Pan African Resources Plc · LSE:PAF
Pan African Resources — Gold Forum Europe 2024
39 slides from Pan African Resources's conference presentation, April 2024
Slide 1: Mining for a Future
XXX MINING FOR A FUTURE INVESTOR PRESENTATION APRIL 2024 OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 1
Slide 2: Disclaimer and Forward Looking Statements
XXX DISCLAIMER AND FORWARD LOOKING STATEMENTS 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 themselv
Slide 3: Overview of Presentation
XXX OVERVIEW OF PRESENTATION Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix
Slide 4: Group Overview
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix GROUP OVERVIEW
Slide 5: Group Overview: Company Snapshot
GROUP OVERVIEW XXX GROUP OVERVIEW COMPANY SNAPSHOT Board and Executives As at 28 March, 2024 KEITH SPENCER • Chairman JSE (PAN) ZAR539cps • Appointed: 8 October 2007 AIM (PAF) GBP22.5p ADR (PAFRY) 20:1 US$5.56 OTC (PAFRF) US$0.23 COBUS LOOTS Market capitalisation US$545m • Chief executive officer •
Slide 6: Unique Combination of Underground and Surface Mining Operations
GROUP OVERVIEW XXX GROUP OVERVIEW A UNIQUE COMBINATION OF UNDERGROUND AND SURFACE MINING OPERATIONS Low-cost surface tailings – environmental clean-up and rehabilitation benefits High grade, long-life underground mines * OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 6
Slide 7: H1 FY2024 Gold Production
GROUP OVERVIEW XXX GROUP OVERVIEW H1 FY2024 GOLD PRODUCTION 6.7% TO 98,458oz (H1 FY2023: 92,307oz) Moving towards a balanced mix of low-cost surface mining and high-grade, long-life underground mines 35% - 45% SURFACE 65% - 55% U/G MTR + Soweto Cluster Evander Mines Ann Prod: 50-60koz FY25-FY26 es
Slide 8: Increased Production and Reduced Costs Through Value Accretive Projects
GROUP OVERVIEW XXX GROUP OVERVIEW INCREASED PRODUCTION AND REDUCED COSTS THROUGH VALUE ACCRETIVE PROJECTS PAR Group gold production profile 300 000 ~250,000oz 250 000 205,7Koz ~220,000oz# 201,8Koz c.180,000-190,000oz AISC $1259/oz 25Koz AISC $1261/oz AISC $1325-1350/oz 200 000 175,2Koz AISC $950/oz
Slide 9: Our Operating Environment
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix GROUP OVERVIEW
Slide 10: 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 • Multi-facetted engagements with all
Slide 11: Renewable Energy Roadmap
OUR OPERATING ENVIRONMENT XXX OUR OPERATING ENVIRONMENT OPERATING SUCCESSFULLY IN SOUTH AFRICA – RENEWABLE ENERGY ROADMAP Current pipeline of Group renewable energy projects 45% 40,0% 80MW of 40% Commission installed solar 8.75MW solar PV 35,4% PV renewable Commissioned Expand Evander 35% 1st 9.9MW
Slide 12: H1 FY2024 Key Features
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix GROUP OVERVIEW
Slide 13: H1 FY2024 Key Features: Operational and Financial Performance
H1 FY2024 KEY FEATURES XXX H1 FY2024 KEY FEATURES OPERATIONAL AND FINANCIAL PERFORMANCE PRODUCTION PERFORMANCE COST PERFORMANCE FINANCIAL PERFORMANCE Group gold production of 98,458oz Group AISC 0.3% to US$1,287/oz Robust performance in H1 FY24 6.7% (H1 FY23 US$1,291/oz) – despite • Profit for t
Slide 14: Gold Price Received and Margins
H1 FY2024 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 Gold price received vs AISC ramps up to ~250Koz 1 400 000 • Well positioned to capitalise on increasing AISC ZAR/kg Average
Slide 15: H1 FY2024 Performance by Operation
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix GROUP OVERVIEW
Slide 16: Tailings Operations – Elikhulu
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – ELIKHULU • Production 8.8% to 28,106oz (H1 FY23: 25,830oz) Elikhulu LOM production profile* • Improved overall metallurgical recovery of 34.9% (H1 FY23: 32.3%) 80 000 • AISC of US$979/oz (H1 FY23: US$947/oz) – on
Slide 17: Tailings Operations – BTRP and Sheba Fault Project
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – BTRP AND SHEBA FAULT PROJECT • Production remained consistent at 9,864oz (H1 FY23: 10,012oz) BTRP LOM extension: Sheba Fault Project • Lowest cost of production in the Group • Royal Sheba and Western Cross orebodie
Slide 18: Tailings Retreatment Operations – Mintails
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS RETREATMENT OPERATIONS – MINTAILS October 2022 – Closure of transaction to acquire total share claims and capital of • 800ktpm processing plant design based on successful Elikhulu and BTRP operations Mogale Gold and Mintails SA
Slide 19: Mogale Tailings Retreatment Plant Construction Timeline
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MOGALE TAILINGS RETREATMENT PLANT CONSTRUCTION IN PROGRESS – TIMELINE TO COMMISSIONING PROPOSED PROJECT EXECUTION TIMELINE ACTIVITY ESTIMATED DATE Completion and finalisation of DFS Completed Engineering optimisation activities Comple
Slide 20: Building a World Class Surface Tailings Retreatment Business
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BUILDING A WORLD CLASS SURFACE TAILINGS RETREATMENT BUSINESS Elikhulu and Mintails production profile 140 000 Forecast 120 000 Gold production (oz) 100 000 Actual 80 000 60 000 40 000 20 000 0 2022 2023 2024 2025 2026 2027 2028 2029 203
Slide 21: Evander Underground
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER UNDERGROUND EVANDER 8 SHAFT • Production 11.1% to 21,307oz in H1 FY24 (H1 FY23: 19,173oz) • Tons milled 16% to 89,7Kt u/g tons milled at 7.4g/t (H1 FY23: 73,9Kt at 8.1g/t) • AISC of US$1,228/oz (H1 FY23: US$1,052/oz) – incre
Slide 22: Barberton Mines – Fairview Mine
H1 FY2024 PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BARBERTON MINES FAIRVIEW MINE Initiatives implemented to improve gold production • Continuous operations cycle • Gold production 17% to 22,194oz (H1 FY23: 19,041oz) • Average u/g RoM volumes from MRC and Rossiter orebodies improved to
Slide 23: Operational Overview
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix OPERATIONAL OVERVIEW
Slide 24: Group AISC
GROUP AISC XXX GROUP AISC H1 FY2024 – GUIDING AISC OF US$1,325/oz – US$1,350/oz IN FY2024* Lower cost operations Evander Barberton Total lower surface Evander Mines’ cost % Group sources BTRP Elikhulu underground Fairview operations production AISC per kg (ZAR/kg) 1,187,909 390,830 588,435 738,070 8
Slide 25: Group AISC: FY2024 AISC Outlook vs Peers
US$/oz GROUP AISC 200 400 600 0 800 1 000 1 200 1 400 1 600 2 000 1 800 Endeavour Mining Alamos Gold GROUP AISC West African Resources OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN FY 2024 – AISC OUTLOOK PAR - lower cost operations Centamin B2Gold Corp Shanta Gold PAR Group Source: Individual company web
Slide 26: Group Overview
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix GROUP OVERVIEW
Slide 27: 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 ZARm 2 000 1 500 1 000 500 0 2021 2022 2023 2024 FC MTR Project 156 1 400 (US$ 76m) Elikhulu - Mostly expansion 64 168 305 270 (US$ 15m) Evander 195 430 1 088
Slide 28: ESG: Our Beyond Compliance Approach
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix ESG : OUR “BEYOND COMPLIANCE
Slide 29: ESG: Our Beyond Compliance Approach
ESG XXX ESG: OUR “BEYOND COMPLIANCE” APPROACH GOVERNANCE ENVIRONMENT SOCIAL SOCIAL AND COMPLIANCE WATER RECYCLING STAKEHOLDER ENGAGEMENT SUSTAINABLE COMMUNITIES FULLY COMPLIANT WITH GRI REPORTING Responsible and sustainable water use • Engagement forums with communities and Barberton Blueberries far
Slide 30: Sector Leading Dividend
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix SECTOR LEADING DIVIDEND
Slide 31: Shareholder Returns
SHAREHOLDER RETURNS XXX SHAREHOLDER RETURNS DIVIDEND YIELD Historic dividend yield – record of returning cash to shareholders 7% 6,3% 5,9% 6% 5,6% 5,3% 5,1% 5,0% 5% 4,6% 4% 3,8% 3% 2% 1,2% 1% 0,0% 0% # June 14 June 15 June 16 June 17 June 18* June 19 June 20 June 21 June 22 June 23 * Dividend suspen
Slide 32: Exploration – Republic of the Sudan
Health and safety Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix EXPLORATIO
Slide 33: Exploration – Republic of the Sudan
EXPLORATION – REPUBLIC OF THE SUDAN XXX EXPLORATION – REPUBLIC OF THE SUDAN WHY SUDAN? PROGRESS IN FY2024 Third largest gold producer in Africa (after Ghana and SA) and Exploration activities resumed in Q1 FY24, following a detailed 10th in the world (2021) risk assessment of the in-country operatin
Slide 34: Focused on Execution
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix FOCUSED ON EXECUTION
Slide 35: FY2024: Focused on Execution
FY2024 – FOCUSED ON EXECUTION XXX FY2024: FOCUSED ON EXECUTION Continue with focus on health and safety initiatives in our proactive journey to ‘zero harm’ Monitor the Group’s optimisation and improvement initiatives intended to increase production and reduce costs Successfully execute capital
Slide 36: 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 36
Slide 37: Appendix
Group overview Our operating environment H1 FY2024 – Key features H1 FY2024 Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Sector leading dividend Exploration – Republic of the Sudan FY2024 – Focused on execution Appendix APPENDIX
Slide 38: Health and Safety
APPENDIX XXX HEALTH AND SAFETY GROUP SAFETY PERFORMANCE – H1 FY2024 Group TRIFR improved by 39.3% to 6.13 (H1 FY23: 8.54) per million-man hours Excellent operational safety performance • LTIFR remained stable at 2.54 (H1 FY23: 2.54) per million-man hours Evander Mines’ underground operations LTIFR a
Slide 39: Reserves and Resources
APPENDIX XXX RESERVES AND RESOURCES GROWTH PORTFOLIO – ROBUST PROJECT PIPELINE Tonnes Grade Gold Gold Gold Mineral Resources* Mt g/t t Moz Barberton hard rock 24.5 4.2 102.1 3.3 BTRP 22.3 1.2 26.0 0.8 Evander underground 111.1 9.1 1 009.0 32.4 Elikhulu 163.4 0.3 44.2 1.4 Elikhulu 259.8 0.3 78.5 2.5