Pan African Resources Plc · LSE:PAF
Pan African Resources — Non-Deal Roadshow (July 2023)
46 slides from Pan African Resources's roadshow presentation, July 2023
Slide 1: Mining for a Future – Investor Roadshow
XXX MINING FOR A FUTURE INVESTOR ROADSHOW July 2023 OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 1
Slide 2: Disclaimer and Forward Looking Statements
XXX 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 themselv
Slide 3: Overview of Presentation
XXX OVERVIEW OF PRESENTATION Company snapshot Overview of our operations Our operating environment H1 FY2023 – Key features Health and Safety Performance by operation Further reducing Group AISC Capital projects (ZAR) ESG : Our “Beyond compliance” approach Financials Near term organic growth – Royal
Slide 4: Company Snapshot
XXX COMPANY SNAPSHOT As at 12 July, 2023 Board and Executives JSE (PAN) ZAR322cps KEITH SPENCER • Chairman AIM (PAF) GBP13.6p • Appointed: 8 October 2007 ADR (PAFRY) 20:1 US$3.54 OTC (PAFRF) US$0.15 COBUS LOOTS • Chief executive officer Market capitalisation US$395m • Appointed: 26 August 2009 Share
Slide 5: Overview of Our Operations
XXX OVERVIEW OF OUR OPERATIONS OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 5
Slide 6: Overview of Our Operations
OVERVIEW OF OUR OPERATIONS XXX OVERVIEW OF OUR OPERATIONS A UNIQUE COMBINATION OF UNDERGROUND MINING AND SURFACE REMINING Now 3 large asset complexes in South Africa Sudan Block 12 Port Sudan Mpumalanga Mbombela Consort Mine Sheba Mine and Khartoum Royal Sheba Fairview Mine Pretoria Middelburg and B
Slide 7: Overview of Our Operations – Key Features
APPENDIX XXX OVERVIEW OF OUR OPERATIONS – KEY FEATURES GOLD PRODUCTION OF 92,307OZ (H1 FY23) BARBERTON EVANDER ELIKHULU Underground Underground BTRP • US$120m tailings retreatment plant • Capacity of 100,000 tpm – • Mining history of over 130 years, high • Acquired from Harmony Gold in 2013 commissi
Slide 8: Our Operating Environment
XXX OUR OPERATING ENVIRONMENT OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 8
Slide 9: Our Operating Environment: Operating Successfully in South Africa
OUR OPERATING ENVIRONMENT XXX OUR OPERATING ENVIRONMENT OPERATING SUCCESSFULLY IN SOUTH AFRICA ELECTRICITY AND TECHNICAL SUPPORT MINING TENURE AND REGULATORY FRAMEWORK • New private generation projects and partnerships fast-tracked • Mining rights secure by government to curb blackouts • Barberton M
Slide 10: Renewable Energy Roadmap
OUR OPERATING ENVIRONMENT XXX OUR OPERATING ENVIRONMENT OPERATING SUCCESSFULLY IN SOUTH AFRICA – RENEWABLE ENERGY ROADMAP May 2022 2022/23 2023 2023/24 2024/25 • First SA mining • Feasibility study • Commence • Commission • Wind power, company to complete to construction of feasibility study for ene
Slide 11: H1 FY2023 – Key Features
XXX H1 FY2023 – KEY FEATURES OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 11
Slide 12: Operational and Financial Performance
H1 FY2023 – KEY FEATURES XXX OPERATIONAL AND FINANCIAL PERFORMANCE IMPROVEMENT INITIATIVES COMMENCED AT BARBERTON MINES PRODUCTION PERFORMANCE • Group gold production of 92,307oz following record H1 FY22 production of 108,085oz – impacted by Barberton Mines u/g performance and national scale electri
Slide 13: Operational and Financial Performance
H1 FY2023 – KEY FEATURES XXX OPERATIONAL AND FINANCIAL PERFORMANCE IMPROVEMENT INITIATIVES IMPLEMENTED FINANCIAL PERFORMANCE • Profit after tax of US$28.9m (H1 FY22:US$46.1m) - identical to the US$28.9m generated in H2 FY22 • Attributable earnings lower at US$29.1m (H1 FY22: US$46.1m) – impacted by
Slide 14: Health and Safety
XXX HEALTH AND SAFETY OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 14
Slide 15: Health and Safety
HEALTH AND SAFETY XXX HEALTH AND SAFETY SAFETY INITIATIVES REFOCUSED Surface operations - maintained excellent safety performance Fatality-free shift milestones achieved • Elikhulu achieved excellent results with an improvement in both the LTIFR and • 3.1 million fatality free shifts at Barberton’s
Slide 16: Performance by Operation
XXX PERFORMANCE BY OPERATION Completed Leslie/Bracken pump station at Elikhulu OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 16
Slide 17: Tailings Operations – Elikhulu
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – ELIKHULU • Production steady at 25,830oz (H1 FY23) Elikhulu LOM production profile* • AISC of US$947/oz – one of the lowest cost gold producers in Southern Africa 80 000 • 11 Year LOM Actual Forecast 70 000 • 9.9MW solar pho
Slide 18: Tailings Operations – BTRP
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION TAILINGS OPERATIONS – BTRP • Production increased 9.7% to 10,012oz (H1 FY22: 9,126oz) BTRP LOM production profile* • Lowest cost of production in the Group 30 000 • AISC of US$725/oz (H1 FY22: US$814/oz), AISC margin of 58% 25 000 • LOM ~2 years
Slide 19: Mintails: Progressing Towards Construction
PERFORMANCE BY OPERATION XXX MINTAILS PROGRESSING TOWARDS CONSTRUCTION 6 October 2022 - Closure of transaction to acquire total share claims and capital of • Construction capex of US$161.3million – payback within 3.5 years post commissioning Mogale Gold and Mintails SA Soweto Cluster TSFs • Optimisa
Slide 20: Mintails: Proposed Project Execution Timeline
PERFORMANCE BY OPERATION XXX MINTAILS PROGRESSING TOWARDS CONSTRUCTION PROPOSED PROJECT EXECUTION TIMELINE ACTIVITY ESTIMATED DATE Completion and finalisation of DFS Completed Engineering optimisation activities Completed Detailed engineering optimisation Sept 2022 – Mar 2023 Funding package finalis
Slide 21: Building a World Class Tailings Business
PERFORMANCE BY OPERATION XXX SURFACE TAILINGS RETREATMENT BUILDING A WORLD CLASS TAILINGS BUSINESS Elikhulu and Mintails production profile 140 000 120 000 Gold production (oz) 100 000 80 000 60 000 40 000 20 000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Slide 22: Evander Underground
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION EVANDER UNDERGROUND EVANDER 8 SHAFT PILLAR • Pillar mining achieved steady state • Production of 19,173oz in H1 FY23 – affected by geotechnical constraints • 5% of production impacted by electricity supply issues • AISC of US$1,052/oz – one of th
Slide 23: Fairview Mine
PERFORMANCE BY OPERATION XXX PERFORMANCE BY OPERATION FAIRVIEW MINE Continuous operations cycle and optimised mining methods Marked improvement in production tonnages at Fairview of up to 10% following a slow ramp up in H2FY23 Reduced dilution and increased trackless machine availability at Sheba Mi
Slide 24: Barberton Mines' Smaller Underground Operations
PERFORMANCE BY OPERATION XXX BARBERTON MINES’ SMALLER UNDERGROUND OPERATIONS SHEBA MINE Production stable at 9,262oz (H1 FY23) – continuous operating cycle to: • Optimise development rates to fast-track establishment of MRC and ZK stopes as well as reduce dilution MRC and ZK orebodies development •
Slide 25: Group AISC
XXX GROUP AISC Solar PV plant at Evander Gold Mine OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 25
Slide 26: Group AISC – FY2023 Guidance
GROUP AISC XXX GROUP AISC FY2023 – GUIDING AISC OF ~ US$1,325 – 1,350/oz* Lower cost operations (H1 FY23) Evander Evander Barberton Total lower Mines surface Mines’ cost % Group Underground sources BTRP Elikhulu Fairview operations production AISC per kg 586,038 868,489 403,965 527,585 888,442 631,0
Slide 27: FY2023 – AISC Outlook vs Peers
US$/oz GROUP AISC 200 400 600 800 0 1 000 1 200 1 400 1 600 1 800 2 000 West African Res B2Gold Corp GROUP AISC Endeavour Mining OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN FY 2023 – AISC OUTLOOK Perseus Mining Source: Individual company websites and presentations Caledonia Barrick Newmont Gold Fields
Slide 28: Capital Projects (ZAR)
XXX CAPITAL PROJECTS (ZAR) Phase 1 of underground refrigeration plant at Evander 24 Level OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 28
Slide 29: Capital Projects (ZAR)
CAPITAL PROJECTS (ZAR) XXX CAPITAL PROJECTS (ZAR) RE-INVESTMENT INTO LONG-LIFE ASSETS AND GROWTH PROJECTS TO GENERATE ATTRACTIVE RETURNS 2 000 1 800 1 600 1 400 1 200 1 000 ZARm 800 600 400 200 0 2020 2021 2022 2023 FC Elikhulu 9 64 168 405 Evander - Mostly expansion 328 195 430 900 BML Expansion 11
Slide 30: ESG: Our Beyond Compliance Approach
XXX ESG : OUR “BEYOND COMPLIANCE” APPROACH OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 30
Slide 31: ESG: Our Beyond Compliance Approach
ESG XXX ESG OUR “BEYOND COMPLIANCE” APPROACH GOVERNANCE ENVIRONMENT SOCIAL SOCIAL AND COMPLIANCE WATER RECYCLING LEAVING A LEGACY SUSTAINABLE COMMUNITIES FULLY COMPLIANT WITH GRI REPORTING Responsible and sustainable water use Socio-economic development Barberton Blueberries project Independent audi
Slide 32: H1 FY 2023 Financials
XXX H1 FY 2023 FINANCIALS Income impacted by decline in production OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 32
Slide 33: Summarised Consolidated Financial Results
H1 FY 2023 FINANCIALS – STEADY MARGINS XXX H1 FY2023 FINANCIALS SUMMARISED CONSOLIDATED FINANCIAL RESULTS Six months ended Six months ended Movement Salient features Units 31 Dec 2022 31 Dec 2021 % Gold produced oz 92,307 108,085 (14.6) Gold sold1 oz 90,439 107,142 (15.6) Revenue US$ million 156.5 1
Slide 34: Debt Composition
H1 FY 2023 FINANCIALS – STEADY MARGINS XXX H1 FY2023 FINANCIALS DEBT COMPOSITION RedInk Facility R125 million Mintails Debt Facility R1.3 billion RCF Facility R1.0 billion DMTN Bond Issue R800 million GBF Facility R140 million Core debt Project specific debt OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN
Slide 35: Debt Redemption Profile (ZAR)
H1 FY 2023 FINANCIALS – STEADY MARGINS XXX H1 FY2023 FINANCIALS DEBT REDEMPTION PROFILE (ZAR) ZAR 1 400 000 000 1 200 000 000 1 000 000 000 800 000 000 600 000 000 400 000 000 200 000 000 0 May-23 May-24 May-25 Mar-27 May-27 May-28 Mar-23 Mar-24 Mar-25 Mar-26 May-26 Mar-28 Mar-29 Sep-23 Sep-24 Sep-2
Slide 36: Historic Dividend Yield
FY 2022 FINANCIALS – ROBUST PROFITS AND DIVIDENDS XXX FY2022 FINANCIALS HISTORIC DIVIDEND YIELD 7% 6,3% 6% 5,6% 5,3% 5,1% 5,0% 5% 4,6% 4% 3,8% 3% 2% 1,2% 1% 0,0% 0% June 14 June 15 June 16 June 17 June 18* June 19 June 20 June 21 June 22# * Dividend suspended due to cessation of large-scale deep lev
Slide 37: Near Term Organic Growth – Royal Sheba
XXX NEAR TERM ORGANIC GROWTH – ROYAL SHEBA OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 37
Slide 38: Near Term Organic Growth – Royal Sheba
NEAR TERM ORGANIC GROWTH – ROYAL SHEBA XXX NEAR TERM ORGANIC GROWTH ROYAL SHEBA 850m strike length Progress Orebody Extraction of 10,000t bulk sample to further define grades and recoveries completed 5m – 20m thickness 786m down-dip slope length during H1 FY23 • Metallurgical testwork conducted at b
Slide 39: Exploration – Republic of the Sudan
XXX EXPLORATION – REPUBLIC OF THE SUDAN Target generation through remote sensing OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 39
Slide 40: Exploration – Republic of the Sudan
EXPLORATION – REPUBLIC OF THE SUDAN XXX EXPLORATION REPUBLIC OF THE SUDAN WHY SUDAN PROGRESS IN H1 FY2023 – currently on Care and Maintenance • 3rd largest gold producer in Africa (after Ghana and SA) and 10th in • Exploration camp constructed ~100km from laboratory the world (2021) • Located in hig
Slide 41: Focused on Delivery
XXX FOCUSED ON DELIVERY OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 41
Slide 42: Key Deliverables
FY2023 – FOCUSED ON DELIVERY XXX KEY DELIVERABLES FOCUSED ON DELIVERY Proactive journey to ‘zero harm’ through innovative health and safety initiatives Ensure successful execution of restructuring and other initiatives to increase production run rate Successfully execute into capital projects to sus
Slide 43: Thank You
XXX THANK YOU Contact: Hethen Hira, Head of investor relations Email: Hhira@paf.co.za www.panafricanresources.com OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 43
Slide 44: Appendix
XXX APPENDIX OTCQX: PAFRF/PAFRY | AIM: PAF | JSE: PAN www.panafricanresources.com 44
Slide 45: Evander Mines' Shaft – 25 & 26 Level Extension
APPENDIX XXX NEAR TERM ORGANIC GROWTH EVANDER MINES’ 8 SHAFT – 25 & 26 LEVEL EXTENSION – WHY MINING IS DIFFERENT NOW Factors During 2018 Mitigation measures for current project Low efficiencies/high High temperatures - inadequate refrigeration Install new refrigeration plant and infrastructure tempe
Slide 46: Reserves and Resources
APPENDIX XXX RESERVES AND RESOURCES GROWTH PORTFOLIO – ROBUST PROJECT PIPELINE Tonnes Grade Gold Gold Gold Mineral Resources* Mt g/t t Moz Barberton hard rock 24.5 4.3 105.9 3.4 BTRP 22.2 1.2 26.4 0.9 Evander underground 113.9 9.0 1 022.8 32.9 Elikhulu 167.3 0.3 47.2 1.5 TOTAL 327.9 3.7 1 202.2 38.7
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