Pan African Resources Plc · LSE:PAF
Pan African Resources — FY2015 Earnings Presentation
101 slides from Pan African Resources's earnings presentation, Sep 16, 2015
Slide 1: Results Presentation for the Year Ended 30 June 2015
RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2015
Slide 2: Disclaimer
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 document
Slide 3: Overview of Presentation
OVERVIEW OF PRESENTATION • Strategy and vision • 2015 Highlights • Our world – Market commentary • Our world – Surmounting challenges • PAR investment case • Group results overview • Financial results overview • Outlook • Appendix › Review of Barberton Mines › Review of Barberton Tailings Retreatmen
Slide 4: Strategy and Vision
STRATEGY AND VISION
Slide 5: The African Focused Precious Metals Producer
STRATEGY AND VISION THE AFRICAN FOCUSED PRECIOUS METALS PRODUCER 5
Slide 6: 2015 Highlights
2015 HIGHLIGHTS
Slide 7: 2015 Highlights
2015 HIGHLIGHTS • Safety - Improvement in accident rates (LTIFR, RIFR and FIFR) • Financial highlights: Profit – ZAR210.2 mil EBITDA – ZAR512.1 mil Dividend proposed – ZAR 210.0 mil • Operational highlights: Moved into higher grades at Evander Extended LOM of Barberton mines to 20 years
Slide 8: Our World Market Commentary
OUR WORLD MARKET COMMENTARY
Slide 9: Gold vs Other Commodities - Bear Market
GOLD VS OTHER COMMODITIES - BEAR MARKET Gold price relative to other commodities - 5 year history ended 30 June 2015 230 210 Relative performance rebased to 100 190 170 150 130 110 90 70 50 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Gold Copper Oil Platinum Palladium Aluminium 9
Slide 10: ZAR vs USD Exchange Rate
ZAR VS USD EXCHANGE RATE USD / ZAR exchange rate - 5 year history ended 30 June 2015 14 12 10 8 Annual compounded depreciation of 9.7% 6 4 2 - Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 USD / ZAR Close 10
Slide 11: Gold Price
GOLD PRICE USD gold vs ZAR gold price - 5 year history ended 30 June 2015 180 Relative performance rebased to 100 160 140 120 100 80 60 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 USD gold price ZAR gold price 11
Slide 12: Share Price Performance - Gold
SHARE PRICE PERFORMANCE - GOLD PAR share price relative to peers - 5 year history ended 30 June 2015 450 Compound growth of 18.5% per annum for PAR Relative performance rebased to 100 400 350 300 250 200 150 100 50 - Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 PAR Sibanye* AngloGold Ashanti Harmony Go
Slide 13: Mining Cost Increases in South Africa
MINING COST INCREASES IN SOUTH AFRICA Cost inflation affecting the mining sector (annual average 2008-2014) 25.0 20.0 15.0 10.0 % 5.0 0.0 Electricity Diesel Reinforcing steel Wages per Structured steel Overall PPI Mining machinery employee (total Mining) 2008 - 2014 2014 * Source: Chamber of Mines 1
Slide 14: Our World – Surmounting Challenges
OUR WORLD – SURMOUNTING CHALLENGES
Slide 15: Evander Mines: Surmounting Challenges
EVANDER MINES SURMOUNTING CHALLENGES
Slide 16: Evander Low Grade: Shaft Production Tonnes Analysis
EVANDER LOW GRADE EVANDER 8 SHAFT PRODUCTION - TONNES ANALYSIS 45,000 40,000 35,000 30,000 25,000 TONS 20,000 15,000 10,000 5,000 0 Nov-15 Nov-14 Nov-13 Nov-12 Sep-14 May-15 Sep-15 Sep-13 Jul-15 Jan-16 May-16 Mar-16 Sep-12 Jan-14 May-14 Jul-14 Jan-15 Mar-15 Jul-12 Jan-13 May-13 Jul-13 Mar-14 Mar-13
Slide 17: Evander Low Grade: Grade Analysis
EVANDER LOW GRADE EVANDER 8 SHAFT PRODUCTION - GRADE ANALYSIS 20.00 18.00 16.00 14.00 12.00 10.00 g/t 8.00 6.00 4.00 2.00 0.00 * Face Grade Head Grade * Forecasted figures from 1 September 2015 onwards ** Face grade - the mineralised rock in g/t graded over the face width *** Head grade - the tonnes
Slide 18: DMR Section 54 Notices
DMR SECTION 54 NOTICES Section 54 notices – Production days lost 6 5.5 5.5 5 4 4 3 3 2 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Barberton Mines - 11 Days Evander Mines - 9 Days * Barberton mines production days lo
Slide 19: Evander Mines Belt Availability
EVANDER MINES BELT AVAILABILITY Conveyor belt availability 90% 80% 70% 60% 50% 40% 30% 19
Slide 20: Evander Belt Availability: Remedial Actions
EVANDER BELT AVAILABILITY Remedial actions • Specialised contractors were retained to bring the conveyor structures back to standard • 4,4km of belt was replaced with new belting • The supervision structure was changed by replacing key staff in the maintenance structure • The introduction of a plann
Slide 21: Evander Mines Flooding
EVANDER MINES FLOODING Total flooding incidents 14 12 10 8 6 4 2 - 21
Slide 22: Evander Mines Flooding: Remedial Actions
EVANDER MINES FLOODING Remedial actions • Introduction of a dam cleaning schedule • Adherence to maintenance schedules • The introduction of a planned maintenance function • Pump attendant re-training • Night shift artisans introduced • Pipe repair schedule • Daily tracking of spare pump availabilit
Slide 23: Evander Low Grade: Project Lungisa
EVANDER LOW GRADE PROJECT “ LUNGISA” Underground: • Accumulations & sweepings • Face advance • Stoping width • Equipping of panels for flexibility • Waste development Waste to ore ratio Critical development • Mid month measuring Plant: • Total ore-flow from underground to the plant • Optimising
Slide 24: Barberton Mines: Surmounting Challenges
BARBERTON MINES SURMOUNTING CHALLENGES
Slide 25: BIOX Oil Contamination: Recoveries
BIOX® OIL CONTAMINATION BIOX® RECOVERIES 100% 97% 98% 98% 97% 96% 96% 97% 96% 97% 96% 95% 96% 96% 94% 92% 91% 89% 90% 84% 80% Recovery (%) 70% 60% 50% BIOX ® Recoveries - Actual 25
Slide 26: BIOX Oil Contamination: Remedial Actions
BIOX® OIL CONTAMINATION Remedial actions • Replaced the Watson crusher after the incident • The Watson crusher will be replaced after every two years • A standby/refurbished crusher is available on site in case of a breakdown • Having a dedicated artisan for the crushing section • Oil level transmit
Slide 27: Barberton Mines Production
BARBERTON MINES PRODUCTION PRODUCTION STATISTICS Head grade (g/t) Tonnes Excluding BTRP 350,000 12 300,000 10 250,000 8 200,000 6 150,000 4 100,000 50,000 2 0 0 2011 2012 2013 2014 2015 Fairview tonnes 133,873 122,802 119,089 114,598 111,875 Sheba tonnes 113,694 113,844 109,103 99,992 90,345 Consort
Slide 28: Barberton Mines Production: Remedial Actions
BARBERTON MINES PRODUCTION Remedial actions • New bonus scheme introduced based on o Safety o Tons achieved o Gold produced o Costs • Planned maintenance on LHD’s at Sheba • Ventilation holings at Sheba and Consort have been completed • Equipping for production from 38 Level high-grade blocks at Con
Slide 29: PAR Investment Case
PAR INVESTMENT CASE
Slide 30: PAR Investment Case: Dividend Proposed
PAR INVESTMENT CASE Dividend proposed 300 ZAR258 mil ZAR240.3 mil GBP14.3 mil 250 GBP14.7 mil ZAR210 mil GBP9.9 mil 200 ZAR / GBP Millions 150 ZAR95.6 mil GBP7.4 mil 100 50 ZAR nil GBP nil 0 2011 2012* 2013 2014 2015** ZAR Dividend * Foregone dividend to fund the acquisition of Evander Gold Mines **
Slide 31: Market Leading Dividend Yield
PAR INVESTMENT CASE Market leading dividend yield 7.6%(3) 4.6% 4.5% 3.4% 1.2% 1.0% 0.6% Pan African Sibanye DRDGOLD¹ Centamin Acacia Mining Randgold Gold Fields² Resources Note: Dividend yield calculated as last annual dividend per share announced by Company and share price as at 3 September 2015 (1
Slide 32: Conservative Gearing / Debt Ratio
PAR INVESTMENT CASE CONSERVATIVE GEARING / DEBT RATIO ¹,² 0.5 AngloGold 0.4 Barrick 0.4 0.3 Gold Fields Endeavour Debt Ratio 0.3 Newmont 0.2 Newcrest 0.2 Goldcorp Sibanye 0.1 0.1 Acacia Mining Pan African Resources Randgold DRD Gold 0.0 Centamin 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Gearing Ratio Note(1):
Slide 33: Disciplined Capital Allocation Decisions
PAR INVESTMENT CASE Disciplined capital allocation decisions Project Investment Capital / Forecasted Payback Period Purchase Price Phoenix CTRP ZAR308.9 million* Forecasting 10 years Payback on current PGM basket prices BTRP ZAR325.7 million Paid back in 18 months ETRP ZAR174.3 million Forecasting 4
Slide 34: EV in Relation to Reserves and Resources
PAR INVESTMENT CASE BUBBLE SIZE REPRESENTS ENTERPRISE VALUE (‘EV’) IN RELATION TO RESERVES AND RESOURCES 400x Randgold 350x 300x Goldcorp Regis 250x EV/Reserve Barrick Gold 200x Evolution Newmont Yamana 150x AngloGold Centamin Newcrest Acacia 100x Beadell Endeavour Kinross 50x Pan African Harmony -
Slide 35: Group Capital Spending Through the Cycle
PAR INVESTMENT CASE GROUP CAPITAL SPENDING ON MAINTAINING PRODUCTION AND GROWTH THROUGH THE CYCLE ZAR millions ZAR381.6 million ZAR363.0 million ZAR352.0 million ZAR253.2 million ZAR213.9 million 2011 2012 2013 2014 2015 GBP 21.0 million GBP 17.4 million GBP 27.6 million GBP 21.5 million GBP 19.6 mi
Slide 36: Total Underground Cost of Production per Operation
PAR INVESTMENT CASE Total underground cost of production per operation 1,000 ZAR939.7 mil ZAR914.7 mil ZAR835.4 mil ZAR783.9 mil 800 ZAR714.8 mil ZAR663.2 mil ZAR million 600 400 200 0 2013 2014 2015 Barberton Mines Evander Mines 36
Slide 37: Coal Asset – Uitkomst Colliery Location
PAR INVESTMENT CASE COAL ASSET – UITKOMST COLLIERY LOCATED CLOSE TO NEWCASTLE 37
Slide 38: Coal Asset – Uitkomst Colliery
PAR INVESTMENT CASE COAL ASSET – UITKOMST COLLIERY • Operating mine • High grade thermal coal with a metallurgical application • ROM – 600,000 t/annum • Saleable coal – 450,000 t/annum • Yield recovery 70% Plus • LOM of 28 years • Anticipated payback period of 4-5 years 38
Slide 39: Coal Asset – Uitkomst Colliery Resources
PAR INVESTMENT CASE COAL ASSET – UITKOMST COLLIERY • Exploration from 1950’s: • Anglovaal & Iscor • Borehole density – good • More than 100 boreholes drilled • Mineral Corporation signed-off on Mineral Resource Resources 12% Ash Product Class MTIS (Mt) Yield (%) IM (%) Ash (%) VM (%) FC (%) CV (MJ/K
Slide 40: Our Investment Case
PAR INVESTMENT CASE OUR INVESTMENT CASE • African focused precious metals producer • Group is profitable and cash flow positive with attractive margins, despite lower gold price environment • Long life quality assets › Significant profit and cash flow upside with Evander Mines re-entering higher gra
Slide 41: Performance vs 2015 Targets
PAR INVESTMENT CASE PERFORMANCE vs 2015 TARGETS • Continue all efforts to reducing the severity of accidents at all operations /✔ • Focus delivery on: › Volumes and grades at operations › Improve cash cost profiles ✔ • Ameliorate the effects of a lower grade mining cycle at Evander: › Establish m
Slide 42: Group Results Overview
RESOURCES (@ e ~ off a bee” San
Slide 43: Group Operational Review
GROUP OPERATIONAL REVIEW COBUS LOOTS, CHIEF EXECUTIVE OFFICER
Slide 44: Geographical Map
AN “AN RESOURCES Jo oc Pe RORTIWESY MPUMALANGA! PROVINCE
Slide 45: Group - Safety Performance: Accident Rates
GROUP - SAFETY PERFORMANCE ACCIDENT RATES Per million man hours 2011 2012 2013 2014 2015 2.91 3.63 2.74 2.97 2.29 1.62 1.94 1.63 1.52 1.11 Lost time injury frequency rate (LTIFR) Reportable injury frequency rate (RIFR) 45
Slide 46: Group - Safety Performance: Fatality Injury Frequency Rate
GROUP - SAFETY PERFORMANCE FATALITY INJURY FREQUENCY RATE Per million man hours 2011 2012 2013 2014 2015 0.00 0.48 0.22 0.30 0.07 Fatality injury frequency rate (FIFR) * It’s with regret that we report 1 fatality that occurred during the year under review 46
Slide 47: Group Reserve Update - Gold
GROUP RESERVE UPDATE - GOLD 2015 2014 10.4Moz (84.9Mt @ 3.79g/t) 10.1Moz (87.6Mt @ 3.58g/t) 10% 9% 90% 91% Proved Probable 47
Slide 48: Group Resource Update - Gold
GROUP RESOURCE UPDATE - GOLD 2015 2014 31.9Moz (318.8Mt @ 3.11g/t) 33.5Moz (326.3Mt @ 3.20g/t) 7% 6% 29% 32% 64% 62% Measured Indicated Inferred 48
Slide 49: Group Production Results: Gold
GROUP PRODUCTION RESULTS GROUP GOLD PRODUCTION BARBERTON MINES 2015 2014 Total tonnes milled (Underground and Surface) (t) 260,749 292,121 Total tonnes processed (Tailings) (t) 971,627 815,736 Recovered grade (Underground and Surface) (g/t) 9.7 9.4 Recovered grade (Tailings) (g/t) 0.8 0.9 Gold sold
Slide 50: Group Production Results: PGM
GROUP PRODUCTION RESULTS GROUP PGM PRODUCTION PHOENIX PLATINUM 2015 2014 Total tonnes processed (Tailings) (t) 262,119 251,182 Head grade (Tailings) (g/t) 3.31 3.65 PGE sold (oz) 10,245 7,204 Total cash cost (ZAR/t) 259 222 50
Slide 51: Group – Operations Key Features: Barberton
GROUP – OPERATIONS KEY FEATURES BARBERTON MINES • Gold sold decreased by 5.2% to 105,776oz (2014: 111,623oz) • Underground head grade of 10.9g/t • Total cost of production for underground sources increased by 9.7% to R783.9 million (2014: R714.8 million) and for BTRP by 14.4% to R133.5 million (2014
Slide 52: Group – Operations Key Features: Evander
GROUP – OPERATIONS KEY FEATURES EVANDER MINES • Increased production tonnages with ETRP commissioning • Experienced low grade mining cycle until May 2015 • Total cost of production excluding ETRP costs only increased by 2.7% EVANDER TAILINGS RETREATMENT PLANT (ETRP) • 1st gold production from ETRP -
Slide 53: Group – Operations Key Features: Phoenix Platinum
GROUP – OPERATIONS KEY FEATURES PHOENIX PLATINUM • PGE production increased by 42.2% to 10,245oz (2014: 7,204oz) • Revenue increased by 36.9% to ZAR98.4 million (2014: ZAR71.9 million) • Cash cost per ounce decreased by 14.3% to ZAR6,621/oz (2014: ZAR7,723/oz) • Phoenix Platinum headline earnings ZA
Slide 54: Group Operational Costs – Barberton Mines
GROUP OPERATIONAL COSTS – BARBERTON MINES CASH COST BREAKDOWN – EXCLUDING BTRP* 2015 2014 7% 4% 3% 3% 11% 11% TOTALS TOTALS ZAR783.9 million 9% ZAR714.8 million 9% GBP43.6 million 48% GBP42.3 million 50% USD840/oz USD788/oz 9% ZAR3,006/t ZAR2,447/t 8% 14% 14% Salaries Mining Processing Engineering E
Slide 55: Group Operational Costs – BTRP
GROUP OPERATIONAL COSTS – BTRP CASH COST BREAKDOWN 2015 2014 2% 1% 9% 8% 8% 8% TOTALS TOTALS ZAR133.5 million ZAR116.7 million ZAR176,734/kg ZAR163,977/kg USD480/oz USD493/oz ZAR137/t ZAR143/t 81% 83% Salaries & wages Processing Electricity Admin & other * Including stock adjustments 55
Slide 56: Group Operational Costs – Evander Mines
GROUP OPERATIONAL COSTS – EVANDER MINES CASH COST BREAKDOWN – EXCLUDING ETRP* 2015 2014 1% 1% 6% 9% 19% TOTALS TOTALS 18% ZAR939.7 million ZAR914.7 million GBP52.2 million 50% GBP54.2 million 49% 7% USD1,291/oz USD1,154/oz ZAR1,450/t 7% ZAR1,394/t 4% 4% 13% 12% Salaries & wages Mining Processing Eng
Slide 57: Group Operational Costs – ETRP
GROUP OPERATIONAL COSTS – ETRP CASH COST BREAKDOWN 2015 2% ETRP PRODUCTION COSTS AND REVENUE 4% WERE CAPITALISED IN ACCORDANCE WITH IAS16 TOTALS ZAR54.1 million UP TO 28 FEBRUARY 2015 ZAR266,453/kg USD688/oz ALL REVENUE AND ZAR84/t OPERATING COSTS WERE ALLOCATED TO 94% THE INCOME STATEMENT FROM 1 MA
Slide 58: Group Operational Costs – Phoenix Platinum
GROUP OPERATIONAL COSTS – PHOENIX PLATINUM CASH COST BREAKDOWN 2015 2014 1% 2% 6% 6% 29% 32% TOTALS TOTALS ZAR67.8 million ZAR55.6 million GBP3.8 million GBP3.3 million ZAR6,621/oz ZAR7,723/oz ZAR259/t ZAR222/t 64% 60% Salaries & wages Processing Electricity Administration & other 58
Slide 59: Key Drivers for Continued Growth
PAN AFRICAN RESOURCES PLC KEY DRIVERS FOR CONTINUED GROWTH • Targeting 225,000oz of gold production per year in the short term • Strong Financial Position and Cash flows • Maintain and increase dividend • Production and growth focus: › Protect margins by managing cost inflation › Target productivity
Slide 60: Financial Review
FINANCIAL REVIEW DEON LOUW, FINANCIAL DIRECTOR
Slide 61: Summarised Consolidated Results
PAN AFRICAN RESOURCES PLC SUMMARISED CONSOLIDATED RESULTS For the year ended 30 June 2015 For the year ended 30 June 2014 ZAR GBP ZAR GBP Revenue (millions) 2,539.4 141.1 2,608.8 154.6 Cost of production (millions) (1,987.4) (110.4) (1,795.9) (106.4) Mining profit (millions) 353.4 19.6 637.8 37.8 Ad
Slide 62: Financial Summary: Revenue
FINANCIAL SUMMARY : GROUP RESULTS REVENUE ZAR millions 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 ZAR millions 879.7 1,240.3 1,848.1 2,608.8 2,539.4 GBP millions 79.2 101.1 133.5 154.6 141.1 62
Slide 63: Financial Summary: Headline Earnings per Share
FINANCIAL SUMMARY : GROUP RESULTS HEADLINE EARNINGS PER SHARE ZAR millions 40 30 20 10 0 2011 2012 2013 2014 2015 ZAR millions 13.31 24.89 30.07 24.74 11.67 GBP millions 1.20 2.03 2.17 1.47 0.65 63
Slide 64: Costs as Defined by World Gold Council (ZAR/kg)
FINANCIAL SUMMARY : GROUP RESULTS COSTS AS DEFINED BY WORLD GOLD COUNCIL ZAR/kg 500,000 400,000 300,000 200,000 100,000 0 2011 2012 2013 2014 2015 Average gold price received 306,757 422,215 440,824 433,437 446,274 Cash cost 175,520 193,360 231,439 298,345 349,410 All-in sustaining costs 217,524 246
Slide 65: Costs as Defined by World Gold Council (USD/oz)
FINANCIAL SUMMARY : GROUP RESULTS COSTS AS DEFINED BY WORLD GOLD COUNCIL USD/oz 1,800 1,500 1,200 900 600 300 0 2011 2012 2013 2014 2015 Average gold price received 1,366 1,694 1,553 1,303 1,212 Cash cost 781 776 815 897 949 All-in sustaining costs 968 990 992 1,049 1,093 All-in costs 968 1,066 1,21
Slide 66: Outlook
OUTLOOK
Slide 67: Outlook: For the Next 12 Months
OUTLOOK: FOR THE NEXT 12 MONTHS 1. Continue all efforts to reduce the severity of accidents at all operations 2. Focus on delivery at Barberton: › Tonnes and grades › BIOX® 3. Ensure Evander is cash flow and earnings positive › Tonnes and head grade › Manage risks associated with infrastructure › Ta
Slide 68: Operational Review: Barberton Mines
OPERATIONAL REVIEW BARBERTON MINES
Slide 69: Barberton Mines Operational Summary
BARBERTON MINES OPERATIONAL SUMMARY • Gold sold decreased by 5.2% to 105,776oz (2014: 111,623oz) • Gold sold from underground and surface sources decreased by 8.2% to 81,493oz (2014:88,738oz) due to the following: › BIOX® - oil contamination from damaged crusher › Section 54 imposed stoppages › Face
Slide 70: Barberton Mines Underground Resource Update
BARBERTON MINES UNDERGROUND RESOURCE UPDATE 2015 2014 3.09Moz (9.0Mt @ 10.00g/t) 2.9Moz (8.9Mt @ 10.00g/t) 30% 30% 29% 39% 40% 32% Measured Indicated Inferred 70
Slide 71: Barberton Mines Underground Reserve Update
BARBERTON MINES UNDERGROUND RESERVE UPDATE 2015 2014 1.4Moz (4.3Mt @ 9.31g/t) 1.2Moz (3.9Mt @ 9.31g/t) 29% 33% 71% 67% Proved Probable 71
Slide 72: Barberton Mines Production
BARBERTON MINES PRODUCTION PRODUCTION STATISTICS Head grade (g/t) Tonnes Excluding BTRP 350,000 12 300,000 10 250,000 8 200,000 6 150,000 4 100,000 50,000 2 0 0 2011 2012 2013 2014 2015 Fairview tonnes 133,873 122,802 119,089 114,598 111,875 Sheba tonnes 113,694 113,844 109,103 99,992 90,345 Consort
Slide 73: Barberton Mines Gold Sold
BARBERTON MINES GOLD SOLD oz 120,000 111,623oz 105,776oz 100,000 94,449oz 96,296oz 92,197oz 80,000 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 BTRP 0 0 0 22,885 24,283 Underground and Surface 92,197 94,449 96,296 88,738 81,493 73
Slide 74: Barberton Mines Excluding BTRP: Costs (ZAR/kg)
BARBERTON MINES – EXCLUDING BTRP COSTS AS DEFINED BY WORLD GOLD COUNCIL ZAR/kg 500,000 400,000 300,000 200,000 100,000 0 2011 2012 2013 2014 2015 Average gold price received 306,757 422,215 450,829 435,464 446,246 Cash cost 175,520 193,360 221,424 258,972 309,289 All-in sustaining costs 217,524 246,
Slide 75: Barberton Mines Excluding BTRP: Costs (USD/oz)
BARBERTON MINES – EXCLUDING BTRP COSTS AS DEFINED BY WORLD GOLD COUNCIL USD/oz 1,800 1,500 1,200 900 600 300 0 2011 2012 2013 2014 2015 Average gold price received 1,366 1,694 1,588 1,309 1,212 Cash cost 781 776 780 778 840 All-in sustaining costs 968 990 964 937 1,021 All-in costs 968 1,066 1,234 9
Slide 76: Barberton Mines Excluding BTRP: Cash Cost Breakdown
BARBERTON MINES – EXCLUDING BTRP CASH COST BREAKDOWN* 2015 2014 7% 4% 3% 3% 11% 11% TOTALS TOTALS ZAR783.9 million 9% ZAR714.8 million 9% GBP43.6 million 48% GBP42.3 million 50% USD840/oz USD788/oz 9% ZAR3,006/t ZAR2,447/t 8% 14% 14% Salaries Mining Processing Engineering Electricity Security Other
Slide 77: Barberton Mines Capital Expenditure
BARBERTON MINES CAPITAL EXPENDITURE (INCLUDING BTRP) ZAR millions 350 ZAR316.8 million 300 250 200 ZAR151.0 million 150 ZAR131.8 million ZAR112.6 million 100 ZAR75.4 million 50 0 2011 2012 2013 2014 2015 BTRP 0.0 55.4 229.6 40.7 0.0 Maintenance capital 39.9 38.7 45.1 33.3 44.2 Development capital 35
Slide 78: Barberton Tailings Retreatment Plant Operational Summary
BARBERTON TAILINGS RETREATMENT PLANT OPERATIONAL SUMMARY • Gold sold increased by 6.1% to 24,283oz (2014: 22,885oz) • Revenue increased by 9.3% to ZAR337.9 million (2014:ZAR309.2 million) • Cash cost per kilogram increased by 7.8% to ZAR176,734 (2014:ZAR163,977/kg) • Cash cost per ounce decreased by
Slide 79: BTRP Resource Update: Tailings Dams
BTRP RESOURCE UPDATE: TAILINGS DAMS 2015 2014 0.9Moz (20.4Mt @ 1.32g/t) 0.8Moz (19.8Mt @ 1.32g/t) 22% 25% 78% 75% Indicated Inferred 79
Slide 80: BTRP Reserve Update: Tailings Dams
BTRP RESERVE UPDATE: TAILINGS DAMS 2015 2014 0.6Moz (13.4Mt @ 1.43g/t) 0.6Moz (14.4Mt @ 1.43g/t) 100% 100% Probable 80
Slide 81: Barberton Tailings Retreatment Plant Cash Cost Breakdown
BARBERTON TAILINGS RETREATMENT PLANT CASH COST BREAKDOWN 2015 2014 2% 1% 9% 8% 8% 8% TOTALS TOTALS ZAR133.5 million ZAR116.7 million ZAR176,734/kg ZAR163,977/kg USD480/oz USD493/oz ZAR137/t ZAR143/t 81% 83% Salaries & wages Processing Electricity Admin & other * Including stock adjustments 81
Slide 82: Operational Review: Evander Mines
OPERATIONAL REVIEW EVANDER MINES
Slide 83: Evander Mines Operational Summary
EVANDER MINES OPERATIONAL SUMMARY • Remained in low grade mining cycle until May 2015 • Gold sold decreased by 8.5% to 70.081oz (2014: 76,556oz) • Revenue decreased by 5.6% to ZAR972 million (2014: ZAR1.03 billion) • Total cost of production excluding ETRP costs increased by only 2.7% to ZAR939.7 mi
Slide 84: Evander Mines Underground Resource Update
EVANDER MINES UNDERGROUND RESOURCE UPDATE 2015 2014 25.9Moz (83.5Mt @ 9.66g/t) 27.9Moz (91.3Mt @ 10.00g/t) 5% 5% 31% 34% 64% 61% Measured Indicated Inferred 84
Slide 85: Evander Mines Underground Reserve Update
EVANDER MINES UNDERGROUND RESERVE UPDATE 2015 2014 7.9Moz (28.8Mt @ 8.52g/t) 7.8Moz (29.0Mt @ 8.41g/t) 6% 6% 94% 94% Proved Probable 85
Slide 86: Evander Mines Production Statistics
EVANDER MINES PRODUCTION STATISTICS Underground and Tonnes milled Surface head grade (g/t) 1,000,000 6.0 5.0 800,000 4.0 600,000 3.0 400,000 2.0 200,000 1.0 0 0.0 2011 2012 2013 2014 2015 Surface 290,000 178,000 202,112 260,901 266,223 Underground 541,000 460,000 390,372 395,127 381,986 Head grade 3
Slide 87: Evander Mines Gold Sold – Excluding ETRP
EVANDER MINES GOLD SOLD – EXCLUDING ETRP oz 140,000 120,000 108,123oz 95,089oz 100,000 88,543oz 76,556oz 80,000 63,558oz 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 Surface 13,889 6,237 7,087 10,600 9,812 Underground 74,654 101,886 88,002 65,956 53,746 87
Slide 88: Evander Mines: Costs (ZAR/kg)
EVANDER MINES COSTS AS DEFINED BY WORLD GOLD COUNCIL ZAR/kg 600,000 500,000 400,000 300,000 200,000 100,000 0 2013 2014 2015 Average gold price received 449,975 430,801 445,922 Cash cost 282,451 384,150 455,896 All-in sustaining costs 345,006 445,665 507,980 All-in costs 372,707 478,933 557,553 88
Slide 89: Evander Mines: Costs (USD/oz)
EVANDER MINES COSTS AS DEFINED BY WORLD GOLD COUNCIL USD/oz 1,800 1,500 1,200 900 600 300 0 2013 2014 2015 Average gold price received 1,585 1,295 1,216 Cash cost 995 1,154 1,238 All-in sustaining costs 1,215 1,339 1,380 All-in costs 1,313 1,439 1,515 89
Slide 90: Evander Mines Excluding ETRP: Cash Cost Breakdown
EVANDER MINES -EXCLUDING ETRP CASH COST BREAKDOWN* 2015 2014 1% 1% 6% 9% 19% TOTALS TOTALS 18% ZAR939.7 million ZAR914.7 million GBP52.2 million 50% GBP54.2 million 49% 7% USD1,291/oz USD1,154/oz ZAR1,450/t 7% ZAR1,394/t 4% 4% 13% 12% Salaries & wages Mining Processing Engineering & technical servic
Slide 91: Evander Mines Capital Expenditure
EVANDER MINES CAPITAL EXPENDITURE ZAR millions 250 ZAR238.2 million ZAR210.5 million ZAR196.3 million ZAR201.1 million* 200 ZAR177.3 million 150 100 50 0 2011 2012 2013 2014 2015 ETRP capital 0.0 0.0 0.0 79.2 95.1 Maintenance capital 43.6 40.4 65.0 27.9 38.6 Development capital 152.7 136.9 136.1 103
Slide 92: Evander Tailings Retreatment Plant Operational Summary
EVANDER TAILINGS RETREATMENT PLANT OPERATIONAL SUMMARY • Gold production from ETRP - 6,523oz • Revenue generated - ZAR87.4 million • Cash cost per kilogram - ZAR266,453/kg - (USD688/oz) • All-in cost per kilogram - ZAR735,262/kg - (USD1,899/oz) - expected to reduce with completion of construction •
Slide 93: ETRP Resource Update: Tailings Dams
ETRP RESOURCE UPDATE: TAILINGS DAMS 2015 1.9Moz (205.3Mt @ 0.29g/t) 100% Indicated 93
Slide 94: ETRP Reserve Update: Tailings Dams
ETRP RESERVE UPDATE: TAILINGS DAMS 2015 0.4Moz (38.1Mt @ 0.32g/t) 100% Probable 94
Slide 95: Evander Tailings Retreatment Plant Cash Cost Breakdown
EVANDER TAILINGS RETREATMENT PLANT CASH COST BREAKDOWN 2015 2% ETRP PRODUCTION COSTS AND REVENUE 4% WERE CAPITALISED IN ACCORDANCE WITH IAS16 TOTALS ZAR54.1 million UP TO 28 FEBRUARY 2015 ZAR266,453/kg USD688/oz ALL REVENUE AND ZAR84/t OPERATING COSTS WERE ALLOCATED TO 94% THE INCOME STATEMENT FROM
Slide 96: Operational Review: Phoenix Platinum
OPERATIONAL REVIEW PHOENIX PLATINUM
Slide 97: Phoenix Platinum Operational Summary
PHOENIX PLATINUM OPERATIONAL SUMMARY • Phoenix was both cash generative and profitable in the 2015 financial year • PGE production increased by 42.2% to 10,245oz (2014: 7,204oz) • Revenue increased by 36.9% to ZAR98.4 million (2014: ZAR71.9 million) • Cash cost per ounce decreased by 14.3% to ZAR6,6
Slide 98: Phoenix Platinum Production Statistics
PHOENIX PLATINUM PRODUCTION STATISTICS Plant feed tonnes Head grade (g/t) 300,000 5.00 250,000 4.00 200,000 3.00 PLANT RECOVERIES 150,000 INCREASED 2.00 FROM 29% TO 44% 100,000 IN FY2015 1.00 50,000 0 0.00 2013 2014 2015 Plant feed tonnes 274,190 251,182 262,119 Head grade 3.68 3.65 3.31 98
Slide 99: Phoenix Platinum PGE Sold
PHOENIX PLATINUM PGE SOLD oz 8,000 6,000 4,000 2,000 0 2013 2014 2015 PGE ounces 6,480 7,204 10,245 99
Slide 100: Phoenix Platinum Cash Cost Breakdown
PHOENIX PLATINUM CASH COST BREAKDOWN 2015 2014 1% 2% 6% 6% 29% 32% TOTALS TOTALS ZAR67.8 million ZAR55.6 million GBP3.8 million GBP3.3 million ZAR6,621/oz ZAR7,723/oz ZAR259/t ZAR222/t 64% 60% Salaries & wages Processing Electricity Administration & other 100
Slide 101: Thank You
RESOURCES THANK YOU “SS