Pan African Resources Plc · LSE:PAF
Pan African Resources — The Junior Indaba June 2019
20 slides from Pan African Resources's conference presentation, June 2019
Slide 1: The Junior Indaba June 2019 - ESG: Thoughts from the trenches
THE JUNIOR INDABA JUNE 2019 ESG:Thoughts from the trenches PROFITABLE • SUSTAINABLE • STAKEHOLDERS • GROWTH
Slide 2: Disclaimer
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 and
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements in this report 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 are not sta
Slide 4: Pan African Resources - Who we are
PAN AFRICAN RESOURCES Who we are
Slide 5: Who we are
WHO WE ARE › South African based gold mining group › Listed on the JSE main board and on the LSE’s AIM › Market capitalisation ~ R3.8 billion (~USD262 million) › Produces approximately 170,000oz of gold per annum 5
Slide 6: Recent key financial / performance milestones
RECENT KEY FINANCIAL / PERFORMANCE MILESTONES Group Safety Rates Safe, low-cost and sustainable gold producer Pan African Resources vs SA producers and global producers Notwithstanding the fact that injury rates are well below industry average, we continuously strive to improve our safety rates and
Slide 7: Elikhulu
ELIKHULU @ AN RESOURCES
Slide 8: Environmental, Social and Governance Responsibility (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITY (ESG)
Slide 9: Environmental, Social and Governance Responsibility (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITY (ESG) Group environmental responsibility Governance › King IV Code compliant, JSE and AIM oversight › Fully funded rehabilitation fund of USD26.4 million › External assurance – PwC, BDO, legal review on › BIOX® - green processing technology develop
Slide 10: Environmental, Social and Governance Responsibility (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITY (ESG) Employees & Contractors CSI Projects › Group spend on CSI and LED initiatives amounted to R12 million for the six months ended 31 December 2018 › Barberton Mines Transformation Trust – created 184 employment opportunities created › Increased
Slide 11: ESG: Pros and Challenges
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITY (ESG) Pros Challenges › Ethical companies are rewarded through greater › ESG responsibility – does not necessarily equate to good investment - Perception that responsible and ethical company performance companies will be more sustainable › “Box tic
Slide 12: Best and worst performing stock markets 2017 and 2018
BEST AND WORST PERFORMING STOCK MARKETS 2017 AND 2018 2017 2018 100 100 77,00 80,39 80 80 60 48,00 60 42,00 36,00 40 40 30,41 20,87 20 20 11,75 8,77 0 0 % % -20 -20 -40 -28,64 -28,07 -40 -43,35 -60 -60 -50,2 -80 -80 -94,89 -100 -100 Ukraine Qatar Venezuela China Macedonia UAE Argentina Saudi Arabia
Slide 13: What ESG should really be about
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITY (ESG) What ESG should really be about…… › Should be about adding real value – not just a tick-box exercise › Stakeholders have to understand that business still need to make profits to continue to exist – we are not charity organisations, sharehold
Slide 14: How mining companies make the biggest positive difference
HOW MINING COMPANIES MAKE THE BIGGEST POSITIVE DIFFERENCE › New mining projects › Continue to produce from existing assets – “don’t kill the golden goose!” 14
Slide 15: Pan African - New mining projects: Shaft Pillar
PAN AFRICAN – NEW MINING PROJECTS 8 Shaft Pillar project overview • Feasibility study completed and board has approved the project • Development and equipping of this area has already commenced, with first gold expected during August 2019 • Production of approximately 20,000oz forecast for FY2020 •
Slide 16: Pan African - New mining projects: Egoli
PAN AFRICAN – NEW MINING PROJECTS Egoli project overview Annual and cumulative free cash EGOLI BEA EBITDA PROJECT LIFE CYCLE • An orebody adjacent to Evander’s No 7 Shaft R 5 000 EBITDA After CAPEX PER ANNUM infrastructure. The Project will use the established No 7 R 4 000 CUM EBITDA After CAPEX Sha
Slide 17: Existing operations - Barberton arrest statistics
EXISTING OPERATIONS – “DON’T KILL THE GOLDEN GOOSE” Barberton Arrest Statistics Barberton Arrests 01/2018 - 05/2019 350 302 300 289 289 252 251 250 229 222 211 200 180 175 154 148 145 150 118 101 100 74 66 50 0 January August January July May May February March April September October June December
Slide 18: Existing operations - Eskom annual power increase
EXISTING OPERATIONS – “DON’T KILL THE GOLDEN GOOSE” Eskom annual power increase – 10 years NERSA approved year-on-year increases as follows from 2019: 13.87% (2019/20) 7.81% (2020/21) 5.05% (2021/22) 18
Slide 19: Existing operations - Don't kill the golden goose
EXISTING OPERATIONS – “DON’T KILL THE GOLDEN GOOSE” › New “strike ballot” – move in the right direction › Electricity increases – subsidies to miners? › Illegal mining – zero tolerance, prosecution of “crime bosses” consider artisanal miner regulations › Zero tolerance for illegal road closures an
Slide 20: Thank you
THANK YOU PROFITABLE • SUSTAINABLE • STAKEHOLDERS • GROWTH