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Trading Statement for the six months ended 31 December 2018
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 SIX MONTHS ENDED 31 DECEMBER 2018
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 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 and, accordingly, its presentation currency is pounds
sterling (“GBP”) with a functional currency in South African rand (“ZAR” or “R”).
The ZAR:GBP exchange rate affects the reporting of results in GBP. For the six month reporting period
ended 31 December 2018 (“current reporting period”), the average prevailing ZAR:GBP exchange rate is
used, and in the event of material transactions, the exchange rate on the date of the material transaction is
used to translate earnings from ZAR to GBP.
For the six months ended 31 December 2017 (“corresponding reporting period”), the average ZAR:GBP
exchange rate was ZAR17.65:1. For the current reporting period, the ZAR depreciated against the GBP to
an average exchange rate of ZAR18.36:1. This 4.0% period-on-period depreciation in the average exchange
rate should be taken into account when comparing the current reporting period’s results with the
corresponding reporting period’s results.
The group records its revenue from precious metals sales in ZAR. The depreciation in the value of the
ZAR/USD exchange rate during the current reporting period positively impacted the USD revenue received
when translated into ZAR. In the current reporting period, the average ZAR/USD exchange rate depreciated
by 6.0% to ZAR14.19:1 (2017: ZAR13.39:1).
Due to the cessation of large-scale underground mining at Evander Gold Mining Proprietary Limited
(“Evander Mines”), which includes 8 Shaft, 7 Shaft and the run-of-mine circuit in the Kinross metallurgical
plant, the financial results from Evander Mines’ underground operations for the corresponding reporting
period were classified as discontinued operations (“discontinued operations”). The corresponding reporting
period’s figures have therefore been restated to differentiate between discontinued operations and the results
from the continuing operations. The combined results comprise the results of the continuing operations and
discontinued operations (“combined operations”).
In the current reporting period, the group’s weighted average number of shares in issue increased by 7.2%
to 1,928,329,479 shares (2017: 1,798,329,479 shares). The increase in the weighted average number of
shares in issue is due to the disposal of 130-million Pan African shares held by PAR Gold Proprietary Limited
(“PAR Gold”), which resulted in a commensurate increase in the weighted average number of shares in
issue, as these shares had previously been accounted for as treasury shares. The proceeds from the
disposal of the Pan African shares held by PAR Gold were partly used to fund the incorporation of the existing
throughput from the Evander Tailing Retreatment Plant (“ETRP”) into Elikhulu’s processing capacity, which
resulted in an increased capacity to 1.2-million tonnes per month.
ZAR range for EPS and HEPS:
Pan African advises shareholders that its earnings per share (“EPS”) and headline earnings per share
(“HEPS”) in ZAR terms, from its combined operations for the current reporting period, are expected to be:
- EPS: 116% to 126% higher than the 3.23 cents per share for the corresponding reporting period,
resulting in an expected EPS range of between 6.98 to 7.30 cents per share.
- HEPS: 99% to 109% higher than the 3.51 cents per share for the corresponding reporting period,
resulting in an expected HEPS range of between 6.98 to 7.34 cents per share.
EPS and HEPS, in ZAR terms, from the group’s continuing operations, for the current reporting period are
expected to range between 8% to 18% higher than the 6.34 cents per share reported in the corresponding
reporting period, resulting in an expected EPS and HEPS range of between 6.85 to 7.48 cents per share.
GBP range for EPS and HEPS:
In GBP terms, EPS and HEPS from the group’s combined operations for the current reporting period, are
expected to be:
- EPS: 112% to 122% higher than the 0.18 pence for the corresponding reporting period, resulting in an
expected EPS range of between 0.38 to 0.40 pence per share.
- HEPS: 90% to 100% higher than the 0.20 pence for the corresponding reporting period, resulting in an
expected HEPS range of between 0.38 to 0.40 pence per share.
In GBP terms, EPS and HEPS from continuing operations for the current reporting period, are expected to
range between 3% to 13% higher than the 0.36 pence per share reported in the corresponding reporting
period, resulting in an expected EPS and HEPS range of between 0.37 to 0.41 pence per share.
The financial information contained in this announcement has neither been reviewed nor audited by the
company’s external auditors. The group’s unaudited interim results for the period ended 31 December 2018
will be released on 20 February 2019.
For further information on Pan African, please visit the company’s website at www.panafricanresources.com.
13 February 2019
Contact information
Corporate Office Registered Office
The Firs Office Building Suite 31
2nd Floor, Office 204 Second Floor
Cnr. Cradock and Biermann Avenues 107 Cheapside
Rosebank, Johannesburg London
South Africa EC2V 6DN
Office: + 27 (0)11 243 2900 United Kingdom
Facsimile: + 27 (0)11 880 1240 Office: + 44 (0)20 7796 8644
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
Marian Gaylard Ross Allister/David McKeown
Questco Corporate Advisory Proprietary Limited Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0)11 011 9200 Office: +44 (0)20 7418 8900
Julian Gwillim Jeffrey Couch/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 Website: www.panafricanresources.com
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
paf@buchanan.uk.com
Date: 13/02/2019 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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