Pan African Resources Plc · LSE:PAF
Pan African Resources — FY2016 Earnings Presentation
96 slides from Pan African Resources's earnings presentation, Sep 21, 2016
Slide 1: Results Presentation for the year ended 30 June 2016
Au 79 +1 RESULTS +3 PRESENTATION Gold 196.97 for the year ended 30 June 2016 2-8-18-32-18-1
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: Our Single Ambition
OUR SINGLE AMBITION To be the gold investment of choice • We are realising this ambition by: › Acknowledging our environment and its challenges › Using our people, working together to achieve our common objectives › Sweating our assets, gold reserves and infrastructure › Constantly seeking opportuni
Slide 4: The African Focused Precious Metals Producer
THE AFRICAN FOCUSED PRECIOUS METALS PRODUCER
Slide 5: Overview of Presentation
OVERVIEW OF PRESENTATION • 2016 – The year it all came together financially • Our world • Financial results • Our mining assets • Pan African Resources investment case • Appendix › Group results overview › Review of Barberton Mines › Review of Barberton Tailings Retreatment Project (‘BRTP’) › Review
Slide 6: 2016 – The Year It All Came Together Financially
2016 – THE YEAR IT ALL CAME TOGETHER FINANCIALLY
Slide 7: 2016 – Salient Features: Operational highlights
2016 – SALIENT FEATURES Operational highlights › Group gold sold increased by 16.5% to 204,928oz (2015: 175,857oz) › Group gold ZAR cash cost decreased by 3.2% to ZAR338,242/kg (2015: ZAR349,410/kg) › Group gold USD cash cost decreased by 23.6% to USD725/oz (2015: USD949/oz) › Group ZAR AISC increas
Slide 8: 2016 – Salient Features: Financial highlights
2016 – SALIENT FEATURES Financial highlights › EBITDA increased by 89.3% to ZAR969.5 million › EBITDA increased by 49.4% to USD66.8 million › Profit increased by 160.2% to ZAR547.0 million › Profit increased by 104.9% to USD37.7 million › ZAR earnings per share increased by 163.1% to 30.20 cents › G
Slide 9: 2016 – Salient Features: Other highlights
2016 – SALIENT FEATURES Other highlights › Successful acquisition of Uitkomst Colliery – total consideration of ZAR148 million (ZAR124.4 million being the total consideration net of working capital acquired) › Finalisation of Shanduka Gold (re – named to PAR Gold) transaction – total consideration o
Slide 10: 2016 – Salient Features: Safety
2016 – SALIENT FEATURES Safety • Regression in accident rates (LTIFR, RIFR) for the Group (impacted adversely by Evander): › LTIFR increased to 3.5 (2015: 2.29) › RIFR increased to 2.04 (2015: 1.11) • Improvement in accident rates (LTIFR, RIFR) for Barberton Mines: › LTIFR decreased to 1.86 (2015:
Slide 11: Our World
OUR WORLD
Slide 12: Gold Outperforming Other Commodities
GOLD OUTPERFORMING OTHER COMMODITIES Gold price relative to other commodities – 5 years ended 30 June 2016 Relative performance rebased to 100 (USD denominated) 140 120 100 80 60 40 20 0 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Gold Copper Oil Platinum Palladium Aluminium Source: Bloomb
Slide 13: ZAR Gold Price Hedge for Weaker Currency
ZAR GOLD PRICE HEDGE FOR WEAKER CURRENCY USD vs ZAR gold price – 5 years ended 30 June 2016 Relative performance rebased to 100 (USD and ZAR gold) USD/ZAR Gold price Exchange rate 210 21 180 18 150 15 120 12 90 9 60 6 30 3 0 0 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 USD gold price ZAR
Slide 14: Share Price Performance - Gold
SHARE PRICE PERFORMANCE - GOLD PAN share price relative to market – 5 years ended 30 June 2016 Relative performance rebased to 100 350 300 250 200 150 100 50 0 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Pan African Resources FTSE / JSE gold price index Source: Bloomberg 14
Slide 15: Financial Results
FINANCIAL RESULTS Deon Louw, Financial Director
Slide 16: Summarised consolidated results
PAN AFRICAN RESOURCES PLC Summarised consolidated results For the year ended 30 June 2016 For the year ended 30 June 2015 ZAR GBP ZAR GBP Revenue (million) 3,632.8 169.4 2,539.4 141.1 Cost of production (million) (2,321.4) (108.2) (1,987.4) (110.4) Mining profit (million) 1,066.6 49.7 353.4 19.6 Adj
Slide 17: Financial Summary: Group Results – Revenue and EPS
FINANCIAL SUMMARY: GROUP RESULTS Revenue Revenue – ZAR million / GBP million and Earnings per share – ZAR cents 4,000 35 30 Earnings per share – ZAR cents 3,000 Revenue – ZAR million 25 20 2,000 15 10 1,000 5 0 0 2012 2013 2014 2015 2016 ZAR millions 1,240.3 1,848.1 2,608.8 2,539.4 3,632.8 GBP milli
Slide 18: Financial Summary: Costs (ZAR/kg)
FINANCIAL SUMMARY: GROUP RESULTS Costs as defined by World Gold Council ZAR/kg 600,000 450,000 300,000 150,000 0 2012 2013 2014 2015 2016 Average gold price received 422,215 440,824 433,437 446,274 542,850 Cash cost 193,360 231,439 298,345 349,410 338,242 All-in sustaining costs 246,801 281,551 349,
Slide 19: Financial Summary: Costs (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 2012 2013 2014 2015 2016 Average gold price received 1,694 1,553 1,303 1,212 1,164 Cash cost 776 815 897 949 725 All-in sustaining costs 990 992 1,049 1,093 870 All-in costs 1,066 1,212 1,1
Slide 20: Financial Summary: Normalised earnings
FINANCIAL SUMMARY: GROUP RESULTS • Normalised earnings: › Normalised earnings per share amounted to 44.24 cents (367.7% increase) taking the following into account: – Net Cost collar mark-to-market fair value adjustment loss of R82 million (2015: R32.2 million income) – Cash settled share options of
Slide 21: Financial Summary: Group Cash Flows
FINANCIAL SUMMARY: GROUP CASH FLOWS SUMMARY OF CASH FLOWS ZAR GBP ALLOCATION OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Net income before taxes 723,629,668 33,735,648 Adjustments for non cash flow items and net finance costs 432,184,452 21,521,444 Operating profit before working capital chan
Slide 22: Dividend Policy
FINANCIAL SUMMARY: GROUP RESULTS • Dividend Policy “PAR aspires to pay a regular dividend to shareholders. In balancing this cash return to shareholders with the group’s strategy of generic and acquisitive growth, it believes that a target pay-out ratio of 40% of net cash generated from operating ac
Slide 23: Our Mining Assets
OUR MINING ASSETS Cobus Loots, Chief Executive Officer
Slide 24: Geographical Map
GEOGRAPHICAL MAP LIMPOPO al ian oe Ra: a C ational MPUMALANGA ark Nelspruit BOTSWANA Rustenburg Zeerust phoenix Platinum NORTH WEST PROV) FREE STATE 24
Slide 25: Group Resource Update – Gold
GROUP RESOURCE UPDATE – GOLD 2016 2015 34.9Moz (337.2Mt @ 3.20g/t) 31.9Moz (318.8Mt @ 3.11g/t) 6% 7% 29% 36% 58% 64% Measured Indicated Inferred 25
Slide 26: Group Reserve Update – Gold
GROUP RESERVE UPDATE – GOLD 2016 2015 10.0Moz (82.3Mt @ 3.80g/t) 10.4Moz (84.9Mt @ 3.79g/t) 13% 10% 87% 90% Proven Probable 26
Slide 27: Barberton Mines
BARBERTON MINES Our cornerstone asset
Slide 28: Barberton Mines Key Features
BARBERTON MINES KEY FEATURES Our cornerstone asset • Gold sold increased by 7.1% to 113,281oz (2015: 105,776oz) › Gold sold from underground sources increased by 3.9% to 84,690oz (2015: 81,493oz) › Gold sold from the BTRP increased by 17.7% to 28,591oz (2015: 24,283oz) • Underground head grade of 11
Slide 29: 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 2012 2013 2014 2015 2016 Fairview tonnes 122,802 119,089 114,598 111,875 114,815 Sheba tonnes 113,844 109,103 99,992 90,345 90,694 Consort
Slide 30: Fairview Mine – One of the top ten highest grade underground gold operations
BARBERTON MINES Fairview Mine – One of the top ten highest grade underground gold operations Ore Reserves, Contained Au, Mine Country Major owner Au grade g/t 000’ tonnes* 000’ ozt Fire Creek United States Klondex Mines 44.1 170 172 Macassa (South mine) Canada Kirkland Lake Gold 22.2 1,330 950 Kedro
Slide 31: MRC orebody at Fairview Mine
BARBERTON MINES MRC orebody at Fairview Mine – 35g/t extending at depth 100m 31
Slide 32: Exploration / Expansion potential
BARBERTON MINES 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 hoisting optimisation project – objective to increase ore production from the 11
Slide 33: Evander Mines
EVANDER MINES Solid performance and attractive growth prospects
Slide 34: Evander Mines Key Features
EVANDER MINES KEY FEATURES Solid performance with attractive growth prospects • Gold sold increased by 30.8% to 91,647oz (2015: 70,081oz) › Gold sold from underground sources increased by 15.6% to 73,496oz (2015: 63,558oz) › Gold sold from ETRP – 18,151oz (6,724oz from tailing sources and 11,427 fro
Slide 35: Evander Mines Production
EVANDER MINES PRODUCTION Production statistics Underground and Tonnes milled Surface head grade (g/t) 2,400,000 8 2,200,000 7 2,000,000 1,800,000 6 1,600,000 5 1,400,000 1,200,000 4 1,000,000 3 800,000 600,000 2 400,000 1 200,000 0 0 2012 2013 2014 2015 2016 Surface / ETRP 178,000 202,112 260,901 91
Slide 36: Evander Production Forecast
EVANDER PRODUCTION FORECAST Forecast gold produced from current operations oz 120,000 100,000 80,000 60,000 40,000 20,000 0 2017 2018 2019 2020 2021 Total Evander 92,000 93,000 95,000 95,000 97,000 production 36
Slide 37: Elikhulu Project
EVANDER MINES Elikhulu Project • Resource – 178.7 million tonnes @ 0.29g/t (1.7Moz AU) • Expected to process 1 million tonnes of tailings per month (excl. ETRP) • Estimated life of 14 years • Planned infrastructure: › 1 million tonnes per month CIL plant › TSF to accommodate 1.25 million tonnes/mont
Slide 38: Elikhulu Project – New TSF
EVANDER MINES Elikhulu Project The new TSF site selection has been finalised and it will be located south (adjacent) of the existing Kinross TSF (the existing Kinross TSF footprint will be re-used) 38
Slide 39: Elikhulu Project – Process Plant
EVANDER MINES Elikhulu Project • The new Process Plant will be located just north of the existing Kinross TSF PAR track record of delivering tailings projects: • BTRP – ZAR325.7 million – Paid back in 18 months • ETRP – ZAR174.3 million – Forecasting 4 year payback period • Phoenix Platinum Mining –
Slide 40: Elikhulu Project – Key pre-feasibility parameters
EVANDER MINES Elikhulu Project Key pre-feasibility parameters: • Completion : November 2018 • Design capacity : 12 million tonnes/annum • Forecast initial annual production : 45,000oz – 50,000oz • Gold price assumed : ZAR575,000/kg • Recoveries assumed : 45% • Life of project : 14 years • Estimated
Slide 41: Evander Mines – Growth Projects
EVANDER MINES – GROWTH 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) in
Slide 42: Evander Mines – 2010 Payshoot
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 42
Slide 43: Phoenix Platinum
PHOENIX PLATINUM A strategic entry point into platinum
Slide 44: Phoenix Platinum Operational summary
PHOENIX PLATINUM Operational summary • PGE production decreased by 18.6% to 8,339oz (2015: 10,245oz) • Revenue decreased by 24.1% to ZAR74.7 million (2015: ZAR98.4 million) • Cash cost per ounce increased by 34.3% to ZAR8,890/oz (2015: ZAR6,621/oz) • USD cash cost per ounce increased by 6.1% to USD6
Slide 45: Phoenix Platinum PGE production – Month history
PHOENIX PLATINUM PGE production – 12 Month history oz 1,400 1,200 Installation of scrubber 1,000 Installation of high energy agitation cells 800 600 400 200 0 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 PGE Production 693 733 675 661 898 725 493 572 359 783 81
Slide 46: Operational Overview: Uitkomst Colliery
OPERATIONAL OVERVIEW Uitkomst Colliery
Slide 47: Uitkomst Colliery Operational summary
UITKOMST COLLIERY Operational summary • Tonnes processed for the 3 months ending 30 June 2016 – 166,376t • Coal sold including acquired coal for the 3 months ending 30 June 2016 – 136,102t • Wash plant yield for the 3 months ending 30 June 2016 – 68.3% • Revenue generated for the 3 months ending 30
Slide 48: PAR Investment Case
PAR INVESTMENT CASE
Slide 49: Dividend paid/proposed
PAR INVESTMENT CASE Dividend paid/proposed ZAR million / GBP million 350 ZAR300.0m GBP15.8m 300 ZAR258.0m ZAR240.3m GBP14.3m 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 ** Proposed divid
Slide 50: Market leading dividend yield
PAR INVESTMENT CASE Market leading dividend yield 8.2% 4.7% 3.3% 2.1% 1.0% 0.8% 0.7% Pan African DRDGOLD² Sibanye³ Centamin Gold Fields Acacia Mining Randgold Resources¹ Note: Dividend yield calculated as last annual dividend per share announced by Company and share price as at 13 September 2015 1.
Slide 51: Conservative gearing / debt ratio
PAR INVESTMENT CASE Conservative gearing / debt ratio1,2 0.4 Debt ratio AngloGold Barrick 0.3 Gold Fields Sibanye Newmont 0.2 Newcrest Endeavour Goldcorp 0.1 Pan African Resources Acacia Mining Randgold 0.0 DRD Gold Centamin 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Gearing ratio 1. Gearing is total debt / sh
Slide 52: EV/reserve vs EV/resource
PAR INVESTMENT CASE Bubble size represents enterprise value (‘EV’) in relation to reserves and resources 800x Randgold EV/reserve Regis 600x Evolution Goldcorp Yamana Newmont 400x Endeavour Beadell Acacia Kinross AngloGold Barrick Gold Newcrest 200x Pan African Centamin Harmony 0x 0x 100x 200x 300x
Slide 53: Disciplined capital allocation decisions
PAR INVESTMENT CASE Disciplined capital allocation decisions Investment capital/ Project purchase price (ZARm) Forecasted payback period Phoenix CTRP 308.9* Forecasting 10 years payback on current PGM basket prices BTRP 325.7 Paid back in 18 months ETRP 174.3 Forecasting less than 4 years payback Ui
Slide 54: Group capital spending on maintaining production and growth
PAR INVESTMENT CASE Group capital spending on maintaining production and growth through the cycle ZAR million / GBP million ZAR381.6 million ZAR363.0 million GBP27.6 million ZAR352.0 million GBP21.5 million GBP19.6 million ZAR302.2 million GBP15.3 million ZAR213.9 million GBP17.4 million 2012 2013 2
Slide 55: PAR 2016 Targets: Performance vs targets
PAR 2016 TARGETS Performance vs 2016 targets • Continue all efforts to reduce the severity of accidents at all operations x/✔ • Focus on delivery at Barberton: › Tonnes and grades ✔ › BIOX® ✔ • Ensure Evander is cash flow and earnings positive › Tonnes and head grade ✔ › Manage risks associated with
Slide 56: Summary of Investment Case
SUMMARY OF INVESTMENT CASE • Multiple long life quality mining operations • Significant production improvement in last 12 months › Evander Mines gold sold increased by 30.8% to 91,647oz › Barberton Mines gold sold increased by 7.1% to 113,281oz • Attractive profitability and cash flow generation › N
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
GROUP OPERATIONAL REVIEW
Slide 60: Group - Safety Performance
GROUP - SAFETY PERFORMANCE Accident rates Per million man hours 4 3 2 1 0 2012 2013 2014 2015 2016 LTIFR 3.63 2.74 2.97 2.29 3.50 RIFR 1.94 1.63 1.52 1.11 2.04 Lost time injury frequency rate (LTIFR) Reportable injury frequency rate (RIFR) 60
Slide 61: Group - Safety Performance: Fatality injury frequency rate
GROUP - SAFETY PERFORMANCE Fatality injury frequency rate Per million man hours 2012 2013 2014 2015 2016 FIFR 0.48 0.22 0.3 0.07 0.07 Fatality injury frequency rate (FIFR) * It’s with regret that we report one fatality that occurred during the year under review 61
Slide 62: Group Production Results
GROUP PRODUCTION RESULTS Group production Barberton Mines 2016 2015 Total tonnes milled (Underground and Surface) (t) 268,383 260,749 Total tonnes processed (Tailings) (t) 959,215 971,627 Recovered grade (Underground and Surface) (g/t) 9.8 9.7 Recovered grade (Tailings) (g/t) 0.9 0.8 Gold sold (oz)
Slide 63: Group Production Results
GROUP PRODUCTION RESULTS Group production Phoenix Platinum 2016 2015 Total tonnes processed (Tailings) (t) 248,981 262,119 Head grade (Tailings) (g/t) 3.08 3.31 PGE sold (oz) 8,339 10,245 Total cash cost (ZAR/t) 298 259 Uitkomst Colliery* 2016 2015 Total tonnes processed (t) **166,376 - Yield (%) 68
Slide 64: Group Operational Costs – Barberton Mines
GROUP OPERATIONAL COSTS – BARBERTON MINES Cash cost breakdown – excluding BTRP* 2016 2015 3% 6% 7% 3% 11% 11% Totals Totals 9% ZAR852.9 million ZAR783.9 million 48% GBP39.8 million 51% GBP43.6 million 9% USD694/oz USD840/oz 7% ZAR3,178/t ZAR3,006/t 8% 13% 14% Salaries Mining Processing Engineering E
Slide 65: Group Operational Costs – BTRP
GROUP OPERATIONAL COSTS – BTRP Cash cost breakdown 2016 2015 2% 2% 10% 8% 9% 10% Totals Totals ZAR130.8 million ZAR133.5 million ZAR147,162/kg ZAR176,734/kg USD315/oz USD480/oz ZAR136/t ZAR137/t 78% 81% Salaries Processing Electricity Other * Including stock adjustments 65
Slide 66: Group Operational Costs – Evander Mines
GROUP OPERATIONAL COSTS – EVANDER MINES Cash cost breakdown – excluding ETRP* 2016 2015 2% 1% 5% 6% 20% 19% Totals Totals ZAR1,017.4 million ZAR939.7 million GBP47.5 million 50% 50% GBP52.2 million USD954/oz USD1,291/oz 7% 9% ZAR2,492/t ZAR1,450/t 4% 6% 13% 8% Salaries Mining Processing Engineering
Slide 67: Group Operational Costs – ETRP
GROUP OPERATIONAL COSTS – ETRP Cash cost breakdown 2016 ETRP production costs and revenue were capitalised in accordance with IAS16 up to 28 February 2015 6% 4% all revenue and operating costs were allocated to the income Totals statement from 1 March 2015 ZAR154.8 million ZAR273,965/kg USD587/oz ZA
Slide 68: Group Operational Costs – Phoenix Platinum
GROUP OPERATIONAL COSTS – PHOENIX PLATINUM Cash cost breakdown 2016 2015 2% 1% 6% 6% 27% 29% Totals Totals ZAR74.1 million ZAR67.8 million GBP3.5 million GBP3.8 million ZAR8,890/oz USD6,621/oz ZAR298/t ZAR259/t 65% 64% Salaries Processing Electricity Other 68
Slide 69: Operational Overview: Barberton Mines
OPERATIONAL OVERVIEW Barberton Mines
Slide 70: Barberton Mines Underground Resource Update
BARBERTON MINES UNDERGROUND RESOURCE UPDATE 2016 2015 2.9Moz (9.0Mt @ 10.2g/t) 3.09Moz (9.0Mt @ 10.0g/t) 30% 30% 34% 35% 31% 40% Measured Indicated Inferred 70
Slide 71: Barberton Mines Underground Reserve Update
BARBERTON MINES UNDERGROUND RESERVE UPDATE 2016 2015 1.4Moz (4.9Mt @ 9.2g/t) 1.4Moz (4.3Mt @ 9.3g/t) 29% 43% 57% 71% 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 2012 2013 2014 2015 2016 Fairview tonnes 122,802 119,089 114,598 111,875 114,815 Sheba tonnes 113,844 109,103 99,992 90,345 90,694 Consort
Slide 73: Barberton Mines Gold sold
BARBERTON MINES Gold sold oz 120,000 111,623oz 113,281oz 105,776oz 100,000 94,449oz 96,296oz 80,000 60,000 40,000 20,000 0 2012 2013 2014 2015 2016 BTRP 0 0 22,885 24,283 28,591 Underground and Surface 94,449 96,296 88,738 81,493 84,690 73
Slide 74: Barberton Mines – Excluding BTRP (ZAR/kg)
BARBERTON MINES – EXCLUDING BTRP Costs as defined by world gold council ZAR/kg 600,000 450,000 300,000 150,000 0 2012 2013 2014 2015 2016 Average gold price received 422,215 450,829 435,464 446,246 544,618 Cash cost 193,360 221,424 258,972 309,289 323,799 All-in sustaining costs 246,801 273,653 311,
Slide 75: Barberton Mines – Excluding BTRP (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 2012 2013 2014 2015 2016 Average gold price received 1,694 1,588 1,309 1,212 1,167 Cash cost 776 780 778 840 694 All-in sustaining costs 990 964 937 1,021 886 All-in costs 1,066 1,234 966 1
Slide 76: Barberton Mines Cash cost breakdown
BARBERTON MINES Cash cost breakdown – excluding BTRP* 2016 2015 3% 6% 7% 3% 11% 11% Totals Totals 9% ZAR852.9 million ZAR783.9 million 48% GBP39.8 million 51% GBP43.6 million 9% USD694/oz USD840/oz 7% ZAR3,178/t ZAR3,006/t 8% 13% 14% Salaries Mining Processing Engineering Electricity Security Other
Slide 77: Barberton Mines Capital expenditure
BARBERTON MINES Capital expenditure (including BTRP) ZAR million 350 ZAR316.8 million 300 250 200 ZAR151.0 million 150 ZAR131.8 million ZAR139.7 million ZAR112.6 million 100 50 0 2012 2013 2014 2015 2016 BTRP 55.4 229.6 40.7 3.3 8.1 Maintenance capital 38.7 45.1 33.3 40.9 54.5 Development capital 37
Slide 78: BTRP Resource Update: Tailings Dams
BTRP RESOURCE UPDATE: TAILINGS DAMS 2016 2015 0.8Moz (20.8Mt @ 1.3g/t) 0.9Moz (20.4Mt @ 1.3g/t) 25% 22% 75% 78% Indicated Inferred 78
Slide 79: BTRP Reserve Update: Tailings Dams
BTRP RESERVE UPDATE: TAILINGS DAMS 2016 2015 0.6Moz (13.3Mt @ 1.5g/t) 0.6Moz (13.4Mt @ 1.4g/t) 100% 100% Probable 79
Slide 80: Barberton Tailings Retreatment Plant
BARBERTON TAILINGS RETREATMENT PLANT Cash cost breakdown 2016 2015 2% 2% 10% 8% 9% 10% Totals Totals ZAR130.8 million ZAR133.5 million ZAR147,162/kg ZAR176,734/kg USD315/oz USD480/oz ZAR136/t ZAR137/t 78% 81% Salaries Processing Electricity Other * Including stock adjustments 80
Slide 81: Operational Overview: Evander Mines
OPERATIONAL OVERVIEW Evander Mines
Slide 82: Evander Mines Underground Resource Update
EVANDER MINES UNDERGROUND RESOURCE UPDATE 2016 2015 29.0Moz (92.4Mt @ 9.8g/t) 25.9Moz (83.5Mt @ 9.6g/t) 4% 5% 31% 38% 58% 64% Measured Indicated Inferred 82
Slide 83: Evander Mines Underground Reserve Update
EVANDER MINES UNDERGROUND RESERVE UPDATE 2016 2015 7.6Moz (29.0Mt @ 8.3g/t) 7.9Moz (28.8Mt @ 8.5g/t) 6% 6% 94% 94% Proved Probable 83
Slide 84: Evander Mines Gold sold – excluding ETRP
EVANDER MINES Gold sold – excluding ETRP oz 140,000 120,000 108,123oz 100,000 95,089oz 80,000 76,556oz 73,496oz 63,558oz 60,000 40,000 20,000 0 2012 2013 2014 2015 2016 Surface 6,237 7,087 10,600 9,812 0 Underground 101,886 88,002 65,956 53,746 73,496 * Surface source ounces allocated to ETRP from 1
Slide 85: Evander Mines – Including ETRP (ZAR/kg)
EVANDER MINES – INCLUDING ETRP Costs as defined by world gold council ZAR/kg 600,000 450,000 300,000 150,000 0 2013 2014 2015 2016 Average gold price received 449,975 430,801 445,922 539,654 Cash cost 282,451 384,150 455,896 411,168 All-in sustaining costs 345,006 445,665 507,980 477,044 All-in cost
Slide 86: Evander Mines – Including ETRP (USD/oz)
EVANDER MINES – INCLUDING ETRP Costs as defined by world gold council USD/oz 1,800 1,500 1,200 900 600 300 0 2013 2014 2015 2016 Average gold price received 1,585 1,295 1,216 1,156 Cash cost 995 1,154 1,238 881 All-in sustaining costs 1,215 1,339 1,380 1,023 All-in costs 1,313 1,439 1,515 1,027 86
Slide 87: Evander Mines – Excluding ETRP cash cost breakdown
EVANDER MINES – EXCLUDING ETRP Cash cost breakdown – excluding ETRP* 2016 2015 2% 1% 5% 6% 20% 19% Totals Totals ZAR1,017.4 million ZAR939.7 million GBP47.4 million 50% 50% GBP52.2 million USD954/oz USD1,291/oz 7% 9% ZAR2,492/t ZAR1,450/t 4% 6% 13% 8% Salaries Mining Processing Engineering Electrici
Slide 88: Evander Mines Capital expenditure
EVANDER MINES Capital expenditure ZAR million 250 ZAR238.2 million ZAR210.5 million ZAR201.1 million* 200 ZAR177.3 million ZAR153.8 million 150 100 50 0 2012 2013 2014 2015 2016 ETRP capital 0.0 0.0 79.2 95.1 0.0 Maintenance capital 40.4 65.0 27.9 38.7 29.4 Development capital 136.9 136.1 103.4 104.
Slide 89: ETRP Resource Update: Tailings Dams
ETRP RESOURCE UPDATE: TAILINGS DAMS 2016 2015 2.0Moz (214.5Mt @ 0.3g/t) 1.9Moz (205.3Mt @ 0.3g/t) 10% 90% 100% Indicated Inferred 89
Slide 90: ETRP Reserve Update: Tailings Dams
ETRP RESERVE UPDATE: TAILINGS DAMS 2016 2015 0.4Moz (35.8Mt @ 0.3g/t) 0.4Moz (38.1Mt @ 0.3g/t) 100% 100% Probable 90
Slide 91: Evander Tailings Retreatment Plant
EVANDER TAILINGS RETREATMENT PLANT Cash cost breakdown 2016 ETRP production costs and revenue were capitalised in accordance with IAS16 up to 28 February 2015 6% 4% all revenue and operating costs were allocated to the income Totals statement from 1 March 2015 ZAR154.8 million ZAR273,965/kg USD587/o
Slide 92: Operational Overview: Phoenix Platinum
OPERATIONAL OVERVIEW Phoenix Platinum
Slide 93: Phoenix Platinum Production statistics
PHOENIX PLATINUM Production statistics Plant feed tonnes Head grade (g/t) Plant recoveries remained constant 300,000 5 at 43% (2015: 44%) 250,000 4 200,000 3 150,000 2 100,000 1 50,000 0 0 2013 2014 2015 2016 Plant feed tonnes 274,190 251,182 262,119 248,981 Head grade 3.68 3.65 3.31 3.08 93
Slide 94: Phoenix Platinum PGE sold
PHOENIX PLATINUM PGE sold oz 12,000 10,000 8,000 6,000 4,000 2,000 0 2013 2014 2015 2016 PGE ounces 6,480 7,204 10,245 8,339 94
Slide 95: Phoenix Platinum Cash cost breakdown
PHOENIX PLATINUM Cash cost breakdown 2016 2015 2% 1% 6% 6% 27% 29% Totals Totals ZAR74.1 million ZAR67.8 million GBP3.5 million GBP3.8 million ZAR8,890/oz USD6,621/oz ZAR298/t ZAR259/t 65% 64% Salaries Processing Electricity Other 95
Slide 96: Thank You
Au +1 +3 THANK YOU Gold 196.97 2-8-18-32-18-1