Pan African Resources Plc · LSE:PAF
Pan African Resources — H1 FY2024 Earnings Presentation
47 slides from Pan African Resources's earnings presentation, Feb 14, 2024
Slide 1: Interim Results Presentation
XXX MINING FOR A FUTURE INTERIM RESULTS PRESENTATION for the six months ended 31 December 2023 OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 1
Slide 2: Disclaimer
XXX DISCLAIMER The name 'Presenter' refers to Pan African Resources PLC and its advisors, subsidiaries or affiliated companies. This presentation has not been filed, lodged, registered or approved in any jurisdiction and recipients of this document should keep themselves informed of and comply with
Slide 3: Forward Looking Statements
XXX FORWARD LOOKING STATEMENTS Statements in this presentation that address exploration activities, mining potential and future plans and objectives of Pan African Resources are forward-looking statements and forward-looking information that involve various risks, assumptions and uncertainties and a
Slide 4: Overview of Presentation
XXX OVERVIEW OF PRESENTATION Health and safety Group overview Our operating environment H1 FY2024 – Key features Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Financials Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix OTCQ
Slide 5: Health and Safety
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 6: Health and Safety: Group Safety Performance
HEALTH AND SAFETY XXX HEALTH AND SAFETY GROUP SAFETY PERFORMANCE Group TRIFR improved by 39.3% to 6.13 (H1 FY23: 8.54) per million-man hours Excellent operational safety performance • LTIFR remained stable at 2.54 (H1 FY23: 2.54) per million-man hours Evander Mines’ underground operations LTIFR and
Slide 7: Group Overview
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 8: Group Overview: Underground and Surface Mining Operations
GROUP OVERVIEW XXX GROUP OVERVIEW A UNIQUE COMBINATION OF UNDERGROUND AND SURFACE MINING OPERATIONS PAR Group gold production profile 300 000 ~250,000oz 250 000 ~220,000oz 201,777oz 205,688oz c.180,000 200 000 - 190,000oz 175,209oz 150 000 100 000 50 000 0 2021 2022 2023 2024 2025 2026 * Barberton B
Slide 9: Group Overview: H1 FY2024 Gold Production
GROUP OVERVIEW XXX GROUP OVERVIEW H1 FY2024 GOLD PRODUCTION 6.7% TO 98,458oz (H1 FY2023: 92,307oz) Moving towards a balanced mix of low-cost surface mining and high-grade, long-life u/g mines 35% - 45% SURFACE 65% - 55% U/G MTR + Soweto Cluster Evander Mines Ann Prod: 50-60koz FY25-FY26 estimated
Slide 10: Group Overview
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 11: Our Operating Environment
OUR OPERATING ENVIRONMENT XXX OUR OPERATING ENVIRONMENT 140 YEAR TRACK RECORD OF OPERATING SUCCESSFULLY IN SOUTH AFRICA ELECTRICITY AND SA REGULATORY SECURITY AND PUBLIC/PRIVATE STAKEHOLDER ENGAGEMENT FRAMEWORK COLLABORATION • National grid power to Group mining • Multi-facetted engagements with all
Slide 12: Operating Environment: Renewable Energy Roadmap
OUR OPERATING ENVIRONMENT XXX OUR OPERATING ENVIRONMENT OPERATING SUCCESSFULLY IN SOUTH AFRICA – RENEWABLE ENERGY ROADMAP Current pipeline of Group renewable energy projects 45% 40.0% 80MW of 40% Commission installed solar 8.75MW solar PV 35.4% PV renewable Commissioned Expand 35% 1st 9.9MW solar fa
Slide 13: Group Overview
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 14: H1 FY2024 Key Features
H1 FY2024 KEY FEATURES XXX H1 FY2024 KEY FEATURES OPERATIONAL AND FINANCIAL PERFORMANCE PRODUCTION PERFORMANCE COST PERFORMANCE FINANCIAL PERFORMANCE Group gold production of 98,458oz Group AISC 0.3% to US$1,287/oz Robust performance in H1 FY24 6.7% (H1 FY23 US$1,291/oz) – despite • Profit for t
Slide 15: Group Overview
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 16: Performance by Operation: Elikhulu
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – ELIKHULU • Production 8.8% to 28,106oz (H1 FY23: 25,830oz) Elikhulu LOM production profile* • Improved overall metallurgical recovery of 34.9% (H1 FY23: 32.3%) 80 000 • AISC of US$979/oz (H1 FY23: US$947/oz) – one of the l
Slide 17: Performance by Operation: BTRP and Royal Sheba
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – BTRP AND ROYAL SHEBA • Production remained consistent at 9,864oz (H1 FY23: 10,012oz) BTRP LOM extension: Sheba Fault Project • Lowest cost of production in the Group • Royal Sheba and Western Cross orebodies – orebodies open
Slide 18: Performance by Operation: Mintails
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS RETREATMENT OPERATIONS – MINTAILS October 2022 – Closure of transaction to acquire total share claims and • 800ktpm processing plant design based on successful Elikhulu and BTRP operations capital of Mogale Gold and Mintails SA Soweto Cl
Slide 19: Mogale Tailings Retreatment Plant Timeline to Commissioning
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MOGALE TAILINGS RETREATMENT PLANT CONSTRUCTION IN PROGRESS – TIMELINE TO COMMISSIONING PROPOSED PROJECT EXECUTION TIMELINE ACTIVITY ESTIMATED DATE Completion and finalisation of DFS Completed ✓ Engineering optimisation activities Completed ✓ Deta
Slide 20: Mogale Socio-Economic Development and Rehabilitation
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MOGALE SOCIO-ECONOMIC DEVELOPMENT AND ENVIRONMENTAL REHABILITATION History >100 years of underground mining in the West Rand region of the Witwatersrand Goldfield • Production of over 2,000 tons of gold and 240 Mt of low-grade gold-bearing tailin
Slide 21: Building a World Class Surface Tailings Retreatment Business
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BUILDING A WORLD CLASS SURFACE TAILINGS RETREATMENT BUSINESS Elikhulu and Mintails production profile 140 000 Forecast 120 000 Gold production (oz) 100 000 Actual 80 000 60 000 40 000 20 000 0 2040 2044 2041 2042 2043 2022 2023 2025 2026 2028 202
Slide 22: Performance by Operation: Evander Underground
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER UNDERGROUND EVANDER 8 SHAFT • Production 11.1% to 21,307oz in H1 FY24 (H1 FY23: 19,173oz) • Tons milled 16% to 89,7Kt u/g tons milled at 7.4g/t (H1 FY23: 73,9Kt at 8.1g/t) • AISC of US$1,228/oz (H1 FY23: US$1,052/oz) – increase due to
Slide 23: Evander Gold Mine Capital Investment
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER GOLD MINE – SIGNIFICANT CAPITAL INVESTMENT FOR LONG-TERM SUSTAINABILITY Underground refrigeration plant Equipping of vent shaft at 17 Level Grout plant constructed at 8 Shaft • Phase 1 of refrigeration plant at 24 Level – commissioned • C
Slide 24: Evander Solar Plant and Water Retreatment Plant
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER GOLD MINE – SIGNIFICANT CAPITAL INVESTMENT FOR LONG-TERM SUSTAINABILITY Evander Solar Plant Water Retreatment Plant • 9.9 MW Solar renewable energy plant – commissioned in May 2022 • EGM water retreatment plant was commissioned in June 20
Slide 25: Performance by Operation: Fairview Mine
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION FAIRVIEW MINE Initiatives implemented to improve gold production • Continuous operations cycle • Gold production 17% to 22,194oz (H1 FY23: 19,041oz) • Average u/g RoM volumes from MRC and Rossiter orebodies improved to an average of 10,000tpm (
Slide 26: Barberton Mines' Smaller Underground Operations
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BARBERTON MINES’ SMALLER UNDERGROUND OPERATIONS SHEBA MINE Gold production 19% to 11,139oz (H1 FY23: 9,359oz) • Improved production is attributed to MRC orebody and three higher grade Zwartkoppie (ZK) ore blocks, as well as the South Wall adit
Slide 27: Operational Overview
1.0 Health and safety 2.0 Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3.0 ESG: Our “Beyond compliance” approach 4.0 H1 FY2024 Financials 5.0 Exploration – Republic of the Sudan 6.0 FY2024 – Focused o
Slide 28: Group AISC
GROUP AISC XXX GROUP AISC H1 FY2024 – GUIDING AISC OF US$1,325/oz – US$1,350/oz IN FY2024* Lower cost operations Evander Barberton Total lower surface Evander Mines’ cost % Group sources BTRP Elikhulu underground Fairview operations production AISC per kg 1,187,909 390,830 588,435 738,070 854,008 69
Slide 29: Group AISC: FY2024 Outlook vs Peers
US$/oz GROUP AISC 2 000 1 500 2 500 3 000 0 500 1 000 B2Gold Corp Endeavour Mining GROUP AISC OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN Perseus Mining FY 2024 – AISC OUTLOOK West African Source: Individual company websites and presentations Resources Gold Fields - Group Newmont Alamos Gold PAR - lowe
Slide 30: Group Overview
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 31: Capital Projects (ZAR)
CAPITAL PROJECTS (ZAR) XXX CAPITAL PROJECTS (ZAR) INVESTMENT IN ORGANIC GROWTH AND MTR – INCREASING OUR PRODUCTION PROFILE 3 500 3 000 2 500 2 000 ZARm 1 500 1 000 500 0 2021 2022 2023 2024 FC MTR Project 156 1 400 (US$ 76m) Elikhulu - Mostly expansion 64 168 305 270 (US$ 15m) Evander 195 430 1 088
Slide 32: ESG: Our Beyond Compliance Approach
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 33: ESG: Commitment to Sustainable Development
ESG XXX ESG: OUR “BEYOND COMPLIANCE” APPROACH OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT – WE HAVE IDENTIFIED 14 UN SDGS TOWARDS WHICH WE CAN HAVE THE MOST MEANINGFUL IMPACT Equity, debt and surplus cash from our operating activities FINANCIAL CAPITAL Infrastructure, orebodies and tailings retreatmen
Slide 34: ESG: Environment, Social and Governance
ESG XXX ESG: OUR “BEYOND COMPLIANCE” APPROACH GOVERNANCE ENVIRONMENT SOCIAL SOCIAL AND COMPLIANCE WATER RECYCLING STAKEHOLDER ENGAGEMENT SUSTAINABLE COMMUNITIES FULLY COMPLIANT WITH GRI REPORTING Responsible and sustainable water use • Engagement forums with communities and Barberton Blueberries far
Slide 35: H1 FY2024 Financials
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 36: Summarised Consolidated Financial Results
H1 FY2024 FINANCIALS XXX H1 FY2024 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Six months ended Six months ended Movement Salient features Units 31 December 2023 31 December 2022 % Gold produced1 oz 98,458 92,307 6.7 Gold sold oz 98,458 90,439 8.9 Revenue US$ million 193.9 156.5 23.9 US$/oz
Slide 37: Debt Composition
H1 FY2024 FINANCIALS – DEBT COMPOSITION XXX H1 FY2024 FINANCIALS DEBT COMPOSITION Renewable Energy Green Loan Facility R350 million (US$18.9 million) Mintails Debt Facility R1.3 billion* (US$70.3 million) RCF Facility R1.0 billion* (US$54.1million) DMTN Bond Issue R800 million* (US$43.2 million) GBF
Slide 38: Debt Redemptions
H1 FY2024 FINANCIALS – DEBT REDEMPTIONS XXX H1 FY2024 FINANCIALS ANTICIPATED DRAW DOWN AND CONTRACTUAL DEBT REDEMPTION PROFILES Debt redemption profile ZAR 4 000 000 000 (US$186.5 million*) (ZAR3.45 billion) 3 500 000 000 3 000 000 000 2 500 000 000 2 000 000 000 1 500 000 000 1 000 000 000 500 000
Slide 39: Dividends and Shareholder Returns
H1 FY2024 FINANCIALS - DIVIDENDS AND RETURNS XXX H1 FY2024 FINANCIALS DIVIDENDS AND SHAREHOLDER RETURNS Historic dividend yield – record of returning cash to shareholders 7% 6.3% 5.9% 6% 5.6% 5.3% 5.1% 5.0% 5% 4.6% 4% 3.8% 3% 2% 1.2% 1% 0.0% 0% June 14 June 15 June 16 June 17 June 18* June 19 June 2
Slide 40: Exploration – Republic of the Sudan
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 41: Exploration – Republic of the Sudan
EXPLORATION – REPUBLIC OF THE SUDAN XXX EXPLORATION – REPUBLIC OF THE SUDAN WHY SUDAN? PROGRESS IN FY2024 Third largest gold producer in Africa (after Ghana and SA) and Exploration activities resumed in Q1 FY24, following a detailed 10th in the world (2021) risk assessment of the in-country operatin
Slide 42: Focused on Execution
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 43: FY2024: Focused on Execution
FY2024 – FOCUSED ON EXECUTION XXX FY2024: FOCUSED ON EXECUTION KEY DELIVERABLES INCLUDE • Continue with focus on health and safety initiatives in our proactive journey to ‘zero harm’ • Monitor the Group’s optimisation and improvement initiatives intended to increase production and reduce costs • Suc
Slide 44: Thank you
XXX Thank you Contact: Hethen Hira, Head of investor relations Email: Hhira@paf.co.za www.panafricanresources.com OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 44
Slide 45: Appendix
1. Health and safety 2. Group overview 2.1 Our operating environment 2.2 H1 FY2024 – Key features 2.3 Performance by operation 2.4 Group AISC 2.5 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1 FY2024 Financials 5. Exploration – Republic of the Sudan 6. FY2024 – Focused on exec
Slide 46: Company Snapshot
APPENDIX XXX COMPANY SNAPSHOT Corporate Information Board and Executives CORPORATE OFFICE COMPANY SECRETARY KEITH SPENCER As at 2 February, 2024 The Firs Building Jane Kirton • Chairman JSE (PAN) ZAR434cps 2nd Floor, Office 204 St James’s Corporate Services Limited • Appointed: 8 October 2007 AIM (P
Slide 47: Reserves and Resources
APPENDIX XXX RESERVES AND RESOURCES GROWTH PORTFOLIO – ROBUST PROJECT PIPELINE Tonnes Grade Gold Gold Gold Mineral Resources* Mt g/t t Moz Barberton hard rock 24.5 4.2 102.1 3.3 BTRP 22.3 1.2 26.0 0.8 Evander underground 111.1 9.1 1 009.0 32.4 Elikhulu 163.4 0.3 44.2 1.4 Elikhulu 259.8 0.3 78.5 2.5
Pan African Resources — H1 FY2024 Earnings Presentation on 6ix