Pan African Resources Plc · LSE:PAF
Pan African Resources — H1 2025 Earnings Presentation
48 slides from Pan African Resources's earnings presentation, Feb 12, 2025
Slide 1: H1FY2025 Interim Results Presentation
H1FY2025 INTERIM RESULTS PRESENTATION OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN for the six months ended 31 December 2024
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 H1FY2025 – Key features Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach H1FY2025 Financials FY2025 – Focused on delivery Appendix OTCQX: PAFRF/PAFRY | AIM: PAF | J
Slide 5: Health and Safety
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials HEALTH AND SAFETY 5. 6. FY2025 – Focused on delivery
Slide 6: Health and Safety: Group Safety Performance
HEALTH AND SAFETY XXX HEALTH AND SAFETY GROUP SAFETY PERFORMANCE Overall improvement in the Group’s safety statistics in H1FY2025 Fatality-free milestones • Ongoing reinforcement of safety initiatives across all operations • 1,8 million fatality-free hours worked during the MTR construction phase •
Slide 7: Group Overview: Our Assets
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery OUR AS
Slide 8: Group Overview: A Unique Combination of Underground and Surface Mining Operations
OUR ASSETS XXX GROUP OVERVIEW A UNIQUE COMBINATION OF UNDERGROUND AND SURFACE MINING OPERATIONS GROUP OPERATIONS TCMG Acquisition of Tenant Consolidated Mining Group (TCMG) South Africa Australia Further near-term, low-cost production growth OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanres
Slide 9: Group Overview: H1FY2025 Gold Production
OUR ASSETS XXX GROUP OVERVIEW H1FY2025 GOLD PRODUCTION 3.3% TO 84,705oz (H2FY2024: 87,581oz) ON TRACK FOR ~215,000oz FOR FY2025 300 000 ~270,000oz- 308,000oz* ~205,000- 250 000 215,000 48-60Kozz 201,8Koz 205,7Koz 7-10Koz AISC $1261/oz AISC $1259/oz 175,2Koz 186,0Koz AISC $1,700/oz AISC $1309/oz AI
Slide 10: Repositioning Group for Increased Low-Cost Surface Source Production
OUR ASSETS XXX GROUP OVERVIEW REPOSITIONING GROUP FOR INCREASED LOW-COST SURFACE SOURCE PRODUCTION 35% 60% SURFACE 65% 40% U/G TCMG - Australia Evander Mines Ann Prod: 48-60koz Increasing production portfolio from Ann Prod: 48-55koz AISC: ~US$1,700/oz (Yr1) (LoM US$1,300/oz) AISC: US$1,600/oz LO
Slide 11: Our Operating Environment
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery OUR OP
Slide 12: 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 sites – • Multi-facetted engagements
Slide 13: H1FY2025 – Key Features
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery H1FY20
Slide 14: H1FY2025 Key Features: Operational and Financial Performance
H1FY2025 KEY FEATURES XXX H1FY2025 KEY FEATURES OPERATIONAL AND FINANCIAL PERFORMANCE PRODUCTION PERFORMANCE COST PERFORMANCE FINANCIAL PERFORMANCE Group gold production of 84,705oz 3.3% Group AISC 29% to US$1,675/oz Challenging performance in H1FY25 • Evander underground impacted by delays in (
Slide 15: Gold Price Received and Margins
H1FY2025 KEY FEATURES XXX GOLD PRICE RECEIVED AND MARGINS PROFITABILITY DRIVEN BY ZAR/KG GOLD PRICE AND COMPETITIVE UNIT COSTS PROFITABILITY GAP WIDENING AS ANNUAL PRODUCTION RAMPS UP TO ~300KOZ in FY2026 Gold price received vs AISC 1 800 000 • Well positioned to capitalise on increasing gap between
Slide 16: Surface Operations
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery SURFAC
Slide 17: Tailings Operations – Elikhulu
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – ELIKHULU • Production in line with mine plan at 25,725oz (H2FY2024: 26,706oz) • Consistent head grade of > 0.3g/t • Overall metallurgical recoveries of > 31% • AISC of US$1,124/oz (FY2024: US$1,034/oz) – one of the lowest co
Slide 18: Tailings Operations – BTRP and Sheba Fault
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – BTRP AND SHEBA FAULT • Production in line with the mine plan at 7,544oz (H2FY2024: 9,024oz) BTRP life-of-mine plan – new surface sources • Lowest cost of production in the Group 40 000 • AISC of US$958/oz (H2FY2024: US$700/o
Slide 19: Mogale Tailings Retreatment (MTR)
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MOGALE TAILINGS RETREATMENT (MTR) • Successful launch in October 2024, ahead of schedule and US$8m below budget • Payback expected within 2 years post commissioning at current gold prices • Produced 8,743oz in H1FY2025 (FY2024: 0oz) • Full ramp u
Slide 20: Soweto Cluster TSFs
PERFORMANCE BY OPERATION XXX MOGALE TAILINGS RETREATMENT (MTR) SOWETO CLUSTER TSFS PFS completed on the Mintails SA Soweto Cluster TSFs in 2024 • Further upside – potential to increase production to ~60koz/yr over 21-year LOM with MTR plant expansion to treat 1Mtpm from year 6 • Total additional cap
Slide 21: Mogale Socio-Economic Development and Environmental 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 Wits Basin • Production of over 2,000 tons of gold and 240 Mt of low-grade gold-bearing tailings material i
Slide 22: Building a World Class Surface Tailings Retreatment Business
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BUILDING A WORLD CLASS SURFACE TAILINGS RETREATMENT BUSINESS Established track record in bringing tailings retreatment projects to account 2013 2015 2018 2023 2025 Operation BTRP ETRP Elikhulu MTR TCMG Capacity 100,000tpm 200,000tpm 1,2Mtpm 0,8-1
Slide 23: TCMG Acquisition
Acknowledgment of Country Pan African and Tennant Mining respectfully acknowledges the Traditional Owners, the Warumungu and Warlmanpa people, of the country on which we work. We recognise and respect their continuing connection to land, culture, and community and pay respect to their elders, past,
Slide 24: Acquisition of TCMG
PERFORMANCE BY OPERATION XXX ACQUISITION OF TCMG UNLOCKING AUSTRALIA’S HISTORICALLY HIGHEST-GRADE MINERAL FIELD TRANSACTION HIGHLIGHTS STRATEGIC RATIONALE KEY PROJECTS • Total acquisition cost of US$54.2m, settled • Complements current PAR portfolio of high- through issue of PAR shares margin, long-
Slide 25: Acquisition of TCMG – Key Projects
PERFORMANCE BY OPERATION XXX ACQUISITION OF TCMG – KEY PROJECTS NEAR-TERM PRODUCTION POTENTIAL Organic growth through Targeted exploration spend A number of near-term Consolidate stranded third- leveraging existing asset over next 2 years to increase prospects to drive further party resources and re
Slide 26: Acquisition of TCMG – Stage 1 Nobles Project
PERFORMANCE BY OPERATION XXX ACQUISITION OF TCMG – STAGE 1 NOBLES PROJECT NEAR TERM PRODUCTION PLAN AND DELIVERABLES Mineral Reserve Production Profile 94,0Koz Construction: Ahead of schedule and within budget AISC 100 000 US$1,100/oz • Commissioning and first gold pour : Planned for Q4 FY2025 • FY2
Slide 27: Acquisition of TCMG – Warrego Project
PERFORMANCE BY OPERATION XXX ACQUISITION OF TCMG – WARREGO PROJECT STAGE 2 - WARREGO PROJECT – INCREASED GOLD PRODUCTION TO 100koz/yr & COPPER RECOVERY Stage 2 Scoping Study mineral inventory schedule Stage 2 – Warrego Project Gold & Copper 120 000 • Targeting ~100koz/yr Au & ~10 – 15ktpa Cu 109,4Ko
Slide 28: Underground Operations
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery UNDERG
Slide 29: Evander Underground
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER UNDERGROUND EVANDER 8 SHAFT • Production 32% to 11,551oz in H1FY2025 (H2FY24: 16,978oz) • AISC of US$2,153/oz (FY24: US$1,307/oz) • Gold production and unit costs negatively impacted as a result of: • Reduced tonnes processed following
Slide 30: Fairview Mine
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION FAIRVIEW MINE H1FY2025 gold production and costs negatively impacted by: • Multiple Eskom transformer failures • Downtime as 3 Shaft winder was upgraded • Gold production 14% to 19,095oz (H2FY2024: 22,132oz) Mitigation measures now in place – f
Slide 31: Barberton Mines' Smaller Underground Operations
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BARBERTON MINES’ SMALLER UNDERGROUND OPERATIONS CONSORT MINE Gold production 33% to 3,243oz (H2FY2024: 2,442oz) • Expected to further improve in future - positively impacting unit costs • Consort Mine was cash generative for the Group in Decemb
Slide 32: Group AISC
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery GROUP
Slide 33: Group AISC: FY2025 Guidance
GROUP AISC XXX GROUP AISC FY2025 – GUIDING AISC OF US$1,450/oz – US$1,500/oz IN H2FY2025* Lower cost operations Barberton Total lower Evander Mines’ cost % Group Elikhulu BTRP MTR underground Fairview operations production AISC per kg 648,830 552,660 824,372 1,242,537 975,404 845,876 (ZAR/kg) 86% AI
Slide 34: Group AISC: FY2025 AISC Outlook vs Peers
US$/oz GROUP AISC 1 500 2 000 2 500 0 500 1 000 Perseus Mining Endeavour Mining GROUP AISC Endeavour Mining OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN FY 2025 – AISC OUTLOOK West African Res Alamos Gold PAR - lower cost operations Source: Company websites – latest presentations and information release
Slide 35: Capital Projects (ZAR)
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery CAPITA
Slide 36: 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 2025FC MTR Project 156 1 284 960 (US$ 52m) Elikhulu 64 168 305 305 120 (US$ 6.5m) Evander 195 430 1 088 1 016
Slide 37: ESG
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC ESG 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials 5. FY2025 – Focused on delivery OUR “BEYOND COMPL
Slide 38: ESG: Our Beyond Compliance Approach
ESG XXX ESG: OUR “BEYOND COMPLIANCE” APPROACH GOVERNANCE ENVIRONMENT SOCIAL SOCIAL AND COMPLIANCE RENEWABLE ENERGY PROJECTS STAKEHOLDER ENGAGEMENT SUSTAINABLE COMMUNITIES COMPLIANT WITH GRI REPORTING • Operating solar plants in Barberton (9MW) • Engagement forums at each operation – Barberton Bluebe
Slide 39: Renewable Energy Roadmap
ESG XXX OUR OPERATING ENVIRONMENT OPERATING SUCCESSFULLY IN SOUTH AFRICA – RENEWABLE ENERGY ROADMAP Current pipeline of Group renewable energy projects 60% Finalise study for We are 8.75MW solar PV 20MW 50.0% committed to 50% Commissioned facility at renewable Barberton Mines achieving a 15% 1st 9.9
Slide 40: H1FY2025 Financials
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials H1FY2025 FINANCIALS 5. 6. FY2025 – Focused on deliver
Slide 41: Summarised Consolidated Financial Results
H1FY2025 FINANCIALS XXX H1FY2025 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Six months ended Six months ended Movement Salient features Units 31 December 2024 31 December 2023 % change Gold produced oz 84,705 96,880 (12.6) Gold sold1 oz 79,926 97,290 (17.8) Revenue US$ million 189.3 191.1
Slide 42: Contractual and Anticipated Debt Redemption Profiles
H1FY2025 FINANCIALS XXX H1FY2025 FINANCIALS CONTRACTUAL AND ANTICIPATED DEBT REDEMPTION PROFILES Debt Redemption Profile 5 000 000 000 4 500 000 000 4 000 000 000 3 500 000 000 3 000 000 000 2 500 000 000 2 000 000 000 1 500 000 000 1 000 000 000 500 000 000 0 Jan-25 May-25 Sep-25 Jan-26 May-26 Sep-
Slide 43: Dividends and Shareholder Returns
H1FY2025 FINANCIALS XXX H1FY2025 FINANCIALS DIVIDENDS AND SHAREHOLDER RETURNS Historic dividends – record of returning cash to shareholders ZARm 25 600 000 000 500 000 000 20 400 000 000 15 300 000 000 10 200 000 000 5 100 000 000 0 0 2019 2020 2021 2022 2023 2024 Total dividend paid (ZARm) ZAR cent
Slide 44: FY2025 – Focused on Delivery
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation FY2025 – FOCUSED 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials ON DELIVERY 5. 6. FY2025 – Focused o
Slide 45: FY2025: Focused on Delivery
FY2025 – FOCUSED ON DELIVERY XXX FY2025: FOCUSED ON DELIVERY KEY DELIVERABLES INCLUDE ✓ Continue with focus on health and safety initiatives in our proactive journey to ‘zero harm’ ✓ Monitor the Group’s initiatives intended to further reduce costs and increase underground production at Evander Mines
Slide 46: 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 46
Slide 47: Appendix
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 H1FY2025 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. H1FY2025 Financials APPENDIX 5. 6. FY2025 – Focused on delivery Appendix
Slide 48: TCMG Acquisition: Mineral Resources and Mineral Reserves
APPENDIX XXX TCMG ACQUISITION Mineral Resources and Mineral Reserves Nobles Project’s Mineral Resources and Mineral Reserves Contained gold Contained gold TCMG Mineral Resources Tonnes TCMG Mineral Resources Tonnes Category Grade Tonnes Category Grade Tonnes as at 30 June 2024 million Moz as at 30 J
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