Pan African Resources Plc · LSE:PAF
Pan African Resources — Investor Day (June 2018)
35 slides from Pan African Resources's investor day presentation, June 2018
Slide 1: Macquarie Investor Day: Elikhulu and the Future
MACQUARIE INVESTOR DAY ELIKHULU AND THE FUTURE JUNE 2018
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: The African Focused Gold Producer
THE AFRICAN FOCUSED GOLD PRODUCER 4
Slide 5: Overview of Presentation
OVERVIEW OF PRESENTATION • Background • 2018 predicament and remedial plans • Tailings operations and Barberton Mines • Future growth prospects Royal Sheba Egoli 5
Slide 6: Background
BACKGROUND
Slide 7: Background
BACKGROUND • PAR is dual-listed on the JSE and on AIM • All operations are currently in South Africa • Market capitalisation ~ ZAR 3.1 billion • Group refocused on its core gold operations during the current financial year • High cost ounces curtailed - strategic focus on long life, low cost, sustai
Slide 8: Background: Group empowerment structure
BACKGROUND Group empowerment structure 8
Slide 9: Our Predicament and Action Plans – February 2018
OUR PREDICAMENT AND ACTION PLANS – FEBRUARY 2018
Slide 10: Our Predicament – February 2018
OUR PREDICAMENT – FEBRUARY 2018 Group costs as defined by World Gold Council ZAR/kg 600,000 500,000 400,000 300,000 Gold price on 200,000 27 February 2018 – R495,000/kg 100,000 0 FY2014 FY2015 FY2016 FY2017 H1 FY2018 All-in sustaining costs 349,008 402,221 405,847 514,435 545,908 All-in sustaining c
Slide 11: Our Predicament – Remedial actions
OUR PREDICAMENT – FEBRUARY 2018 Remedial actions • Evander initiated Section 189 process in terms of South African Labour Act on 26 February 2018 • Section 189 process concluded on 27 May 2018 • Approximate number of employees retrenched – 1,700 employees • Retrenchment cost approximately R160 milli
Slide 12: Tailings Operations and Barberton Mines
TAILINGS OPERATIONS AND BARBERTON MINES
Slide 13: Our Long-Life, Low-Cost Tailings Retreatment Operations
OUR LONG-LIFE, LOW-COST TAILINGS RETREATMENT OPERATIONS
Slide 14: Our Long-Life, Low-Cost Tailings Retreatment Operations
OUR LONG-LIFE, LOW-COST TAILINGS RETREATMENT OPERATIONS Gold tailings retreatment operations • Barberton Tailings Retreatment Plant Regrind mill installed to improve throughput and recoveries Initial capital outlay of ZAR325.7 million (~USD37 million) – paid back in 18 months • Evander Tailings
Slide 15: PAR Investment Case
PAR INVESTMENT CASE Disciplined capital allocation decisions Investment capital/ purchase price (ZAR Project million) Forecast payback period Phoenix CTRP 308.9* Disposed of to Sylvania Platinum for R89 million Original forecast payback of approximately 4 years – impacted by deep Evander Underground
Slide 16: Gold surface sources production
OUR LONG-LIFE, LOW-COST TAILINGS RETREATMENT OPERATIONS Gold surface sources production (6 months ending 31 December) Oz AISC (USD) 60,000 800 49,937oz** 700 600 40,000 500 30,665oz* 400 21,810oz 20,389oz 300 20,000 11,710oz 200 100 0 0 H1 - 2015 H1 - 2016 H1 - 2017 H1 - 2018 Looking ahead Elikhulu
Slide 17: Tailings Operations – BTRP
TAILINGS OPERATIONS – BTRP Production challenges • BTRP › Processing difficulties at the Barberton’s Tailings Retreatment Plant (“BTRP”), due to the re- mining operation moving to the lower-grade Harper dump following depletion of the Bramber dump, and the head grade reducing from 2.2g/t to 1.4g/t ›
Slide 18: Tailings Operations – BTRP: Addressing recoveries
TAILINGS OPERATIONS – BTRP Addressing BTRP recoveries › Installation of a 1.6 MW regrind mill to facilitate treatment of coarse material › Return the Barberton Mines BTRP to 21 Koz per annum › Project cost – approximately R60 million › Commissioned end May 2018 – first gold by June 2018 › Process fl
Slide 19: Schematic and actual view of BTRP regrind mill addition
TAILINGS OPERATIONS – BTRP Schematic and actual view of BTRP regrind mill addition 19
Slide 20: Tailings Production Growth – Elikhulu
TAILINGS PRODUCTION GROWTH - ELIKHULU Location 20
Slide 21: Elikhulu Accelerated development programme
TAILINGS PRODUCTION GROWTH - ELIKHULU Accelerated development programme Completed successful Elikhulu Secured bookbuild forecast debt to raise Approval of construction Completed funding required water-use Elikhulu sod completion DFS package equity license turning date December April 2017 April 2017
Slide 22: Elikhulu Forecasted production profile
TAILINGS PRODUCTION GROWTH - ELIKHULU Forecasted production profile (calendar years) Gold recovered (Koz) Grade (g/t) 70 0.35 60 0.30 50 0.25 40 0.20 30 0.15 20 0.10 10 0.05 0 0.00 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Gold recovered Grade * 2018 excludes possible imp
Slide 23: Elikhulu Current status
TAILINGS PRODUCTION GROWTH - ELIKHULU Current status › Construction progressing well and currently ahead of schedule and below budgeted cost › First gold anticipated in August 2018 and full commissioning in September 2018 › Current project expenditure is R1.2 billion and forecasting an overall savin
Slide 24: Barberton Mines Underground Operations
BARBERTON MINES Underground Operations
Slide 25: Barberton Mines Production statistics
BARBERTON MINES Production statistics Tonnes g/t 180,000 12 150,000 10 120,000 8 90,000 6 60,000 4 30,000 2 0 0 H1 - 2014 H1 - 2015 H1 - 2016 H1 - 2017 H1 - 2018 Fairview 53,623 48,488 55,421 52,623 52,232 Sheba 53,559 45,386 47,549 44,359 41,705 Consort 42,407 32,839 36,460 26,186 31,032 Head grade
Slide 26: Barberton Mines – Sustaining Production, Tonnage and Grade
BARBERTON MINES -SUSTAINING PRODUCTION, TONNAGE AND GRADE Arresting the historical declining underground mining profile Tonnage: › Increase waste and reef development for ore reserve generation by 61% relative to FY18, to improve mining flexibility › Currently 2 high grade platforms being cycle mine
Slide 27: Barberton Mines Projects – Fairview Sub-Vertical Shaft
BARBERTON MINES PROJECTS – FAIRVIEW SUB-VERTICAL SHAFT Phase 1 Sheba mine deepest level Planned access development Phase 2 100m 27
Slide 28: Future Growth Prospects
FUTURE GROWTH PROSPECTS AFRICAN RESOURCES Pic
Slide 29: Future Growth – Barberton & Evander: Exploration Upside
FUTURE GROWTH – BARBERTON & EVANDER Exploration Upside › Embarked on a strategy to assess the exploration potential at Barberton and Evander Mines › Egoli Project - surface drilling completed and identified prospective geology indicating secondary Channel parallel to Kinross Channel › Royal Sheba -
Slide 30: Royal Sheba: Priority surface geological prospect
FUTURE GROWTH – BARBERTON & EVANDER Royal Sheba: Priority surface geological prospect Geology Gold mineralisation occurs within the Sheba Fault shear zone in the banded chert-carbonate shale unit of the Fig Tree Group. The Royal Sheba orebody was previously mined and is open-ended at depth. Explorat
Slide 31: Future Profitable Growth – Royal Sheba
FUTURE PROFITABLE GROWTH – ROYAL SHEBA Project Status The Royal Sheba orebody is being accessed from 23 Level Sheba Mine development of which +/- 900m has been developed and approximately 850m remains 31
Slide 32: Future Growth – Egoli
FUTURE GROWTH - EGOLI Overview LOM Production Profile (ROM tonnes) • The Project is adjacent to the No 7 Shaft infrastructure and extends from the boundary of Taung Gold International Limited’s 50 000 No 6 Shaft mining right. 40 000 • The Project will use the established No 7 Shaft and metallurgical
Slide 33: Gold accumulation trends for Evander Gold Mines
FUTURE PROFITABLE GROWTH - EGOLI Gold accumulation trends for Evander Gold Mines 33
Slide 34: Future Profitable Growth – Egoli resources
FUTURE PROFITABLE GROWTH - EGOLI Resource Block Width Grade SG Tonnes (Mt) Gold (Kg) Gold (Koz) Grade (g/t) Category (cm) (cmg/t) (t/m3) Measured 0.361 3,238 104 8.97 110 986 2.71 Indicated 2.922 28,828 927 9.87 110 1,085 2.71 Total M&I 3.283 32,066 1,031 9.77 110 1,074 2.71 Inferred 6.124 59,628 1,
Slide 35: Thank You
THANK YOU