 |
1,526.4 |
74.7 |
98.0 |
- |
- |
3,612.3 |
Gold cost of
production |
(975.2) |
(1,180.3) |
- |
- |
- |
- |
(2,155.5) |
Platinum cost of
production |
- |
- |
(74.1) |
- |
- |
- |
(74.1) |
Coal cost of
production |
- |
- |
- |
(91.8) |
- |
- |
(91.8) |
Depreciation |
(76.4) |
(138.0) |
(6.7) |
(3.2) |
- |
- |
(224.3) |
Mining
Profit |
861.6 |
208.1 |
(6.1) |
3.0 |
- |
- |
1,066.6 |
Other
expenses2 |
(155.6) |
18.7 |
(5.4) |
5.0 |
(125.7) |
1.7 |
(261.3) |
Bargain purchase |
- |
- |
- |
- |
- |
- |
- |
Loss from
associate |
- |
- |
- |
- |
- |
- |
- |
Loss on disposal of
associate |
- |
- |
- |
- |
- |
- |
- |
Impairment costs |
- |
- |
- |
- |
- |
- |
- |
Royalty costs |
(52.6) |
(7.1) |
- |
(0.4) |
- |
- |
(60.1) |
Net income / (loss)
before finance income and finance costs |
653.4 |
219.7 |
(11.5) |
7.6 |
(125.7) |
1.7 |
745.2 |
Finance income |
0.3 |
0.6 |
- |
0.2 |
1.7 |
6.7 |
9.5 |
Finance costs |
(0.1) |
(0.2) |
- |
- |
- |
(30.8) |
(31.1) |
Profit /(loss)
before taxation |
653.6 |
220.1 |
(11.5) |
7.8 |
(124.0) |
(22.4) |
723.6 |
Taxation |
(182.2) |
(16.3) |
2.5 |
4.8 |
15.2 |
(0.6) |
(176.6) |
Profit /(loss) after
taxation |
471.4 |
203.8 |
(9.0) |
12.6 |
(108.8) |
(23.0) |
547.0 |
|
|
|
|
|
|
|
|
Inter-company
transactions |
|
|
|
|
|
|
|
Management fees |
(30.9) |
(24.4) |
(2.3) |
(1.4) |
59.0 |
- |
- |
inter-company interest
charges |
(7.1) |
(16.1) |
1.7 |
0.2 |
(2.9) |
24.2 |
- |
Profit /(loss) after
taxation after inter-company charges |
433.4 |
163.3 |
(9.6) |
11.4 |
(52.7) |
1.2 |
547.0 |
Segmental Assets
(Total assets excluding goodwill) |
1,120.6 |
2,891.9 |
198.6 |
297.4 |
61.6 |
12.5 |
4,582.6 |
Segmental
Liabilities |
534.8 |
956.8 |
17.5 |
92.9 |
98.9 |
311.0 |
2,011.9 |
Goodwill |
303.5 |
- |
- |
|
- |
- |
303.5 |
Net Assets
(excluding goodwill) |
585.8 |
1,935.1 |
181.1 |
204.5 |
(37.3) |
(298.5) |
2,570.7 |
Adjusted
EBITDA |
729.8 |
357.7 |
(4.8) |
10.8 |
(125.7) |
1.7 |
969.5 |
Capital
Expenditure |
139.7 |
154.0 |
6.8 |
0.9 |
1.0 |
- |
302.4 |
|
|
|
|
|
|
|
|
|
|
|
Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was
generated from selling gold to South African institutions through
the group's Funding Company.
Note 2: Other expenses exclude inter-management fees and
dividend received
Note 3: Pan African Resources Funding Company (Pty) Ltd
(‘Funding Company’) manages the group’s treasury function.
Summarised unaudited consolidated ZAR
segment report for the year ended 30 June
2016
|
|
|
|
|
|
|
|
30 June 2015 |
|
Barberton Mines |
Evander Mines |
Phoenix Platinum |
Corporate and Growth Projects |
Funding
Company
(Note 3) |
Group |
|
ZAR' million |
ZAR' million |
ZAR' million |
ZAR'
million |
ZAR'
million |
ZAR'
million |
Revenue |
|
|
|
|
|
|
Gold
sales1 |
1,469.0 |
972.0 |
- |
- |
- |
2,441.0 |
Platinum Sales |
- |
- |
98.4 |
- |
- |
98.4 |
Coal sales |
- |
- |
- |
- |
- |
- |
Realisation costs |
(9.6) |
(2.8) |
- |
- |
- |
(12.4) |
On - mine
revenue |
1,459.4 |
969.2 |
98.4 |
- |
- |
2,527.0 |
Gold cost of
production |
(907.8) |
(1,011.8) |
- |
- |
- |
(1,919.6) |
Platinum cost of
production |
- |
- |
(67.8) |
- |
- |
(67.8) |
Coal cost of
production |
- |
- |
- |
- |
- |
- |
Depreciation |
(72.2) |
(107.3) |
(6.6) |
- |
- |
(186.1) |
Mining
Profit |
479.4 |
(149.9) |
24.0 |
- |
- |
353.5 |
Other
expenses2 |
(17.4) |
91.0 |
(2.9) |
(66.2) |
- |
4.5 |
Bargain purchase |
- |
- |
- |
- |
- |
- |
Loss from
associate |
- |
- |
- |
(2.3) |
- |
(2.3) |
Loss on disposal of
associate |
|
- |
- |
(2.4) |
- |
(2.4) |
Impairment costs |
- |
- |
- |
(1.0) |
- |
(1.0) |
Royalty costs |
(28.7) |
(1.0) |
- |
- |
- |
(29.7) |
Net income / (loss)
before finance income and finance costs |
433.3 |
(59.9) |
21.1 |
(71.9) |
- |
322.6 |
Finance income |
2.0 |
3.0 |
0.2 |
1.0 |
0.1 |
6.3 |
Finance costs |
(4.4) |
(16.5) |
- |
(0.3) |
(23.1) |
(44.3) |
Profit /(loss)
before taxation |
430.9 |
(73.4) |
21.3 |
(71.2) |
(23.0) |
284.6 |
Taxation |
(107.2) |
40.9 |
(6.1) |
(1.7) |
(0.3) |
(74.4) |
Profit /(loss) after
taxation |
323.7 |
(32.5) |
15.2 |
(72.9) |
(23.3) |
210.2 |
|
|
|
|
|
|
|
Inter-company
transactions |
|
|
|
|
|
|
Management fees |
(30.0) |
(22.5) |
(2.7) |
55.2 |
- |
- |
inter-company interest
charges |
(1.0) |
(22.1) |
(0.2) |
(0.3) |
23.6 |
- |
Profit /(loss) after
taxation after inter-company charges |
292.7 |
(77.1) |
12.3 |
(18.0) |
0.3 |
210.2 |
Segmental Assets
(Total assets excluding goodwill) |
1,069.7 |
2,831.4 |
209.4 |
47.4 |
18.0 |
4,175.9 |
Segmental
Liabilities |
415.5 |
1,022.7 |
18.0 |
38.1 |
246.6 |
1,740.9 |
Goodwill |
303.5 |
- |
- |
- |
- |
303.5 |
Net Assets
(excluding goodwill) |
654.2 |
1,808.7 |
191.4 |
9.3 |
(228.6) |
2,435.0 |
Adjusted
EBITDA |
505.5 |
47.4 |
27.7 |
(68.5) |
- |
512.1 |
Capital
Expenditure |
112.6 |
238.2 |
0.6 |
0.6 |
- |
352.0 |
|
|
|
|
|
|
|
|
|
|
Note 1: All gold sales were made in the Republic of South Africa and the majority of revenue was
generated from selling gold to South African institutions through
the group's Funding Company.
Note 2: Other expenses exclude inter-management fees and
dividend received
Note 3: Pan African Resources Funding Company (Pty) Ltd
(‘Funding Company’) manages the group’s treasury function.