Pan African Resources PLC
('Pan African Resources' or the 'company' or the 'group')
(Incorporated and registered on 25
February 2000 in England
and Wales under the Companies Act
1985, registration number 3937466)
Share code on AIM |
: PAF |
Share code on JSE |
: PAN |
ISIN |
: GB0004300496 |
Interim unaudited results for the six months ended 31 December 2016
Cobus Loots, CEO of Pan African
Resources commented:
“Pan African Resources generated higher earnings, revenues and a
record dividend pay-out of R300 million (GBP17.1 million), despite lower production from
our gold operations. The Elikhulu Tailings Retreatment Project
(‘Elikhulu’), which was approved by the Pan African Resources Board
during the period under review, will provide organic production
growth of approximately 56,000oz of gold per annum, and also reduce
the overall cost profile of our operations. Elikhulu reflects Pan
African Resource’s strategy of delivering long-life, low cost
quality production ounces, with the focus of generating attractive
returns for our shareholders.”
“Transactions completed in the prior financial year have
positively impacted results in the current reporting period and
have been extremely value accretive. The PAR Gold Proprietary
Limited (‘PAR Gold’) acquisition enhanced earnings per share by
17.7%. Uitkomst Colliery contributed R21.3 million, or 8.5%,
towards the group’s profit after taxation.”
“Our immediate focus is to recommence the Evander Mines
underground mining operations, following the temporary suspension
of mining to refurbish critical infrastructure, and to finalise the
Elikhulu funding package.”
Key features reported in South African Rand (‘ZAR or R’) and
Pound Sterling (‘GBP’)
Financial key features
- The group’s profit after taxation in ZAR terms increased by
9.8% to R249.8 million (2015: R227.6 million), while in GBP terms,
the group’s profit after taxation increased by 28.4% to
GBP14.0 million (2015: GBP10.9 million).
- Earnings per share (‘EPS’) increased by 33.4% to 16.58 cents per share (2015: 12.43 cents per share), while in GBP terms, EPS
increased by 55.0% to 0.93 pence per
share (2015: 0.60 pence per
share).
- Group revenue increased by 19.2% to R1,878.2 million (2015:
R1,575.4 million) and, in GBP terms, group revenue increased by
38.9% to GBP105.0 million (2015:
GBP75.6 million). This increase was
due to an increase in the ZAR gold price received and the inclusion
of Uitkomst Colliery’s revenue of R225 million (GBP12.6 million), in the current period (2015:
Nil).
- The group paid a final dividend of R300 million or GBP17.1 million (2015: R210 million or
GBP9.7 million) on 22 December 2016, relating to the 2016 financial
year. This dividend equated to R0.1544 per share or 0.88 pence per share (2015: R0.1147 per share or
0.53 pence per share).
- The Pan African board of directors (the “board”) approved the
Elikhulu project, subject to certainty on the funding of the
project.
- The Uitkomst Colliery performed well and contributed R21.3
million (2015: Nil), or 8.5%, to the group’s profit after
taxation.
- The PAR Gold transaction (previously named the Shanduka Gold
transaction) contributed an additional 17.7% to the group’s
EPS.
Operational key features
- Group gold production decreased by 10.0% to 91,613oz (2015:
101,797oz).
- Effective rand gold price received increased by 16.5% to
R565,298/kg (2015: R485,215/kg) and, in USD terms, it increased by
13.2% to USD1,257/oz
(2015:USD1,110/oz).
- Due to the lower gold production, all-in sustaining cost per
kilogramme increased in ZAR terms to R456,187/kg (2015:
R396,819/kg) and, in USD terms, all-in sustaining cost per ounce
increased to USD1,014/oz
(2015:USD908/oz).
- Uitkomst Colliery produced and sold 127,605 tonnes of coal from
the underground mining operations and 199,597 tonnes of coal
acquired from third parties for blending and processing.
- Phoenix Platinum Mining Proprietary Limited (‘Phoenix
Platinum’) increased platinum group elements (‘PGE’) production by
1.8% to 4,574oz (2015: 4,493oz).
- Group gold resources remained similar relative to the prior
financial year ending 30 June 2016 at
34.9Moz (30 June 2015: 31.9Moz).
- The group is pleased to report no fatalities in the reporting
period (2015: no fatalities) and an improved overall group safety
performance.
Movement |
For the
six months ended 31 December 2016 |
For the
six months ended 31 December 2015 |
Metric |
Salient
features |
Metric |
For the
six months ended 31 December 2015 |
For the
six months ended 31 December 2016 |
Movement |
(10.0%) |
2,849.5 |
3,166.2 |
(Kilogrammes) |
Gold
sold |
(Oz) |
101,797 |
91,613 |
(10.0%) |
19.2% |
1,878.2 |
1,575.4 |
(R
millions) |
Revenue |
(GBP
millions) |
75.6 |
105.0 |
38.9% |
16.5% |
565,298 |
485,215 |
(R/kg) |
Average
gold price received |
(USD/oz) |
1,110 |
1,257 |
13.2% |
29.4% |
418,764 |
323,730 |
(R/kg) |
Cash
costs |
(USD/oz) |
740 |
931 |
25.8% |
15.0% |
456,187 |
396,819 |
(R/kg) |
All-in
sustaining costs |
(USD/oz) |
908 |
1,014 |
11.6% |
20.3% |
478,332 |
397,692 |
(R/kg) |
All-in
costs |
(USD/oz) |
910 |
1,063 |
16.8% |
13.8% |
476.5 |
418.7 |
(R
millions) |
Adjusted EBITDA (note 1) |
(GBP
millions) |
20.1 |
26.6 |
32.3% |
9.8% |
249.8 |
227.6 |
(R
millions) |
Attributable earnings |
(GBP
millions) |
10.9 |
14.0 |
28.4% |
8.1% |
246.0 |
227.6 |
(R
millions) |
Headline
earnings |
(GBP
millions) |
10.9 |
13.8 |
26.6% |
33.4% |
16.58 |
12.43 |
(cents) |
EPS |
(pence) |
0.60 |
0.93 |
55.0% |
31.3% |
16.32 |
12.43 |
(cents) |
Headline
earnings per share (‘HEPS’) |
(pence) |
0.60 |
0.91 |
51.7% |
43.7% |
497.0 |
345.8 |
(R
millions) |
Net
debt |
(GBP
millions) |
15.0 |
29.4 |
96.0% |
40.4% |
140.5 |
100.1 |
(R
millions) |
Total
sustaining capital expenditure |
(GBP
millions) |
4.8 |
7.9 |
64.6% |
57.9% |
203.5 |
128.9 |
(R
millions) |
Total
capital expenditure |
(GBP
millions) |
6.2 |
11.5 |
85.5% |
27.5% |
191.7 |
150.4 |
(cents) |
Net
asset value per share |
(pence) |
7.0 |
11.5 |
64.3% |
(17.7%) |
1,506.8 |
1,831.5 |
(millions) |
Weighted
average number of shares in issue |
(millions) |
1,831.5 |
1,506.8 |
(17.7%) |
2.9% |
13.99 |
13.60 |
(R/USD) |
Average
exchange rate |
(R/GBP) |
20.83 |
17.88 |
(14.2%) |
(11.8%) |
13.70 |
15.53 |
(R/USD) |
Closing
exchange rate |
(R/GBP) |
22.99 |
16.90 |
(26.5%) |
Note 1: Adjusted EBITDA is represented by earnings before
interest, taxation, depreciation and amortisation, impairments and
profit/(loss) on disposal of investments.
CEO STATEMENT
Despite a period of lower gold production and normal
inflationary cost pressures, the group improved its profitability
and paid a record dividend of R300 million (GBP17.1 million) to shareholders. We benefitted
from higher commodity prices and have capitalised on the Uitkomst
Colliery and PAR Gold transactions to significantly improve the
group’s EPS and HEPS, when this set of results is compared to the
comparative period.
The Board approved the construction of Elikhulu, which is a
further significant step towards realising shareholder value from
our organic growth projects. The decision to commence construction
of the project remains subject to finalising the most appropriate
financing package, with funding tailored to maximise returns for
our shareholders on a risk adjusted basis. On commissioning,
currently planned for the last quarter of the 2018 calendar year,
the group will be on track to achieve 250,000 ounces of annual gold
production from our current portfolio of assets and infrastructure.
Elikhulu demonstrates the group’s commitment to remaining focused
on our core business of low cost gold mining.
Following a challenging operational start to the 2017 financial
year, our mining operations remain focused on improving gold
production. During the period under review, the group’s gold
production decreased by 10% to 91,613oz (2015: 101,797oz).
The decrease in gold production can, as previously reported, be
attributed to:
- Loss of production shifts due to frequent instances of
community unrest in the Barberton Mines area as a result of service
delivery protests targeting government, compounded by Department of
Mineral Resources (‘DMR’) safety stoppages (‘Section 54 regulatory
notices’) issued at both Barberton and Evander operations. The
group continues to engage with all stakeholders to ensure our
operations can function in a stable and consistent manner.
- The shaft accident at Evander Mines’ 7 Shaft, which resulted in
a reduction of rock hoisting speeds whilst repair work is carried
out.
- Barberton Mines experienced flexibility issues at its Fairview
Mine, specifically at its high grade 11-block which resulted in
lower grades being mined. Work is underway to develop additional
production platforms to expose additional high-grade panels to
increase mining grades and flexibility.
Uitkomst Colliery produced and sold 127,605 tonnes of coal from
its underground mining operations and 199,597 tonnes of third party
coal acquired for blending and processing during the current
reporting period. The newly-acquired operation has contributed to
profitability and its management team is reviewing the viability of
expanding and increasing production to 900,000 run-of-mine tonnes
per annum from the underground mining operation.
Phoenix Platinum production increased by 1.8% to 4,574oz (2015:
4,493oz) and its recoveries increased significantly to 57% from
39%, following the implementation of high energy agitation cells in
the plant. Production in the current reporting period was
negatively affected by water shortages as a result of the current
drought, which curtailed the re-mining of tailings.
Safety
Safety remains a focus at all operations and we endeavour to
ensure the group’s culture, behaviour and values align to our
ultimate safety objective of zero harm.
The group is pleased to announce an improved overall safety
performance and no fatalities for the period under review (2015: no
fatalities). The lost time injury frequency rate (‘LTIFR’) improved
to 3.96 (2015: 4.01) and the reportable injury frequency rate
(‘RIFR’) improved significantly to 1.61 (2015: 2.08). The group’s
total recordable injury frequency rate (‘TRIFR’) regressed
marginally to 14.81 (2015: 14.71).
Mineral reserves and resources
There has been no adjustment to the group’s mineral reserves and
resources statement of 30 June 2016
and the mineral reserves and resources are summarised as
follows:
- Gold reserves of 10.0Moz (30 June
2015: 10.4Moz)
- Gold resources of 34.9Moz (30 June
2015: 31.9Moz)
- PGE reserves of 0.2Moz (30 June
2015: 0.5Moz)
- PGE resources of 0.6Moz (30 June
2015: 0.6Moz)
- Coal resources were 23.3Mt
In determining our reserves and resources, we use what we
believe is a conservative ZAR gold price estimate. In the current
year, gold reserves were modelled at R450,000/kg and gold resources
at R550,000/kg.
Elikhulu
As announced on 5 December 2016,
the Board approved the construction of the Elikhulu project,
subject to finalisation of the project financing package. The
definitive feasibility study (‘DFS’) was undertaken by DRA Projects
SA Proprietary Limited, who will also be appointed as engineering
processing and construction contractors to the project.
DFS highlights and key assumptions:
- First gold forecast for the final quarter of the 2018 calendar
year and full commissioning in December
2018.
- Annual recoverable gold production of approximately 56,000
ounces for its initial eight years of operation, and 45,000 ounces
of gold for the remaining five years thereafter.
- Current arisings and inferred gold resource could extend
project life beyond the DFS estimated life of thirteen years.
- Optimal plant capacity for the project allows 12-million tonnes
per annum throughput.
- The project is expected to add approximately 25% to the group´s
current gold ounce production profile and reduce the group´s all-in
sustaining cost profile.
- All-in sustaining cost of USD523/oz over the life of the project.
- Initial capital cost is forecast at approximately R1.74 billion
(GBP103.0 million), which includes a
contingency of approximately R200 million (or 11.5%
contingency).
- The project has an internal rate of return (real, post-tax) of
23.1% (30.6% nominal) with a payback period of less than four
years, based on an assumed gold price of USD1,180/oz (R17,110/oz).
- Return on equity (real, post-tax) of 34.3% (42.5%
nominal).
- Project net present value (‘NPV’) of R1.1 billion (GBP65.1 million).
- Cash outflow per ounce over the life of the operation is sub
USD650/oz, excluding debt servicing,
and amounts to approximately USD805/oz, including of debt servicing, over the
five-year debt redemption term.
- Average gold recovery rate over the life of the project of
47.8%.
- Environmental Impact Assessment and Water Usage Licence
processes are underway, with both approvals expected by late
2017.
DFS economic assumptions:
- Gold price assumption:
USD1,180/oz.
- ZAR:USD exchange rate:
14.50:1.
- NPV discount rate: 9% real (16%
nominal).
- Debt-to-equity ratio: 115%,
debt-to-total-capital ratio of 53%.
- Long-term South African
inflation rate of 6.1%.
Rand Merchant Bank, a division of
First Rand Bank Limited, has provided Pan African Resources with a
conditional R1 billion underwritten five-year debt facility on
competitive terms (‘RMB facility’). This facility will be dedicated
to funding the project´s development and will be repaid from the
project´s cash flows, generated during the initial five years of
production. This facility is in addition to the group´s current
revolving credit facility (‘RCF’) of R800 million (GBP47.3 million), which can be extended to R1.1
billion (GBP65.1 million),
conditional on approval from the RCF lenders. The group is
evaluating a number of proposals to fund the balance of the initial
project capital and, given its strong financial position and track
record of successfully constructing and operating tailings plants,
we do not foresee difficulty in securing the balance of the funding
on competitive terms. The RMB facility´s repayment profile is
matched to the project´s cash flow generation and is not expected
to impact Pan African Resources´ existing dividend policy.
Uitkomst Colliery BEE deal concluded
In September 2016, the Uitkomst
Colliery finalised a black economic empowerment (‘BEE’) ownership
transaction for 9% of its issued share capital, through a vendor
financed structure. This BEE transaction is similar in nature to
the current employee share ownership schemes at our gold
operations, with tenure of ten years and the following three BEE
participants:
- Mcijo Trust 5% ownership
- Employees Trust 2% ownership
- Community Trust 2% ownership
Evander 2010 pay channel
The Evander 2010 pay channel is a potentially attractive orebody
that runs parallel to the Kinross pay channel and is accessible via
Evander Mines’ 7 Shaft. Harmony Gold Mining Company Limited
historically developed towards the orebody before halting all
mining operations on 7 Shaft and allowing flooding of the
infrastructure from 21 level to 18 level. The Evander 2010 pay
channel resources are classified in an inferred category and
surface drilling is underway to improve confidence in the resource.
The initial results of the drilling programme have been delayed due
to poor rock conditions as well as due to the intersection of water
on various instances. The first reef intersection is now expected
during April 2017. The 2010 pay
channel may offer Evander Mines the possibility of establishing a
new underground mining area without the cost of sinking a new
vertical shaft from surface.
Outlook
In the second half of the financial year, the key focus areas
for the group, from an operational perspective, includes:
- Continuing to improve our safety and compliance across all
operations.
- Resume underground mining operations at Evander Mines,
following the temporary suspension of mining to refurbish critical
infrastructure.
- Improving the operating performance from underground gold
mining operations, to ensure full year production guidance.
- Further improving stakeholder relations to minimise stoppages,
particularly with the communities in which we operate, following
the unrest experienced at Barberton Mines. This will be achieved by
continuously engaging with the communities around our operations to
find amicable solutions to their concerns.
- Ensuring Evander Mines’ 7 Shaft returns to normal hoisting
speeds to improve hoisting capacity.
- Finalising the Elikhulu financing arrangements and progressing
towards construction and full-scale production.
- Finalising the current drilling programme on the Evander 2010
pay channel and assessing the results of this campaign.
- Uitkomst Colliery will focus on ensuring stable production is
maintained and will review the possibility of expanding run-of-mine
production.
- Phoenix Platinum aims to improve and capitalise on its
increased production capacity and recoveries, and grow production
even further following the installation of the high energy
agitation cells.
The group continues to evaluate acquisitive opportunities,
particularly within Africa. Any
acquisition considered will, however, be subject to the group’s
stringent capital allocation and low cost production criteria,
delivering the requisite returns to our shareholders within a
short- to medium-term timeframe.
We extend our appreciation to our management team, our mine
management and all staff for their hard work and persistence during
a challenging period. Their commitment and perseverance has enabled
Pan African Resources to continue to operate successfully. We also
thank our fellow directors for their support and guidance.
FINANCIAL PERFORMANCE
Exchange rates and their impact on results
All of the group’s subsidiaries are incorporated in South Africa and their functional currency is
ZAR. The group’s business is conducted in ZAR and the accounting
records are maintained in this same currency, with the exception of
precious metal product sales, which are conducted in USD prior to
conversion into ZAR. The ongoing review of the operational results
by executive management and the board is also performed in ZAR.
The group’s presentation currency is GBP due to its ultimate
holding company, Pan African Resources, being incorporated in
England and Wales and being dual-listed in the UK and
South Africa.
During the period under review the average ZAR/GBP exchange rate
was R17.88:1 (2015: R20.83:1) and the closing ZAR/GBP exchange rate
was R16.90:1 (2015: R22.99:1). The period-on-period change in the
average and closing exchange rates of 14.2% and 26.5%,
respectively, must be taken into account for the purposes of
translating and comparing period-on-period results.
The group records its revenue from precious metals sales in ZAR
and the marginal deterioration in the value of the ZAR/USD exchange
rate during the period under review had a positive contribution on
the USD metals revenue received. The average ZAR/USD exchange rate
was 2.9% weaker at R13.99:1 (2015: R13.60:1).
The commentary below analyses the current and prior comparative
period’s results. Key aspects of the group’s ZAR results appear in
the body of this commentary and have been used as the basis against
which its financial performance is measured. The gross GBP
equivalent figures can be calculated by applying the exchange rates
as detailed above.
Analysing the group’s financial performance
Revenue
The group’s revenue, period-on-period, increased by 19.2% to
R1,878.2 million (2015: R1,575.4 million) mainly impacted by:
- The consolidation of the Uitkomst Colliery revenue of R225.0
million (2015: nil), which contributed 14.3% of the increase in the
revenue period-on-period. Uitkomst Colliery was acquired and
consolidated with effect from 1 April
2016.
- The average ZAR gold price received by the group increased by
16.5% to R565,298/kg (2015: R485,215/kg), as a result of the
ZAR/USD exchange rate weakening by 2.9% to R13.99:1 (2015:
R13.60:1) and the USD gold price received increasing by 13.2% to
USD1,257/oz (2015: USD1,110/oz).
- Gold ounces sold decreased by 10.0% to 91,613oz (2015:
101,797oz).
Cost of production and realisation costs
The group’s total cost of production increased by 32.5% to
R1,395.7 million (2015: R1,053.7 million). The group’s cost of
production incorporates the full half year’s coal production costs
from Uitkomst Colliery of R189.0 million (2015: nil).
Pan African Resources’ gold cost of production (excluding
realisation costs), per the statement of comprehensive income,
increased by 14.4% to R1,165.6 million (2015: R1,019.3 million),
predominately due to:
- The group’s gold operations salaries and wages increasing by
8.3% to R515.5 million (2015: R476.0 million) in line with the gold
labour agreements signed in the 2016 financial year.
- The group’s electricity costs increasing by 8.9% to R183.0
million (2015: R168.1 million). The National Energy Regulator of
South Africa approved an increase
applied to electricity consumption of 9.5% for the period under
review, effective from 1 April 2016.
Production challenges detailed previously resulted in less power
consumed.
- The group’s mining and processing costs increased by 27.4% to
R339.1 million (2015: R266.2 million), mainly due to the following
material expenses:
- The Evander Tailings Retreatment Plant (‘ETRP’) processing
costs increased by R31.5 million due to treating additional surface
feedstock material. Tonnes processed for surface feedstock
increased by 49.3% to 240,495 tonnes (2015: 161,090). This
contributed an additional R30.3 million to the group’s EBITDA.
- Maintenance of Evander Mines’ 7 Shaft infrastructure resulted
in an additional R4.2 million expenditure being incurred.
- In the comparative reporting period Barberton Mines recorded an
inventory credit adjustment in its operational costs of R23.5
million, due to holding gold inventory at 31
December 2015, while in the current period no gold inventory
was held.
The Group’s gold cost of production, as detailed above,
excluding the inventory adjustments and additional surface
feedstock material costs, increased by 8.7% to R1,134.1 million
(2015: R1,042.8 million).
The group’s gold cost of production per kilogramme increased by
29.4% to R418,764/kg (2015: R323,730/kg). The increase is
attributed to:
- Gold sold decreasing by 10% to 91,613oz (2015: 101,797oz).
- A 14.4% increase in production costs as a result of the reasons
highlighted above.
The group’s all-in sustaining cost of production per kilogramme
of gold (including direct cost of production, royalties, cost
collar mark-to-market fair value adjustments, associated corporate
costs and overheads and sustaining capital expenditure) increased
by 15.0% to R456,187/kg (2015: R396,819/kg). The group’s all-in
sustaining costs were primarily impacted by an increase in gold
production costs and a decrease in other costs, compared to the
comparative period. The group’s all-in sustaining cost of
production per kilogramme (excluding cost collar mark-to-market
fair value adjustments) would have been R487,765/kg (2015:
R383,944/kg).
The all-in gold cost per kilogramme (sustaining cost of
production and once-off expansion capital) increased by 20.3% to
R478,332/kg (2015: R397,692/kg), due to the increase in once-off
capital expansion costs to R62.9 million (2015: R2.8 million). The
increase in once-off capital expenditure related predominately to
the construction of the Barberton Tailings Retreatment Plant
(‘BTRP’) cyanide detoxification plant and Fairview’s ventilation
refrigeration and infrastructure. The group’s all-in cost per
kilogramme (excluding cost collar mark-to-market fair value
adjustments) would have been R509,909/kg (2015: R384,867/kg).
The PGE cost of production increased by 19.5% to R41.1 million
(2015: R34.4 million), predominantly due to refining and processing
costs increasing by 49.6% to R18.7 million (2015: R12.5 million).
Higher refining costs were incurred due to higher chrome prevalence
in the tailings processed from the Elandskraal/Kroondal tailings.
Additional transport costs were also incurred to deliver tailings
material from the more distant Elandskraal/Kroondal tailings
sites.
The Uitkomst Colliery features for the first time in the group’s
half year results (as it was acquired on 31
March 2016), reporting a coal production cost contribution
of R189.0 million.
The group’s realisation costs increased to R27.7 million (2015:
R5.7 million) due to an additional R20.1 million in refining costs
associated with the extraction and recovery of gold from various
sections of the Evander Mines’ processing plant by a third
party. This initiative contributed 149.2kg (4,796.9oz) of gold
to Evander Mines’ production.
Depreciation increased by 4.9% to R115.3 million (2015: R109.9
million), following the consolidation of Uitkomst Colliery’s
depreciation for the full six-month period and a reassessment of
the group’s residual values on property plant and equipment.
Other expenditure and income
Barberton Mines entered into a short-term strategic hedge (‘the
cost collar’) in July 2015, when the
prevailing spot gold price was R440,000/kg, to protect its cash
flows and the group’s annual dividend against severe adverse
movements in the ZAR gold price. During the current reporting
period, the group recorded a pre-tax unrealised mark-to-market fair
value gain of R90.0 million on the cost collar (2015: pre-tax
realised cost collar derivative fair value loss of R40.6 million).
The mark-to-market fair value adjustment gain was due to a
reduction in the gold price from R625,000/kg at 30 June 2016 to R507,500/kg at 31 December 2016.
The fair value adjustment of the group’s rehabilitation
liability resulted in it decreasing by R0.5 million (2015: R0.3
million increase in the liability). The rehabilitation investment
decreased by R2.0 million (2015: R9.6 million increase in the
investment).
Finance costs increased to R19.3 million (2015: R11.6 million),
following increased RCF facility utilisation during the period
under review. Net debt at 31 December
2016 increased to R497.0 million (30
June 2016: R339.6 million and 31
December 2015: R345.8 million), following increased capital
expenditure and lower gold production.
During December 2016, the group
disposed of an investment in a listed entity. The investment
represented 1,750,850 shares, which were sold for R23.4 million and
resulted in a profit of R4.6 million being recognised in the
statement of comprehensive income during the period under review.
Dividends received for the period under review, before disposal,
amounted to R0.6 million (2015: R0.3 million).
Taxation
The group’s total taxation charge increased by 35.0% to R97.9
million (2015: R72.5 million).
The taxation charge comprised of:
- A decrease in the current taxation charge by 12.0% to R67.0
million (2015: R76.1 million).
- An increase in the deferred taxation expense to R30.9 million
(2015: deferred taxation income of R3.6 million), predominantly due
to the deferred taxation associated with the pre-tax unrealised
mark-to-market fair value gain of R90.0 million (2014: pre-tax
realised cost collar derivative fair value loss of R40.6
million).
EPS and HEPS
The group’s EPS in ZAR increased by 33.4% to 16.58 cents (2015: 12.43
cents). The group’s HEPS in ZAR increased by 31.3% to
16.32 cents (2015: 12.43 cents). The difference between the EPS and
HEPS resulted from adjusting the profit after taxation for the
profit on the disposal of the investment referred to above and the
disposal of fixed property plant and equipment. Refer to the
statement of comprehensive income for the reconciliation between
EPS and HEPS.
The EPS and HEPS are calculated by applying the group’s weighted
average number of shares in issue to the attributable and headline
earnings. The weighted average number of shares in issue decreased
by 17.7% to 1,506.8 million shares (2015:1,831.5 million shares).
The decrease in shares was attributed to eliminating the PAR Gold
shares held in Pan African Resources with effect from 7 June 2016.
Headline earnings per share is calculated as follows:
|
31
December 2016 |
31
December 2015 |
31
December 2016 |
31
December 2015 |
|
GBP |
GBP |
ZAR |
ZAR |
Basic earnings |
13,970,416 |
10,924,843 |
249,791,035 |
227,564,499 |
Adjustments: |
|
|
|
|
Profit on disposal of
investment |
(256,311) |
- |
(4,582,844) |
- |
Taxation on profit
realised on disposal of investment |
57,414 |
- |
1,026,557 |
- |
Profit on disposal of property plant
and equipment |
(21,151) |
- |
(378,180) |
- |
Taxation on profit realised on
property plant and equipment sale |
5,922 |
|
105,890 |
|
Headline earnings |
13,756,290 |
10,924,843 |
245,962,458 |
227,564,499 |
Headline earnings per share |
0.91 |
0.60 |
16.32 |
12.43 |
Diluted headline earnings per
share |
0.91 |
0.60 |
16.31 |
12.42 |
Dividends paid and dividend policy
The group paid a final dividend of R300 million or GBP17.1 million (2015: R210 million or
GBP9.7 million) on 22 December 2016, relating to the 2016 financial
year. This dividend equated to R0.1544 per share or 0.88 pence per share (2015: R0.1147 per share or
0.53 pence per share).
Following the PAR Gold transaction, the entity will receive
22.46% or R67.4 million of the R300 million dividend, resulting in
a net dividend of R232.6 million paid to external shareholders.
Pan African Resources aspires to pay a regular dividend to
shareholders. In balancing this cash return to shareholders with
the group’s strategy of generic and acquisitive growth, Pan African
Resources believes a target pay-out ratio of 40% of net cash
generated from operating activities - after allowing for the cash
flow impact of sustaining capital, contractual debt repayments and
the cash flow impact of once-off items - is appropriate. This
measure aligns dividend distributions with the cash generation
potential of the business. In proposing a dividend, the board will
also take into account the company’s financial condition, future
prospects, satisfactory solvency and liquidity assessments and
other factors deemed by the board to be relevant at the time.
Net debt
Total debt facilities utilised at 31
December 2016 amounted to R565.4 million (30 June 2016: R392.2 million) and cash holdings
were R68.4 million (30 June 2016:
R52.6 million), resulting in an increase in net debt by R157.4
million to R497.0 million (30 June
2016: R339.6 million). The increase in net debt was mainly
as a result of capital expenditure incurred increasing to R203.5
million (2015: R129.0 million) and lower production following the
operational challenges experienced during the period under
review.
Summary of the long-term debt liabilities:
|
Revolving credit facility |
Evander Mines gold loan |
Total |
|
31 December 2016 |
30
June 2016 |
31
December 2016 |
30 June
2016 |
31
December 2016 |
30 June
2016 |
|
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
ZAR
(millions) |
Non-current
portion |
458.7 |
279.3 |
- |
26.6 |
458.7 |
305.9 |
Current portion |
52.8 |
31.1 |
53.9 |
55.2 |
106.7 |
86.3 |
Total |
511.5 |
310.4 |
53.9 |
81.8 |
565.4 |
392.2 |
The group’s RCF debt covenants per the applicable periods are
summarised below:
|
Measurement |
31
December 2016 |
30 June
2016 |
31
December 2015 |
Net-debt-to-equity
ratio |
Must be less than
1:1 |
0.17:1 |
0.35:1 |
0.50:1 |
Net-debt-to-EBITDA
ratio |
Must be less than
2.5:1 |
0.48:1 |
0.12:1 |
0.13:1 |
Interest cover
ratio |
Must be greater than 4
times |
21.99 |
23.98 |
18.08 |
Cash flow summary
Cash generated by operations decreased by R11.3 million to
R372.0 million (2015: R383.3 million), due to lower gold
production.
The cash outflows from investing activities increased to R173.1
million (2015: 129.0 million), predominantly due to:
- Capital expenditure incurred increasing to R203.5 million
(2015: R128.9 million).
- Proceeds on the sale of a listed investment of R23.4 million
and proceeds on the sale of property plant and equipment of R7.0
million.
Net cash inflows from financing activities increased to R145.2
million (2015: R20 million outflow), predominantly due to the
utilisation of the RCF to fund operational capital expenditure.
OPERATIONAL PERFORMANCE
The group’s operational and production summaries are disclosed
on the Pan African Resources website at
http://www.panafricanresources.com/investors/financial-reports/
Review of Barberton Mines
Safety
- The operation reported no fatalities (2015: no
fatalities).
- LTIFR improved to 2.07 (2015: 2.47).
- RIFR improved to 0.59 (2015: 0.62).
- TRIFR improved to 12.40 (2015: 14.81).
Operational performance
- Average mining head grade achieved reduced to 9.4g/t
(2015: 10.6g/t). Fairview Mine experienced flexibility issues
resulting from temporary lower grade face values, specifically at
its high grade 11-block. Work is underway to develop additional
production platforms to expose additional high-grade panels to
increase mining grades and flexibility.
- Gold sold decreased by 12.8% to 49,212oz (2015:
56,447oz), as a result of the underground gold sold decreasing to
34,471oz (2015: 43,617oz).
- The BTRP gold sold increased to 14,741oz (2015:
12,830oz), supported by higher grades of 2.2g/t (2015: 1.3g/t)
being achieved. The BTRP tonnages processed decreased to 388,905t
(2015: 464,179t), this was due to re-mining the base of the Bramber
tailings dam therefore limiting and reducing the tonnages processed
by the BTRP.
- Three separate incidents of community unrest, targeting
government service delivery, interrupted production as these
protests prevented employees from reporting to work. Together,
these incidents resulted in six days of lost production.
- Six Section 54 regulatory notices resulted in eight lost
production days (2015: one Section 54 regulatory notice resulting
in three lost production days).
- Revenue marginally increased by 2.2% to R872.9 million
(2015: R854.3 million) as a result of a higher effective ZAR gold
price, offset by the decrease in gold sold.
- Cash cost per kilogramme increased to R347,667/kg (2015:
R266,690/kg) and, in USD terms, the cash cost per ounce increased
to USD773/oz (2015: USD610/oz). The increase was predominately as a
result of our gold production decreasing by 12.8% to 49,212oz
(2015: 56,447oz).
- All-in sustaining cost per kilogramme decreased by 2.2%
to R341,600/kg (2015: R349,218/kg) and, in USD terms, the all-in
sustaining cost per ounce decreased to USD759/oz (2015: USD799/oz). Excluding the cost collar
mark-to-market fair value adjustments, the all-in sustaining cost
per kilogramme is R400,385/kg (2015: R326,089/kg) and, in USD
terms, the all-in sustaining cost per kilogramme, excluding the
cost collar mark-to-market fair value adjustments, was USD890/oz (2015: USD746/oz).
- All-in cost per kilogramme increased by 4.6% to
R365,934/kg (2015: R349,739/kg) and, in USD terms, the all-in cost
per ounce increased to USD814/oz
(2015: USD800/oz).
- Adjusted EBITDA increased to R407.8 million (2015:
R310.1 million).
- Capital expenditure increased to R83.5 million (2015:
R55.9 million) summarised in the following categories:
- Sustaining development capital expenditure was R30.2 million
(2015: R25.0 million).
- Sustaining maintenance capital expenditure was R16.0 million
(2015: R30.0 million).
- Once-off expansion capital was R37.3 million (2015 R0.9
million), which related to the construction of the BTRP cyanide
detoxification plant and Fairview ventilation refrigeration and
infrastructure.
- Effective from 1 July 2016
the life-of-mine of the respective operations at Barberton Mines
is:
- Fairview Mine 22 years (2015: 20 years)
- Sheba Mine
18 years (2015: 20 years)
- New Consort Mine 5 years (2015: 7 years)
- BTRP
14 years (2015: 15 years)
Review of Evander Mines
Safety
- The operation reported no fatalities (2015: no
fatalities).
- LTIFR regressed to 5.83 (2015: 5.44).
- RIFR improved to 2.62 (2015: 3.44).
- TRIFR regressed to 17.19 (2015: 14.61).
Operational performance
- Average mining head grade achieved of 5.4g/t (2015:
5.8g/t).
- Due to Section 54 stoppages and a reduction in hoisting
speed at 7 Shaft during the period under review, Evander Mines gold
sold decreased by 6.5% to 42,401oz (2015: 45,350oz).
- Revenue increased by 8.2% to R737.9 million (2015:
R682.0 million) due to an increase in the effective ZAR gold price
achieved, which was off-set by a reduction in the gold sold.
- ETRP produced 15,924oz (2015: 8,980oz), following an
increase in gold produced from surface feedstock to 11,480oz (2015:
5,272oz) and tailings contributing 4,444oz (2015: 3,708oz).
- Evander Mines’ 7 Shaft, which is used to hoist ore from
underground mining operations to surface for processing, is
undergoing critical infrastructure repairs and maintenance and
requires a suspension of the underground mining operations for a
period of up to 55 days effective 20
February 2017.
- Evander Mines experienced a material increase in
DMR-initiated safety stoppages during the past six months. The
operation was issued with four Section 54 regulatory notices, which
resulted in 13 lost production days (2015: three Section 54
regulatory notices resulting in two lost production days). The
majority of the lost production days related to the 7 Shaft
incident.
- Cash costs per kilogramme increased by 28.0% to
R501,281/kg (2015: R394,730/kg) and, in USD terms, the cash cost
per ounce increased to USD1,114/oz
(2015: USD 903/oz).
- All-in sustaining cost per kilogramme increased by 29.2%
to R589,181/kg (2015: R456,070/kg) and, in USD terms, the all-in
sustaining cost per ounce increased to USD1,310/oz (2015: USD1,043/oz), in line with the increase in cash
costs.
- All-in cost per kilogramme increased by 33.1% to
R608,783/kg (2015: R457,380/kg) and, in USD terms, the all-in cost
per ounce increased to USD1,353/oz
(2015:USD1,046/oz).
- Adjusted EBITDA decreased to R63.8 million (2015: R124.2
million).
- Capital expenditure increased to R111.8 million (2015:
R71.9 million) summarised in the following categories:
- Sustaining development capital expenditure was R48.8 million
(2015: R39.4 million).
- Sustaining maintenance capital expenditure was R37.4 million
(2015: R30.6 million).
- Once-off expansion capital expenditure was R25.6 million (2015:
R1.9 million), relating to costs associated with 8 Shaft’s 25 and
26 decline and A Block development.
- Effective from 1 July
2016, the life-of-mine of 8 Shaft and the ETRP was 16 years
(2015: 16 years).
Review of Phoenix Platinum
Safety
Phoenix Platinum maintained its excellent safety record, with no
injuries.
Operational performance
- Tonnes processed increased by 3.9% to 122,024 tonnes
(2015: 117,461 tonnes). In July 2016
the operation commissioned a scrubber, which increased the
production capacity by 25%, but unfortunately re-mining was limited
by the recent drought during October
2016.
- The head grade achieved decreased by 31.2% to 2.2g/t
(2015: 3.2g/t), due to re-mining from the lower-grade
Elandskraal/Kroondal tailings facility, while in the comparable
period re-mining occurred at Samancor’s Buffelsfontein tailings
facility.
- PGE production increased by 1.8% to 4,574oz (2015:
4,493oz).
- Recoveries increased to 57% from 39% following the
installation of high energy agitation cells in the plant.
- Revenue increased by 8.4% to R42.5 million (2015: R39.2
million) due to a marginal increase in production and an increase
in the effective PGE net revenue price received of 6.5% to
R9,284/oz (2015: R8,716/oz).
- The average PGE net revenue price received increased by
6.5% to R9,284/oz (2015: R8,716/oz) and, in USD terms, the average
PGE net revenue per ounce increased to USD664/oz (2015: USD641/oz).
- Cost per tonne increased by 15.0% to R337/t (2015:
R293/t), mainly due to the higher cost of production associated
with transporting the Elandskraal/Kroondal tailings to the plant
and high refinery charges incurred during the period under
review.
- Cost per ounce of production increased by 17.5% to
R8,991/oz (2015: R7,653/oz) and, in USD terms, the cost per ounce
increased to USD643/oz (2015:
USD563/oz).
- Adjusted EBITDA decreased to R2.8 million (2015: R2.9
million).
- Capital expenditure incurred was R2.9 million (2015:
R0.8 million).
- Effective from 1 July 2016
the life-of-operation decreased to nine years (2015 financial year:
28 years) as a result of the cessation of mining operations at
Lesedi Mine following the International Ferro Metals business
rescue plan. In the event the Lesedi mining operation is reopened,
the life-of-operation will be reassessed and adjusted as the right
to the PGE’s in the Lesedi resource remains contractually secured
by Phoenix Platinum.
Review of Uitkomst Colliery
Pan African Resources completed the acquisition of the Uitkomst
Colliery from Oakleaf Investments Holding 109 Proprietary Limited
and Shanduka Resources Proprietary Limited for a cash consideration
of R148 million on 31 March 2016.
Safety
- The operation reported no fatalities.
- LTIFR per 200,000 man hours was 2.15 (2015: 2.65).
- RIFR per 200,000 man hours was 2.15 (2015: 1.06).
- TRIFR per 200,000 man hours was 4.73 (2015: 7.42).
Operational performance
- Profit after taxation for the period was R21.3
million.
- The operation produced and sold 327,202 tonnes of coal,
of which 127,605 tonnes was from the underground mining operations
and 199,597 tonnes was acquired from third parties for blending and
processing.
- Revenue amounted to R225.0 million.
- Cost of production of R189.0 million.
- The average revenue per tonne received was R688/t or
USD49/t, of which R881/t or
USD63/t was related to the
underground mined coal and R552/t or USD39/t related to the coal acquired for blending
and processing.
- Cost per tonne averaged at R578/t or USD41/t.
- All-in sustaining costs and all-in costs per tonnes were
R587/t or USD42/t. The all-in
sustaining costs and all-in costs were marginally lower than the
direct cost per tonne as a result of other income earned by the
logistics department.
- Adjusted EBITDA was R38.0 million.
- Capital expenditure incurred was R5.0
million.
- Effective from 1 July 2016
the life-of-operation was 22 years for a run-of-mine coal
production profile of 600,000t per annum.
COMMITMENTS REPORTED IN RAND AND GBP
The group identified no contingent liabilities in the current or
prior financial period.
The group had outstanding open orders contracted for at period
end of R106.3 million (2015: R48.3 million) or GBP6.3 million (2015: GBP2.1 million).
Authorised commitments for the new financial period, not yet
contracted for, totalled R169.9 million (2015: R162.5 million) or
GBP10.1 million (2015: GBP7.1 million).
At 31 December 2016, the group had
guarantees in place of R24.6 million (2015: R24.6 million) or
GBP1.4 million (2015: GBP1.1 million) in favour of Eskom, R33.5 million
(2014: R14.0 million) or GBP2.0
million (2015: GBP0.6 million)
in favour of the DMR, and R6.6 million (2015: Nil) or GBP0.4 million (2015: Nil) in favour of Transnet
SOC Limited.
Operating lease commitments, which fall due within the next
year, amounted to R3.7 million (2015: R2.3 million) or GBP0.2 million (2015: GBP0.1 million).
FAIR VALUE INSTRUMENTS
Financial instruments that are measured at fair value are
grouped into levels 1 to 3 based on the extent to which fair value
is observable.
The levels are classified as follows:
Level 1 - fair value is based on quoted prices in active markets
for identical financial assets or liabilities;
Level 2 - fair value is determined using inputs other than
quoted prices included within level 1 that are observable for the
asset or liability; and
Level 3 - fair value is determined on inputs not based on
observable market data.
Level 1 financial instruments:
The group’s rehabilitation trust funds are valued at R319.5
million (2015: R321.9 million) or GBP18.9
million (2015: GBP14.0
million), which comprise investments in guaranteed
equity-linked notes, government bonds and equities, according to
quoted prices in an active market.
Level 2 financial instruments:
At the end of the period under review the cost collar, referred
to earlier, was not settled, therefore resulting in a financial
exposure to be fair value on a mark-to-market basis. The financial
instrument was valued according to quoted prices in an active
market resulting in a cost collar mark-to-market liability of R20.2
million (30 June 2016: R117.6 million
and 31 December 2015: R40.6
million).
The group’s cash settled share option liability, which is valued
on a mark-to-market basis according to the Pan African Resources
quoted share price amounted to R57.8 million (2015: R21.8
million).
Level 3 financial instruments:
The group’s ESOP liability is accounted on a cash settled share
option basis and valued on a mark-to-market on the net present
value of the discounted future cash flows applicable to the
beneficiaries of the schemes. The ESOP liability was R5.6 million
(2015: R2.7 million).
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS AND ACCOUNTING
POLICIES
The accounting policies applied in compiling the interim results
are in terms of International Financial Reporting Standards
(‘IFRS’) adopted by the European Union and South Africa, which are consistent with those
applied in preparing the group’s annual financial statements for
the year ended 30 June 2016.
The financial information set out in this announcement does not
constitute the company’s statutory accounts for the period ended
31 December 2016.
The interim results have been prepared and presented in
accordance with, and containing the information required by IAS 34:
Interim Financial Reporting, as well as the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee
and Financial Pronouncements as issued by Financial Reporting
Standards Council.
The interim results have not been reviewed or reported on by the
company’s external auditors.
JSE LIMITED LISTING
The company has a dual primary listing on the main board of the
JSE Limited (‘JSE’) and the Alternative Investment Market (‘AIM’)
of the London Stock Exchange.
The preliminary announcement has been prepared in accordance
with the framework concepts and the measurement and recognition
requirements of IFRS, the AC 500 standards as issued by the
Accounting Practices Board and the information as required by IAS
34: Interim Financial Reporting.
AIM LISTING
The financial information for the period ended 31 December 2016 does not constitute statutory
accounts as defined in sections 435 (1) and (2) of the Companies
Act 2006.
The group’s announcement has been prepared in accordance with
IFRS and International Financial Reporting Interpretation Committee
interpretations adopted for use by the European Union, with those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
DIRECTORSHIP CHANGES AND DEALINGS
No directorship changes took place during the period under
review. However, the following director dealings in securities took
place:
During the period under review Mr JAJ Loots participated in the
following company shares transactions:
- On 27 September 2016, purchased
20,000 shares and 200,000 shares at R3.57 per share and R3.58 per
share, respectively.
- On 28 September 2016, purchased
28,609 shares at R3.48 per share.
- On 29 September 2016, purchased
491 shares at R3.59 per share.
- On 30 September 2016, purchased
25,000 shares at R3.70 per share.
- On 3 October 2016, purchased
25,000 shares at R3.78 per share.
- On 5 October 2016, purchased
30,000 shares at R3.55 per share.
Mr JAJ Loots had 560,675 shares outstanding at period end,
representing 0.03% of total issued shares.
During the year under review Mr GP Louw participated in the
following company shares transactions.
On 27 September 2016, purchased
the following shares:
- 4,300 shares at R3.57 per share.
- 3,150 shares at R3.58 per share.
- 35,000 shares at R3.62 per share.
- 40,000 shares at R3.64 per share.
- 12,836 shares at R3.66 per share.
- 42,164 shares at R3.67 per share.
Mr GP Louw had 137,450 shares outstanding at period end,
representing 0.01% of total issued shares.
SHARES ISSUED
No shares were issued during the current or comparable period
under review.
GOING CONCERN
The board confirms that the business is a going concern and that
it has reviewed the group’s working capital requirements in
conjunction with its future funding capabilities for at least the
next twelve months and has found them to be adequate. The group has
a R800 million revolving credit facility from a consortium of South
African banks (and an accordion option, subject to the RCF
consortium’s approval, for an additional R300-million facility), as
well as access to general banking facilities of R146.5 million. At
31 December 2016, the group had
borrowing capacity on the revolving credit facility of R290 million
(GBP20.1 million) to assist in
funding working capital requirements. On 1
July 2016 the group finalised the general banking facility
of R85 million (GBP4.3 million) for
Uitkomst Colliery. Management is not aware of any material
uncertainties which may cast significant doubt on the group’s
ability to continue as a going concern. Should the need arise, the
group can cease discretionary exploration and certain capital
expenditure activities to conserve cash on the short to medium
term.
EVENTS AFTER THE REPORTING PERIOD
Fatality
It is with deep regret that Pan African Resources reports that a
mining accident occurred at the Evander Mines 7 shaft complex on
15 February 2017. Mr Velile Chaplin
Kapa (54), an Engineering Assistant employed by the operation,
sustained a fatal head injury when a section of the main shaft pump
column failed whilst he was working in the shaft bottom area. Pan
African’s management and board express their sincere condolences to
the family, friends and colleagues of Mr Kapa.
Shaft Refurbishment Programme
In conjunction with the 7A shaft refurbishment programme,
Evander’s management initiated a number of independent and internal
engineering studies to assess the condition of Evander’s
underground mining infrastructure (both Evander Mines 7 and 8
shafts). These studies identified critical infrastructure issues
requiring remedial action, to ensure safe and sustainable operation
of these shafts.
The nature of these refurbishments require a suspension of
Evander Mines underground mining operations for a period of up to
55 days, effective from 20 February
2017, during which critical infrastructure issues will be
addressed. Evander Mines tailings and surface operations will be
unaffected by the underground mining suspension.
The cost of the shaft refurbishment programmes is expected to be
approximately R40 million, which will be funded from the group’s
existing banking facilities.
SEGMENT REPORTING
A segment is a distinguishable component of the group engaged in
providing products or services in a particular business sector or
segment, which is subject to risks and rewards different from those
of other segments. The group's business activities were conducted
through six business segments:
- Barberton Mines (including BTRP), located in Barberton,
South Africa;
- Evander Mines (including ETRP), located in Evander,
South Africa;
- Uitkomst Colliery, located in Newcastle, South
Africa;
- Phoenix Platinum, located near Rustenburg, South Africa;
- Corporate and growth projects; and
- Pan African Resources Funding Company Proprietary Limited
(‘Funding Company’).
The executive committee reviews the operations in accordance
with the disclosures presented above.
Cobus Loots |
Deon Louw |
Chief Executive Officer |
Financial Director |
22 February 2017
Financial statements: Condensed financial information
Consolidated Statement of Financial Position as at 31 December 2016
|
31 December 2016 |
30 June 2016 |
31 December 2015 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
|
GBP |
GBP |
GBP |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment and mineral
rights |
228,033,741 |
190,725,199 |
153,180,433 |
Other intangible assets |
119,331 |
123,235 |
197,598 |
Deferred taxation |
1,601,335 |
1,117,092 |
118,419 |
Long term inventory |
218,689 |
186,861 |
- |
Goodwill |
21,000,714 |
21,000,714 |
21,000,714 |
Investments |
- |
1,269,228 |
678,909 |
Rehabilitation trust fund |
18,906,056 |
16,253,708 |
14,002,928 |
|
269,879,866 |
230,676,037 |
189,179,001 |
Current assets |
|
|
|
Inventories |
6,123,723 |
4,398,813 |
4,062,142 |
Current tax asset |
884,153 |
848,946 |
657,849 |
Trade and other receivables |
16,379,366 |
14,042,357 |
7,085,421 |
Cash and cash equivalents |
4,047,271 |
2,658,947 |
- |
|
27,544,513 |
21,949,063 |
11,805,412 |
Non-current assets held for sale |
78,264 |
66,873 |
- |
TOTAL ASSETS |
297,502,643 |
252,691,973 |
200,984,413 |
EQUITY AND LIABILITIES |
|
|
|
Capital and reserves |
|
|
|
Share capital |
19,432,065 |
19,432,065 |
18,314,947 |
Share premium |
108,936,082 |
108,936,082 |
94,846,046 |
Translation reserve |
(36,208,761) |
(58,583,848) |
(77,093,671) |
Share option reserve |
1,214,859 |
1,035,888 |
1,035,888 |
Retained earnings |
127,358,179 |
126,620,650 |
112,043,676 |
Realisation of equity reserve |
(10,701,093) |
(10,701,093) |
(10,701,093) |
Treasury capital reserve |
(25,376,743) |
(25,376,743) |
- |
Merger reserve |
(10,705,308) |
(10,705,308) |
(10,705,308) |
Other reserves |
- |
317,509 |
(140,016) |
Equity attributable to owners of the parent |
173,949,280 |
150,975,202 |
127,600,469 |
Total equity |
173,949,280 |
150,975,202 |
127,600,469 |
Non-current liabilities |
|
|
|
Long term provisions |
12,178,362 |
10,432,986 |
10,271,027 |
Long term liabilities |
29,575,681 |
18,456,309 |
11,495,041 |
Deferred taxation |
49,659,486 |
40,616,337 |
32,667,521 |
|
91,413,529 |
69,505,632 |
54,433,589 |
Current liabilities |
|
|
|
Trade and other payables |
21,637,419 |
18,743,235 |
13,014,779 |
Financial and instrument liabilities |
1,195,181 |
5,945,399 |
- |
Current portion of long term liabilities |
7,694,263 |
6,980,711 |
4,247,021 |
Bank overdraft |
- |
- |
443,171 |
Current tax liability |
1,612,971 |
541,794 |
1,245,384 |
|
32,139,834 |
32,211,139 |
18,950,355 |
TOTAL EQUITY AND LIABILITIES |
297,502,643 |
252,691,973 |
200,984,413 |
|
31 December 2016 |
30 June 2016 |
31 December 2015 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
ZAR |
ZAR |
ZAR |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment and mineral
rights |
3,854,043,857 |
3,772,544,439 |
3,521,618,148 |
Other intangible assets |
2,016,834 |
2,437,592 |
4,542,773 |
Deferred taxation |
27,064,491 |
22,096,084 |
2,722,464 |
Long term inventory |
3,696,114 |
3,696,114 |
- |
Goodwill |
303,491,812 |
303,491,812 |
303,491,812 |
Investments |
- |
25,105,331 |
15,608,118 |
Rehabilitation trust fund |
319,535,037 |
321,498,339 |
321,927,319 |
|
4,509,848,145 |
4,450,869,711 |
4,169,910,634 |
Current assets |
|
|
|
Inventories |
105,357,405 |
87,008,537 |
93,388,634 |
Current tax asset |
14,943,239 |
16,792,156 |
15,123,957 |
Trade and other receivables |
276,830,935 |
277,757,811 |
162,893,843 |
Cash and cash equivalents |
68,403,735 |
52,593,979 |
- |
|
465,535,314 |
434,152,483 |
271,406,434 |
Non-current assets held for sale |
1,322,750 |
1,322,750 |
- |
TOTAL ASSETS |
4,976,706,209 |
4,886,344,944 |
4,441,317,068 |
EQUITY AND LIABILITIES |
|
|
|
Capital and reserves |
|
|
|
Share capital |
269,660,040 |
269,660,040 |
244,752,779 |
Share premium |
1,638,563,371 |
1,638,563,371 |
1,323,632,626 |
Translation reserve |
- |
- |
- |
Share option reserve |
17,157,178 |
13,957,178 |
13,957,178 |
Retained earnings |
1,807,077,209 |
1,789,877,978 |
1,470,428,459 |
Realisation of equity reserve |
(140,624,130) |
(140,624,130) |
(140,624,130) |
Treasury capital reserve |
(548,619,802) |
(548,619,802) |
- |
Merger reserve |
(154,707,759) |
(154,707,759) |
(154,707,759) |
Other reserves |
- |
6,280,332 |
(3,218,975) |
Equity attributable to owners of the parent |
2,888,506,107 |
2,874,387,208 |
2,754,220,178 |
Total equity |
2,888,506,107 |
2,874,387,208 |
2,754,220,178 |
Non-current liabilities |
|
|
|
Long term provisions |
205,828,928 |
206,364,460 |
236,130,911 |
Long term liabilities |
499,864,488 |
362,640,753 |
264,270,992 |
Deferred taxation |
839,304,908 |
803,391,140 |
751,026,310 |
|
1,544,998,324 |
1,372,396,353 |
1,251,428,213 |
Current liabilities |
|
|
|
Trade and other payables |
365,698,348 |
370,741,187 |
299,209,765 |
Financial and instrument liabilities |
20,200,000 |
117,600,000 |
- |
Current portion of long term liabilities |
130,042,281 |
140,503,506 |
97,639,018 |
Bank overdraft |
- |
- |
10,188,509 |
Current tax liability |
27,261,149 |
10,716,690 |
28,631,385 |
|
543,201,778 |
639,561,383 |
435,668,677 |
TOTAL EQUITY AND LIABILITIES |
4,976,706,209 |
4,886,344,944 |
4,441,317,068 |
Consolidated Statement of Profit or Loss and Other Comprehensive
Income for the period ended 31 December
2016
|
31 December 2016 |
31 December 2015 |
31 December 2016 |
31 December 2015 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
ZAR |
ZAR |
Revenue |
105,046,160 |
75,632,034 |
1,878,225,336 |
1,575,415,260 |
Gold sales |
90,088,444 |
73,752,127 |
1,610,781,384 |
1,536,256,799 |
Platinum sales |
2,374,978 |
1,879,907 |
42,464,600 |
39,158,461 |
Coal sales |
12,582,738 |
- |
224,979,352 |
- |
Realisation costs |
(1,548,366) |
(269,483) |
(27,684,793) |
(5,613,341) |
On – mine revenue |
103,497,794 |
75,362,551 |
1,850,540,543 |
1,569,801,919 |
Gold cost of production |
(65,188,472) |
(48,935,400) |
(1,165,569,862) |
(1,019,324,382) |
Platinum cost of production |
(2,300,055) |
(1,650,617) |
(41,125,002) |
(34,382,330) |
Coal cost of production |
(10,567,754) |
- |
(188,951,438) |
- |
Mining depreciation |
(6,449,740) |
(5,276,624) |
(115,321,349) |
(109,912,069) |
Mining profit |
18,991,773 |
19,499,910 |
339,572,892 |
406,183,138 |
Other income/(expenses) |
2,175,078 |
(3,486,324) |
38,890,388 |
(72,620,137) |
Profit on disposal of
investment |
256,311 |
- |
4,582,844 |
- |
Royalty costs |
(968,130) |
(1,194,397) |
(17,310,168) |
(24,879,297) |
Net income before finance income and
finance costs |
20,455,032 |
14,819,189 |
365,735,956 |
308,683,704 |
Finance income |
69,912 |
143,584 |
1,250,024 |
2,990,864 |
Finance costs |
(1,079,361) |
(557,976) |
(19,298,977) |
(11,622,650) |
Profit before taxation |
19,445,583 |
14,404,797 |
347,687,003 |
300,051,918 |
Taxation |
(5,475,167) |
(3,479,954) |
(97,895,968) |
(72,487,419) |
Profit after taxation |
13,970,416 |
10,924,843 |
249,791,035 |
227,564,499 |
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
Fair value movement on available for
sale investment |
(317,509) |
(69,337) |
(6,280,332) |
(1,854,878) |
Foreign currency translation
differences |
22,375,087 |
(20,691,156) |
- |
- |
Total comprehensive income for the
year |
36,027,994 |
(9,835,650) |
243,510,703 |
225,709,621 |
Profit attributable to: |
|
|
|
|
Owners of the parent |
13,970,416 |
10,924,843 |
249,791,035 |
227,564,499 |
|
|
|
|
|
Total comprehensive income
attributable to: |
|
|
|
|
Owners of the parent |
36,027,994 |
(9,835,650) |
243,510,703 |
225,709,621 |
Earnings per share |
0.93 |
0.60 |
16.58 |
12.43 |
Diluted earnings per share |
0.93 |
0.60 |
16.57 |
12.42 |
Weighted average number of shares in
issue |
1,506,848,496 |
1,831,494,763 |
1,506,848,496 |
1,831,494,763 |
Diluted number of shares in
issue |
1,507,616,769 |
1,831,712,087 |
1,507,616,769 |
1,831,712,087 |
Headline earnings per share is
calculated: |
|
|
|
|
Basic earnings |
13,970,416 |
10,924,843 |
249,791,035 |
227,564,499 |
Adjustments : |
|
|
|
|
Profit on disposal of
investment |
(198,897) |
- |
(3,556,287) |
- |
Profit on disposal of property
plant, mineral right and equipment |
(15,229) |
149 |
(272,290) |
2,679 |
Headline earnings |
13,756,290 |
10,924,992 |
245,962,458 |
227,567,178 |
Headline earnings per share |
0.91 |
0.60 |
16.32 |
12.43 |
Diluted headline earnings per
share |
0.91 |
0.60 |
16.31 |
12.42 |
Condensed Consolidated Statement of Changes in Equity for the
period ended 31 December 2016
|
Six months ended |
Six months ended |
Six months ended |
Six months ended |
|
31 December 2016 |
31 December 2015 |
31 December 2016 |
31 December 2015 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
ZAR |
ZAR |
Shareholder’s equity opening
balance |
150,975,202 |
147,167,487 |
2,874,387,208 |
2,738,510,557 |
Share option reserve |
178,971 |
- |
3,200,000 |
- |
Other comprehensive income |
22,057,578 |
(20,760,493) |
(6,280,332) |
(1,854,878) |
Profit for the year |
13,970,416 |
10,924,843 |
249,791,035 |
227,564,499 |
Dividends paid |
(17,067,953) |
(9,731,368) |
(300,000,000) |
(210,000,000) |
Reciprocal dividend PAR Gold Pty
Ltd |
3,835,066 |
- |
67,408,196 |
- |
Total equity |
173,949,280 |
127,600,469 |
2,888,506,107 |
2,754,220,178 |
Condensed Consolidated cash flow statement for the period ended
31 December 2016
|
Six months ended |
Six months ended |
Six months ended |
Six months ended |
|
31 December 2016 |
31 December 2015 |
31 December 2016 |
31 December 2015 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
GBP |
GBP |
ZAR |
ZAR |
Profits before tax |
19,445,583 |
14,404,797 |
347,687,003 |
300,051,918 |
Summary of adjustments: |
|
|
|
|
Royalties |
968,130 |
1,194,397 |
17,310,168 |
24,879,297 |
Depreciation |
6,479,618 |
5,294,975 |
115,855,561 |
110,294,337 |
Gold loan deliveries |
(1,592,171) |
(1,404,589) |
(27,925,865) |
(29,257,585) |
Fair value adjustments and
other |
(4,995,440) |
(434,881) |
(89,318,476) |
(9,058,577) |
Net finance costs |
1,009,449 |
414,392 |
18,048,953 |
8,631,786 |
Operating profit before working
capital changes |
21,315,169 |
19,469,091 |
381,657,344 |
405,541,176 |
(Increase)/decrease in trade and
other receivables |
(2,337,009) |
1,036,728 |
926,876 |
21,595,047 |
Increase in net inventory |
(1,834,910) |
(1,238,072) |
(18,348,868) |
(25,789,050) |
Increase in accounts payable |
3,349,251 |
(864,687) |
7,360,658 |
(18,011,434) |
Non-cash items |
(259,954) |
- |
- |
- |
Cash generated by operations |
20,232,547 |
18,403,060 |
371,596,010 |
383,335,739 |
Taxation paid |
(3,532,719) |
(2,794,359) |
(59,523,813) |
(64,242,313) |
Royalty paid |
(1,116,250) |
(1,040,133) |
(18,747,082) |
(23,912,650) |
Dividends paid |
(17,142,171) |
(9,349,072) |
(300,000,000) |
(210,000,000) |
Reciprocal dividend PAR Gold Pty
Ltd |
3,902,970 |
- |
67,408,196 |
- |
Net finance expense |
(963,654) |
(511,354) |
(17,015,660) |
(10,651,502) |
Cash inflow from operating
activities |
1,380,723 |
4,708,142 |
43,717,651 |
74,529,274 |
Cash outflow from investing
activities |
(9,551,117) |
(6,191,291) |
(173,142,545) |
(128,964,585) |
Cash inflow/(outflow) from financing
activities |
8,852,696 |
(960,154) |
145,234,650 |
(20,000,000) |
Net increase/(decrease) in cash
equivalents |
682,302 |
(2,443,303) |
15,809,756 |
(74,435,311) |
Cash at the beginning of period |
2,658,947 |
3,328,850 |
52,593,979 |
64,246,802 |
Effect of foreign currency rate
changes |
706,022 |
(1,328,718) |
- |
- |
Cash at end of year |
4,047,271 |
(443,171) |
68,403,735 |
(10,188,509) |
Consolidated Segment Report for the period ended 31 December 2016
|
|
|
31 December 2016 |
|
|
|
Barberton |
Evander Mines |
Phoenix |
Uitkomst |
Corporate |
|
Mines |
|
Platinum |
Colliery3 |
and Growth |
|
|
|
|
|
Projects |
|
GBP |
GBP |
GBP |
GBP |
GBP |
Revenue |
|
|
|
|
|
Gold Sales1 |
48,817,087 |
41,271,357 |
- |
- |
- |
Platinum sales |
- |
- |
2,374,978 |
- |
- |
Coal sales |
- |
- |
- |
12,58,738 |
- |
Realisation costs |
(337,118) |
(1,211,248) |
- |
- |
- |
On – mine revenue |
48,479,969 |
40,060,109 |
2,374,978 |
12,582,738 |
- |
Gold cost of production |
(29,425,710) |
(35,762,762) |
- |
- |
- |
Platinum cost of production |
- |
- |
(2,300,055) |
- |
- |
Coal cost of production |
- |
- |
- |
(10,567,754) |
- |
Depreciation |
(2,471,578) |
(3,204,747) |
(428,693) |
(344,722) |
- |
Mining profit |
16,582,681 |
1,092,600 |
(353,770) |
1,670,262 |
- |
Other expenses2 |
4,482,179 |
(517,813) |
78,045 |
147,856 |
(2,034,620) |
Profit on disposal of
investment |
- |
- |
- |
- |
256,311 |
Royalty costs |
(729,367) |
(206,563) |
- |
(32,200) |
- |
Net income / (loss) before finance
income and finance costs |
20,335,493 |
368,224 |
(275,725) |
1,785,918 |
(1,778,309) |
Finance income |
(13,155) |
3,869 |
80 |
7,938 |
18,486 |
Finance costs |
(219) |
- |
- |
(15,063) |
(43) |
Profit / (loss) before taxation |
20,322,119 |
372,093 |
(275,645) |
1,778,793 |
(1,759,866) |
Taxation |
(5,357,045) |
83,819 |
51,875 |
(473,542) |
219,726 |
Profit / (loss) after taxation
before inter-company charges |
14,965,074 |
455,912 |
(223,770) |
1,305,251 |
(1,540,145) |
|
|
|
|
|
|
Inter–company transactions |
|
|
|
|
|
Management fees |
(646,041) |
(572,065) |
(68,248) |
(100,671) |
1,387,025 |
Inter-company interest charges |
(40,268) |
(323,770) |
45,638 |
(191,667) |
- |
Profit / (loss) after taxation after
inter-company charges |
14,278,765 |
(439,923) |
(246,380) |
1,012,913 |
(153,115) |
Segmental assets (Total assets
excluding goodwill) |
69,363,021 |
174,037,650 |
11,396,001 |
16,169,145 |
7,900,059 |
Segmental liabilities |
28,160,761 |
56,972,786 |
671,264 |
4,572,881 |
2,879,983 |
Goodwill |
21,000,714 |
- |
- |
- |
- |
Net assets (excluding goodwill) |
41,202,259 |
117,064,864 |
10,724,737 |
- |
5,020,076 |
Capital expenditure |
4,670,022 |
6,252,796 |
162,192 |
279,642 |
16,779 |
|
|
|
|
|
|
|
31 December 2016 |
|
|
Funding |
Group |
|
Company |
|
|
|
|
|
GBP |
GBP |
Revenue |
|
|
Gold Sales1 |
- |
90,088,444 |
Platinum sales |
- |
2,374,978 |
Coal sales |
- |
12,582,738 |
Realisation costs |
- |
(1,548,366) |
On – mine revenue |
- |
(103,497,794) |
Gold cost of production |
- |
(65,188,472) |
Platinum cost of production |
- |
(2,300,055) |
Coal cost of production |
- |
(10,567,754) |
Depreciation |
- |
(6,449,740) |
Mining profit |
- |
18,991,773 |
Other expenses2 |
19,431 |
2,175,078 |
Profit on disposal of investment |
- |
256,311 |
Royalty costs |
- |
(968,130) |
Net income / (loss) before finance income and
finance costs |
19,431 |
20,455,032 |
Finance income |
52,694 |
69,912 |
Finance costs |
(1,064,036) |
(1,079,361) |
Profit / (loss) before taxation |
(991,911) |
19,445,583 |
Taxation |
- |
(5,475,167) |
Profit / (loss) after taxation before
inter-company charges |
(991,911) |
13,970,416 |
|
|
|
Inter–company transactions |
|
|
Management fees |
- |
- |
Inter-company interest charges |
510,057 |
- |
Profit / (loss) after taxation after inter-company
charges |
(481,844) |
13,970,416 |
Segmental assets (Total assets excluding
goodwill) |
(2,363,947) |
276,501,929 |
Segmental liabilities |
30,295,688 |
123,553,363 |
Goodwill |
- |
21,000,714 |
Net assets (excluding goodwill) |
(32,659,635) |
152,948,566 |
Capital expenditure |
- |
11,381,431 |
|
|
|
|
|
|
31 December 2015 |
|
|
Barberton |
Evander |
Phoenix |
Corporate |
|
Mines |
Mines |
Platinum |
and Growth |
|
|
|
|
Projects |
|
GBP |
GBP |
GBP |
GBP |
Revenue |
|
|
|
|
Gold Sales1 |
41,011,076 |
32,741,051 |
- |
- |
Platinum sales |
- |
- |
1,879,907 |
- |
Coal sales |
- |
- |
- |
- |
Realisation costs |
(156,470) |
(113,013) |
- |
- |
|
40,854,606 |
32,628,038 |
1,879,907 |
- |
On – mine revenue |
|
|
|
|
Gold cost of production |
(22,321,903) |
(26,613,497) |
- |
- |
Platinum cost of production |
- |
- |
(1,650,617) |
- |
Coal cost of production |
- |
- |
- |
|
Depreciation |
(1,805,175) |
(3,312,213) |
(159,236) |
- |
Mining profit |
16,727,528 |
2,702,328 |
70,054 |
- |
Other expenses2 |
(2,614,480) |
115,024 |
(92,565) |
(907,176) |
Profit on disposal of
investment |
- |
- |
- |
- |
Royalty costs |
(1,030,528) |
(163,869) |
- |
- |
|
13,082,520 |
2,653,483 |
(22,511) |
(907,176) |
Net income / (loss) before finance
income and finance costs |
|
|
|
|
Finance income |
59,038 |
11,964 |
370 |
46,287 |
Finance costs |
14,621 |
(14,314) |
8,570 |
(5) |
Profit / (loss) before taxation |
13,156,179 |
2,651,133 |
(13,571) |
(860,894) |
Taxation |
(3,294,804) |
(7,836) |
14,408 |
(191,722) |
Profit / (loss) after taxation
before inter-company charges |
9,861,375 |
2,643,297 |
837 |
(1,052,616) |
|
|
|
|
|
Inter–company transactions |
|
|
|
|
Management fees |
(685,079) |
(447,904) |
(64,809) |
1,197,792 |
Inter-company interest charges |
- |
(522,381) |
- |
- |
|
9,176,296 |
1,673,012 |
(63,972) |
146,176 |
Profit / (loss) after taxation after
inter-company charges |
|
|
|
|
|
47,452,876 |
122,245,331 |
8,497,626 |
1,576,239 |
Segmental assets (Total assets
excluding goodwill) |
|
|
|
|
Segmental liabilities |
19,134,430 |
41,981,878 |
570,515 |
62,806 |
Goodwill |
21,000,714 |
- |
- |
- |
Net assets (excluding goodwill) |
28,318,446 |
80,263,453 |
7,927,111 |
1,513,433 |
Capital expenditure |
2,683,629 |
3,451,752 |
38,406 |
14,402 |
|
|
|
|
|
|
31 December 2015 |
|
|
Funding |
Group |
|
Company |
|
|
|
|
|
GBP |
GBP |
Revenue |
|
|
Gold Sales1 |
- |
73,752,127 |
Platinum sales |
- |
1,879,907 |
Coal sales |
- |
- |
Realisation costs |
- |
(269,483) |
|
- |
75,362,551 |
On – mine revenue |
|
|
Gold cost of production |
- |
(48,935,400) |
Platinum cost of production |
- |
(1,650,617) |
Coal cost of production |
- |
- |
Depreciation |
- |
(5,276,624) |
Mining profit |
- |
19,499,910 |
Other expenses2 |
12,873 |
(3,286,324) |
Profit on disposal of investment |
- |
- |
Royalty costs |
- |
(1,194,397) |
|
12,873 |
14,819,189 |
Net income / (loss) before finance income and
finance costs |
|
|
Finance income |
25,925 |
143,582 |
Finance costs |
(566,848) |
(557,976) |
Profit / (loss) before taxation |
(528,050) |
14,404,797 |
Taxation |
- |
(3,479,954) |
Profit / (loss) after taxation before
inter-company charges |
(528,050) |
10,924,843 |
|
|
|
Inter–company transactions |
|
|
Management fees |
- |
- |
Inter-company interest charges |
522,381 |
- |
|
(5,669) |
10,924,843 |
Profit / (loss) after taxation after inter-company
charges |
|
|
|
211,627 |
179,983,699 |
Segmental assets (Total assets excluding
goodwill) |
|
|
Segmental liabilities |
11,634,315 |
73,383,944 |
Goodwill |
- |
21,000,714 |
Net assets (excluding goodwill) |
(11,422,688) |
106,599,755 |
Capital expenditure |
- |
6,188,189 |
|
|
|
1All gold sales were made in the Republic of
South Africa and the majority of
revenue was generated from selling gold to South African
institutions through the group’s Funding Company
2Other expenses include inter-management fees and
dividend received
3Uitkomst Colliery was consolidated into the group
from 1 April 2016
Consolidated Segment Report for the period ended 31 December 2016
|
|
|
31 December 2016 |
|
|
|
Barberton |
Evander Mines |
Phoenix |
Uitkomst |
Corporate |
|
Mines |
|
Platinum |
Colliery3 |
and Growth |
|
|
|
|
|
Projects |
|
ZAR’ |
ZAR’ |
ZAR’ |
ZAR’ |
ZAR’ |
Revenue |
|
|
|
|
|
Gold Sales1 |
872.9 |
737.9 |
- |
- |
- |
Platinum sales |
- |
- |
42.5 |
- |
- |
Coal sales |
- |
- |
- |
225.0 |
- |
Realisation costs |
(6.0) |
(21.7) |
- |
- |
- |
On – mine revenue |
866.9 |
716.2 |
42.5 |
225.0 |
- |
Gold cost of production |
(526.2) |
(639.4) |
- |
- |
- |
Platinum cost of production |
- |
- |
(41.1) |
- |
- |
Coal cost of production |
- |
- |
- |
(189.0) |
- |
Depreciation |
(44.1) |
(57.3) |
(7.7) |
(6.2) |
- |
Mining profit |
296.6 |
19.5 |
(6.3) |
29.8 |
- |
Other expenses2 |
80.1 |
(9.3) |
1.4 |
2.6 |
(36.4) |
Profit on disposal of
investment |
- |
- |
- |
- |
4.6 |
Royalty costs |
(13.0) |
(3.7) |
- |
(0.6) |
- |
Net income / (loss) before finance
income and finance costs |
363.7 |
6.5 |
(4.9) |
31.8 |
(31.8) |
Finance income |
(0.2) |
0.1 |
- |
0.1 |
0.3 |
Finance costs |
- |
- |
- |
(0.3) |
- |
Profit / (loss) before taxation |
363.5 |
6.6 |
(4.9) |
31.6 |
(31.5) |
Taxation |
(95.8) |
1.5 |
0.9 |
(8.5) |
4.0 |
Profit / (loss) after taxation
before inter-company charges |
267.7 |
8.1 |
(4.0) |
23.1 |
(27.5) |
|
|
|
|
|
|
Inter–company transactions |
|
|
|
|
|
Management fees |
(11.6) |
(10.2) |
(1.2) |
(1.8) |
24.8 |
Inter-company interest charges |
(0.7) |
(5.8) |
0.8 |
- |
(3.4) |
Profit / (loss) after taxation after
inter-company charges |
255.4 |
(7.9) |
(4.4) |
21.3 |
(6.1) |
Segmental assets (Total assets
excluding goodwill) |
1,172.3 |
2,941.4 |
192.6 |
273.3 |
133.1 |
Segmental liabilities |
476.0 |
962.9 |
11.3 |
79.3 |
47.0 |
Goodwill |
303.5 |
- |
- |
- |
- |
Net assets (excluding goodwill) |
696.3 |
1,978.5 |
181.3 |
194.0 |
86.1 |
Capital expenditure |
83.5 |
111.8 |
2.9 |
5.0 |
0.3 |
|
|
|
|
|
|
EBITDA |
407.8 |
63.8 |
2.8 |
38.0 |
(36.4) |
|
31 December 2016 |
|
|
Funding |
Group |
|
Company |
|
|
|
|
|
ZAR’ |
ZAR’ |
Revenue |
|
|
Gold Sales1 |
- |
1,610.8 |
Platinum sales |
- |
42.5 |
Coal sales |
- |
225.0 |
Realisation costs |
- |
(27.7) |
On – mine revenue |
- |
1,850.6 |
Gold cost of production |
- |
(1,165.6) |
Platinum cost of production |
- |
(41.1) |
Coal cost of production |
- |
(189.0) |
Depreciation |
- |
(115.3) |
Mining profit |
- |
339.6 |
Other expenses2 |
0.5 |
38.9 |
Profit on disposal of investment |
- |
4.6 |
Royalty costs |
- |
(17.3) |
Net income / (loss) before finance income and
finance costs |
0.5 |
365.8 |
Finance income |
0.9 |
1.2 |
Finance costs |
(19.0) |
(19.3) |
Profit / (loss) before taxation |
(17.6) |
347.7 |
Taxation |
- |
(97.9) |
Profit / (loss) after taxation before
inter-company charges |
(17.6) |
249.8 |
|
|
|
Inter–company transactions |
|
|
Management fees |
- |
- |
Inter-company interest charges |
9.1 |
- |
Profit / (loss) after taxation after inter-company
charges |
(8.5) |
249.8 |
Segmental assets (Total assets excluding
goodwill) |
(40.0) |
4,672.7 |
Segmental liabilities |
512.0 |
2,088.5 |
Goodwill |
- |
303.5 |
Net assets (excluding goodwill) |
(552.0) |
2,584.2 |
Capital expenditure |
- |
203.5 |
|
|
|
EBITDA |
0.5 |
476.5 |
|
|
|
31 December 2015 |
|
|
Barberton |
Evander |
Phoenix |
Corporate |
|
Mines |
Mines |
Platinum |
and Growth |
|
|
|
|
Projects |
|
ZAR’ |
ZAR’ |
ZAR’ |
ZAR’ |
Revenue |
|
|
|
|
Gold Sales1 |
854.3 |
682.0 |
- |
- |
Platinum sales |
- |
- |
39.2 |
- |
Coal sales |
- |
- |
- |
- |
Realisation costs |
(3.3) |
(2.4) |
- |
- |
On – mine revenue |
851.0 |
679.6 |
39.2 |
- |
Gold cost of production |
(464.9) |
(554.4) |
- |
- |
Platinum cost of production |
- |
- |
(34.4) |
- |
Coal cost of production |
- |
- |
- |
- |
Depreciation |
(37.6) |
(69.0) |
(3.3) |
- |
Mining profit |
348.5 |
56.2 |
1.5 |
- |
Other expenses2 |
(54.5) |
2.4 |
(1.9) |
(18.8) |
Profit on disposal of
investment |
- |
- |
- |
- |
Royalty costs |
(21.5) |
(3.4) |
- |
- |
Net income / (loss) before finance
income and finance costs |
272.5 |
55.2 |
(0.4) |
(18.8) |
Finance income |
1.2 |
0.2 |
- |
1.0 |
Finance costs |
0.3 |
(0.3) |
0.2 |
- |
Profit / (loss) before taxation |
274.0 |
55.1 |
(0.2) |
(17.8) |
Taxation |
(68.6) |
(0.2) |
0.3 |
(4.0) |
Profit / (loss) after taxation
before inter-company charges |
205.4 |
54.9 |
0.1 |
(21.8) |
|
|
|
|
|
Inter–company transactions |
|
|
|
|
Management fees |
(14.3) |
(9.3) |
(1.4) |
25.0 |
Inter-company interest charges |
- |
(10.9) |
- |
- |
Profit / (loss) after taxation after
inter-company charges |
191.1 |
34.7 |
(1.3) |
3.2 |
Segmental assets (Total assets
excluding goodwill) |
1,090.9 |
2,810.4 |
195.4 |
36.2 |
Segmental liabilities |
439.9 |
965.2 |
13.1 |
1.4 |
Goodwill |
303.5 |
- |
- |
- |
Net assets (excluding goodwill) |
651.0 |
1,845.2 |
182.3 |
34.8 |
Capital expenditure |
55.9 |
71.9 |
0.8 |
0.3 |
|
|
|
|
|
EBITDA |
310.1 |
124.2 |
2.9 |
(18.8) |
|
31 December 2015 |
|
|
Funding |
Group |
|
Company |
|
|
|
|
|
ZAR’ |
ZAR’ |
Revenue |
|
|
Gold Sales1 |
- |
1,536.3 |
Platinum sales |
- |
39.2 |
Coal sales |
- |
- |
Realisation costs |
- |
(5.7) |
On – mine revenue |
- |
1,569.8 |
Gold cost of production |
- |
(1,019.3) |
Platinum cost of production |
- |
(34.4) |
Coal cost of production |
- |
- |
Depreciation |
- |
(109.9) |
Mining profit |
- |
406.2 |
Other expenses2 |
0.3 |
(72.5) |
Profit on disposal of investment |
- |
- |
Royalty costs |
- |
(24.9) |
Net income / (loss) before finance income and
finance costs |
0.3 |
308.8 |
Finance income |
0.5 |
2.9 |
Finance costs |
(11.8) |
(11.6) |
Profit / (loss) before taxation |
(11.0) |
300.1 |
Taxation |
- |
(72.5) |
Profit / (loss) after taxation before
inter-company charges |
(11.0) |
227.6 |
|
|
|
Inter–company transactions |
|
|
Management fees |
- |
- |
Inter-company interest charges |
10.9 |
- |
Profit / (loss) after taxation after inter-company
charges |
(0.1) |
227.6 |
|
|
|
Segmental assets (Total assets excluding
goodwill) |
4.9 |
4,137.8 |
Segmental liabilities |
267.5 |
1,687.1 |
Goodwill |
- |
303.5 |
Net assets (excluding goodwill) |
(262.6) |
2,450.7 |
Capital expenditure |
- |
128.9 |
|
|
|
EBITDA |
0.3 |
418.7 |
|
|
|
1All gold sales were made in the Republic of
South Africa and the majority of
revenue was generated from selling gold to South African
institutions through the group’s Funding Company
2Other expenses include inter-management fees and
dividend received
3Uitkomst Colliery was consolidated into the group
from 1 April 2016
Corporate Office
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
Cobus Loots |
Deon Louw |
Pan African Resources PLC |
Pan African Resources PLC |
Chief Executive Officer |
Financial Director |
Office: + 27 (0) 11 243 2900 |
Office: + 27 (0) 11 243 2900 |
|
|
Phil Dexter |
John Prior / Paul Gillam |
St James's Corporate Services
Limited |
Numis Securities Limited |
Company Secretary |
Nominated Adviser and Joint
Broker |
Office: + 44 (0) 20 7796 8644 |
Office: +44 (0) 20 7260 1000 |
|
|
Sholto Simpson |
Matthew Armitt / Ross Allister |
One Capital |
Peel Hunt LLP |
JSE Sponsor |
Joint Broker |
Office: + 27 (0) 11 550 5009 |
Office: +44 (0) 20 7418 8900 |
|
|
Julian Gwillim |
Jeffrey Couch/Neil Haycock/Thomas
Rider |
Aprio Strategic Communications |
BMO Capital Markets Limited |
Public & Investor Relations
SA |
Joint Broker |
Office: +27 (0)11 880 0037 |
Office: +44 (0) 20 7236 1010 |
Bobby Morse/Chris Judd
Buchanan Communications
Public & Investor Relations UK
Office: +44 (0) 207 466 5000
http://www.panafricanresources.com/