Pan African Resources Plc Provisional summarised audited results for the year ended 30 June 2023

 
TIDMPAF 
 
Pan African    Pan African Resources Funding 
Resources PLC  Company Limited 
 
(Incorporated  Incorporated in the Republic of 
and            South Africa with limited 
registered in  liability 
England and 
Wales under    Registration number: 
the Companies  2012/021237/06 
Act 1985 with 
registration   Alpha code: PARI 
number 
3937466 on 25  (Funding Company) 
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 United States dollar (US$) or South African rand 
(ZAR), to the extent relevant.) 
 
Provisional summarised audited results for the year ended 30 June 2023 - SHORT 
FORM ANNOUNCEMENT 
 
KEY FEATURES 
 
Production 
 
  · Gold production of 175,209oz (2022: 205,688oz), in line with revised 
guidance 
  · Increased production outlook for the 2024 financial year - guidance of 
178,000oz to 190,000oz 
 
Safety 
 
  · As previously announced, a fatal accident occurred at Evander Mines in March 
2023, following 1 million fatality-free shifts at the operation prior to the 
accident 
  · Improvement in overall safety rates compared to the previous financial year, 
with a total recordable injury frequency rate of 7.96 per million man hours for 
the year (2022: 8.95 per million man hours) 
  · Focused initiatives implemented to further enhance safety performance 
 
Costs and cost outlook 
 
  · All-in sustaining costs (AISCAPM) for the current financial year of 
US$1,327/oz, a sub-US$ inflation increase of 3.3% (US$1,284/oz for the financial 
year ended 30 June 
  · AISC in line with revised guidance for 2023 of between US$1,325/oz to 
US$1,350/oz 
  · AISC of US$1,152/oz (2022: US$1,145/oz) for our lower-cost operations, 
comprising all operations, excluding Sheba Mine and Consort Mine, which account 
for more than 81% 
(2022: 87%) of annual production 
    · Remedial measures implemented to reduce real AISC at high-cost operations 
(Sheba and Consort Mines) 
 
  · Renewable energy generation and water recycling, together with other 
initiatives to increase the Group's future gold production, are expected to 
contribute to a decline in future real AISC 
 
  · 2024 AISC guidance of US$1,350/oz (assuming an exchange rate of 
US$/ZAR:18.50) 
 
Financial 
 
  · Net cash generated from operating activities of US$100.1 million (2022: 
US$110.0 million) 
  · Profit for the year of US$60.7 million (2022: US$75.0 million) 
  · Headline earningsAPM of US$60.4 million (2022: US$75.6 million) 
  · Earnings per share of US 3.19 cents per share (2022: US 3.90 cents per 
share) and headline earnings per shareAPM of US 3.15 cents per share (2022: US 
3.93 cents per share) 
  · Robust financial position at year-end, with net debtAPM of US$22.0 million 
(2022: US$13.0 million) 
  · Liquidity remains healthy, with access to immediately available cash and 
undrawn facilities of US$84.7 million (2022: US$69.4 million) at financial year 
-end. Post the current financial year, the Company also closed the dedicated 
Mogale Tailings Retreatment project (MTR project) senior debt facility of 
US$70.3 million 
 
Proposed dividend 
 
  · Sector-leading final dividend of ZA 18.00000 cents per share (or US 0.95592 
cents per share at an exchange rate of US$/ZAR:18.83) proposed for approval at 
the upcoming annual general meeting (AGM) 
 
Growth projects 
 
  · The MTR project construction commenced in July 2023 with steady-state 
production expected by December 2024 
  · Evander Mines' 8 Shaft 24, 25 and 26 Level underground expansion project is 
on track 
    · Refrigeration plant at 24 Level commissioned in phases to facilitate 
mining at depth 
    · Development to access the 25 and 26 Level mining areas has commenced 
    · Equipping of an existing underground ventilation shaft for rock hoisting 
capacity of up to 40,000tpm is planned to be completed during the third quarter 
of the 2024 financial year, improving efficiencies and eliminating the 
cumbersome and labour-intensive conveyor system 
 
Environmental, social and governance (ESG) initiatives 
 
  · Established a renewable energy roadmap to decarbonisation - construction of 
Fairview Mine's solar facility commenced at Barberton Mines 
  · Commissioned Evander Mines' water recycling plant to reduce potable water 
requirements and lower costs 
 
Sudan exploration 
 
  · Exploration activities resumed post the reporting period, following a 
detailed risk assessment of the in-country operating environment in the 
exploration area 
 
CHIEF EXECUTIVE OFFICER'S STATEMENT 
 
Cobus Loots, Pan African's chief executive officer, commented: 
 
"Pan African delivered a resilient financial performance for the current 
financial year, with a much-improved rand gold price compensating for lower 
production from our underground operations. 
 
We are confident that the measures we are implementing, specifically at 
Barberton Mines' underground operations, will result in higher production in the 
future, with production guidance increased for the 2024 financial year. If the 
current rand gold price tailwinds persist, we can look forward to another robust 
financial performance from Pan African in the year ahead. 
 
Our surface remining operations, the Elikhulu Tailings Retreatment Plant 
(Elikhulu) and the Barberton Tailings Retreatment Plant, performed in line with 
expectations during the past financial year, contributing significantly to the 
Group's production, cash flows and profits. The consistent performance of these 
low-cost and, in the case of Elikhulu, long-life assets, demonstrates their 
importance in our portfolio and reinforces our decision to develop the MTR 
project. 
 
Pan African has an outstanding track record in the development and operation of 
tailings retreatment operations. Full-scale construction of the MTR plant 
commenced on schedule in July this year, with commissioning anticipated within 
the next 18 months. The MTR project's incremental production of approximately 
50,000oz per year will contribute to almost 50% of the Group's annual gold 
output being sourced from low-cost, safe, surface remining operations. In 
addition to being a compelling investment, large-scale tailings retreatment 
operations of this nature rehabilitate and restore the environment, while also 
providing much-needed employment and economic opportunities. 
 
The development of Evander Mines' 24 Level project is progressing well, with 
crews being redeployed to the 24 Level area as the 8 Shaft's pillar mining nears 
completion. Improved mining flexibility, together with other initiatives being 
implemented to ensure that infrastructure availability is optimised, will ensure 
sustainable production from this long-life underground operation. 
 
We are grateful that after year-end we managed to resume our gold exploration 
activities in Sudan. The decision to recommence operations was only made after a 
comprehensive risk assessment of the in-country operating environment in the 
exploration area, and we will continue to closely monitor the political 
situation. 
 
Globally, gold producers have experienced severe cost inflation in recent 
years.  Despite inflationary pressures on input costs with, specifically, 
reagents used in processing and electricity costs being subject to large 
increases, the financial results for the year benefited from Pan African's 
culture of cost control.  AISC increased by only 3.3% in US$ to US$1,327/oz, 
with the depreciation of the rand relative to the US$ providing an offset to the 
higher rand unit costs. 
 
We ended the financial year in a strong financial position with net debt of only 
US$22.0 million, despite a substantial capital investment programme and the 
payment of an attractive dividend to shareholders in the past year. The fact 
that we are able to maintain this dividend in rand terms, while undertaking the 
MTR project's construction, our largest capital project ever, is a testament to 
the quality of our portfolio. 
 
Excellent progress was also made with our ESG initiatives, with an increased 
focus on renewable energy projects. In May 2023, construction of the Group's 
second solar plant commenced at Barberton Mines. This plant, with a capacity of 
8.75MW, will supply most of the daytime power requirements for the Fairview 
Mine. The Group has also signed a third-party power purchase agreement for the 
off-site provision of 40MW of wheeled power over a period of up to 15 years. 
Along with Evander Mines' operating solar plant, these projects are expected to 
reduce our carbon emissions by up to 30% (by 2030), as well as deliver 
associated cost benefits, as the price of grid power continues to increase at 
above-inflation rates. Evander Mines' water recycling plant is also expected to 
generate attractive cost savings as underground water can now be used as process 
water, reducing our reliance on municipal resources. 
 
Reflecting on the past year, we wish to again express our condolences to the 
family, friends and co-workers of our colleague, Mr Sahlukaniso, who was fatally 
injured in a fall of ground accident at our Evander Mines' underground mine in 
March 2023. Pan African remains steadfast in its resolve to achieve a zero-harm 
working environment in the coming years. 
 
In terms of the outlook for the year ahead, we will continue to balance safe, 
sustainable gold production, the successful delivery of our transformational 
growth projects, cash returns to shareholders and all our other initiatives to 
the benefit of our stakeholders. We are well positioned to exceed the production 
achieved in the current financial year, with estimated production of between 
178,000oz and 190,000oz forecast for the 2024 financial year." 
 
PROPOSED DIVID FOR THE FINANCIAL YEARED 30 JUNE 2023 
 
The board has proposed a final dividend of ZAR400.1 million for the 2023 
financial year (approximately US$21.2 million), equal to ZA 18.00000 cents per 

share or approximately US 0.95592 cents per share (0.75219 pence per share). A 
dividend of ZA 18.00000 cents per share or approximately US 1.05820 cents per 
share (or 0.86915 pence per share) was paid for the 2022 financial year. The 
dividend is subject to approval by shareholders at the AGM, which is to be 
convened on Thursday, 23 November 2023. 
 
Assuming shareholders approve the final dividend, the following salient dates 
would apply: 
 
+------------------------------+---------------------------+ 
|Annual general meeting        |Thursday, 23 November 2023 | 
+------------------------------+---------------------------+ 
|Currency conversion date      |Thursday, 23 November 2023 | 
+------------------------------+---------------------------+ 
|Currency conversion           |Friday, 24 November 2023   | 
|announcement released by 11:00|                           | 
|(SA time)                     |                           | 
+------------------------------+---------------------------+ 
|Last date to trade on the JSE |Tuesday, 28 November 2023  | 
+------------------------------+---------------------------+ 
|Last date to trade on the LSE |Wednesday, 29 November 2023| 
+------------------------------+---------------------------+ 
|Ex-dividend date on the JSE   |Wednesday, 29 November 2023| 
+------------------------------+---------------------------+ 
|Ex-dividend date on the LSE   |Thursday, 30 November 2023 | 
+------------------------------+---------------------------+ 
|Record date on the JSE and LSE|Friday, 1 December 2023    | 
+------------------------------+---------------------------+ 
|Payment date                  |Tuesday, 12 December 2023  | 
+------------------------------+---------------------------+ 
 
The British pound (GBP) and US$ proposed final dividend was calculated based on 
a total of 2,222,862,046 shares in issue and an illustrative exchange rate of 
US$/ZAR:18.83 and GBP/ZAR:23.93, respectively. 
 
No transfers between the Johannesburg and London registers, between the 
commencement of trading on Wednesday, 29 November 2023 and close of business on 
Friday, 1 December 2023 will be permitted. 
 
No shares may be dematerialised or rematerialised between Wednesday, 29 November 
2023 and Friday, 1December 2023, both days inclusive. 
 
The South African dividend taxation rate is 20% per ordinary share for 
shareholders who are liable to pay dividend taxation, resulting in a net 
dividend of ZA 14.40000 cents per share for these shareholders. Foreign 
investors may qualify for a lower dividend taxation rate, subject to completing 
a dividend taxation declaration and submitting it to Computershare Investor 
Services Proprietary Limited or Link Asset Services, who manage the South 
African and UK registers, respectively. The Company's South African income 
taxation reference number is 9154588173. The proposed dividend will be paid out 
of the Company's retained earnings, without drawing on any other capital 
reserves. 
 
AUDIT OPINION 
 
The Group's external auditor, PricewaterhouseCoopers LLP (PwC), has issued their 
opinion on the consolidated annual financial statements for the year ended 30 
June 2023. 
 
The audit of the consolidated annual financial statements was conducted in 
accordance with the International Standards on Auditing. PwC has expressed an 
unmodified opinion on the consolidated annual financial statements. A copy of 
the audited annual financial statements and the audit report is available for 
inspection at the issuer's registered office. Any reference to future financial 
performance included in this provisional summarised audited results announcement 
has not been reviewed or reported on by the Group's external auditor. 
 
DIRECTORS' RESPONSIBILITY 
 
The information in this announcement has been extracted from the provisional 
summarised audited results for the year ended 30 June 2023, but this short-form 
announcement itself has not been reviewed by the Company's auditors. The 
provisional summarised audited 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 and does not contain full or 
complete details. 
 
Any investment decisions should be based on the full announcement and the 
Group's detailed operational and financial summaries. 
 
AVAILABILITY OF THE ANNUAL FINANCIAL STATEMENTS AND PROVISIONAL SUMMARISED 
AUDITED RESULTS 
 
The annual financial statements (together with PwC's audit opinion thereon) have 
been released on SENS and are available for viewing via the JSE Limited (JSE) 
link at https://senspdf.jse.co.za/documents/2023/jse/isse/pan/FYE2023.pdf 
 
and via the Company's website at https://www.panafricanresources.com/wp 
-content/uploads/Pan-African-Resources-integrated-annual-report-2023.pdf. 
 
The provisional summarised audited results for the year ended 30 June 2023 can 
be viewed via the Company's website at https://www.panafricanresources.com/wp 
-content/uploads/Pan-African-Resources-year-end-results-SENS-announcement 
-2023.pdf 
 
Copies of the full announcement may also be requested by emailing 
[e-mail] 
 
The Company has a dual primary listing on the JSE in South Africa and the 
Alternative Investments Market (AIM) of the London Stock Exchange (LSE) as well 
as a sponsored Level 1 ADR programme in the USA through the Bank of New York 
Mellon and a secondary listing on the A2X Market. 
 
For further information on Pan African, please visit the Company's website at 
 
www.panafricanresources.com 
 
Rosebank 
 
13 September 2023 
 
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|Corporate information                                                      | 
+-----------------------------------------------+---------------------------+ 
|Corporate office                               |Registered office          | 
|                                               |                           | 
|The Firs Building                              |2nd Floor                  | 
|                                               |                           | 
|2nd Floor, Office 204                          |107 Cheapside              | 
|                                               |                           | 
|Corner Cradock and Biermann Avenues            |London                     | 
|                                               |                           | 
|Rosebank, Johannesburg                         |EC2V 6DN                   | 
|                                               |                           | 
|South Africa                                   |United Kingdom             | 
|                                               |                           | 
|Office: + 27 (0) 11 243 2900                   |Office: + 44 (0) 20 7796   | 
|                                               |8644                       | 
|[e-mail]                                 |                           | 
|                                               |[e-mail]             | 
+-----------------------------------------------+---------------------------+ 
|Chief executive officer                        |Financial director and debt| 
|                                               |officer                    | 
|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                      |                           | 
|Email: [e-mail]                         |                           | 
+-----------------------------------------------+---------------------------+ 
|Company secretary                              |Nominated adviser and joint| 
|                                               |broker                     | 
|Jane Kirton                                    |                           | 
|                                               |Ross Allister/David McKeown| 
|St James's Corporate Services Limited          |                           | 
|                                               |Peel Hunt LLP              | 
|Office: + 44 (0) 20 7796 8644                  |                           | 
|                                               |Office: [phone]    | 
|                                               |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                        |Office: [phone]    | 
|9200 (https://www.google.co.za/search?q=questco|1010                       | 
|&rlz=1C1EJFC_enZA816ZA818&oq=q                 |                           | 
|uestco&aqs=chrome..69i57j0l5.1                 |                           | 
|159j0j4&sourceid=chrome&ie=UTF-8)              |                           | 
+-----------------------------------------------+---------------------------+ 

|                                               |Joint broker               | 
|                                               |                           | 
|                                               |Matthew Armitt/Jennifer Lee| 
|                                               |                           | 
|                                               |Joh. Berenberg, Gossler &  | 
|                                               |Co KG                      | 
|                                               |                           | 
|                                               |Office: [phone]    | 
|                                               |7800                       | 
+-----------------------------------------------+---------------------------+ 
 
 
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September 13, 2023 02:00 ET (06:00 GMT)