Pan African Resources Plc · LSE:PAF
Pan African Resources — European Gold Forum 2019
25 slides from Pan African Resources's conference presentation, Apr 10, 2019
Slide 1: European Gold Forum 2019
EUROPEAN GOLD FORUM 2019 9 - 11 APRIL 2019 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: Overview of Presentation
OVERVIEW OF PRESENTATION • SA mining climate • Pan African Resources – safe, low cost and sustainable gold producer • Our operations › Tailings gold production and costs - turning liabilities into profits › Barberton Mines’ - underground operations: 130 year mining legacy and counting › Group - tota
Slide 5: South African Mining Climate
SOUTH AFRICAN MINING CLIMATE
Slide 6: SA Mining Climate
SA MINING CLIMATE Timing, costing and execution of PAR’s Elikhulu project – example • South Africa – a country built on its mining sector of what is possible in SA › 150 years of mining history mining sector › Readily available technical support and equipment › Well developed infrastructure › Skille
Slide 7: Pan African Resources – Safe, Low-Cost and Sustainable Gold Producer
PAN AFRICAN RESOURCES – SAFE, LOW-COST AND SUSTAINABLE GOLD PRODUCER
Slide 8: Pan African Group safety rates
PAN AFRICAN RESOURCES – SAFE, LOW- COST AND SUSTAINABLE GOLD PRODUCER Pan African Group safety rates 6 5,22 ------Rates per million man hours ------ 5 4,67 4,44 4,27 4,01 3,96 4,05 4 3 2,23 2,08 2 1,61 1,77 0,98 1 0,62 0,53 0 H1 2015 H1 2016 H1 2017 H1 2018 H1 2019* LTIFR RIFR Industry LTIFR * Indus
Slide 9: Pan African Resources vs SA producers and global producers
PAN AFRICAN RESOURCES – SAFE, LOW- COST AND SUSTAINABLE GOLD PRODUCER Pan African Resources vs SA producers and global producers 1 300 1 200 1 100 1 000 2017 Global average 900 ~ USD865/oz*** USD/oz 800 700 600 500 400 Anglogold Harmony Sibanye PAR Dec'17 PAR Dec'18 Goldfields DRD Gold Ashanti Gold
Slide 10: Environmental, Social and Governance compliance (ESG)
PAN AFRICAN RESOURCES – SAFE, LOW- COST AND SUSTAINABLE GOLD PRODUCER Environmental, Social and Governance compliance (ESG) Group environmental responsibility* Group social responsibility* • Fully funded rehabilitation fund of USD26.4 million • Group spend on CSI and LED initiatives amounted to USD0
Slide 11: Track record of disciplined capital allocation
PAN AFRICAN RESOURCES – SAFE, LOW-COST AND SUSTAINABLE GOLD PRODUCER Pan African Resources’ track record of disciplined capital allocation Investment capital/ Project purchase price ($’m) Forecast payback period BTRP ~23.2 Paid back in 18 months ETRP ~12.4 Paid back in less than 3 years Elikhulu ~12
Slide 12: Elikhulu tailings retreatment plant – original design
PAN AFRICAN RESOURCES – SAFE, LOW-COST AND SUSTAINABLE GOLD PRODUCER Elikhulu tailings retreatment plant Original design 12
Slide 13: Elikhulu tailings retreatment plant – actual completed plant
PAN AFRICAN RESOURCES – SAFE, LOW-COST AND SUSTAINABLE GOLD PRODUCER Elikhulu tailings retreatment plant Actual completed plant 13
Slide 14: Our Operations
OUR OPERATIONS Group gold and production costs
Slide 15: Geographical Map
GEOGRAPHICAL MAP Royal Sheba 15
Slide 16: Our Operations – Tailings production
OUR OPERATIONS – GOLD PRODUCTION AND COSTS Pan African Resources’ - tailings production Pan African Resources Group Tailings • Forecasted production of ~90,000oz p/a from tailings “Turning rehabilitation operations liabilities into profits” • AISC forecast <USD650/oz (@$/R14.00) • Sustaining capital
Slide 17: Our Operations – High quality underground orebodies
OUR OPERATIONS – HIGH QUALITY UNDERGROUND OREBODIES Pan African Resources’ - underground production Barberton Mines – 130 year mining legacy and counting BML U/G Operating Costs - Current Year 4,8% Salary and wages • Average underground head grade >10g/t 6,0% 0,5% Mining costs • LOM of 20 years 10,6
Slide 18: Our Operations – Group gold production and costs
OUR OPERATIONS – GROUP GOLD PRODUCTION AND COSTS Pan African Resources’ annual group production Pan African Resources Group Total 2018 Gold mix New Gold mix • Forecasted production ~170,000oz p/a from continuing Underground Surface Underground Surface operations • AISC forecast <USD950/oz (@$/R14.00
Slide 19: Where to from here?
WHERE TO FROM HERE?
Slide 20: Where to from here? Group resources and growth portfolio
WHERE TO FROM HERE? Group Resources Growth portfolio 33.3Moz (331.2Mt @ 3.13g/t) Strong track record of delivery 9% 31% Barberton Production BTRP Elikhulu/ETRP 60% Fairview sub-vertical project Construction Measured Indicated Inferred Tonnes (Mt) Grade (g/t) Gold (t) Gold (Moz) Underground Combined
Slide 21: Shaft Pillar project overview
WHERE TO FROM HERE? 8 Shaft Pillar project overview Annual and Cumulative Free Cash 8# PILLAR FREE CASH FLOW PROJECT LIFE CYCLE • Feasibility study completed – optimisation studies R 350 being finalised Free Cashflow Cum Free cash R 300 • LOM of three years at 11.5ktpm producing 30koz per R 250 annu
Slide 22: Royal Sheba project overview
WHERE TO FROM HERE? Project isometric with economic pit shell Royal Sheba project overview • Surface drilling at Royal Sheba commenced in June 2018.Targeting the surface expression of the Royal Sheba shear zone associated with the regional Sheba fault • Drilling of 40 surface holes, with lengths bet
Slide 23: Egoli project overview
WHERE TO FROM HERE? 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 Shaft and metallu
Slide 24: Summary of Investment Case
SUMMARY OF INVESTMENT CASE • Stable, established, diversified operations • Safe, long-life, low cost producer • Proven track record of wealth creation – dividends and ROE • Attractive internal project pipeline • Clear value proposition as balance sheet de-gears 24
Slide 25: Thank You
THANK YOU PROFITABLE • SUSTAINABLE • STAKEHOLDERS • GROWTH