Embargoed Release: 07:00hrs 31 March 2005
PAN AFRICAN RESOURCES PLC
FOR THE PERIOD ENDED 30 SEPTEMBER 2004
This is Pan African Resources plc's (Pan African) first Annual Report since the
acquisition of the two exploration subsidiaries and re-admission to trading on
AIM on the 8th September 2004.
The group has a focused mission for gold exploration in Africa and commenced
trading with two advancing projects in Mozambique and Ghana. The Mozambique
project, Manica, is in an industry recognised gold area and on acquisition had
significant gold values in mineralisations outlined by drill holes in its West
Fair Bride project area. The Ghana project (Wa Project) in the northern part of
the country also has an inferred resource of some 370,000 ounces of gold with
significant upside potential.
Since the re-admission to AIM further exploration and reverse circulation
drilling has taken place on both projects and as announced previously the group
has significantly increased its information base of the project areas.
In the Manica project drill assay results have not yet been received.
On the Wa project previously discovered areas have been further drill tested
for infill and extensions both at depth and along strike. Some significant
intersections have been obtained including 10 meters @ 6.44 g/t gold (including
4 meters @ 14.25 g/t gold) and 7meters @ 9.93 g/t gold ( including 4 meters @
16.47 g/t gold).
The Wa Project Collette property which has only been superficially tested
indicates major potential and is currently the site of exploration drilling to
test this potential.
Despite some negative pressure on the gold price including suggestions that the
US Dollar may strengthen and potential IMF gold sales, the metal has remained
resilient. Consequently the requirement for new gold discoveries is paramount
to most major gold producers since their reserve bases are being depleted
against increased production.
Your Board remains convinced that Africa in general has the optimum mix of
geological potential and acceptable political risk and thus compares favourably
with other regions of the world.
The group has and continues to pursue the acquisition of further gold interests
to enhance shareholder value. It is expected that one or more transactions will
be concluded during the first half of 2005.
The initial period of an emerging mining company is inevitably one of
consolidation. Having consolidated assets and systems I feel confident that the
year 2005 will lead to the positive development of our current portfolio and
the acquisition of other potentially valuable projects.
The directors report that for the 18 month period to 30 September 2004 the
group returned a loss of £164,231 compared with a loss in the previous 12 month
period of £62,067 reflecting the additional overheads arising from the group's
enhanced activity. The cash balance at 30 September 2004 was £1,208,255 and the
cash balance at the date of this report was approximately £700,000.
Finally, I would like to thank my fellow directors and management for the
focused work during the period under review noting the resignation of Mr Trygve
Kroepelien on 29 March 2005 and thank him for his valuable support during the
formative stages of the group.
Tel: 020 7590 8806
30 March 2005
For further information please contact:
Director, White Knight Investments Plc
Tel. 07768 116 866
Adam Reynolds / Ben Simons
Tel. 020 7245 1100
PAN AFRICAN RESOURCES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Period ended 30 September 2004
Administrative expenses - (operating loss) (178,374) (80,492)
Gain/ (loss) on disposal of fixed asset - 3,246
Interest receivable 14,143 15,179
Loss on ordinary activities before taxation (164,231) (62,067)
Tax on loss on ordinary activities - -
Loss for the financial period (164,231) (62,067)
Loss per ordinary share - basic (0.09p) (0.05p)
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2004
£ £ £ £
Intangible assets 3,831,710 -
Investments 24,200 29,200
Debtors 18,434 1,000
Cash at bank 1,224,133 570,644
Creditors: amounts falling (107,163) (28,973)
due within one year
Total assets less current 4,991,314 571,871
Capital and reserves
Share capital 3,520,000 1,300,000
Share premium account 2,404,829 1,526,155
Merger reserve 1,485,000 -
Profit and loss account (2,418,515) (2,254,284)
Shareholders' funds 4,991,314 571,871
CONSOLIDATED CASH FLOW STATEMENT
Period ended 30 September 2004
Cash flow statement
Net cash outflow from operating (118,199) (99,336)
Returns on investments and servicing of 14,143 15,179
Capital expenditure and financial (777,405) 3,250
Acquisitions (43,724) -
Financing 1,578,674 -
Increase/(Decrease) in cash 653,489 (80,907)
NOTES TO THE UNAUDITED INTERIM ACCOUNTS
Eighteen Months Ended 30 September 2004
1 The calculation of earnings per share is based on the losses of £164,231
and on the number of shares in issue being the adjusted weighted average
number of shares in issue totalling 170,803,279.
The fully diluted earnings per share are based on 170,803,279 ordinary shares
allowing for the full exercise of outstanding share purchase options and the
earnings as stated above. There is no dilutive effect in the period and in the
previous period in accordance with FRS 14 paragraph 56.
2 The comparative figures were for the year to 31 March 2003.
3 The financial information set out above does not constitute statutory
accounts within the meaning of s.240 of the Companies Act 1985.
4 Copies of the Statement are available to the public free of charge from the
company at Manfield House, 2nd Floor, 1 Southampton Street, London WC2R 0LR
during normal office hours, Saturdays, Sundays and bank holidays excepted, for
31 days from today.