Pan African Resources Plc · LSE:PAF

Pan African Resources — Virtual OTC Conference 2021

41 slides from Pan African Resources's conference presentation, Jun 17, 2021

  1. Slide 1: Top 10 Company Investor Presentation

    TOP 10 COMPANY INVESTOR PRESENTATION June 2021 OTCQX: PAFRY/PAFRF

  2. Slide 2: Disclaimer

    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 and

  3. Slide 3: Forward Looking Statements

    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 are n

  4. Slide 4: Overview of Presentation

    OVERVIEW OF PRESENTATION Overview of our operations Highlights Operational performance by asset H1 FY2021 financials Evander 8 Shaft 24 Level project Mintails transaction Evander Solar PV plant FY2021 – Delivery on track Appendix 4

  5. Slide 5: Overview of Our Operations

    PAN AFRICAN © RESOURCES OVERVIEW OF OUR OPERATIONS

  6. Slide 6: A unique combination of underground mining and surface remining

    OVERVIEW OF OUR OPERATIONS A UNIQUE COMBINATION OF UNDERGROUND MINING AND SURFACE REMINING – WITH INCREASING PRODUCTION PROFILE Mintails SA PAR Group gold production profile 179 457oz c. 195 00oz c. 195.000oz 200 000 150 000 Ounces 100 000 50 000 0 2018 2019 2020 2021 2022 Actual Projected Barberton

  7. Slide 7: Operating in South Africa

    OVERVIEW OF OUR OPERATIONS Operating in South Africa Electricity Mining tenure Security Stakeholder engagement ESG • Reduced instances of • Evander mining rights • Integrated multi- • Multi-facetted • Increased focus on supply disruptions, valid until 2038 faceted security engagements with all rehab

  8. Slide 8: Overview of Our Operations – Key Features

    OVERVIEW OF OUR OPERATIONS – KEY FEATURES COSTS AND PRODUCTION BASED ON LATEST H1 FY21 INTERIM RESULTS ELIKHULU BTRP BARBERTON MINES EVANDER 8 SHAFT PILLAR Underground • This US$120million tailings • Designed to treat 100,000 • Improved mining flexibility and • Limited capital outlay retreatment pla

  9. Slide 9: Highlights

    HIGHLIGHTS “Our reprioritised capital expenditure approach will extend the life of Evander 8 Shaft and reduce our reliance on debt funding for Egoli’s development, enabling the Group to maximise the value of our assets and also returns to our shareholders.”

  10. Slide 10: Highlights: Operational and Growth Projects Update

    HIGHLIGHTS OPERATIONAL AND GROWTH PROJECTS UPDATE • Production guidance increased to ca.195,000oz for FY2021 ( 5,000oz) • To remain at similar production level for FY2022 • Safety and COVID-19 • SA mining industry leading safety record • Strict procedures and protocols in place, ongoing monitoring

  11. Slide 11: Operational Performance by Asset

    OPERATIONAL PERFORMANCE BY ASSET

  12. Slide 12: Tailings Operations: Elikhulu

    OPERATIONAL PERFORMANCE BY ASSET TAILINGS OPERATIONS ELIKHULU Elikhulu LOM production profile Ounces production per year • Production 8.3%  to 26,863oz (2019: 29,301oz) - AISC of 80 000 70 000 Actual Forecast US$737/oz (2019: US$708/oz) 60 000 • Lower recoveries and constrained plant throughput to

  13. Slide 13: Tailings Operations: BTRP

    OPERATIONAL PERFORMANCE BY ASSET TAILINGS OPERATIONS BTRP BTRP LOM production profile • Production stable at 10,004oz (2019: 10,619oz) - AISC of 30 000 US$864/oz (2019: US$643/oz) 25 000 • LOM of 9 years – 2-3 years at current resources, additional feed 20 000 Ounces sources planned from Royal Sheba

  14. Slide 14: Barberton Underground

    OPERATIONAL PERFORMANCE BY ASSET BARBERTON UNDERGROUND FAIRVIEW MINE • Improved mining flexibility – combined high- grade face lengths available for mining cycles are in excess of 120m, with mining widths exceeding 15m • Increased mineral reserve delineation drilling has improved geological models a

  15. Slide 15: Fairview Mine – Development on High Grade Platforms

    OPERATIONAL PERFORMANCE BY ASSET FAIRVIEW MINE – EXCELLENT PROGRESS WITH DEVELOPMENT ON HIGH GRADE PLATFORMS 358 Platform Current footprint = 680 m² 257 Platform Average grade @14.74g/t gold Current footprint = 514 m² Average grade @35.76g/t gold Original footprint = 327 m² Average grade @ 17.28g/t

  16. Slide 16: Barberton Underground: Consort Mine

    OPERATIONAL PERFORMANCE BY ASSET BARBERTON UNDERGROUND CONSORT MINE • Successful extraction of high-grade section at New Consort’s Prince Consort (PC) Shaft 42 Level – Proved Reserve of 5,000 tonnes at average grade of 25g/t • New Consort outperformed gold production targets by more than 34% (or 3,0

  17. Slide 17: Evander Shaft Pillar

    OPERATIONAL PERFORMANCE BY ASSET EVANDER 8 SHAFT PILLAR • Shaft tower construction between 14 and 16 Levels completed • Teething issues with underground support pseudo- packs now resolved, following delays due to COVID-19 – now changed to dry tailings and fly ash • Production delays due to fracturin

  18. Slide 18: Evander 8 Shaft – Pillar Extraction

    EVANDER 8 SHAFT – PILLAR EXTRACTION IMPROVEMENTS COMPLETED AT 8 SHAFT CURRENT STATUS AND PRODUCTION PROFILE To date, includes: Evander 8 Shaft Life of Mine • Grout plant commissioned, together with the use of dry 4 500 Production 18 tailings trucked from the slimes dam 4 000 16 • Main beam installed

  19. Slide 19: Further Reducing Group AISC

    FURTHER REDUCING GROUP AISC H1 FY2021 Lower cost operations Total lower Barberton Mines cost % PAR Group underground* BTRP Elikhulu operations Production AISC per kg (ZAR/kg) 656,633 451,700 385,214 538,715 80% AISC per oz ( US$/oz) 1,256 864 737 1,030 Higher cost operations Total higher Evander cos

  20. Slide 20: FY2021 AISC Outlook

    US$/oz 200 600 0 400 800 1000 1200 1400 1600 B2Gold Corp Evolution Mining Kirkland Lake Gold FY 2021 AISC OUTLOOK Centerra Gold Newcrest Mining Source: S&P Global, Individual company websites and presentations Endeavour Mining Northern Star Kinross Gold Fields AngloGold Ashanti FURTHER REDUCING GROU

  21. Slide 21: Group Capital Expenditure (ZAR)

    GROUP CAPITAL EXPENDITURE (ZAR) 2 000 1 800 1 600 1 400 1 200 1 000 ZARm 800 600 400 200 0 2017 2018 2019 2020 2021 FC Egoli 70 Elikhulu 1 256,1 534,6 8,6 80 Evander 262,0 342,4 38,1 328,3 90 BML Expansion 77,9 99,4 89,3 110,3 200 BML Sustaining 116,5 111,0 140,0 186,6 250 Includes 9A block explorat

  22. Slide 22: H1 FY2021 Financials

    PAN AFRICAN © RESOURCES H1 FY2021 FINANCIALS

  23. Slide 23: Summarised Consolidated Financial Results

    H1 FY2021 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Period ended Period ended 31 December 31 December Salient features Units 2020 2019 Movement Gold produced (oz) 98,386 92,941 5.9% Gold sold (Note 1) (oz) 98,386 90,602 8.6% Revenue (US$ million) 183.8 132.8 38.4% Average gold price recei

  24. Slide 24: Senior Debt Contractual Repayment Profile

    H1 FY2021 FINANCIALS HISTORICAL/EXISTING SENIOR DEBT CONTRACTUAL REPAYMENT PROFILE 130 000 120 000 110 000 100 000 90 000 80 000 US$ ‘000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 - Actual / Forecasted Repayment Profile Senior Debt Principal repayment profile Solar Plant Existing senior debt

  25. Slide 25: Historic Dividend Yield and Dividend for FY2020

    FY2020 FINANCIALS HISTORIC DIVIDEND YIELD AND DIVIDEND FOR FY2020 7% 6,3% 6% 5,6% 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# * Dividend suspended due to cessation of large-scale deep level underground mining at Evander 8 Shaft and constructio

  26. Slide 26: Ratio of Net Debt to Net Adjusted EBITDA

    H1 FY2021 FINANCIALS RATIO OF NET DEBT TO NET ADJUSTED EBITDA* 3,5 3,2 3,0 2,5 2,3 2,0 1,6 1,5 1,0 0,5 0,5 0,5 0,0 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 *Net adjusted EBITDA is represented by earnings before interest, taxes, mining depreciation, and amortisation, impairment reversal and fair value gain

  27. Slide 27: Evander 8 Shaft – 24 Level Project Investment Case and Egoli Phase-in

    EVANDER 8 SHAFT – 24 LEVEL PROJECT INVESTMENT CASE AND EGOLI PHASE-IN

  28. Slide 28: Evander 8 Shaft - 24 Level Project Investment Case

    EVANDER 8 SHAFT - 24 LEVEL PROJECT INVESTMENT CASE EVANDER MINE 8 SHAFT PILLAR AND 24 LEVEL LIFE OF MINE Evander 8 Shaft + 24 level Life of Mine • Internal study into the extensive gold resources at the 24 Level at Evander’s Underground operations Production 5 000 18 completed 4 500 16 • 101,523oz r

  29. Slide 29: 24 Level Project and Egoli Phase-in

    EVANDER 8 SHAFT - 24 LEVEL PROJECT AND EGOLI PHASE-IN EGOLI PROJECT PHASED APPROACH EVANDER COMBINED PRODUCTION FORECAST PAR reprioritized capital programme following: • Increased peak funding requirement at Egoli of R1,787m (Feb 2021 update study) • Recent sustained lower ZAR/kg gold price Pillar +

  30. Slide 30: Mintails Transaction

    PAN AFRICAN © RESOURCES MINTAILS TRANSACTION

  31. Slide 31: Mintails Transaction: Fatal Flaw Analysis and Concept Study

    MINTAILS TRANSACTION FATAL FLAW ANALYSIS AND CONCEPT STUDY-MOGALE ASSETS RESULTS • Independent analysis by DRA Global commenced in Jan 2021 – no fatal flaws • Optimal throughput feed of 800,000 tpm and recoveries of ca.53% CONCEPT STUDY KEY FINANCIAL INPUTS • Gold price – US$1,770/oz • NPV – ZAR1,46

  32. Slide 32: Evander Solar PV Plant

    PAN AFRICAN © RESOURCES EVANDER SOLAR PV PLANT

  33. Slide 33: Next Steps for Project Implementation

    NEXT STEPS FOR PROJECT IMPLEMENTATION CURRENT STATUS TIMELINE TO COMMISSIONING • Project fully developed in terms of permitting • Construction to be completed in early October 2021 • NERSA Generation license to be issued in August 2021 • PAR is working closely with Eskom to explore connection • juwi

  34. Slide 34: FY2021 Delivery on Track

    PAN AFRICAN © RESOURCES FY2021 DELIVERY ON TRACK

  35. Slide 35: FY2021 – Delivery on Track

    FY2021 – DELIVERY ON TRACK KEY DELIVERABLES • Continue to manage the impact of COVID-19 Responsible • Proactive journey to ‘zero harm’ and Safe Mining • Deliver (and potentially exceed) production guidance of 195,000oz • Extend LoM at Evander 8 Shaft through 24 Level project Results and Sustainable

  36. Slide 36: Thank You

    THANK YOU CONTACT US Hethen Hira Head: Investor Relations JSE:PAN hhira@paf.co.za AIM:PAF +27 11 243 2900 WWW.PANAFRICANRESOURCES.COM ADR:PAFRY

  37. Slide 37: Appendix

    PAN AFRICAN © RESOURCES APPENDIX

  38. Slide 38: Corporate Overview: Share Price and Market Capitalisation

    CORPORATE OVERVIEW SHARE PRICE AND MARKET CAPITALISATION PAF SHARE PRICE PERFORMANCE VS RELEVANT GLOBAL INDICES (PAST 12 MONTHS) AS AT 21 MAY 2021 • JSE (PAN) ZAR388cps • AIM (PAF) GBP20,1p • 12 month change +27% • ADR (PAFRY) 20:1 US$5,50 • Market Capitalisation US$622m • Shares Outstanding 2,235m

  39. Slide 39: ESG

    ESG ONGOING REHABILITATION, BIODIVERSITY AND SUSTAINABLE DEVELOPMENT INITIATIVES ENVIRONMENT ENVIRONMENT SOCIAL SOCIAL Renewable energy: Biodiversity management Socio-economic development Barberton Blueberries agri-project Elikhulu 9,975MW solar PV plant • Reduced carbon footprint – will save • Coll

  40. Slide 40: Board and Executives

    CORPORATE OVERVIEW BOARD AND EXECUTIVES Keith Spencer Cobus Loots Deon Louw Chairman Chief executive officer Financial director Appointed: 8 October 2007 Appointed: 26 August 2009 Appointed: 1 March 2015 Experience Experience Experience Technical and operational Technical and operational Finance and

  41. Slide 41: Reserves and Resources

    RESERVES AND RESOURCES GROWTH PORTFOLIO – ROBUST PROJECT PIPELINE Tonnes Grade Gold Gold Tonnes Grade Gold Gold Gold Mineral Resources Mt g/t t Moz Gold Mineral Reserves Mt g/t t Moz Barberton hard rock 24.4 4.8 117.0 3.8 Barberton hard rock 15.5 3.3 51.7 1.7 BTRP 21.0 1.3 26.4 0.8 BTRP 9.1 1.7 15.4

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