Pan African Resources Plc · LSE:PAF
Pan African Resources — Mines and Money EMEA & Americas online 2020
17 slides from Pan African Resources's conference presentation, Jul 1, 2020
Slide 1: Investor Presentation 1 July 2020
Investor Presentation 1 July 2020
Slide 2: Disclaimer and Forward Looking Statements
DISCLAIMER AND FORWARD LOOKING STATEMENTS 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 i
Slide 3: Overview of Presentation
OVERVIEW OF PRESENTATION • Company information • Overview of our operations • H1 FY20 – Highlights and key focus areas • Key features - Financial • Environmental, Social and Governance (ESG) • Impact of COVID-19 • Near-term organic growth projects • Where to next – FY20 and beyond 3
Slide 4: Company Information
COMPANY INFORMATION Volume Share Price Gold Price (Indexed) Share price and market capitalisation as at 19 June 2020 • AIM 17.90p • 12 month change +69% • Market Capitalisation US$ 495 m • Shares Outstanding 2,235 m • Treasury Shares 306 m • Shares in market 1,929 m Major shareholders • Allan Gray I
Slide 5: Overview of Our Operations
OVERVIEW OF OUR OPERATIONS Pan African’s business represents a unique combination of underground mining and surface remining Barberton Mines Underground Annual Production ~ 80,000 oz AISC~ USD1,159/oz to USD2,046/oz Evander 8 Shaft Pillar BTRP Annual Production Annual Production ~ 30,000 oz ~ 20,000
Slide 6: Overview of Our Operations: Group Summary
OVERVIEW OF OUR OPERATIONS Group Summary BARBERTON MINES BTRP ELIKHULU EVANDER 8 SHAFT PILLAR • The birthplace of BIOX® and our • Successfully commissioned in 2013 • Elikhulu was constructed within • Maximising the value of our own flagship operation, together with • Designed to treat 100,000 tonnes
Slide 7: Group production and costs
OVERVIEW OF OUR OPERATIONS Group production – solid performance and on track to meet guidance • Gold sold increased by 13.6% to 90,602oz (2018: 79,765oz) • Group AISC of ZAR526,150/kg (2018: ZAR444,946/kg), or USD1,113/oz (2018: USD975/oz) • Low risk, high-margin tailings business has increased to 4
Slide 8: H1 FY20 Highlights: Group safety
H1 FY20 – HIGHLIGHTS AND KEY FOCUS AREAS Group safety “Notwithstanding the fact that injury rates are well below industry average, we continuously strive to improve our safety performance and achieve our aim of zero harm to our employees” – Cobus Loots, CEO Barberton Mines achieved 3 million fatalit
Slide 9: Reducing group all-in sustaining cost
H1 FY20 – HIGHLIGHTS AND KEY FOCUS AREAS Reducing group all-in sustaining cost Total operations Group excl. Consort Total underground Total Tailings/ surface Group Total and Evander U/G All-in sustaining cost per (ZAR/kg) 684,342 363,352 526,150 460,924 All-in sustaining cost ( USD/oz) 1,448 769 1,1
Slide 10: Key Features – Financial: Cash Flow and Debt Redemption
KEY FEATURES – FINANCIAL GROUP CASH FLOW GENERATION AND DEBT REDEMPTION Illustrative de-gearing – assuming forecast assumptions are achieved 160 000 140 000 120 000 100 000 USD’000 80 000 60 000 40 000 20 000 - Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-2
Slide 11: Key Features – Financial: Dividend Yield
KEY FEATURES – FINANCIAL GROUP CASH FLOW GENERATION AND DEBT REDEMPTION Historic dividend yield – dividends reinstated 7% 6% 5% 4% 3% 2% 1% 0% June 14 June 15 June 16 June 17 June 18* June 19 PAR dividend yield 5,60% 6,30% 5,10% 5,00% 0,00% 1,00% * Dividend suspended due to cessation of large-scale
Slide 12: Key Features – Financial: Hedging Summary
KEY FEATURES – FINANCIAL GROUP CASH FLOW GENERATION AND DEBT REDEMPTION Hedging summary – zero cost collars 950 000 R925,000/kg ($1665/oz)* 900 000 850 000 800 000 750 000 R708,000/kg ($1273/oz)* 700 000 650 000 600 000 50,460oz in H2 of FY20 50,000oz in H1 of FY21 550 000 500 000 Jan-20 Feb-20 Mar-
Slide 13: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) H1 FY20 ESG Highlights COMMENCED ELIKHULU 10MW SOLAR CONSTRUCTION OF PV PLANT DONATED 4 MOBILE SPENT USD0.9 MILLION HEALTHCARE - REDUCED CARBON LIBRARIES TO SCHOOLS ON REHABILITATION OF INFRASTRUCTURE FOOTPRINT SURROUNDING OLD SHAFTS AND PROJECT - BARBERTON
Slide 14: COVID-19 Compliance Measures and Relief Programmes
COVID-19 COMPLIANCE MEASURES AND RELIEF PROGRAMMES Operational prevention measures and Community and Employee Relief initiatives BARBERTON OPERATIONS: PROACTIVELY FOOD AND HYGIENE MANAGING THE RISKS HAMPERS TO FAMILIES ASSOCIATED WITH THE IN HOST COMMUNITIES, PANDEMIC PROVISION OF WATER TANKERS FINA
Slide 15: Near-Term Organic Growth: Evander's Egoli Project
NEAR-TERM ORGANIC GROWTH Evander’s Egoli Project • The Egoli project is an orebody within 3km tramming distance from 7 Shaft > 7 Shaft is currently operational and used to hoist ROM material to the Kinross metallurgical plant • Historical development at 7 Shaft has made ready access to the orebody p
Slide 16: Where to Next – FY20 and Beyond
WHERE TO NEXT – FY20 AND BEYOND • Continue to produce safely and sustainably into FY2020 group production guidance • Increase gold production in FY2021 • Reduce group all-in sustaining costs • Deleverage balance sheet and increase dividends • Focus on organic growth and asset optimisation 16
Slide 17: Thank You
Thank You www.panafricanresources.com
Pan African Resources — Mines and Money EMEA & Americas online 2020 on 6ix