Pan African Resources Plc · LSE:PAF

Pan African Resources — H1 FY2015 Earnings Presentation

25 slides from Pan African Resources's earnings presentation, February 2015

  1. Slide 1: Interim Results for the six months ended 31 December 2014

    Interim Results for the six months ended 31 December 2014

  2. 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

  3. Slide 3: Pan African Resources Current Snapshot

    PAN AFRICAN RESOURCES “CURRENT SNAPSHOT”  Well established mid-tier SA miner  Interim results impacted by Evander low grade mining cycle and S54 imposed stoppages  Final FY2015 results expected to show marked improvement due to:  Evander Mines exiting the low grade mining cycle  BIOX® recoverie

  4. Slide 4: Group Results Overview

    GROUP RESULTS OVERVIEW

  5. Slide 5: Geographical Map

    GEOGRAPHICAL MAP NORTH South Africa 5

  6. Slide 6: Key Features for the Six Months Ended 31 December 2014

    PAN AFRICAN RESOURCES PLC KEY FEATURES FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 GOLD SOLD CASH COST HEADLINE EARNINGS PHOENIX ETRP PGE’S SOLD     • Completed on time and within budget 13.5 30.3 62.8 57.7 • First gold production in % % % % January 2015 2014: 86,675oz 2014: ZAR351,461/kg 2014: ZA

  7. Slide 7: Group - Safety Performance

    GROUP - SAFETY PERFORMANCE ACCIDENT RATES 8 6.26 Rates per million man hours 6 4 3.63 2.91 2.74 2.23 2.02 1.94 2 1.62 1.63 0.98 0 FY2011 FY2012 FY2013 FY2014 FY 2015 YTD * Lost time injury frequency rate (LTIFR) Reportable injury frequency rate (RIFR) * No fatalities reported for the six months ende

  8. Slide 8: Barberton Mines

    BARBERTON MINES 8

  9. Slide 9: Barberton Mines

    BARBERTON MINES • Reduction in gold sold to 52,942oz (2013: 57,008oz) due to:  Section 54 imposed stoppage  BIOX® plant oil contamination  Unplanned production interruptions to underground operations • Barberton remains a low cash cost producer at ZAR279,150/kg (2013:ZAR232,611/kg) • Gold product

  10. Slide 10: Barberton Mines BIOX Recoveries

    BARBERTON MINES BIOX® RECOVERIES 100% 97% 97% 97% 95% 92% 91% 90% 80% Recovery (%) 70% 60% 50% FY2014 - Q3 FY2014 - Q4 FY2015 - Q1 FY2015 - Q2 FY2015 - Q3 * FY2015 - Q4 * BIOX ® Recoveries * Forecast figures 10

  11. Slide 11: Evander Mines

    EVANDER MINES 11

  12. Slide 12: Evander Mines

    EVANDER MINES • Reduction in gold sold to 33,733oz (2013: 43,154oz) due to:  Low grade mining cycle  Section 54 imposed stoppage  Unplanned production interruptions from underground • 8 Shaft mining cycle now trending to higher grades • ETRP completed on schedule and on budget • First gold from E

  13. Slide 13: Evander Mines Historical Gold Sold vs Head Grade

    EVANDER MINES HISTORICAL GOLD SOLD VS HEAD GRADE 6.0 110,000 5.0 4.0 Head Grade (g/t) 90,000 Ounces 3.0 108,123 96,260* 95,089 2.0 70,000 88,543* 76,556 1.0 50,000 0.0 2010 2011 2012 2013 2014 * Included gold production from 7 Shaft and 8 Shaft uppers 13

  14. Slide 14: Evander Mines Shaft Grade Profile (Actual & Forecast)

    EVANDER MINES 8 SHAFT – GRADE PROFILE (ACTUAL & FORECAST) 16 14 12 10 Grade (g/t) 8 6 4 2 0 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 n-1 b-1 r -1 r -1 y-1 n-1 l-1 g-1 p-1 t-1 v-1 c-1 n-1 b-1 r -1 r -1 y-1 n-1 Ja Fe a Ap Ma Ju Ju c o e a Ap M a M Au Se O N D Ja Fe M Ju Avg. Mining Grade Face Grade * From

  15. Slide 15: Phoenix Platinum

    PHOENIX PLATINUM 15

  16. Slide 16: Phoenix Platinum

    PHOENIX PLATINUM • PGE sales increased by 57.7% to 4,711oz (2013: 2,987oz) • Plant recoveries increased to 34% (2013: 24%) • Cash cost decreased to USD 621/oz (2013: USD 843/oz) • Phoenix Platinum cash-generative and profitable – H1 EBITDA of ZAR13.5 million (2013: ZAR1.7 million) 16

  17. Slide 17: Financial Review

    FINANCIAL REVIEW COBUS LOOTS, FD

  18. Slide 18: Summarised Consolidated Results

    PAN AFRICAN RESOURCES PLC SUMMARISED CONSOLIDATED RESULTS For the six months ended For the six months ended 31 December 2014 31 December 2013 ZAR GBP ZAR GBP Revenue (millions) 1,217.4 68.1 1,349.1 84.6 EBITDA (millions) 230.6 12.9 450.8 28.3 Attributable earnings (millions) 99.2 5.5 275.9 17.3 Head

  19. Slide 19: 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 ZAR/kg 200,000 100,000 0 2011 2012 2013 2014 2015 19

  20. Slide 20: 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 USD/oz 900 600 300 0 2011 2012 2013 2014 2015 20

  21. Slide 21: Barberton Mines Cash Cost Breakdown

    BARBERTON MINES CASH COST BREAKDOWN 3%4% 4%3% 3% 11% 10% 2014 H1 2015 H1 7% ZAR412.4 million 45% ZAR459.7 million 43% 7% GBP25.9 million GBP25.7 million USD719/oz USD791/oz 18% ZAR837/t ZAR752/t 17% 13% 13% Salaries and wages Mining Processing Engineering & technical services Electricity Security Ot

  22. Slide 22: Evander Mines Cash Cost Breakdown

    EVANDER MINES CASH COST BREAKDOWN 5% 5% 4% 6% 7% 11% 2014 H1 2015 H1 10% ZAR427.8 million ZAR487.8 million GBP26.9 million 52% 9% GBP27.3 million 49% USD985/oz USD1,317/oz ZAR1,373/t ZAR1,230/t 21% 20% 1% 1% Salaries and wages - Evander Security Electricity - Evander Mining Processing Other Engineer

  23. Slide 23: Group Capital Expenditure

    FINANCIAL SUMMARY : GROUP RESULTS GROUP CAPITAL EXPENDITURE ZAR214.6 million 200 ZAR160.8 million Once off ETRP Capex of ZAR millions ZAR88.3 million 100 0 2014 H1 2015 H1 Barberton Mines Evander Mines ETRP Phoenix Platinum BTRP 23

  24. Slide 24: Major Capital Projects - Analysis

    PAN AFRICAN RESOURCES PLC MAJOR CAPITAL PROJECTS - ANALYSIS Project Investment Forecast / Result Capital Phoenix CTRP ZAR308.9 Challenges initially, now million* generating positive cash flows BTRP ZAR325.7 million Forecasting between 18-24 months * Processed ZAR125 million impairment for Phoenix du

  25. Slide 25: Key Drivers for the Next Six Months

    PAN AFRICAN RESOURCES PLC KEY DRIVERS FOR THE NEXT SIX MONTHS • Maintain excellent safety results and working relationship with the DMR • With the imminent high grade cycle at Evander – continue schedule of tonnages from the centre of the pay channel • With the BIOX® normalised – maximise the feed o

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