Pan African Resources Plc · LSE:PAF
Pan African Resources — H1 2017 Earnings Presentation
103 slides from Pan African Resources's earnings presentation, February 2017
Slide 1: Results Presentation for the 6 months ended 31 December 2016
Au 79 +1 RESULTS +3 PRESENTATION Gold 196.97 for the 6 months 2-8-18-32-18-1 ended 31 December 2016
Slide 2: Disclaimer
2 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 documen
Slide 3: Our Single Ambition
3 OUR SINGLE AMBITION To be the gold investment of choice • We are realising this ambition by: › Acknowledging our environment and its challenges › Utilising our people, working together to achieve our common objectives › Sweating our assets, gold reserves and infrastructure › Constantly seeking opp
Slide 4: The African Focused Precious Metals Producer
THE AFRICAN FOCUSED PRECIOUS METALS PRODUCER
Slide 5: Overview of Presentation
5 OVERVIEW OF PRESENTATION • 2017 Group interim performance – key features • Pan African vs our peers • Financial results review • Our Tailings business • Tailings production growth • Our Underground mining assets • Coal and Platinum assets • Outlook • Appendix › Group results overview › Review of B
Slide 6: Group Interim Performance
GROUP INTERIM PERFORMANCE Cobus Loots, Chief Executive Officer
Slide 7: 2017 Interim Key Features
7 2017 INTERIM KEY FEATURES Operational key features › Group gold sold decreased by 10.0% to 91,613oz (2015: 101,797oz) › Group gold All-In Sustaining Costs: – ZAR AISC increased by 15.0% to ZAR456,187/kg (2015:ZAR396,819/kg) – USD AISC increased by 11.7% to USD1,014/oz (2015:USD908/oz) › Tailings (
Slide 8: 2017 Interim Key Features
8 2017 INTERIM KEY FEATURES Financial key features › EBITDA increased by: – 13.8% to ZAR476.5 million – 10.7% to USD34.1 million › Profit increased by: – 9.8% to ZAR249.8 million – 7.2% to USD17.9 million › ZAR/GBP earnings per share increased by: – 33.4% to 16.58 cents – 55.0% to 0.93 pence › Divid
Slide 9: 2017 Interim Key Features
9 2017 INTERIM KEY FEATURES Other key features › PAR Gold transaction contributed an additional 17.7% to the group’s EPS › Uitkomst Colliery contributed R21.3 million or 8.5%, to the group’s post tax profit › Finalised positive DFS on Elikhulu › The board of directors approved the Elikhulu Tailings
Slide 10: 2017 Interim Key Features: Fatality
10 2017 INTERIM KEY FEATURES Fatality It is with deep regret that Pan African reports that a mining accident occurred at the Evander 7 shaft complex on 15 February 2017. Mr Velile Chaplin Kapa (54), an Engineering Assistant employed by the operation, sustained a fatal head injury when a section of t
Slide 11: 2017 Interim Key Features: Safety
11 2017 INTERIM KEY FEATURES Safety • Improvement in accident rates (LTIFR, RIFR) for the Group: ✔ › LTIFR improved to 3.96 (2015: 4.01) › RIFR improved to 1.61 (2015: 2.08) • Improvement in accident rates (LTIFR, RIFR) for Barberton Mines: › LTIFR improved to 2.07 (2015: 2.47) › RIFR improved to 0.
Slide 12: Pan African vs Our Peers
PAN AFRICAN VS OUR PEERS Cobus Loots, Chief Executive Officer
Slide 13: USD vs ZAR gold price
13 PAN AFRICAN VS OUR PEERS USD vs ZAR gold price – 5 years ended 31 December 2016 Relative performance rebased to 100 (USD and ZAR gold) USD/ZAR Gold price Exchange rate 180 20.00 160 17.00 140 14.00 120 100 11.00 80 8.00 60 5.00 40 2.00 20 - (1.00) Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Jan 12 Jun 12
Slide 14: South African Gold Mining Sector Analysis – AISC (USD/oz)
14 PAN AFRICAN VS OUR PEERS South African Gold Mining Sector Analysis – All-In Sustaining Costs USD/oz 1,500 1,200 900 600 300 0 Anglogold Pan African Barberton Evander Gold DRD Gold Harmony Gold Sibanye Gold Ashanti Resources Gold mines Mines USD/oz 1,211 1,184 1,136 1,062 1,014 759 1,310 Note 1: A
Slide 15: South African Gold Mining Sector Analysis – AISC (ZAR/kg)
15 PAN AFRICAN VS OUR PEERS South African Gold Mining Sector Analysis – All-In Sustaining Costs ZAR/kg 600,000 500,000 400,000 300,000 200,000 100,000 0 Anglogold Pan African Barberton Evander Gold DRD Gold Harmony Gold Sibanye Gold Ashanti Resources Gold mines Mines ZAR/kg 550,537 531,948 510,506 4
Slide 16: African Gold Mining Sector Analysis – AISC
16 PAN AFRICAN VS OUR PEERS African Gold Mining Sector Analysis – All-In Sustaining Costs USD/oz 1,500 1,200 900 600 300 0 Perseus Golden Star Endeavour Pan African Barberton Evander Gold Asanko Gold Shanta Gold Mining Resources Mining Resources Gold mines Mines USD/oz 1,388 1,153 907 898 747 1,014
Slide 17: Financial Results Review
FINANCIAL RESULTS REVIEW Deon Louw, Financial Director
Slide 18: Summarised Consolidated Interim Results
18 PAN AFRICAN RESOURCES PLC Summarised consolidated Interim results For the 6 months ended 31 Dec 2016 For the 6 months ended 31 Dec 2015 ZAR GBP ZAR GBP Revenue (million) 1,878.2 105.0 1,575.4 75.6 Cost of production (million) (1,395.7) (78.1) (1,053.7) (50.6) Mining profit (million) 339.6 19.0 40
Slide 19: Financial Summary: Revenue
19 FINANCIAL SUMMARY: GROUP INTERIM RESULTS Revenue ZAR millions 1,900 1,600 1,300 1,000 700 400 100 -200 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 2016 Coal Sales - - - - 225 Platinum sa
Slide 20: Financial Summary: Headline Earnings per Share
20 FINANCIAL SUMMARY: GROUP INTERIM RESULTS Headline earnings per share ZAR cents 18 14 10 6 2 -2 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 2016 HEPS 11.50 15.11 5.61 12.43 16.32
Slide 21: Group costs (ZAR/kg)
21 FINANCIAL SUMMARY: GROUP INTERIM RESULTS Group costs as defined by World Gold Council ZAR/kg 600,000 450,000 300,000 150,000 0 H1 FY2013 H1 FY2014 H1 FY2015 H1 FY2016 H1 FY2017 Average gold price received 458,898 424,022 434,403 485,215 565,298 Cash costs 233,021 269,670 351,461 323,730 418,764 A
Slide 22: Group costs (USD/oz)
22 FINANCIAL SUMMARY: GROUP INTERIM RESULTS Group costs as defined by World Gold Council USD/oz 1,800 1,500 1,200 900 600 300 0 H1 FY2013 H1 FY2014 H1 FY2015 H1 FY2016 H1 FY2017 Average gold price received 1,685 1,311 1,231 1,110 1,257 Cash costs 856 834 996 740 931 All-in sustaining costs 1,048 965
Slide 23: Group capital spending
23 FINANCIAL SUMMARY: GROUP INTERIM RESULTS Group capital spending on maintaining production and growth through the cycle ZAR millions 250 ZAR214.6m ZAR203.5m 200 Once off ETRP capex of 150 ZAR88.3m ZAR128.9m 100 50 0 H1 2015 H1 2016 H1 2017 Barberton Mines BTRP Evander Mines ETRP Phoenix Platinum U
Slide 24: PAR Investment Case: Dividend Paid
24 PAR INVESTMENT CASE Dividend paid ZAR million / GBP million 350 ZAR300.0m GBP17.1m 300 ZAR258.0m ZAR240.3m GBP14.9m 250 GBP14.7m ZAR210.0m GBP9.7m 200 150 100 50 ZAR nil GBP nil 0 2012* 2013 2014 2015 2016 * Foregone dividend to fund the acquisition of Evander Gold Mines
Slide 25: Market Leading Dividend Yield
25 PAR INVESTMENT CASE Market leading dividend yield 7.5% 7.0% 5.9% 5.3% 2.8% 2.6% 1.7% 1.6% 1.3% 1.1% 0.9% 0.6% 0.5% 0.4% 0.3% DRDGOLD Centamin¹ Sibanye Pan African Harmony Regis Acacia Gold Fields Evolution Randgold Newcrest Yamana Gold Corp Barrick Newmont Resources Resources Mining² Note: Divide
Slide 26: Value Added Statement
26 PAR INVESTMENT CASE Value added statement 31 December 2016 31 December 2015 ZAR million ZAR million 11.2 10.8 251.9 221.6 445.9 607.7 365.1 337.5 115.2 97.4 406.1 473.8 70.9 79.2 Suppliers of goods and services Employee costs (Net of tax) Employee taxes Taxes to the state Reinvested Capital provi
Slide 27: Our Operations
PAN AFRICAN RESOURCES Our Operations
Slide 28: Geographical Map
GEOGRAPHICAL MAP WE ; LIMPOPO = __ D> oe _ _ ational MPUMALANGA park Rustenburg Zeerust Phoenix Platinum NORTH WEST PROV) ‘otchefstroom Klerksdorp Kuruman FREE STATE NORTHERN CAPE 28
Slide 29: Our Tailings Business
OUR TAILINGS BUSINESS Very low cost, long life ounces
Slide 30: Group Interim Results – Our Tailings Business
30 GROUP INTERIM RESULTS – OUR TAILINGS BUSINESS Barberton tailings retreatment plant (BTRP) • Commissioned – July 2013 • Investment of ZAR325.7 million, paid back in 18 months • Gold production at BTRP increased by 14.9% to 14,741oz (2015: 12,830oz) • BTRP achieved plant recoveries of 55% (2015: 64
Slide 31: Existing Tailings Operations: Gold Sold
31 GROUP INTERIM RESULTS – EXISTING TAILINGS OPERATIONS BTRP and ETRP Gold sold oz 35,000 Combined AISC: USD442/oz 30,000 25,000 Combined AISC: USD443/oz 20,000 AISC: AISC: 15,000 USD480/oz USD454/oz 10,000 5,000 0 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2013 31 Decem
Slide 32: Tailings Production Growth: Elikhulu
TAILINGS PRODUCTION GROWTH: ELIKHULU
Slide 33: Tailings Production Growth: Elikhulu DFS
PAN AFRICAN RESOURCES – 33 TAILINGS PRODUCTION GROWTH DFS economic assumptions: • Gold price assumption: USD1,180/oz • ZAR:USD exchange rate: 14.50:1 • NPV discount rate: 9% real (16% nominal) • Debt-to-equity ratio: 115%, debt-to-total-capital ratio of 53% • Long-term South African inflation rate o
Slide 34: Tailings Production Growth
PAN AFRICAN RESOURCES – 34 TAILINGS PRODUCTION GROWTH Source: Elikhulu DFS prepared by DRA Projects SA (Pty) Ltd
Slide 35: Elikhulu Recovered Gold
PAN AFRICAN RESOURCES – 35 TAILINGS PRODUCTION GROWTH Elikhulu Recovered gold (calendar years) 70.0 0.33 0.33 0.33 0.35 0.32 0.32 0.32 0.32 60.0 0.29 0.30 0.28 0.27 0.27 0.25 50.0 0.25 0.21 40.0 0.19 0.20 62.0 64.0 30.0 60.0 57.0 57.0 0.15 55.0 54.0 55.0 49.0 50.0 46.0 20.0 40.0 0.10 23.0 10.0 0.05
Slide 36: Elikhulu Project Major Milestone Calendar
PAN AFRICAN RESOURCES – 36 TAILINGS PRODUCTION GROWTH Elikhulu Project – Project major milestone calendar Date • Detailed engineering starts Underway • Procurement starts Q2 2017 • Environmental and Social Impact Assessment approval Q3 2017 • Issue of Integrated Water Usage Licence Q3 2017 • Constru
Slide 37: Our Underground Mining Assets
OUR UNDERGROUND MINING ASSETS Cobus Loots, Chief Executive Officer
Slide 38: Barberton Mines
BARBERTON MINES Underground Operations
Slide 39: Barberton Mines – Production Statistics
39 BARBERTON MINES – LOW COST, LONG LIFE Production statistics Underground and surface head grade (excluding BTRP) Tonnes g/t 180,000 12 11 150,000 10 9 120,000 8 7 90,000 6 5 60,000 4 3 30,000 2 1 0 0 2012 2013 2014 2015 2016 Fairview 54,986 53,623 48,488 55,421 52,623 Sheba 55,340 53,559 45,386 47
Slide 40: Barberton Mines – Gold Sold
40 BARBERTON MINES – LOW COST, LONG LIFE Gold sold oz 60,000 50,000 44,926oz 45,405oz 43,617oz 41,231oz 40,000 34,471oz 30,000 20,000 10,000 0 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 20
Slide 41: Developing the Orebody
41 BARBERTON MINES – LOW COST, LONG LIFE Developing the orebody Section Borehole No Centimetres Grade (g/t) Comments New Consort 33L31 200 44.05 33 level Footwall Lens mineralization New Consort 33L31 100 26.80 33 level Footwall Lens mineralization New Consort 3#B-43 100 24.90 3 Shaft mineralization
Slide 42: MRC Orebody at Fairview Mine – Down Dip Extension
42 BARBERTON MINES – LOW COST, LONG LIFE MRC orebody at Fairview Mine – Down dip extension Exploration / Expansion potential Fairview Mine: • Down dip extension of the high grade 11 Block of the MRC orebody by a further 70m. This extension increased the LOM of Fairview Mine to 22 years • Waste hoist
Slide 43: Vertical Projection of Fairview and Sheba Mines
43 BARBERTON MINES – LOW COST, LONG LIFE Vertical projection of Fairview and Sheba Mines
Slide 44: Challenges Experienced
44 BARBERTON MINES – LOW COST, LONG LIFE Challenges experienced Challenge Remedial action Frequent operational interruptions due to community A two day “Mining Indaba” was held during December unrest relating to government service delivery in and 2016 to engage with various stakeholders regarding ar
Slide 45: Evander Mines
EVANDER MINES Underground Operations
Slide 46: Evander Mines – Production Statistics
EVANDER MINES – CURRENTLY 46 MARGINAL, PROVIDES SIGNIFICANT UPSIDE Production statistics Underground and Tonnes milled Surface head grade (g/t) 400,000 8.0 350,000 7.0 300,000 6.0 250,000 5.0 200,000 4.0 150,000 3.0 100,000 2.0 50,000 1.0 0 - 2012 2013 2014 2015 2016 Surface 91,788 111,225 198,578 -
Slide 47: Reserve Grades – Wits Basin Gold Mines
EVANDER MINES – CURRENTLY 47 MARGINAL, PROVIDES SIGNIFICANT UPSIDE Reserve grades – Wits Basin Gold Mines 12.00 9.91 9.69 10.00 7.91 8.00 7.50 7.10 7.06 6.72 6.64 6.00 g/t 5.30 4.91 4.70 4.69 4.27 4.02 4.00 3.50 2.00 0.00 Source: Latest published reserve statements of each company * Evander 8 Shaft
Slide 48: Current Mine Infrastructure
EVANDER MINES – CURRENTLY 48 MARGINAL, PROVIDES SIGNIFICANT UPSIDE Current mine infrastructure
Slide 49: Short-term Capital Costs to Repair 7 and 8 Shaft
EVANDER MINES – CURRENTLY 49 MARGINAL, PROVIDES SIGNIFICANT UPSIDE Short-term capital costs to repair 7 and 8 Shaft Description Completion date Amount 7 Shaft pump column repairs 15 April 2017 ZAR15 million 8 Shaft 3-stage pump column 31 March 2017 ZAR2.9 million 8 Shaft 10-stage pump column (MPS to
Slide 50: Challenges Experienced
EVANDER MINES – CURRENTLY 50 MARGINAL, PROVIDES SIGNIFICANT UPSIDE Challenges experienced Challenge Remedial action 7 Shaft temporary closure following damage caused to Due to the damage caused to the 7 shaft water pump the water pump column and Duckfoot as a result of a column the shaft will be clo
Slide 51: Evander Mines – 2010 Payshoot
51 EVANDER MINES – 2010 PAYSHOOT 2010 Payshoot Estimated 6.3Mt @ 10.82g/t (2.18Moz) in situ BH 2245 1,766 cmg/t over 49cm reef width (36.04g/t) Surface hole in progress 7 Shaft infrastructure: Decline down to 21 level 7 Shaft 19 and 21 level close to 2010 payshoot Area flooded up to 18 Level
Slide 52: Evander Mines – Growth Projects
EVANDER MINES – GROWTH 52 PROJECTS Poplar 20.9Mt @ 7.56g/t (5.09Moz) in situ Rolspruit 25.3Mt @ 10.86g/t (8.85Moz) in situ 2010 Payshoot 6.3Mt @ 10.82g/t (2.18Moz) in situ 7 Shaft - pillar mining and vamping Evander South 19.1Mt @ 8.06g/t (4.97Moz) in situ 9 Shaft A Block 0.8Mt @ 12.07g/t (0.32Moz)
Slide 53: Coal & Platinum Assets
COAL & PLATINUM-ASSETS
Slide 54: Uitkomst Colliery Interim Highlights
54 UITKOMST COLLIERY INTERIM HIGHLIGHTS Operational summary – 6 months ending 31 December 2016 • Tonnes processed – 236,011t • Coal sold, including acquired coal – 327,202t • Wash plant yield – 66.4% • Revenue generated – ZAR225 million • Post tax profit – ZAR21.3 million • AISC per tonne – USD42/t
Slide 55: Phoenix Platinum Interim Highlights
55 PHOENIX PLATINUM INTERIM HIGHLIGHTS • PGE production increased by 1.8% to 4,574oz (2015: 4,493oz) • Revenue increased by 8.4% to ZAR42.5 million (2015: ZAR39.2 million) • Cash cost per ounce increased by 17.5% to ZAR8,991/oz (2015: ZAR7,653/oz) • Cash cost per ounce in USD increased by 14.2% to U
Slide 56: Outlook
56 OUTLOOK In the second half of the financial year, the key focus areas for the group, from an operational perspective, includes: • Continuing to improve our safety and compliance across all operations • Resume underground mining operations at Evander Mines, following the temporary suspension of mi
Slide 57: Thank You
Au 79 +1 +3 THANK YOU Gold 196.97 2-8-18-32-18-1
Slide 58: Appendix
APPENDIX
Slide 59: Group Operational Review
fA '@ AG, PAN AFRICAN RESOURCES
Slide 60: Group Resource Update – Gold
60 GROUP RESOURCE UPDATE – GOLD 30 June 2016 30 June 2015 34.9Moz (337.2Mt @ 3.20g/t) 31.9Moz (318.8Mt @ 3.11g/t) 6% 7% 29% 36% 58% 64% Measured Indicated Inferred
Slide 61: Group Reserve Update – Gold
61 GROUP RESERVE UPDATE – GOLD 30 June 2016 30 June 2015 10.0Moz (82.3Mt @ 3.80g/t) 10.4Moz (84.9Mt @ 3.79g/t) 13% 10% 87% 90% Proven Probable
Slide 62: Group Interim Production Results
62 GROUP INTERIM PRODUCTION RESULTS Group interim gold production Barberton Mines 2016 2015 Total tonnes milled (Underground and Surface) (t) 123,168 139,430 Total tonnes processed (Tailings) (t) 388,905 464,179 Recovered grade (Underground and Surface) (g/t) 8.7 9.7 Recovered grade (Tailings) (g/t)
Slide 63: Group Interim Production Results: PGM and Coal
63 GROUP INTERIM PRODUCTION RESULTS Group interim PGM production Phoenix Platinum 2016 2015 Total tonnes processed (Tailings) (t) 122,024 117,461 Head grade (Tailings) (g/t) 2.24 3.25 PGE sold (oz) 4,574 4,493 Total cash cost (ZAR/t) 337 293 Group interim Coal production Uitkomst Colliery 2016 2015*
Slide 64: Operations Key Features: Barberton Mines
64 GROUP INTERIM RESULTS – OPERATIONS KEY FEATURES Barberton Mines • Gold sold decreased to 49,212oz (2015: 56,447oz) • Underground and surface tonnage decreased to 123,168t (2015: 139,430t) • Barberton remains a low cash cost producer at ZAR347,667/kg (2015: ZAR266,690/kg) Barberton tailings retrea
Slide 65: Operations Key Features: Evander Mines
65 GROUP INTERIM RESULTS – OPERATIONS KEY FEATURES Evander Mines • Decrease in gold sold to 42,401oz (2015: 45,350oz) • Underground tonnage decreased to 161,872t (2015: 200,942t) • Cash cost increased by 27% to ZAR501,281/kg (2015: ZAR394,730/kg) Evander Tailings Retreatment Plant (ETRP) • Gold prod
Slide 66: Operations Key Features: Phoenix Platinum
66 GROUP INTERIM RESULTS – OPERATIONS KEY FEATURES Phoenix Platinum • PGE production increased by 1.8% to 4,574oz (2015: 4,493oz) • Revenue increased by 8.4% to ZAR42.5 million (2015: ZAR39.2 million) • Cash cost per ounce increased by 17.5% to ZAR8,991/oz (2015: ZAR7,653/oz) • Cash cost per ounce i
Slide 67: Operations Key Features: Uitkomst Colliery
67 GROUP INTERIM RESULTS – OPERATIONS KEY FEATURES Operational summary – 6 months ending 31 December 2016 • Tonnes processed – 236,011t • Coal sold, including acquired coal – 327,202t • Wash plant yield – 66.4% • Revenue generated – ZAR225 million • Post tax profit – ZAR21.3 million • AISC per tonne
Slide 68: Group Operational Costs – Barberton Mines
68 GROUP OPERATIONAL COSTS – BARBERTON MINES Cash cost breakdown 5% 3% 0% 3% 11% 11% 2016 8% 2015 8% ZAR532.2 million 46% ZAR468.2 million 48% GBP29.8 million GBP22.5 million USD773/oz USD610/oz 17% 14% ZAR1,039/t ZAR776/t 13% 13% Salaries Mining Processing Engineering Electricity Security Administr
Slide 69: Group Operational Costs – Evander Mines
69 GROUP OPERATIONAL COSTS – EVANDER MINES Cash cost breakdown 1% 2% 5% 4% 19% 21% 2016 2015 41% ZAR661.1 million ZAR556.8 million 45% 5% GBP37.0 million GBP26.7 million USD1,114/oz 5% USD903/oz ZAR492/t ZAR510/t 20% 14% 9% 9% Salaries Mining Processing Engineering Electricity Security Administratio
Slide 70: Operational Review: Barberton Mines
OPERATIONAL REVIEW Barberton Mines
Slide 71: Barberton Mines Interim Operational Summary
71 BARBERTON MINES Interim operational summary • Gold sold increased to 49,212oz (2015: 56,447oz) • Underground and surface tonnage decreased to 123,168t (2015: 139,430t) • Headgrade of 9.4g/t (20145 10.6g/t) • Cash costs in ZAR increased by 30.4% to ZAR347,667/kg (2015: ZAR266,690/kg) • Cash costs
Slide 72: Barberton Underground Resource Update
72 BARBERTON MINES UNDERGROUND RESOURCE UPDATE 30 June 2016 30 June 2015 2.9Moz (9.0Mt @ 10.2g/t) 3.09Moz (9.0Mt @ 10.0g/t) 30% 30% 34% 35% 31% 40% Measured Indicated Inferred
Slide 73: Barberton Underground Reserve Update
73 BARBERTON MINES UNDERGROUND RESERVE UPDATE 30 June 2016 30 June 2015 1.4Moz (4.9Mt @ 9.2g/t) 1.4Moz (4.3Mt @ 9.3g/t) 29% 43% 57% 71% Proved Probable
Slide 74: Barberton Mines – Gold Sold
74 BARBERTON MINES Gold sold oz 60,000 50,000 40,000 30,000 20,000 10,000 0 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 2016 BTRP 11,603 11,710 12,830 14,741 Surface sources 783 349 76 130
Slide 75: Barberton Mines Costs (ZAR/kg)
75 BARBERTON MINES – EXCLUDING BTRP Costs as defined by World Gold Council ZAR/kg 600,000 450,000 300,000 150,000 0 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 31 December 31 December 31 December 31 December 2012 2013 2014 2015 2016 Average gold price recei
Slide 76: Barberton Mines Costs (USD/oz)
76 BARBERTON MINES – EXCLUDING BTRP Costs as defined by World Gold Council USD/oz 1,800 1,500 1,200 900 600 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 31 December 31 December 31 December 31 December 2012 2013 2014 2015 2016 Average gold price received 1,68
Slide 77: Barberton Mines Cash Cost Breakdown
77 BARBERTON MINES – EXCLUDING BTRP Cash cost breakdown* 5% 4% 3% 11% 11% 2016 10% 2015 ZAR466.4 million ZAR404.1 million 9% GBP26.1 million 51% GBP19.4 million 54% USD967/oz 7% USD681/oz 6% ZAR3,787/t ZAR2,898/t 14% 15% Salaries Mining Processing Engineering Electricity Security Administration and
Slide 78: Barberton Mines Capital Expenditure
78 BARBERTON MINES Capital expenditure (including BTRP) ZAR millions 140 120 100 80 60 40 20 0 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 2016 BTRP 83.1 35.8 20.9 Maintenance capital 18.5
Slide 79: Barberton Tailings Retreatment Plant
79 BARBERTON TAILINGS RETREATMENT PLANT Operational summary • Gold production at BTRP increased by 14.9% to 14,741oz (2015: 12,830oz) • BTRP achieved plant recoveries of 55% (2015: 64%) • BTRP cash cost very competitive at ZAR143,451/kg (2015: ZAR160,665/kg) • USD cash costs decreased by 13.1% to US
Slide 80: BTRP Resource Update: Tailings Dams
80 BTRP RESOURCE UPDATE: TAILINGS DAMS 30 June 2016 30 June 2015 0.8Moz (20.8Mt @ 1.3g/t) 0.9Moz (20.4Mt @ 1.3g/t) 25% 22% 75% 78% Indicated Inferred
Slide 81: BTRP Reserve Update: Tailings Dams
81 BTRP RESERVE UPDATE: TAILINGS DAMS 30 June 2016 30 June 2015 0.6Moz (13.3Mt @ 1.5g/t) 0.6Moz (13.4Mt @ 1.4g/t) 100% 100% Probable
Slide 82: BTRP Cash Cost Breakdown
82 BARBERTON TAILINGS RETREATMENT PLANT Cash cost breakdown 3% 1% 10% 11% 11% 11% 2016 2015 ZAR65.8 million ZAR64.1 million ZAR143,451/kg ZAR160,665/kg USD319/oz USD367/oz ZAR169/t ZAR138/t 75% 78% Salaries Processing Electricity Administration and other costs
Slide 83: Operational Review: Evander Mines
OPERATIONAL REVIEW Evander mines
Slide 84: Evander Mines Interim Operational Summary
84 EVANDER MINES Interim operational summary • Decrease in gold sold to 42,401oz (2015: 45,350oz) • Underground tonnage decreased to 161,872t (2015: 200,942t) • Head grade decreased to 5.4g/t (2015: 5.8g/t) • ZAR cash cost increased by 27.0% to ZAR501,281/kg (2015: ZAR394,730) • USD cash cost increa
Slide 85: Evander Mines Underground Resource Update
85 EVANDER MINES UNDERGROUND RESOURCE UPDATE 30 June 2016 30 June 2015 29.0Moz (92.4Mt @ 9.8g/t) 25.9Moz (83.5Mt @ 9.6g/t) 4% 5% 31% 38% 58% 64% Measured Indicated Inferred
Slide 86: Evander Mines Underground Reserve Update
86 EVANDER MINES UNDERGROUND RESERVE UPDATE 30 June 2016 30 June 2015 7.6Moz (29.0Mt @ 8.3g/t) 7.9Moz (28.8Mt @ 8.5g/t) 6% 6% 94% 94% Proved Probable
Slide 87: Evander Mines – Gold Sold excluding ETRP
87 EVANDER MINES Gold sold – excluding ETRP oz 60,000 50,000 40,000 30,000 20,000 10,000 0 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 2012 31 December 2013 31 December 2014 31 December 2015 31 December 2016 Surface sources 3,119 3,874 8,087 Underground sou
Slide 88: Evander Mines Costs (ZAR/kg)
88 EVANDER MINES Costs as defined by World Gold Council – excl. ETRP ZAR/kg 850,000 750,000 650,000 550,000 450,000 350,000 250,000 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 31 December 31 December 31 December 31 December 2012 2013 2014 2015 2016 Average
Slide 89: Evander Mines Costs (USD/oz)
89 EVANDER MINES Costs as defined by World Gold Council – excl. ETRP USD/oz 1,800 1,600 1,400 1,200 1,000 800 6 months ended 6 months ended 6 months ended 6 months ended 6 months ended 31 December 31 December 31 December 31 December 31 December 2012 2013 2014 2015 2016 Average gold price received 1,
Slide 90: Evander Mines Cash Cost Breakdown
90 EVANDER MINES – EXCLUDING ETRP Cash cost breakdown* 2% 5% 2% 5% 21% 2016 22% 2015 ZAR539.7 million ZAR492.3 million 48% GBP30.2 million GBP23.6 million 50% USD1,457/oz USD995/oz 6% 6% ZAR3,334/t ZAR2,450/t 7% 5% 11% 10% Salaries Mining Processing Engineering Electricity Security Administration an
Slide 91: Evander Mines Capital Expenditure
91 EVANDER MINES Capital expenditure ZAR millions 200 ZAR157.6m 150 ZAR108.8m ZAR111.8m 100 ZAR74.8m ZAR71.9m 50 0 2012 2013 2014 2015 2016 ETRP capital 88.3 Maintenance capital 28 16.3 25 41.2 37.3 Development capital 80.9 58.6 44.3 30.7 74.5
Slide 92: Evander Tailings Retreatment Plant
92 EVANDER TAILINGS RETREATMENT PLANT Operational summary • ETRP production increased by 77.3% to 15,924oz (2015: 8,980oz) (4,444oz from tailings feedstock and 11,480oz from surface source feedstock) • Tonnage processed increased by 32.7% to 1,180,984t (2015: 890,175t) • Head grade increased to 0.6g
Slide 93: ETRP Resource Update: Tailings Dams
93 ETRP RESOURCE UPDATE: TAILINGS DAMS 30 June 2016 30 June 2015 2.0Moz (214.5Mt @ 0.3g/t) 1.9Moz (205.3Mt @ 0.3g/t) 10% 90% 100% Indicated Inferred
Slide 94: ETRP Reserve Update: Tailings Dams
94 ETRP RESERVE UPDATE: TAILINGS DAMS 30 June 2016 30 June 2015 0.4Moz (35.8Mt @ 0.3g/t) 0.4Moz (38.1Mt @ 0.3g/t) 100% 100% Probable
Slide 95: ETRP Cash Cost Breakdown
95 EVANDER TAILINGS RETREATMENT PLANT Cash cost breakdown 6% 3% 9% 4% 2016 2015 ZAR121.4 million ZAR64.5 million GBP6.8 million GBP3.1 million ZAR245,178/kg ZAR230,857/kg USD545/oz USD528/oz ZAR103/t ZAR72/t 91% 87% Salaries Processing Electricity
Slide 96: Operational Review: Phoenix Platinum
OPERATIONAL REVIEW Phoenix platinum
Slide 97: Phoenix Platinum Operational Summary
97 PHOENIX PLATINUM Operational summary • PGE production increased by 1.8% to 4,574oz (2015: 4,493oz) • Revenue increased by 8.4% to ZAR42.5 million (2015: ZAR39.2 million) • Cash cost per ounce increased by 17.5% to ZAR8,991/oz (2015: ZAR7,653/oz) • Cash cost per ounce in USD increased by 14.2% to
Slide 98: Phoenix Platinum Production and Head Grade
98 PHOENIX PLATINUM Production Head grade Plant feed tonnes g/t 150,000 5 120,000 4 90,000 3 60,000 2 30,000 1 0 0 2014 2015 2016 Plant feed tonnes 135,963 117,461 122,024 Head grade 3.16 3.25 2.24
Slide 99: Phoenix Platinum PGE Sold
99 PHOENIX PLATINUM PGE sold oz 6,000 4,000 2,000 0 2014 2015 2016 PGE ounces 4,711.0 4,493.0 4,574.0
Slide 100: Phoenix Platinum Cash Cost Breakdown
100 PHOENIX PLATINUM Cash cost breakdown 6% 2% 8% 5% 25% 23% 2016 2015 ZAR41.1 million ZAR34.4 million GBP2.3 million GBP1.7 million ZAR8,991/oz ZAR7,653/oz ZAR337/t ZAR293/t 64% 67% Salaries Processing Electricity Administration and other costs
Slide 101: Uitkomst Colliery Operational Summary
101 UITKOMST COLLIERY Operational summary – 6 months ending 31 December 2016 • Tonnes processed – 236,011t • Coal sold, including acquired coal – 327,202t • Wash plant yield – 66.4% • Revenue generated – ZAR225 million • Post tax profit – ZAR21.3 million • AISC per tonne – USD42/t
Slide 102: Uitkomst Colliery Cash Cost Breakdown
102 UITKOMST COLLIERY Cash cost breakdown 10% 17% 2% 2016 0% 2% ZAR189.0 million 5% GBP10.6 million 31% USD41/t ZAR578/t 33% Salaries Mining Processing Engineering Electricity Security Administration and other costs Logistics * Including stock adjustments
Slide 103: Thank You!
Au +1 +3 THANK YOU! Gold 196.97 2-8-18-32-18-1
Pan African Resources — H1 2017 Earnings Presentation on 6ix