Pan African Resources Plc · LSE:PAF
Pan African Resources — FY2024 Earnings Presentation
44 slides from Pan African Resources's earnings presentation, Sep 11, 2024
Slide 1: Annual Results Presentation
ANNUAL RESULTS PRESENTATION OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN for the financial year ended 30 June 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 FY2024 – Key features Performance by operation Group AISC Capital projects (ZAR) ESG: Our “Beyond compliance” approach Financials FY2025 – Focused on delivery Appendix OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www
Slide 5: Health and Safety
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials HEALTH AND SAFETY 5. FY2025 – Focused on delivery 6. Appe
Slide 6: Health and Safety: Group Safety Performance
HEALTH AND SAFETY XXX HEALTH AND SAFETY GROUP SAFETY PERFORMANCE Significant improvement in the Group’s safety statistics across all operations Fatality-free milestone achieved at MTR • Group TRIFR improved by 18.1% to 6.52 (FY23: 7.96) per million-man hours • One million fatality-free hours worked
Slide 7: Group Overview
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials GROUP OVERVIEW 5. FY2025 – Focused on delivery 6. Appendi
Slide 8: Group Overview: Gold Production Profile
GROUP OVERVIEW XXX GROUP OVERVIEW A UNIQUE COMBINATION OF UNDERGROUND AND SURFACE MINING OPERATIONS PAR Group gold production profile 300 000 ~250,000oz 250 000 ~215,000oz- 225,000oz 201,777oz 205,688oz 200 000 186,039oz 175,209oz 150 000 100 000 50 000 0 2021 2022 2023 2024 2025 2026 * Barberton BT
Slide 9: FY2024 Gold Production
GROUP OVERVIEW XXX GROUP OVERVIEW FY2024 GOLD PRODUCTION 6.2% TO 186,039oz (FY2023: 175,209oz) 300 000 ~250,000oz# 250 000 ~215,000- 201,8Koz 205,7Koz 175,2Koz 186,0Koz 225,000oz# AISC $1261/oz AISC $1259/oz AISC $1309/oz AISC $1354/oz 200 000 25-30Koz 45% AISC $900/oz 35% 72Koz Surface 69Koz Surf
Slide 10: Balanced Mix of Surface and Underground Operations
GROUP OVERVIEW XXX GROUP OVERVIEW FY2024 GOLD PRODUCTION 6.2% TO 186,039oz (FY2023: 175,209oz) Balanced mix of low-cost surface mining and high-grade, long-life u/g mines 35% - 45% SURFACE 65% - 55% U/G MTR + Soweto Cluster Evander Mines Ann Prod: 50-60koz FY25-FY26 estimated production Ann Prod:
Slide 11: Our Operating Environment
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) GROUP OVERVIEW 3. 4. 5. ESG: Our “Beyond compliance” approach FY2024 Financials FY2025 – Focused on delivery OUR OPERAT
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: FY2024 Key Features
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – 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. FY2024 Financials 5. FY2025 – Focused on delivery FY2024 – K
Slide 14: FY2024 Key Features: Operational and Financial Performance
FY2024 KEY FEATURES XXX FY2024 KEY FEATURES OPERATIONAL AND FINANCIAL PERFORMANCE PRODUCTION PERFORMANCE COST PERFORMANCE FINANCIAL PERFORMANCE Group gold production of 186,039oz 6.2% Group AISC 3.4% to US$1,354/oz Excellent performance in FY24 • Fairview and Sheba mines 13.5% to (FY23: US$1,3
Slide 15: Gold Price Received and Margins
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 RAMPS UP TO ~250KOZ Gold price received vs AISC 1 600 000 • Well positioned to capitalise on increasing gap between 1 400 000 Z
Slide 16: Performance by Operation
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – 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. FY2024 Financials 5. FY2025 – Focused on delivery PERFORMANC
Slide 17: Tailings Operations – Elikhulu
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – ELIKHULU • Production 8.8% to 54,812oz (FY23: 50,573oz) • Consistent head grade of 0.35g/t (FY23: 0.36g/t) • Overall metallurgical recovery increased to 34.8% (FY23: 32.3%) • AISC of US$1,034/oz (FY23: US$989/oz) – one of
Slide 18: Tailings Operations – BTRP and Sheba Fault
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – BTRP AND SHEBA FAULT • Production remained consistent at 18,888oz (FY23: 19,875oz) BTRP life-of-mine plan – new surface sources • Lowest cost of production in the Group 40 000 • AISC of US$669/oz (FY23: US$721/oz) • Overall
Slide 19: Mogale Tailings Retreatment (MTR)
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MOGALE TAILINGS RETREATMENT (MTR) October 2022 – PAR closed transaction to acquire Mogale Gold and Mintails SA Soweto Cluster TSFs • Acquisition price of ZAR50million (US$2.8 million) • ~ US$ 1.12/Resource oz • Expected to add ~50koz/year over a
Slide 20: MTR Plant Commissioning in Progress
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION MTR PLANT COMMISSIONING IN PROGRESS PROPOSED PROJECT EXECUTION TIMELINE ACTIVITY ESTIMATED DATE Completion and finalisation of DFS Completed ✓ Engineering optimisation activities Completed ✓ Detailed engineering optimisation Completed ✓ Funding p
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 Operation BTRP ETRP Elikhulu MTR Capacity 100,000tpm/20koz/yr 200,000tpm/10koz/yr 1,2Mt
Slide 23: Evander Underground
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER UNDERGROUND EVANDER 8 SHAFT • Production 15.1% to 38,285oz in FY24 (FY23: 33,256oz)* • Tons milled 21% to 192Kt u/g tons milled at 6.6g/t (FY23: 159Kt at 6.7g/t) • AISC of US$1,307/oz (FY23: US$1,113/oz) – delays in sub-vertical shaft
Slide 24: Fairview Mine
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION FAIRVIEW MINE Increased gold production through continuous operations cycle • Increased ROM tonnages and production • Gold production 14.1% to 44,325oz (FY23: 38,849oz) • Average u/g RoM volumes mainly from MRC and Rossiter orebodies increased
Slide 25: Barberton Mines' Smaller Underground Operations
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION BARBERTON MINES’ SMALLER UNDERGROUND OPERATIONS SHEBA MINE • Gold production 12.2% to 21,255oz (FY23: 18,930oz) • Improved production is attributed to MRC orebody and three higher grade Zwartkoppie (ZK) ore blocks, as well as the South Wall adi
Slide 26: Group AISC
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – 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. FY2024 Financials 5. FY2025 – Focused on delivery GROUP AISC
Slide 27: Group AISC
GROUP AISC XXX GROUP AISC FY2024 – GUIDING AISC OF US$1,350/oz – US$1,400/oz IN FY2025* Lower cost operations Barberton Total lower Evander Mines’ cost % Group BTRP Elikhulu underground Fairview operations production AISC per kg 402,151 621,943 785,928 862,882 703,825 (ZAR/kg) 84% AISC per oz (US$/o
Slide 28: Group AISC: FY2024 AISC Outlook
US$/oz GROUP AISC 200 1 800 600 1 200 1 600 0 400 2 000 800 1 400 1 000 Dundee Precious Endeavour Mining GROUP AISC West African Res OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN PAR - lower cost FY 2024 – AISC OUTLOOK operations Centamin Source: PAR FY2024 Integrated Annual Report, Mining Journal B2Gold
Slide 29: Capital Projects (ZAR)
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC GROUP OVERVIEW 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials 5. FY2025 – Focused on delivery CAPITAL PR
Slide 30: Capital Projects (ZAR)
CAPITAL PROJECTS (ZAR) XXX CAPITAL PROJECTS (ZAR) INVESTMENT IN ORGANIC GROWTH AND MTR – INCREASING OUR PRODUCTION PROFILE 3 500 3 000 2 500 2 000 ZARm 1 500 1 000 500 0 2021 2022 2023 2024 2025FC MTR Project 156 1 284 960 (US$ 52m) Elikhulu 64 168 305 305 120 (US$ 6.5m) Evander 195 430 1 088 1 016
Slide 31: ESG: Our Beyond Compliance Approach
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) ESG: 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials 5. FY2025 – Focused on delivery 6. Appendix OUR “BEY
Slide 32: 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 • 8.75MW Barberton solar plant construction • Engagement forums at each operation – Barberton Bluebe
Slide 33: 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 60% Finalise study for We are 8.75MW solar PV 20MW 50.0% committed to 50% Commissioned facility at renewable Barberton Mines a
Slide 34: FY2024 Financials
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials FY2024 FINANCIALS 5. FY2025 – Focused on delivery 6. Appe
Slide 35: Summarised Consolidated Financial Results
FY2024 FINANCIALS XXX FY2024 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Year ended Year ended Movement Salient features Units 30 June 2024 30 June 2023 % Gold produced oz 186,039 175,209 6.2 Gold sold1 oz 184,885 176,216 4.9 Revenue US$ million 373.8 319.9 16.8 US$/oz 2,015 1,811 11.3 Aver
Slide 36: Debt Composition
FY2024 FINANCIALS – DEBT COMPOSITION XXX FY2024 FINANCIALS DEBT COMPOSITION Renewable Energy Green Loan Facility R350 million (US$18.9 million) Mintails Debt Facility R1.3 billion* (US$70.3 million) RCF Facility R1.0 billion* (US$54.1million) DMTN Bond Issue R800 million* (US$43.2 million) GBF Facil
Slide 37: Debt Redemptions
FY2024 FINANCIALS – DEBT REDEMPTIONS XXX FY2024 FINANCIALS ANTICIPATED DRAW DOWN AND CONTRACTUAL DEBT REDEMPTION PROFILES Contractual debt redemptions – capital and interest 1 200 1 000 800 ZARm 600 400 200 0 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Mar-27 Jun-27 Sep-27
Slide 38: Dividends and Shareholder Returns
FY2024 FINANCIALS - DIVIDENDS AND RETURNS XXX FY2024 FINANCIALS DIVIDENDS AND SHAREHOLDER RETURNS 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% 3.6% 3% 2% 1.2% 1% 0.0% 0% June 14 June 15 June 16 June 17 June 18* June 19 June 20
Slide 39: Dividends and Shareholder Returns: Return on Equity
FY2024 FINANCIALS - DIVIDENDS AND RETURNS XXX FY2024 FINANCIALS DIVIDENDS AND SHAREHOLDER RETURNS Return on equity 30% 24.0% 22.9% 22.7% 20.2% 20.0% 18.3% 18.1% 20% 14.5% 14.3% 13.9% 10.3% 10% 4.9% 4.6% 1.2% 0% -0.3% -1.7% -10% -3.8% -5.7% -7.4% -20% -15.5% -30% -40% -50% -52.5% -60% Galiano Gold Th
Slide 40: FY2025 – Focused on Delivery
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – 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. FY2024 Financials ON DELIVERY 5. FY2025 – Focused on deliv
Slide 41: 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’ ✓ Successfully execute capital projects designed to sustain and increase future gold production profile to approximatel
Slide 42: 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 42
Slide 43: Appendix
1. Health and safety 2. Group overview 2.1 Our assets 2.2 Our operating environment 2.3 FY2024 – Key features 2.4 Performance by operation 2.5 Group AISC 2.6 Capital projects (ZAR) 3. ESG: Our “Beyond compliance” approach 4. FY2024 Financials APPENDIX 5. FY2025 – Focused on delivery 6. Appendix
Slide 44: Reserves and Resources
APPENDIX XXX RESERVES AND RESOURCES GROWTH PORTFOLIO – ROBUST PROJECT PIPELINE DEVELOPMENT MINE EXPLORATION PROJECT MINE CONSTRUCTION PRODUCTION Tonnes Grade Gold Gold Gold Mineral Resources* Mt g/t t Moz Barberton hard rock 13.8 6.22 86.0 2.77 BTRP 20.7 1.11 23.0 0.74 Evander underground 123.1 8.54