Pan African Resources PLC
(Incorporated and registered in England and Wales
under Companies Act 1985 with registered number
3937466 on 25 February 2000)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
(“the Company”)
Provisional Summarised Audited Results
and Proposed Dividend for the year ended 30
June 2019
Chief executive officer's
statement
Pan African CEO Cobus Loots commented:
“This was a pivotal year for the group as we successfully
repositioned our operations as one of South Africa’s lowest cost
gold producers, focused on delivering safe and profitable ounces
from our Evander and Barberton operations. Our all-in sustaining
cost per ounce was reduced by 27.2% to USD988/oz (2018: USD1,358/oz). Underpinning our strong operating
performance and the delivery of 172,442oz to exceed our production
guidance, is our commitment to safety and fostering a culture
focussed on creating sustainable value for all our stakeholders.
Group leadership is committed to effective ESG management and we
are extremely pleased with our operational performance and also
with progress on broader societal initiatives achieved in the
year.
These positive results reflect the
efforts of the team to implement our strategy as we capitalise on
the opportunities in our portfolio and invest in future growth. Our
production guidance of 185,000oz for the 2020 financial year is a
substantial increase from the year past. The Egoli Project and our
new optimisation projects at Evander and Barberton present
compelling near and mid-term growth opportunities within our
portfolio that will also support an increase in our production
profile. The successful execution of Elikhulu has enhanced our
reputation of building value from our tailings operations. In
addition to maximising the value of our own asset portfolio, we
will continue to assess other value accretive opportunities.
The board is pleased to propose a
final dividend of R50 million (USD3.4
million). The re-initiation of dividends demonstrates the
progress our group has made in the last year.
We enter the new financial year with
confidence, a firm grasp on our cost base, and in a good position
to benefit from the current gold price environment. In the year
ahead, we will focus on debt reduction, whilst also continuing to
invest in our business.”
Key features
- Gold production from the group’s continuing mining operations
increased by 54.1% to 172,442oz (2018: 111,879oz), exceeding the
full-year production guidance of 170,000oz.
- Group revenue from continuing operations, in USD terms,
increased by 49.1% to USD217.4
million (2018: USD145.8
million), due to an increase in gold ounces produced by the
BTRP, the contribution from the newly commissioned Elikhulu Project
and Barberton Mines’ underground mining operations.
- Group profit after taxation increased to USD38.0 million (2018: loss after taxation
USD122.8 million).
- Earnings per share (“EPS”) increased significantly to
1.97 USD cents per share (2018:
6.79 USD cents loss per share).
- Headline earnings per share (“HEPS”) increased by 20.2% to
1.19 USD cents per share (2018:
0.99 USD cents per share). HEPS was
supported by improved headline earnings, even though the weighted
average number of shares in issue increased by 6.6%
year-on-year
DIVIDENDS
Proposed dividend for the financial
year ended 30 June 2019
The board has proposed a final dividend of R50 million for the
2019 financial year or approximately USD3.4
million equating to 2.23745
ZAR cents per share or approximately 0.12660 pence per share (0.15169 USD cents per share) (2018: 0.00 ZAR cents per share). This dividend is
subject to approval by shareholders at the AGM, which will take
place on Thursday, 28 November
2019.
Assuming the final dividend is approved by shareholders, the
following salient dates would apply:
Currency conversion
date |
Thursday, 28 November
2019 |
Currency conversion
announcement released by 11:00 (SA time) |
Friday, 29 November
2019 |
Last date to trade on the JSE |
Tuesday, 10 December 2019 |
Last date to trade on the LSE |
Wednesday, 11 December 2019 |
Ex-dividend date on the JSE |
Wednesday, 11 December 2019 |
Ex-dividend date on the LSE |
Thursday, 12 December 2019 |
Record date on the JSE and LSE |
Friday, 13 December 2019 |
Payment date |
Monday, 30 December
2019 |
The GBP and USD proposed final dividend was calculated based on
2,234,687,537 total shares in issue and an illustrative exchange
rate of R18:25 and R14.75 respectively. Shareholders on the
London register should note that a
revised exchange rate will be communicated in due course.
No transfers between the Johannesburg and London registers between the commencement of
trading on
Wednesday, 11 December 2019 and close
of business on Friday, 13 December
2019 will be permitted.
No shares may be dematerialised or rematerialised between
Wednesday, 11 December 2019 and
Friday, 13 December 2019, both days inclusive.
The South African dividends tax rate is 20% per ordinary share
for shareholders who are liable to pay the dividends tax, resulting
in a net dividend of 1.78996 ZAR
cents per share for these shareholders. Foreign investors may
qualify for a lower dividend tax rate, subject to completing a
dividend tax declaration and submitting it to Computershare
Investor Services Proprietary Limited or Capita Plc who manage the
SA and UK register, respectively. The company's South African
income tax reference number is 9154588173. The proposed dividend
will be paid out of the company’s retained earnings, without
drawing on any other capital reserves.
The Company has a dual primary listing on the JSE in
South Africa and the AIM market of
the London Stock Exchange.
The information in this announcement
has been extracted from the Provisional Summarised Audited Results
for the year ended 30 June 2019, but
the short-form announcement itself has not been reviewed by the
Company’s auditors. The Provisional Summarised Audited Results have
been prepared under the supervision of the Financial Director,
Deon Louw.
This short form announcement is the
responsibility of the directors and is only a summary of the
information contained in the full announcement which is accessible
via the JSE link at
https://senspdf.jse.co.za/documents/2019/jse/isse/pan/FYE2019.pdf
Copies of the full announcement are
available on request by emailing ExecPA@paf.co.za.
Any investment decisions should be
based on the full announcement and the group’s detailed operational
and financial summaries which are disclosed on the Pan African
website at
http://www.panafricanresources.com/investors/financial-reports/
Contact information |
Corporate Office
The Firs Office Building
2nd Floor, Office 204
Cnr. Cradock and Biermann Avenues
Rosebank, Johannesburg
South Africa
Office: + 27 (0) 11 243 2900
info@paf.co.za |
Registered Office
Suite 31
Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Office: + 44 (0) 20 7796 8644 |
Cobus Loots
Pan African Resources PLC
Chief Executive Officer
Office: + 27 (0) 11 243 2900 |
Deon Louw
Pan African Resources PLC
Financial Director
Office: + 27 (0) 11 243 2900 |
Phil Dexter/Jane
Kirton
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0) 20 7796 8644 |
John Prior
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0) 20 7260 1000 |
Ciska Kloppers
Questco Corporate Advisory Proprietary Limited
JSE Sponsor
Office: + 27 (0) 11 011 9200 |
Ross Allister/David
McKeown
Peel Hunt LLP
Joint Broker
Office: +44 (0) 20 7418 8900 |
Julian Gwillim
Aprio Strategic Communications
Public & Investor Relations SA
Office: +27 (0) 11 880 0037 |
Jeffrey Couch/Thomas
Rider/Neil Elliot
BMO Capital Markets Limited
Joint Broker
Office: +44 (0) 20 7236 1010 |
Bobby Morse/Chris
Judd
Buchanan
Public and Investor Relations UK
Office: +44 (0) 20 7466 5000
paf@buchanan.uk.com |
Website:
www.panafricanresources.com |
Meeting and conference call details
are as follows:
DATE: 18 September 2019
TIME: 11:00 (SAST time), 10:00 (UK time)
VENUE: Batha Room, 54 on Bath, 54
Bath Avenue, Rosebank, Johannesburg
For those attending in person
Parking is available at Rosebank Mall. Refreshments will be
served after the presentation.
For those dialling in
A live teleconference facility is available for dial-in
participants on the following numbers. Please ask to be joined to
the Pan African Resources PLC call and provide your name and
company upon entering the call.
UK listeners: 0 333 300 1418
SA listeners: 010 201 6800
South Africa toll free: 0800
200 648