Pan African Resources Plc · LSE:PAF
Pan African Resources — BMO Capital Markets Global Metals and Mining Conference 2022
31 slides from Pan African Resources's conference presentation, Mar 1, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION Cobus Loots, CEO
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 H1 FY 2022 : Highlights Overview of our operations Operating successfully in South Africa Further reducing Group AISC ESG : Our “Beyond compliance” approach H1 FY 2022 financials : Net debt to equity and record dividends Near term organic growth : Evand
Slide 5: Health and Safety
au: HEALTH AND SAFETY
Slide 6: Health and Safety
HEALTH XXX AND SAFETY HEALTH AND SAFETY COVID-19 IMPACT AND MITIGATION SAFETY PERFORMANCE Pan African COVID-19 dashboard as at 31 January 2022 % % 6 Positive Active Deceased Hospital Vaccination Recovery 4,62 5 4,05 Group 454 1 4 0 81 99 4 3,60 3 2,68 1,77 1,69 1,64 2 0,85 0,98 1 0,62 0,53 0,65 0,28
Slide 7: H1 FY2022 – Highlights
H1 FY2022 – HIGHLIGHTS 7
Slide 8: Group Key Performance Highlights vs H1 FY2021
H1 XXX- FY2022 – HIGHLIGHTS GROUP KEY PERFORMANCE HIGHLIGHTS VS H1 – FY2021 EXCELLENT OPERATIONAL AND FINANCIAL PERFORMANCE PRODUCTION PERFORMANCE • Group gold production 9.9% to 108,085oz • Evander Mines u/g production 116.6% to 27,312oz • Production guidance increased to approximately 200,000o
Slide 9: Group Key Performance Highlights vs H1 FY2021
H1 XXX- FY2022 – HIGHLIGHTS GROUP KEY PERFORMANCE HIGHLIGHTS VS H1 – FY2021 EXCELLENT OPERATIONAL AND FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE • Revenue 5.3% to US$193.6m • Net cash generated by operating activities 54.4% to US$43.4m • Profit after tax 13% to US$46.1m • Net debt 56.7% to U
Slide 10: Overview of Our Operations
OVERVIEW OF OUR OPERATIONS 10
Slide 11: Operating Successfully in South Africa
OVERVIEW XXX OF OUR OPERATIONS OVERVIEW OF OUR OPERATIONS OPERATING SUCCESSFULLY IN SOUTH AFRICA ELECTRICITY AND TECHNICAL SUPPORT MINING TENURE AND REGULATORY FRAMEWORK • DMRE lifted private generation licensing threshold • Renewal of Barberton Mines’ mining rights granted for to 100MW, which will
Slide 12: Underground Mining and Surface Remining Production Profile
OVERVIEW XXX OF OUR OPERATIONS OVERVIEW OF OUR OPERATIONS A UNIQUE COMBINATION OF UNDERGROUND MINING AND SURFACE REMINING – WITH INCREASING PRODUCTION PROFILE PAR Group gold production profile# 250 000 * c.215,000oz * c.220,000oz c.200,000oz 200 000 150 000 100 000 50 000 0 2018 2019 2020 2021 2022
Slide 13: Overview of Our Operations – Key Features
OVERVIEW XXX OF OUR OPERATIONS OVERVIEW OF OUR OPERATIONS – KEY FEATURES GOLD PRODUCTION 9.9% TO 108,085OZ (H1 FY21: 98,386OZ) Turning environmental liabilities into profits Attractive margins and production growth BARBERTON MINES EVANDER ELIKHULU BTRP Underground Underground • US$120m tailings •
Slide 14: Further Reducing Group AISC
FURTHER REDUCING GROUP AISC 14
Slide 15: Targeting AISC Below US$1,200/oz in FY2022
FURTHER XXX REDUCING GROUP AISC FURTHER REDUCING GROUP AISC TARGETING AISC BELOW US$1,200/oz IN FY2022* Lower cost operations Barberton Total lower Mines’ Evander Mines cost % Group Fairview Underground BTRP Elikhulu operations production AISC per kg (ZAR/kg) 617,748 475,196 393,691 452,872 499,910
Slide 16: H1 FY2022 AISC Outlook vs Peers
US$/oz 1 000 1 400 1 600 1 800 0 400 600 800 200 1 200 West African Res Endeavour Mining B2Gold Corp Caledonia Source: Individual company websites and presentations H1 - FY 2022 AISC OUTLOOK Perseus Mining Gold Fields Barrick PAR lower cost operations H1 FY22 Alamos Gold Newmont PAR H1 - FY22 FURTHE
Slide 17: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 17
Slide 18: ESG – Beyond Compliance Approach
ENVIRONMENTAL, SOCIAL XXX AND GOVERNANCE (ESG) ESG “BEYOND COMPLIANCE” APPROACH ENVIRONMENT: ENVIRONMENT: SOCIAL: SOCIAL: RENEWABLE ENERGY BIODIVERSITY & CONSERVATION LEAVING A LEGACY SUSTAINABLE COMMUNITIES Elikhulu 9.975MW solar PV plant Collaboration with state and conservation Socio-economic dev
Slide 19: H1 FY22 Financials
H1 FY22 FINANCIALS 19
Slide 20: Net Debt-to-Equity Ratio
H1 XXXFY2022 FINANCIALS H1 FY2022 FINANCIALS NET DEBT-TO-EQUITY RATIO 0,90 0,80 0,80 0,71 0,70 0,60 0,50 0,42 0,40 0,30 0,20 0,14 0,10 0,10 0,00 June 18 June 19 June 20 June 21 H1 FY2022 20
Slide 21: Historic Dividend Yields
H1 XXXFY2022 FINANCIALS FY2021 FINANCIALS HISTORIC DIVIDEND YIELDS 7% 6,3% 6% 5,6% 5,3% 5,1% 5,0% 5% 4% 3,8% 3% 2% 1,0% 1% 0,0% 0% June 14 June 15 June 16 June 17 June 18* June 19 June 20 June 21# * Dividend suspended due to cessation of large-scale deep level underground mining at Evander 8 Shaft a
Slide 22: Near Term Organic Growth
j NEAR TERM “| ORGANIC GROWTH
Slide 23: Evander Mines' 8 Shaft – 25 & 26 Level Extension
NEAR TERM XXX ORGANIC GROWTH NEAR TERM ORGANIC GROWTH EVANDER MINES’ 8 SHAFT – 25 & 26 LEVEL EXTENSION Description and history • Extends from the No.2 Decline 24 Level project which commenced with construction in Q1 of FY22 • No.2 Decline was first initiated in the early 1990’s to extend the shaft’s
Slide 24: Evander 8 Shaft Key Economic and Financial Metrics
NEAR TERM XXX ORGANIC GROWTH NEAR TERM ORGANIC GROWTH EVANDER MINES’ 8 SHAFT – 25 & 26 LEVEL EXTENSION Key economic and financial metrics – Internal study Evander Mines' recovered gold (oz) forecast including 24, 25, 26 Levels 100 000 Key metric Input ZAR Input USD 80 000 Recovered Gold (Oz) Gold pr
Slide 25: Royal Sheba Progress
OPERATIONAL XXX PERFORMANCE BY ASSET NEAR TERM ORGANIC GROWTH ROYAL SHEBA PROGRESS 850m strike length • A world class orogenic greenstone gold deposit Orebody • Strike extent confirmed from surface in excess 5m – 20m thickness of 850m • Mineralised width averaging 10m delineated by 786m down-dip slo
Slide 26: Royal Sheba Progress – Bulk Sample
OPERATIONAL XXX PERFORMANCE BY ASSET NEAR TERM ORGANIC GROWTH ROYAL SHEBA PROGRESS • In the last quarter of FY21 the Group initiated a 10,000 ton bulk sample project: • Utilising the existing Royal Sheba adit on surface • Access to the ore body is achieved by a trackless decline system • The bulk sa
Slide 27: Further Opportunities in Tailings Retreatment
FURTHER OPPORTUNITIES IN TAILINGS RETREATMENT 27
Slide 28: Tailings Retreatment Acquisitions – Mintails and Blyvoor
TAILINGS RETREATMENT ACQUISITIONS - FURTHER TAILINGS XXX OPPORTUNITIES GROWTH OPPORTUNITIES MINTAILS AND BLYVOOR ACQUISITIONS Mintails current status Blyvoor current status • Currently finalising a DFS - scheduled for completion in Q1 of the 2022 • The Group has engaged independent consultants to co
Slide 29: FY2022 Delivery on Track
FY2022 DELIVERY ON TRACK 29
Slide 30: Key Deliverables
FY2022 XXX DELIVERY ON TRACK KEY DELIVERABLES FY2022 – DELIVERY ON TRACK • Continue to manage the impact of COVID-19 • Proactive journey to ‘zero harm’ • Deliver annual production guidance of approximately 200,000oz • Successfully execute into capital projects to sustain and increase gold production
Slide 31: Share Price and Market Capitalisation
APPENDIX XXX SHARE PRICE AND MARKET CAPITALISATION As at 8 September 2021 CORPORATE INFORMATION • JSE (PAN) ZAR400cps CORPORATE OFFICE HEAD INVESTOR RELATIONS • AIM (PAF) GBP19,5p The Firs Building Hethen Hira • ADR (PAFRY) 20:1 US$5,08 2nd Floor, Office 204 Pan African Resources PLC Corner Cradock
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