Pan African Resources Plc · LSE:PAF
Pan African Resources — Investor Presentation (March 2015)
34 slides from Pan African Resources's investor presentation, March 2015
Slide 1: Corporate Presentation March 2015
Corporate Presentation March 2015
Slide 2: Disclaimer
DISCLAIMER This presentation is provided on a confidential basis. 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
Slide 3: Company Overview
° oa COMPANY, OVERVIEW
Slide 4: Company Overview
COMPANY OVERVIEW • South African mid-tier gold miner - Quality assets producing approximately 215,000oz of Au per annum - Fully transitioned from explorer to producer • Dual listed on London’s AIM market and JSE in Johannesburg - Market capitalisation of US$350m - Diversified shareholder base, major
Slide 5: Recent Company History
RECENT COMPANY HISTORY Exploration Acquired the remaining Commissioned Phase 26% of Barberton Mines Barberton from Shanduka in Tailings exchange of 295.7mil Retreatment shares in the company Plant Acquired 74% of Commissioned Barberton Mines Evander Tailings Admitted to from Metorex Retreatment AIM
Slide 6: Group Results and Strategic Overview
GROUP RESULTS AND STRATEGIC OVERVIEW GROUP PRODUCTION GOLD OPERATIONS 2014 2013 Total tonnes milled (Underground and Surface) (t) 948,149 512,869 Total tonnes processed (Tailings) (t) 815,736 - Recovered grade (Underground and Surface) (g/t) 5.4 7.9 Recovered grade (Tailings) (g/t) 0.9 - Gold sold (
Slide 7: Underground Resources and Reserves
UNDERGROUND RESOURCES AND RESERVES Resources and reserves(1) Moz Barberton Mines Evander Mines Phoenix Platinum Total Measured 0.8 1.3 0.1 2.2 Indicated 1.0 17.2 0.4 18.6 Inferred 1.1 9.4 0.1 10.6 Total Resources by 2.9 27.9 0.6 31.4 mines Proved 0.4 0.5 0.1 1.0 Probable 0.8 7.3 0.4 8.5 Total Reserv
Slide 8: Resource and Reserve Valuation Comparables
RESOURCE AND RESERVE VALUATION COMPARIBLES Bubble size represents size of the EV / LTM production 350.0x Regis Resources 300.0x Yamana 250.0x Beadell EV / Reserves 200.0x Evolution Goldcorp Barrick Gold Panaust 150.0x Anglo African 100.0x Barrick Kinross Newcrest Gold1 50.0x Pan African Resources Ne
Slide 9: Gold Production Graph
GOLD PRODUCTION GRAPH oz 200,000 188,179 160,000 130,493 120,000 92,043 94,449 80,000 40,000 0 2011 2012 2013 2014 9
Slide 10: Cash Cost Graph
CASH COST GRAPH USD/t 1,000 897 815 800 781 776 600 400 200 0 2011 2012 2013 2014 10
Slide 11: Financial Summary: Group Results
FINANCIAL SUMMARY: GROUP RESULTS COSTS AS DEFINED BY WORLD GOLD COUNCIL (USD/oz) 1,800 1,500 1,200 USD/oz 900 600 300 0 2011 2012 2013 2014 11
Slide 12: Attractive Dividend Yield
ATTRACTIVE DIVIDEND YIELD Dividend Yield 10.0% 8.0% 6.7% 6.0% 4.1% 4.0% 2.0% 0.9% 1.1% 0.8% 0.0% Pan African DRD Gold African Barrick Sibanye Goldfields Resources Source: FactSet, Bloomberg (data as at 20 March 2015) 12
Slide 13: Major Capital Projects - Analysis
MAJOR CAPITAL PROJECTS - ANALYSIS Project Investment Payback / Result Capital Phoenix CTRP ZAR308.9 Challenges initially, now million* generating positive cash flows BTRP ZAR325.7 million Forecasting between 18-24 months * Processed ZAR125 million impairment for Phoenix during FY2013 ETRP ZAR200 mil
Slide 14: Operating Assets
OPERATING ASSETS
Slide 15: Overview of Operating Assets
OVERVIEW OF OPERATING ASSETS 1 Barberton is a low cost, high grade, greenstone belt producing Pan African operation which has contributed Resources is significantly to PAR’s successful an track record. Barberton mines unhedged produce c.95,000oz Au and junior gold Barberton Tailings Retreatment prod
Slide 16: Overview of Barberton Mines
OVERVIEW OF BARBERTON MINES 16
Slide 17: Overview of Barberton Mines
OVERVIEW OF BARBERTON MINES • Barberton Mines is located c.370km east of Johannesburg and 47 km south-east of Nelspruit, South Africa • Barberton Mines comprises the following assets: - Fairview Mine: Has a total mining area of 3,034 Ha - New Consort Mine: Has total mining area of 2,521 Ha - Sheba M
Slide 18: Overview of Barberton Mines
OVERVIEW OF BARBERTON MINES • Production statistics One of the lowest Koz cost of production and highest grade120.0 112 92 94 96 mines in South Africa 80.0 40.0 0.0 2011 2012 2013 2014 Total cash costs USD/oz 1,000.0 781 815 776 740 750.0 500.0 250.0 3% 4% 12% 0.0 2014 2011 2012 2013 2014 ZAR734.4 m
Slide 19: Overview of Barberton Mines
OVERVIEW OF BARBERTON MINES Borehole Drill Width Grade Mine Mineralisation Type Number (cm) (g/t) BH 5911 1533 49,54 Defining the depth extent of high-grade 11 block Fairview BH5913 107 64,40 Probing strike extent of high-grade 11 block BH5927 109 64,55 Intersection on recently defined new anticline
Slide 20: Overview of Evander Mines
AA WG, PAN AFRICAN Nrsouncts OVERVIEW OF EVANDER MINES LH) VS m wis Ni APRA aN . NAN l RAY. re eS TAN ™“ SS ASWISS b
Slide 21: Overview of Evander Mines
OVERVIEW OF EVANDER MINES • Evander was first developed in 1955 by The Union Corporation and consisted of 8 independent shafts • Currently only No. 7 Shaft and No. 8 Shaft are operational, with the rest on care and maintenance • Located approximately 120km south-east of Johannesburg in Mpumalanga •
Slide 22: Overview of Evander Mines
Estimated proven and probable reserves of OVERVIEW OF EVANDER MINES 7.8Moz (grade at 8.3g/t ) Poplar Project Rolspruit Project Evander 8 Shaft Poplar Project E8 Extension E7 Taung Gold E6 E5 Evander South Project E1 E9 Shafts E10 Operational Shafts Mined-out Areas E2 Mineral Resources E3 Measured In
Slide 23: Overview of Evander Mines
Estimated proven and probable reserves of OVERVIEW OF EVANDER MINES 1.4Moz (grade at 7.66g/t ) Evander 8 Shaft Geology Location 5 km north-west of the town of • Orebody: Kimberly Reef Evander • Contains in-situ grades of Resources (Moz) 8.4 up to c.12g/t – 18g/t Grade (g/t) 11.49 • Depth: 2,100m to
Slide 24: Evander Shaft - grade & waste tonnage profile
OVERVIEW OF EVANDER MINES Evander 8 Shaft - grade & waste tonnage profile 16 30000 14 25000 12 20000 Grade (g/t) 10 Waste tonnes 8 15000 6 10000 4 5000 2 0 0 June Dec June 2014 2014 2015 Waste tonnes Face Grade (g/t) Ave.Mining Grade (g/t) 24
Slide 25: Overview of Phoenix Platinum
OVERVIEW OF PHOENIX PLATINUM 25
Slide 26: Overview of Phoenix Platinum
OVERVIEW OF PHOENIX PLATINUM Operation name Phoenix Platinum Parent and ownership Pan African Resources PLC (100% attributable) percentage Holding company Phoenix Platinum (Pty) Ltd (South African incorporated) Country of operation South Africa Provincial jurisdiction North West Number of employees
Slide 27: Growth Projects
GROWTH PROJECTS
Slide 28: Significant Growth Potential – Strong Project Pipeline
SIGNIFICANT GROWTH POTENTIAL – STRONG PROJECT PIPELINE TO SUPPLEMENT PRODUCING ASSETS Retreatment projects Operating / Virgin ore Barberton Gold projects Phoenix Mining operations4 Operating Mine / Plant Platinum CTRP1 Evander 8 Shaft3 BTRP2 ETRP3 Under construction No 3 Decline3 Feasibility Rolspru
Slide 29: Expansion Opportunities: ETRP and EGT Project
Estimated proven and probable reserves of EXPANSION OPPORTUNITIES: ETRP (1) 0.4Moz (grade at 0.32g/t ) Estimated proven and probable reserves of EXPANSION OPPORTUNITIES: EGT PROJECT (2) 1.9Moz (grade at 0.29g/t ) Overview ETRP Asset specifics • Surface tailings retreatment Annual tonnes 2.4Mt milled
Slide 30: Expansion Opportunities: Evander South
Estimated proven and probable reserves of EXPANSION OPPORTUNITIES: EVANDER SOUTH 5.2Moz (grade at 7.66g/t ) Evander South Project Geology Location South-western limb of the • Orebody: Kimberly Reef Evander Basin • In-situ grade: 6-8g/t Resources 5,2 • Surface boreholes drilled: (Moz) Evander south 1
Slide 31: Expansion Opportunities: Poplar
Estimated proven and probable reserves of EXPANSION OPPORTUNITIES: POPLAR 5.4Moz (grade at 7.4g/t ) Poplar project Geology Location North-western limb of the • Orebody: Kimberly Reef Evander Basin • In-situ grade: 7 - 10g/t Poplar project Resources (Moz) 6.3 • Surface boreholes drilled: 104 Grade g/
Slide 32: Expansion Opportunities: Rolspruit
Estimated proven and probable reserves of EXPANSION OPPORTUNITIES: ROLSPRUIT 8.9Moz (grade at 10.86g/t ) Rolspruit project Geology Location Adjacent to Evander 8 • Orebody: Kimberly Reef Shaft • In-situ grades of c.10g/t – Rolspruit project Resources (Moz) 8.9 12g/t Grade (g/t) 10.86 • Down-dip exte
Slide 33: Investment Case
PAN AFRICAN RESOURCES PLC INVESTMENT CASE
Slide 34: Our Investment Case
OUR INVESTMENT CASE • Proven business model and track record ̶ Culture of delivery – Barberton’s BTRP and Evander ETRP ̶ Quality assets delivering good returns ̶ People focused, limited overheads and no unnecessary “red tape” • Clear understanding of what drives the value of our business ‒ “Do the r
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