Pan African Resources PLC
("Pan African" or “the Company" or “the Group”)
(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
TRADING STATEMENT FOR THE FINANCIAL
YEAR ENDED 30 JUNE 2017
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.
Pan African is incorporated in
England and Wales under the Companies Act 1985 and
accordingly, its presentation currency is Pounds Sterling
(“GBP”).
The average ZAR:GBP exchange rate
affects the reporting of results in GBP. For the reporting period
ended 30 June 2017 (“current
reporting period”), the average prevailing ZAR:GBP exchange rate
will be used to translate earnings per share (“EPS”) and headline
earnings per share (“HEPS”) from ZAR to GBP.
For the reporting period ended
30 June 2016 (“prior reporting
period”), the average ZAR:GBP exchange rate was ZAR21.45:1. For the current reporting period, the
ZAR strengthened against the GBP, with an average exchange rate of
ZAR17.25:1. This 19.6% year-on-year
appreciation in the average exchange rate should be taken into
account for purposes of a comparison with the prior reporting
period.
The Group records its revenue from
precious metals sales in ZAR. The strength in the value of the
ZAR/USD exchange rate during the period under review had an adverse
impact on the USD metals revenue received when translated into ZAR.
In the current reporting period, the average ZAR/USD exchange rate
was 6.3% stronger at R13.59:1 (2016: R14.51:1).
In the current reporting period the
Group’s weighted average number of shares in issue decreased by
13.6% to 1,564,346,115 shares, from 1,811,427,377 shares in the
prior reporting period. This reduction is due to the following:
- For accounting
purposes, the weighted average number of shares upon consolidation
excludes the 436,358,058 shares held by PAR Gold Proprietary
Limited (“PAR Gold”). The PAR Gold shares were acquired on
7 June 2016 and, in the current
reporting period, the Group benefitted from a full year exclusion
of these shares in the calculation of the weighted average number
of shares outstanding. In the prior reporting period, these shares
were only excluded for less than a month for the purposes of
calculating the weighted average number of shares in issue.
- In the current
reporting period, on 12 April 2017,
the Group issued 291,480,983 ordinary shares to fund the equity
component of the Elikhulu tailings retreatment plant’s
construction.
Shareholders are referred to the
recent Group operational update released on 20 July 2017, which highlighted the Group’s
production performance for the year ended 30
June 2017.
Pan African advises shareholders
that its EPS and HEPS for the current reporting period are expected
to be between:
1) EPS: 39% to 29% lower than
the 30.20 cents for the prior
reporting period (being expected EPS of 18.30 cents to 21.32 cents).
2) HEPS: 38% to 28% lower than
the 30.20 cents for the prior
reporting period (being expected HEPS of 18.66 cents to 21.68 cents).
Using the average ZAR:GBP 17.25:1 exchange rate that prevailed during
the current reporting period, the Group’s EPS and HEPS in GBP terms
for the current reporting period are expected to be between:
1) EPS: 24% to 13% lower than
the 1.41 pence for the prior
reporting period (being expected EPS of 1.07
pence to 1.22 pence).
2) HEPS: 22% to 12% lower than
the 1.41 pence for the prior
reporting period (being expected HEPS of 1.10 pence to 1.24 pence).
Phoenix Platinum (Pty) Ltd. and
Uitkomst Colliery (Pty) Ltd. were classified as discontinued
operations at the end of the current reporting period, therefore
the EPS and HEPS guidance provided above comprises earnings from
discontinued and continued operations. There were no discontinued
operations in the prior reporting period.
The Group’s audited year end results
for the year ended 30 June 2017 will
be released on 21 September 2017.
For further information on Pan
African, please visit the Company’s website at
www.panafricanresources.com
18 August 2017
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) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
Cobus Loots
Deon Louw
Pan African Resources PLC
Pan African Resources PLC
Chief Executive Officer
Financial Director
Office: + 27 (0) 11 243 2900
Office: + 27 (0) 11 243 2900
Phil Dexter
John Prior /
Paul Gillam
St James's Corporate Services Limited Numis Securities
Limited
Company Secretary
Nominated Adviser and Joint Broker
Office: + 44 (0) 20 7796 8644
Office: +44 (0) 20 7260 1000
Sholto Simpson
Matthew Armitt / Ross
Allister
One Capital
Peel Hunt LLP
JSE Sponsor
Joint Broker
Office: + 27 (0) 11 550 5009
Office: +44 (0) 20 7418 8900
Julian Gwillim
Jeffrey Couch/Neil
Haycock/Thomas Rider
Aprio Strategic Communications
BMO Capital Markets Limited
Public & Investor Relations SA
Joint Broker
Office: +27 (0)11 880 0037
Office: +44 (0) 20 7236 1010
Bobby Morse/Chris Judd
Buchanan Communications
Public & Investor Relations UK
Office: +44 (0) 207 466 5000
www.panafricanresources.com
END