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Pan African Resources Plc (PAF)

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Friday 31 January, 2020

Pan African Resources Plc

Trading Statement for the six months ended 31 Dec 2019

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

TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

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 changed its presentation currency from pounds sterling (“GBP”) in the previous reporting period to United States dollars (“USD”) for the six months ended 31 December 2019 (“current reporting period”). Reporting in USD provides a more comparable presentation currency for the group’s financial position, financial performance and cash flow. All group subsidiaries are incorporated in South Africa and their functional currency is South African rand (“ZAR”). The group’s business is conducted in ZAR and the accounting records are maintained in the same currency, except precious metal product sales, which are conducted in USD prior to conversion into ZAR.

The ZAR:USD exchange rate affects the reporting of results in USD. For the current reporting period, the average ZAR:USD exchange rate is used in translating ZAR results into USD.

During the current reporting period, the average ZAR:USD exchange rate was R14.70:1 (2018: R14.19:1), and the closing ZAR:USD exchange rate was R14.08:1 (2018: R14.36:1). The H1-on-H1 change in the average and closing exchange rates of 3.6% and (1.9%), respectively, must be taken into account for the purposes of translating and comparing H1-on-H1 results. The weighted average number of shares in issue remained unchanged at 1,928.3 million shares (2018: 1,928.3 million shares).

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

Six months ended
31 December 2019
Expected results
(USD cents)

Six months ended
31 December 2018
 
Six months ended
31 December 2019
Expected % increase
in USD earnings
Lower range Upper range GBP USD Lower range Upper range
(pence)(2) (cents)(3)
EPS(1) 1.12 1.17 0.39 0.50 124% 134%
HEPS (1) 1.11 1.16 0.39 0.50 122% 132%

Notes

(1)  The considerable improvement in EPS and HEPS are principally due to the following:

·     Increased low-cost gold production from Elikhulu tailings retreatment plant, with the operation increasing gold sales by 91.6% to 29,301oz (2018: 15,292oz);

·     A sizeable increase of 19.8% in the average gold price received to USD1,464/oz (2018: USD1,222/oz); and

·     Production from remnant mining and surface sources at Evander operations increasing by 7.4% to 16,284oz (2018: 15,166oz).

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

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

The financial information contained in this announcement has neither been reviewed nor audited by the Company’s auditors. The group’s unaudited interim results for the six months ended 31 December 2019 will be released on 18 February 2020.

For further information on Pan African, please visit the Company’s website at www.panafricanresources.com

31 January 2020

Contact information
Corporate Office
The Firs Office Building
2nd Floor, Office 204
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office:   + 27 (0)11 243 2900
[email protected]
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0)20 7796 8644
Cobus Loots     
Pan African Resources PLC
Chief Executive Officer 
Office: + 27 (0)11 243 2900
Deon Louw
Pan African Resources PLC
Financial Director
Office: + 27 (0)11 243 2900
Phil Dexter/Jane Kirton
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0)20 7796 8644
John Prior
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0)20 7260 1000
Ciska Kloppers
Questco Corporate Advisory Proprietary Limited
JSE Sponsor
Office: + 27 (0)11 011 9200
Ross Allister/David McKeown
Peel Hunt LLP
Joint Broker
Office: +44 (0)20 7418 8900
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0)11 880 0037
Thomas Rider/Neil Elliot
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010
Bobby Morse/Chris Judd
Buchanan
Public and Investor Relations UK
Office: +44 (0)20 7466 5000
[email protected]
Website: www.panafricanresources.com

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