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Pan African Resources PLC (PAF)

  Print      Mail a friend       Annual reports

Wednesday 22 February, 2012

Pan African Resources PLC

Interim Results for the 6 months ended 31 Decem...


                           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                               

                       ('Pan African' or the 'company')                        

 

            Interim Results for the 6 months ended 31 December 2011            

                                                                               

Highlights for the 6 months ended 31 December 2011

Corporate

Revenue increased by 33.7% to £51.23 million (2010: £38.33 million).

Earnings and Headline earnings per share increased by 88.7% to 1.00 pence
(2010: 0.53 pence).

Earnings before interest, taxes, depreciation and amortisation ('EBITDA')
increased by 86.6% to £24.17 million (2010: £12.95 million).

Attributable profit increased by 90.5% to £14.44 million (2010: £7.58 million).

Cash on hand £4.9 million (2012: £ 10.6 million) *

Unhedged and debt-free.

 

Mining Operations

 

Barberton Gold Mining Operations ('BGMO')

 

Gold sold increased 0.6% to 46,927oz (2010: 46,655oz).

Tons milled increased by 3.6% to 154,643t (2010: 149,231t)

Head grade increased 0.9% to 10.65g/t (2010: 10.55g/t).

Total cash cost of ZAR192,397/kg (2010: ZAR176,199/kg) for the period under
review but improved to ZAR158,925/kg for the quarter ended 31 December 2011.

 

Phoenix Platinum Group Metals ('PGM') Retreatment Plant (from Chrome tailings)

Plant commissioned two months ahead of schedule and on budget during
October 2011.

438oz of PGM contained in concentrate was produced and despatched by the end of
December 2011.

Near-Term Mining Projects - Barberton Gold Tailings Retreatment Project
('BTRP')

Commenced with a Definitive Feasibility Study ('DFS').

Acquired the Harper Gold Tailings dumps representing over 3Mt of material at a
grade of 1.3g/t for total consideration of £830,000.

Development projects - Manica Gold Project

Established a separate management team with the aim of listing the Manica Gold
project as a separate exploration company on an international exchange in April
2012.

 

Significant post period acquisition - Evander Gold Mines (Pty) Ltd

 

Pan African Resources and Witwatersrand Consolidated Mines entered into a 50:50
joint venture  on 30 January 2012 to acquire 100% of the Evander Gold Mines
from Harmony Gold Mining Company for a total conditional consideration of up to
ZAR 1.7 billion (£139 million).

* Cash on hand as at 17 February 2012 at the closing rate of 12.24 was £16.0
million.

Financial Summary:

                                                   Six months ended  Six months ended
                                                   31 December 2011  31 December 2010
                                                                                                                      
                                                     (Unaudited)          (Unaudited)           
                                                                                                                      
Revenue                                    (£)        51,229,660           38,326,410
                                                                                                                      
EBITDA                                     (£)        24,166,658           12,947,012
                                                                                                                      
Attributable profit                        (£)        14,437,217            7,584,317
                                                                                                                      
EPS                                        (pence)          1.00                 0.53
                                                                                                                      
HEPS                                       (pence)          1.00                  0.53
                                                                                                                      
Weighted average number of shares in issue         1,444,225,674         1,421,399,407
                                                                                                                      

 

Nature of Business

Pan African is a South African based precious metals mining group that produces
approximately 95,000oz of gold and 12,000oz* of Platinum Group Metals ('PGM')
per annum. The company's strategic focus is on delivering attractive
shareholder returns by exploiting ore-bodies that yield high margins through a
highly skilled and experienced management team. The company recently
commissioned the Phoenix chrome tailings retreatment plant that extracts PGM's
from chrome tailings and is planning to build a 1.2Mt per annum gold tailings
retreatment plant at BGMO. This plant could increase gold production from BGMO
by a further 25,000oz per annum from August 2013. The group is debt free,
unhedged and is able to fund all current capital expenditure from internal cash
flows. The Group is generating significant cash from operations and as at 31
December 2011 had £ 4.9 million cash on hand.

 

* Full production build-up is expected from May 2012

 

Financial Performance

Pan African is incorporated in England and Wales, its reporting currency is
pound sterling (`£') and its functional currency is South African Rand ('ZAR').
Barberton Mines (Pty) Ltd (`Barberton Mines') is a South African Company and
its financial statements are prepared in South African Rand (`ZAR'). When
Barberton Mines' financial statements are translated into pound sterling for
the purpose of Group consolidation and reporting, the average and closing ZAR:£
exchange rates for the period affect the Group consolidated financial results.

During the current period, the average ZAR: £ exchange rate was ZAR12.06 (2010:
ZAR11.18) and the closing ZAR: £ exchange rate was ZAR12.54 (2010: ZAR10.28).
The period-on-period change in the average and closing exchange rates of 7.9%
and 22.0% respectively should be taken into account when comparing the
period-on-period results.

Gross revenue from gold sales increased by 33.7% to £51.23 million (2010: £
38.33 million). The increase in revenue was mainly attributed to a 34.9%
period-on-period increase in the average gold spot price received of US$1,736/
oz (2010: US$1,286/oz) however the appreciation of the pound sterling against
the ZAR had a negative impact on the Pound revenue. The average £:ZAR exchange
rate strengthened by 7.9% to ZAR12.06 (2010: ZAR11.18). Revenue expressed in
ZAR terms increased by 44.2% to ZAR 617. 80 million (2010: ZAR 428.49 million).
Although the average spot gold price in the period under review increased by
34.9% to US$ 1,736 (2010: US$ 1,286), the average US$: ZAR exchange rate
strengthened by 6.2% to ZAR7.58 (2010: ZAR 7.14) which had a negative impact on
the ZAR revenue. The effective ZAR gold price per kilogram achieved increased
by 43.3% to ZAR 423, 276/kg (2010: ZAR 295, 281/kg). Mining profit at BGMO
increased by 113.4% to £28.6 million (2010: £13.4 million).

Other expenses were £1.76 million (2010: £1.35 million), and there were no
impairments in the current or prior reporting period.

Cost of production increased by 1.1% to £23.20 million (2010: £22.95 million).
In ZAR terms the cost of production increased by 9.0% to ZAR279.79 million
(2010: ZAR256.58 million). The increase was primarily due to a hike in
electricity rates by 29.6% to ZAR32.06 million, engineering and technical
services up 14.8% to ZAR25.64 million and salaries and wages up 11.1% to
ZAR131.43 million.

The Royalty tax charge increased 99.0% to £2.01 million (2010: £1.01 million).
Income tax increased by 123.7% to £8.39 million (2010: £3.75 million) as a
result of the increase in profit before tax. The effective tax rate increased
by 3.1% to 36.8%.

EBITDA increased by 86.6% to £24.17 million (2010: £12.95 million) and
attributable profit increased by 90.5% to £14.44 million (2010: £7.58 million).
Cash on hand decreased to £4.9 million (2010: £10.6 million) mainly due to
capital expenditure of £4.57 million associated with the Phoenix Platinum Group
Metals Retreatment Plant and the dividend payment of £7.42 million made during
the period under review.

The increase in attributable profit is primarily due to the favourable gold
price. The profit margin in ZAR terms increased by 93.9% to ZAR230,879/kg
(2010: ZAR119,082/kg).The total unit production cash cost increased by 9.2% to
ZAR192,397/kg (2009: ZAR 176,199/kg), but improved to ZAR 158,925/kg for the
quarter ended 31 December 2011.

Basic earnings per share increased by 88.7% to 1.00 pence (2010: 0.53 pence)
and basic headline earnings per share increased by 88.7% to 1.00 pence (2010:
0.53 pence). In ZAR terms the basic earnings per share increased by 102.0% to
12.06 cents (2010: 5.97 cents), and basic headline earnings per share increased
by 102.0% to 12.06 cents (2010: 5.97 cents).

 

Review of Barberton Mines

 

Safety & Training

 

We are pleased to report no fatalities occurred for the period under review. To
date fatality free shifts totalled 1,329,723 and the safety performance at BGMO
for the first six months of the 2012 financial year as measured by the All
Injury Frequency rate ('AIFR') at 21.25 (2011: 24.82) indicates that the total
number of incidents decreased during this period. However, in the period under
review, the Lost Time Injury Frequency rate ('LTIFR') deteriorated to 3.09 vs.
2.61 in 2011 and Reportable Injury Frequency Rate ('RIFR') to 1.03 vs. 0.33 in
2011. In order to address these slight increases a Mining Qualification
Authority accredited training program for supervisors is being implemented in
order to identify and correct safety hazards.

 

Operating Performance

A total of 46,927oz (2010: 46,655oz) of gold was sold from BGMO (which
comprises the Fairview, Sheba and New Consort sections), a slight increase of
0.6% from the previous year. Total underground production remained consistent
at 45,209oz (2010: 45,385oz). Tons milled increased by 3.6% to 154,643t (2010:
149,231t). The tonnage increase was mainly due to the additional surface dump
material planned during the period under review to make up for the BIOX®
problems. Head grade remained constant at 10.65g/t (2010: 10.55g/t).

Operating problems were experienced in the BIOX® plant during July and August
2011 which negatively affected gold production, when the cumulative effect of
breakdowns to the old high pressure blowers in the process and excess oil from
a collapsed crusher bearing. These breakdowns created a lack of oxygen supply
to the reactors and resulted in poor recoveries.

To ameliorate the above, electronic oil pressure controls were installed in the
crusher and the outdated blowers were replaced with more efficient low pressure
blowers at a capital cost of ZAR2.4 million (£0.199 million).

                                                     6                                                               
                                                  months                                                             
 Production Summary                                ended  6 months ended 6 months ended 6 months ended 6 months ended
                                                                                                                     
                                                  31 Dec                                                             
                                                    11      31 Dec 10      31 Dec 09      31 Dec 08      31 Dec 07   
                                                                                                                     
Tons Milled                             (t)       154,643    149,231        152,584        159,919        161,455    
                                                                                                                     
Head grade                              (g/t)      10.65      10.55          10.11          11.40           9.05     
                                                                                                                     
Overall Recovery                        (%)         89          91             91             91             92      
                                                                                                                     
Production: Underground *               (oz)      43,355      45,209         45,385         47,634         43,145    
                                                                                                                     
                                                                                                                     
                                                                                                                     
Production: Calcine Dumps / Surface Ops (oz)        264         -              -            3 545          3 601     
                                                                                                                     
Gold Sold *                             (oz)      46,927      46,655         45,971         51,186         47,486    
                                                                                                                     
Average price: spot                     (US$/oz)   1,736      1,286          1,032           824            721      
                                                                                                                     
Average price: hedge                    (US$/oz)     -          -              -              -             460      
                                                                                                                     
Average price: spot                     (ZAR/KG)  423,276    295,281        253,510        235,338        165,782    
                                                                                                                     
Total cash cost                         (US$/oz)    786        767            670            451            521      
                                                                                                                     
Total cash cost                         (ZAR/KG)  192,397    176,199        164,697        134,581        114,640    
                                                                                                                     
EBITDA                                  £ '000    24,167      12,947         8,598          8,552          4,001     
                                                                                                                     
Depreciation                            £ '000     1,536      1,909          1,375          1,066           806      
                                                                                                                     
Capital Expenditure                     £ '000     4,567      4,076          2,199          2,282          1,532     
                                                                                                                     
Exchange rate - average                 ZAR/£      12.06      11.18          12.48          15.13          14.05     
                                                                                                                     
Exchange rate - closing                 ZAR/£      12.54      10.28          11.94          13.78          13.77     
                                                                                                                     
Exchange rate - average                 (ZAR/US$)  7.58        7.14           7.64           8.88           6.94     
                                                                                                                     
Exchange rate - closing                 (ZAR/US$)  8.12        6.65           7.39           9.55           6.86     
                                                                                                                     

 

* The variance between gold produced and sold is higher than the historical
figure of between 1% to 3% and is due to the dumping of the high grade contents
of the BIOX® reactors during June 2011, which was then fed back into the system
during the period under review.

Capital Expenditure - Growth Projects

 

     Project       Metres/ % Equipping completed % Complete of budget Potential Resource   Comments  
                                                 (Progressive to YTD)                                
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         The footwall
                                                                                         drive will  
                                                                                         reach the   
                                                                                         target area 
36 ZK                                                                                    in June 2012
                               197.4                   101.23%              5,000        and         
Sheba                                                                                    development 
                                                                                         along the   
                                                                                         cross       
                                                                                         fractures.  
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         Targets     
                                                                                         exceeded and
                                                                                         continuing  
                                                                                         development 
                                                                                         towards the 
                                                                                         Thomas ore  
                                                                                         body.       
                                                                                                     
                                                                                                     
Edwin Bray                     190.7                   105.94%              15,000                   
                                                                                         Exploration 
                                                                                         drilling to 
                                                                                         commence in 
                                                                                         February    
                                                                                         2012 to     
                                                                                         determine   
                                                                                         mining plan 
                                                                                         and layouts.
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         25 - 560    
                                                                                         Main        
                                                                                         Fracture    
                                                                                         area -      
                                                                                         1,960t @    
                                                                                         24,71g/t has
                                                                                         been        
                                                                                         established.
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         27-360      
                                                                                         Stoping area
                                                                                         - 6,860t @  
                                                                                         21,14g/t    
                                                                                         exposed with
Pillar Development                                                                       90m of      
                               75.3                      82%              In reserve     re-equipping
Sheba                                                                                    remaining to
                                                                                         gain access 
                                                                                         for stoping.
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         35 - 10 -   
                                                                                         382 Prospect
                                                                                         - 40m of    
                                                                                         development 
                                                                                         completed   
                                                                                         and a       
                                                                                         structure   
                                                                                         carrying a  
                                                                                         value of    
                                                                                         9,94g/t has 
                                                                                         been        
                                                                                         intersected.
                                                                                                     
                                                                                         Development 
                                                                                         has         
                                                                                         progressed  
                                                                                         through the 
                                                                                         pegmatite   
                                                                                         and         
                                                                                         subsequent  
                                                                                         cover       
                                                                                         drilling    
                                                                                         indicates a 
                                                                                         second splay
                                                                                         of pegmatite
                                                                                         (+/- 30m    
40 Level                                                                                 thick),     
Development                                                                              which still 
                               126.1                   110.61%              8,500        has to be   
Consort                                                                                  traversed.  
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         The target  
                                                                                         zone is     
                                                                                         virgin area 
                                                                                         with very   
                                                                                         good        
                                                                                         potential to
                                                                                         pick up the 
                                                                                         upward      
                                                                                         extension of
                                                                                         the ore     
                                                                                         body.       
                                                                                                     
                                                                                         50 W1       
                                                                                         decline is  
                                                                                         to be sunk  
                                                                                         for one     
                                                                                         level.      
                                                                                                     
                                                                                         The opening 
                                                                                         up of 53    
SI 22                                                                                    level has   
50W1 Decline                                                                             exposed     
                               88.0                     99.32%              30,000       potential   
Consort                                                                                  high grade  
                                                                                         reserves    
                                                                                         that have   
                                                                                         potential   
                                                                                         for mining  
                                                                                         and are     
                                                                                         currently   
                                                                                         being       
                                                                                         evaluated.  
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         52 Level at 
                                                                                         49          
                                                                                         Sub-Vertical
                                                                                         Shaft:      
                                                                                                     
                                                                                         Re-equipment
                                                                                         from 50 to  
                                                                                         52 level is 
                                                                                         completed.  
                                                                                                     
                                                                                         Secondary   
                                                                                         support in  
                                                                                         the form of 
                                                                                         sets has    
                                58%                                                      been        
                                                                                         completed.  
                                                                                                     
                                                                                         Decline     
                                                                                         development 
                                                                                         to commence 
                                                                                         in February 
                                                                                         2012.       
Pillar                                                                                               
Development                                                                                          
                                                        0.00%             In reserve                 
Consort                                                                                  33 Level    
                                                                                                     
                                                                                         Ventilation 
                                                                                         doors and   
                                                                                         access      
                                                                                         services    
                                                                                         from station
                                                                                         to          
                                                                                         ventilation 
                                80%                                                      door        
                                                                                         completed.  
                                                                                                     
                                                                                         80m of      
                                                                                         service     
                                                                                         piping      
                                                                                         required    
                                                                                         prior to    
                                                                                         de-watering.
                                                                                                     
                                                                                         Sampling to 
                                                                                         be carried  
                                                                                         out once    
                                                                                         this is     
                                                                                         completed.  
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         The decline 
                                                                                         shaft rope  
                                                                                         raise and   
                                                                                         box hole are
                                                                                         95%         
                                                                                         complete.   
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         Shaft       
                                                                                         equipping   
                                                                                         down to 40  
SI 14                                                                                    level is to 
Equipping                                                                                be completed
                               55.9                    147.11%            In reserve     in the 3rd  
Consort                                                                                  quarter of  
                                                                                         the 2012    
                                                                                         financial   
                                                                                         year.       
                                                                                                     
                                                                                         Mineable    
                                                                                         reserves on 
                                                                                         38 level has
                                                                                         been        
                                                                                         identified  
                                                                                         for the 2013
                                                                                         financial   
                                                                                         year.       
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                                     
     Project       Metres/ % Equipping completed % Complete of budget Potential Resource   Comments  
                                                 (Progressive to YTD)                                
                                                                                                     
                                                                                                     
                                                                                         The         
                                                                                         development 
                                                                                         of the 64 to
                                                                                         62 level    
                                                                                         return      
                                                                                         airways is  
                                                                                         on-going    
                                                                                         with, 55m   
                                                                                         remaining.  
                                                                                                     
3# Deepening                                                                             Shaft       
                               89.3                    119.07%             350,000       sinking to  
Fairview                                                                                 commence in 
                                                                                         the new     
                                                                                         financial   
                                                                                         year, with  
                                                                                         the opening 
                                                                                         up of the   
                                                                                         downward    
                                                                                         extension of
                                                                                         the Hope    
                                                                                         reef.       
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         Equipping is
                                                                                         progressing 
58 Hope Reef                    85%                     80.00%            In reserve     well and    
Equipping                                                                                should be   
                                                                                         completed by
                                                                                         April 2012. 
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         The Rositer 
                                                                                         reef has    
                                                                                         been        
                                                                                         intersected 
54 Rositer Reef                122.9                   122.90%              11,000       and reef    
                                                                                         development 
                                                                                         is under    
                                                                                         way.        
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                                     
                                                                                         Re-equipping
                                                                                         on 16 level 
                                                                                         is complete 
16 Level                                                                                 and new     
Opening Up                                                                               blocks for  
                               100%                    100.00%            In reserve     stoping are 
Fairview                                                                                 being       
                                                                                         evaluated   
                                                                                         and brought 
                                                                                         into the    
                                                                                         mining plan.
                                                                                                     

 

Maintenance Capital

 

Metallurgy Plants

Metallurgical Plants     Cost         Category    Impact on production         
                                                                               
Sheba - Concentrate      ZAR1,300,000 Replacement Safety and maintenance       
truck                                             improvement.                 
                                                                               
Sheba - Pump             ZAR200,000   Replacement To improve mine water run off
replacements                                      control.                     
                                                                               
BIOX ® - Air equipment   ZAR2,250,000 Replacement To improve Biox recoveries.  
machinery                                                                      
                                                                               
BIOX ® Instrumentation   ZAR500,000   Replacement To improve Biox recoveries.  
equipment                                                                      
                                                                               
                                                                               
                                                                               

Engineering

Engineering           Cost         Category    Impact on production      
                                                                         
Winder ropes          ZAR1,190,000 Replacement Legal and safety          
                                               requirement.              
                                                                         
Compactors and        ZAR1,070,000 Replacement Safety and grade control  
utility vehicles                               in 11 block.              
                                                                         
12 Ton tipper truck   ZAR1,101,000 Replacement Safety and maintenance    
                                               improvement.              
                                                                         
Fairview 2#           ZAR2,004,000 Maintenance Safety and legal          
refurbishment                                  requirement.              
                                                                         
Load haul dumpers     ZAR2,426,000 Maintenance Safety and production     
                                               requirement.              
                                                                         
                                                                         
                                                                         

Mineral Resources Management

Exploration Drilling

During the period under review a total of 7,740m (2010: 7,604.5m) of
exploration drilling was completed underground at Barberton Mines and the
following significant intersections are reported:

Section   Borehole   Drill Grade                   Description                  
           Number    width (g/t)                                                
                     (cm)                                                       
                                                                                
         Bh 5849     1,626 50.22  MRC ore body down-dip extension               
                                                                                
Fairview Bh 5864     1,383 43.82  MRC ore body down-dip extension               
                                                                                
         Bh 5861      77   21.20  Rositer down-dip extension                    
                                                                                
         24-460 - 01  104  13.45  Stope prospect drilling                       
                                                                                
         29 ST 20     764  15.70  Stock work extension                          
                                                                                
         29Stock23    63   30.08  Stock work extension                          
                                                                                
         29Stock24    113  34.14  Stock work extension                          
                                                                                
         33 MRC W37   86   10.30  MRC footwall structure                        
                                                                                
         3340-W42     100  14.80  Prospect drilling for Birthday Northern Limb  
                                                                                
         3340-W42     91   15.13  Prospect drilling for Birthday Northern Limb  
Sheba                                                                           
         3340-W42     73   10.82  Prospect drilling for Birthday Northern Limb  
                                                                                
         36 ZK W01    82   42.71  ZK ore body below 35 level                    
                                                                                
         36 ZK W02    74   35.20  ZK ore body below 35 level                    
                                                                                
         36 ZK W02    34   15.98  ZK ore body below 35 level                    
                                                                                
         36 ZK W02    40   10.04  ZK ore body below 35 level                    
                                                                                
         36ZK 02      75   11.32  ZK ore body below 35 level                    
                                                                                
         EB 09        64   13.64  Mineralised structure in the Moodies quartzite
                                                                                
         20IV-4       188  21.45  Ivora mineralisation below 20 level           
                                                                                
         3#7-1        64   25.20  3 Shaft resource extension                    
                                                                                
         3#7-1        64   88.90  3 Shaft resource extension                    
                                                                                
         3#7-1        64   72.70  3 Shaft resource extension                    
                                                                                
         3#7-2        256  33.78  3 Shaft resource extension                    
                                                                                
         3#7-3        256  19.93  3 Shaft resource extension                    
                                                                                
         3#7-3        64   44.70  3 Shaft resource extension                    
                                                                                
         3#7-5        87   23.20  3 Shaft resource extension                    
                                                                                
         3#7-6        246  19.71  3 Shaft resource extension                    
                                                                                
         3#7-6        87   14.40  3 Shaft resource extension                    
                                                                                
New      3#7-7        97   69.15  3 Shaft resource extension                    
Consort                                                                         
         3#7-8        82   21.80  3 Shaft resource extension                    
                                                                                
         3#7-9        164  26.45  3 Shaft resource extension                    
                                                                                
         3#CT-6       192  55.77  3 Shaft resource extension                    
                                                                                
         3#CT-8       64   10.50  3 Shaft resource extension                    
                                                                                
         37NE-2       97   30.30  37 Level new ore body exploration             
                                                                                
         37NE-3       97   17.50  37 Level new ore body exploration             
                                                                                
         37NE-3       97   32.40  37 Level new ore body exploration             
                                                                                
         37NE-4       97   29.50  37 Level new ore body exploration             
                                                                                
         37NE-5       100  111.00 37 Level new ore body exploration             
                                                                                
         37XC-16      87   11.00  37 Level new ore body exploration             
                                                                                
         37XC-18      91   23.80  37 Level new ore body exploration             
                                                                                

 

Development results

A total of 1,617.6 m (2010: 1,636.7m) of development was completed on working
cost. Capital development totalled 1,095.8 m (2010: 429.6m) of which the
majority, 481.9m (44%) was done at Sheba with 348.8m (32%) at Fairview and
265.1m (24%) at Consort. The capital development at Fairview was focussed at
deepening of the number 3 sub-vertical shaft, the Hope and Rositer reefs.

                         New Consort      Fairview         Sheba     
                                                                     
                         Metres   g/t   Metres   g/t   Metres    g/t 
                                                                     
Reef                       241.4  6.15    198.0  2.89     531.8  3.71
                                                                     
Stope Development          187.7  6.76    176.4   5.5      31.1  8.49
                                                                     
Capital                    265.1   -      348.8   -       481.9   -  
                                                                     
Waste working cost           441   -        434   -       742.6   -  
                                                                     
Waste Total                706.1   -      782.8   -     1,224.5   -  
                                                                     

 

 

Review of Phoenix Platinum

 

Construction of the Phoenix Plant by Basil Read Matomo Projects exceeded
expectations when cold commissioning commenced in October 2011.  First
concentrates were produced on 29 November 2011 two months ahead of schedule. 
Frazer Alexander carried out the construction of the Tailings Storage Facility
Extension and the completion thereof dovetailed with the early commencement of
tailings treatment by the plant.  Some 150,000 man hours where expended during
the construction phase without a time lost accident.

A five year Sale of Concentrate Agreement was concluded with Western Platinum
Limited (a subsidiary of Lonmin Plc) in November 2011.

The plant is in the process of progressing towards full production.  During
this period various practical feedstock blends will be bulk treated and
conditions examined for optimisation and enhancements tested to maximise the
process.  Full production is expected from May 2012.

 

Near-Term Mining projects - BTRP

 

During the period under review, Basil Read - Matomo commenced with a DFS on the
final design for the BTRP. The detailed design for the new tailings storage
facility has also commenced, while the Environmental Impact Assessment study is
progressing on schedule.

The Harper Gold Tailings dumps which are situated within close proximity to the
Bramber Tailings dump, and representing over 3Mt of material at a grade of 1.3g
/t, was acquired for total consideration of £830,000.

 

Development Projects - Manica Gold Project

 

During the period under review a separate management team was established to
list the Manica Gold project as a separate exploration company on an
international exchange. Good progress has been made to achieve a separate
listing in April 2012.

 

Capital Expenditure and  Commitments

Capital expenditure at Barberton totalled £4.57 million of which Development
Capital was £2.47 million and Maintenance Capital was £2.10 million.

 

Capital expenditure on Phoenix Platinum totalled £4.57 million.

 

There were £0.57 million outstanding orders contracted for capital commitments
at the end of the period at Barberton and £0.5 million outstanding at Phoenix.

 

Operating lease commitments, which fall due within the next year, amounted to £
0.147 million (2010: £0.179 million)

 

 9. Directorship Change

 

The Following changes took place in December 2011:

 

Non-Executive Directors:

Mr. Cyril Ramaphosa resigned as chairman of the board.

Mr. Keith Spencer replaced Mr. Cyril Ramaphosa as chairman of the board.

Ms. Phuti Malabi replaced Mr. Keith Spencer as Deputy Chairman of the board.

 

Executive Directors:

Mr. Cobus Loots resigned as Financial Director but will remain as a
non-executive director.

Ms. Busi Sitole has been appointed as Financial Director.

 

10. Shares Issued

 

During the period under review the company announced the issue and allotment of
923,650 new ordinary shares in respect of share options exercised:

 

On 28 October 2011, 200,000 shares issued to Mr. F. Chadwick at 6 pence per
share.                              

On 24 November 2011, 723,650 shares issued to Mr. D. Negri at 6 pence per
share.

 

11. Dividend

 

The Company has adopted a policy whereby dividends are considered and, deemed
appropriate by the Board, declared on an annual basis. Pan African will
consider a final dividend subsequent to the finalisation of financial year-end
results. The consideration of any dividend will take account of cash flow
requirements and growth plans, whilst recognising that where possible, the
payment of a dividend on a consistent basis increases shareholder value.

 

During the period under review the company declared and paid a final dividend
for 2011 of 0.5135 pence per share totalling £7.42 million.

 

 1. Going Concern

 

The board is satisfied that the Group is a going concern for the foreseeable
future, and have adopted the going-concern basis in preparing these interim
results.

 

 2. Accounting Policies

 

The financial information set out in this announcement does not constitute the
Company's statutory accounts for the half year ended 31 December 2011.

 

The interim results have been prepared and presented in accordance with, and
containing the information required by IFRS on Interim Financial Reporting, IAS
34. The financial information included in the interim results has been prepared
in accordance with the recognition and measurement criteria of IFRS. This
announcement does not itself contain sufficient disclosure information to
comply fully with IFRS.

 

The interim results have not been reviewed or reported on by the Company's
external auditors.

 

Johannesburg Stock Exchange (JSE) Limited listing

 

The Company has a dual primary listing on 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 ("APB") and the
information as required by International Accounting Standards ("IAS") 34:
Interim Financial Reporting.

 

AIM Listing

 

The financial information for the period ended 31 December 2011 does not
constitute statutory accounts as defined in sections 435 (1) and (2) of the
United Kingdom ("UK") Companies Act 2006.

 

The Group announcement (the Group's financial statements) has been prepared in
accordance with IFRS and International Financial Reporting Interpretation
Committee ("IFRIC") interpretations adopted for use by the European Union, with
those parts of the Companies Act 2006 applicable to companies reporting under
IFRS.

 

Segmental Reporting

 

A segment is a distinguishable component of the Group that is engaged in
providing products or services in a particular business sector (operating
segment), which is subject to risk and rewards that are different to those of
other segments. The segments which the Group reviews the business activities of
are: Mining Operations, Near-Term Mining Operations and Development Projects.

 

Directors' Dealings

 

The Company was notified on Tuesday 18 October 2011 that Pangea Exploration
(Pty) Ltd ("Pangea"), a private company of which Mr Rob Still is a director,
had declared a dividend in specie (the "Dividend") to its shareholders on 1
October 2011.

 

Mr Still is also a trustee of the Alexandra Trust a major shareholder of
Pangea. The Alexandra Trust received 12,430,900 ordinary shares of 1 pence each
in the Company ("Shares") at a price of ZAR1.46 per Share, with a total value
of ZAR18,149,114 as a consequence of the Dividend.

 

Following this off-market transaction Mr Still's total direct, beneficial
interest in Pan African remains unchanged at 2,000,000 Shares, representing
0.14% of the issued share capital of the Company as well as his total indirect,
non-beneficial interest of 16,755,308 Shares representing 1.16% of the issued
share capital of the Company. Mr Still did not receive any direct or indirect
benefit from this off-market transaction.

 

The Company was notified between Friday 28 October and Tuesday 1 November 2011
that Pangea Exploration (Pty) Ltd ("Pangea"), a private company of which Mr Rob
Still is a director, had sold the following Shares at the following prices:

 

277,863 Shares at R1.7056 per share

322,137 Shares at R1.7131 per share

45,708 Shares at R1.72 per share

54,292 Shares at R1.70 per share

300,000 Shares at R1.70 per share

 

The above shares were sold by Pangea in order to provide funding for other
potential projects. Following the above on market transactions Pangea holds
3,324,408 Shares, representing 0.23% of the issued capital of the Company. Mr
Still's total direct, beneficial interest in Pan African remains unchanged at
2,000,000 Shares, representing 0.14% of the issued share capital of the Company
as well as his total indirect, non-beneficial interest of 15,755,308 Shares
representing 1.09% of the issued share capital of the Company.

 

 

Mr Still did not receive any direct or indirect benefit from the above
transactions.

 

 

Significant events post the reporting period

 

Acquisition of Evander Gold Mines

On 30 January 2012 Pan African and Witwatersrand Consolidated Mines ('Wits
Gold') announced that the parties had entered into a 50:50 joint venture  to
acquire 100% of the Evander Gold Mines from Harmony Gold Mining Company for a
total conditional consideration of up to ZAR 1.7 billion (approximately £
139 million). The transaction represents an opportunity for Pan African to
materially increase its gold production profile by 50,000 ounces as well as
adding a significant project pipeline for future growth. The implementation of
the Transaction is subject to the fulfilment of a number of conditions as set
out in the transaction announcement of 30 January 2012.

 

Barberton Gold Tailings Retreatment Project ('BTRP')

 

On 1 February 2012 the Company announced that the Board had approved Phase One
of the BTRP, which will recover gold from the retreatment of the gold tailings
situated close to BGMO. It is anticipated that the BTRP will increase the
production profile at Barberton by 25,000 ounces per annum.

 

The Future

Despite falling short on planned gold production, due to  operating problems
experienced in the BIOX® plant during the start of the reporting period, a high
gold price and significant effort by the Barberton team to increase production
and manage cash cost  allowed us to report record earnings for the Group.
Barberton remains one of the lowest cash cost producers in the South African
Mining industry.  Despite significant inflationary pressures the cash cost
reported for the second quarter of the reporting period fell to ZAR158, 000/kg.
This once again highlights that our focus on mining and developing quality
ore-bodies with experienced management teams and a skilled workforce remains a
competitive advantage that will allow us to continue to grow our profit margin
and dividend.

 

The commissioning of the Phoenix CTRP ahead of schedule and on budget further
demonstrates the Group's ability to develop projects in addition to managing
mining operations. The Group now produces both gold and PGM's and offers
investors this unique investment exposure. At an expected operating cash cost
of US$466/oz of 4E this project will be one of the lowest cash cost producers
of PGM's in the South African industry - again highlighting our competitive
advantage in terms margin delivery.

The BTRP is the next organic growth project to be developed and once
commissioned should increase Barberton's annual production by 25,000oz from
August 2013. Although the project will recover gold, it is similar to Phoenix
in that it will reclaim surface tailings that requires no underground mining
and as a result places it on the lower end of the cost curve. This project will
allow us to grow our profit margin once again.

The announcement post the reporting period of the acquisition of Evander Gold
Mines from Harmony in a 50:50 Joint Venture with Wits Gold, gives the Group;

Access to 50,000oz of attributable production at a cash cost of less than
ZAR215,000/kg

Additional attributable profits

Newly upgraded underground infrastructure (ZAR256 million invested by Harmony
on Evander 8 Shaft over the last year)

An attributable underground reserve of 3.8Moz at a recovered grade of 8.02g/t

An attributable underground resource of 16.26Moz at a grade of 6.88g/t in situ

Two shallow development projects at depths of between 225m and 1000m below
surface

A significant surface tailings resource - 100Mt grading 0.29g.t on an
attributable basis

A further highly experienced management team and skilled workforce

This acquisition of the asset removes the concentrated asset risk of the Group
and the partnership with Wits Gold and payment structure will allow the Group
to acquire a sizeable, quality asset without:

Negatively impacting any potential dividend

Requiring any issuing of equity subject to cash flow from Evander and the
quantum of debt funding secured.

 

 

The group believes that managements proven track record for extracting value at
BGMO can be duplicated at Evander.

 

Our objective for the remainder of the financial year is to improve on the
reported results for the period under review.

 

 

Jan Nelson              Busi Sitole       
                                          
Chief Executive Officer Financial Director
                                          

 

 

22 February 2012

 

Consolidated Statement of Comprehensive Income for the period ended 31 December
2011

 

                                                                 Group              
                                                                                    
                                                   31 December 2011 31 December 2010
                                                                                    
                                                     (Unaudited)      (Unaudited)   
                                                                                    
                                                          £                £        
                                                                                    
Revenue                                                                             
                                                                                    
Gold sales                                               51,229,660       38,326,410
                                                                                    
Realisation costs                                          (84,965)         (75,604)
                                                                                    
On - mine revenue                                        51,144,695       38,250,806
                                                                                    
Cost of production - Gold                              (23,201,120)     (22,949,762)
                                                                                    
Depreciation                                            (1,536,448)      (1,908,836)
                                                                                    
Mining Profit                                            26,407,127       13,392,208
                                                                                    
Other expenses                                          (1,762,357)      (1,346,045)
                                                                                    
Royalty costs                                           (2,014,560)      (1,007,987)
                                                                                    
Net income before finance income and finance costs       22,630,210       11,038,176
                                                                                    
Finance income                                              223,324          414,657
                                                                                    
Finance costs                                              (26,069)         (19,868)
                                                                                    
Profit before taxation                                   22,827,465       11,432,965
                                                                                    
Taxation                                                (8,390,248)      (3,848,648)
                                                                                    
Profit after taxation                                    14,437,217        7,584,317
                                                                                    
Other comprehensive income:                                                         
                                                                                    
Foreign currency translation differences                (8,533,732)        4,676,586
                                                                                    
Total comprehensive income for the year                   5,903,485       12,260,903
                                                                                    
Profit attributable to:                                                             
                                                                                    
Owners of the parent                                     14,437,217        7,584,317
                                                                                    
Non-controlling interest                                          -                -
                                                                                    
                                                         14,437,217        7,584,317
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
                                                                                    
Earnings per share                                             1.00             0.53
                                                                                    
Diluted earnings per share                                     0.99             0.53
                                                                                    
Weighted average number of shares in issue            1,444,225,674    1,421,399,407
                                                                                    
Diluted number of shares in issue                     1,452,808,064    1,426,159,912
                                                                                    
Headline earnings per share is calculated :                                         
                                                                                    
Basic earnings                                           14,437,217        7,584,317
                                                                                    
Adjustments: Impairment                                           -                -
                                                                                    
Headline earnings                                        14,437,217        7,584,317
                                                                                    
Headline earnings per share                                    1.00             0.53
                                                                                    
Diluted headline earnings per share                            0.99             0.53
                                                                                    

 

Consolidated Statement of Financial Position as at 31 December 2011

                                                                      Group                     
                                                                                                
                                                                                                
                                                                                                
                                                 31 December 2011 31 December 2010 30 June 2011 
                                                                                                
                                                   (Unaudited)      (Unaudited)      (Audited)  
                                                                                                
                                                        £                £               £      
                                                                                                
ASSETS                                                                                          
                                                                                                
Non-current assets                                                                              
                                                                                                
Property, plant and equipment and mineral rights       59,516,827       44,422,134    59,052,015
                                                                                                
Other intangible assets                                13,332,945       17,247,371    14,214,426
                                                                                                
Goodwill                                               21,000,714       21,000,714    21,000,714
                                                                                                
Rehabilitation trust fund                               2,669,022        3,073,793     3,013,385
                                                                                                
                                                       96,519,508       85,744,012    97,280,540
                                                                                                
Current assets                                                                                  
                                                                                                
Inventories                                             1,487,066        1,740,777     1,457,202
                                                                                                
Trade and other receivables                             7,000,352        4,886,229     4,254,401
                                                                                                
Cash and cash equivalents                               4,994,854       10,630,963    10,123,822
                                                                                                
                                                       13,482,272       17,257,969    15,835,425
                                                                                                
TOTAL ASSETS                                          110,001,780      103,001,981   113,115,965
                                                                                                
EQUITY AND LIABILITIES                                                                          
                                                                                                
Capital and reserves                                                                            
                                                                                                
Share capital                                          14,449,643       14,440,406    14,440,406
                                                                                                
Share premium                                          50,982,790       50,752,830    50,932,830
                                                                                                
Translation reserve                                     (223,190)        9,172,451     8,310,542
                                                                                                
Share option reserve                                      799,227          807,924       861,450
                                                                                                
Retained income                                        44,628,324       28,022,935    37,607,283
                                                                                                
Realisation of equity reserve                        (10,701,093)     (10,701,093)  (10,701,093)
                                                                                                
Merger reserve                                       (10,705,308)     (10,705,308)  (10,705,308)
                                                                                                
Equity attributable to owners of the parent            89,230,393       81,790,145    90,746,110
                                                                                                
                                                                                                
                                                                                                
Total equity                                           89,230,393       81,790,145    90,746,110
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                                                
                                                                      Group                     
                                                                                                
                                                 31 December 2011 31 December 2010 30 June 2011 
                                                                                                
                                                   (Unaudited)      (Unaudited)     (Unaudited) 
                                                                                                
                                                        £                £               £      
                                                                                                
Non - Current liabilities                                                                       
                                                                                                
Long term provisions **                                 2,994,493        3,735,682     3,386,591
                                                                                                
Long term liabilities **                                  237,357                -       181,285
                                                                                                
Deferred taxation                                       9,320,441        9,717,443     9,841,695
                                                                                                
                                                       12,552,291       13,453,125    13,409,571
                                                                                                
Current liabilities                                                              -              
                                                                                                
Trade and other payables *                              6,947,074        5,437,913     8,193,750
                                                                                                
Short term provisions                                           -        1,689,122             -
                                                                                                
Current tax liability                                   1,272,022          631,676       766,534
                                                                                                
                                                        8,219,096        7,758,711     8,960,284
                                                                                                
TOTAL EQUITY AND LIABILITIES                          110,001,780      103,001,981   113,115,965
                                                                                                

 

*    Trade and other payables at 30June 2011 includes an amount of £1,465,299
(£41,411 for the Company) relating to the leave pay accrual which was
classified as a short term provision in the prior year. This is in accordance
with IAS: 19 Employee Benefits. The leave pay accrual balance as at 30 June
2010 was £1,151,895.

 

**   Long term liabilities at 30June 2011 include an amount of £115,418
relating to the post-retirement benefits which was classified as a long term
provision in the prior year.  This is in accordance with IAS: 19 Employee
Benefits. The post-retirement benefits balance as at 30 June 2010 was £136,602.

 

Consolidated Cash flow Statement for the period ended 31 December 2011

                                        Six months ended Six months ended
                                                                         
                                        31 December 2011 31 December 2010
                                                                         
                                           (Unaudited)      (Unaudited)  
                                                                         
                                                £                £       
                                                                         
Cash Generated by operations                  23,585,992       15,928,379
                                                                         
Taxation paid                                (6,824,551)      (3,587,061)
                                                                         
Royalty paid                                 (1,724,084)      (1,065,267)
                                                                         
Dividends paid                               (7,416,175)      (5,376,165)
                                                                         
Net Finance Income                               197,255          394,789
                                                                         
Cash inflow from operating activities          7,818,437        6,294,675
                                                                         
Cash outflow from investing activities       (9,140,205)      (8,500,858)
                                                                         
Cash inflow from finance activities               59,197        1,365,000
                                                                         
Net decrease in cash equivalents             (1,262,571)        (841,183)
                                                                         
Cash at the beginning of period               10,123,822       12,756,262
                                                                         
Effect of foreign currency rate changes      (3,866,396)      (1,284,116)
                                                                         
Cash at end of year                            4,994,855       10,630,963
                                                                         

 

Consolidated Statement of Changes in Equity for the period ended
31 December 2011

                                       31 December 2011 31 December 2010
                                         (Unaudited)      (Unaudited)   
                                                                        
                                                                        
                                                                        
Shareholders equity at start of period       90,746,110       73,486,877
                                                                        
Share Issue                                      59,197        1,365,000
                                                                        
Share Option Reserve                           (62,223)           53,530
                                                                        
Other Comprehensive Income                  (8,533,732)        4,676,586
                                                                        
Profit for the period                        14,437,217        7,584,317
                                                                        
Dividend                                    (7,416,176)      (5,376,165)
                                                                        
Total Equity                                 89,230,393       81,790,145
                                                                        

 

Consolidated Segment Report for the period ended 31 December 2011

                                                                         31 December 2011                 
                                                                                                          
                                                            Barberton                                     
                                                             Mines                                        
                                                                         Phoenix  Corporate     Group     
                                                                        Platinum  and Growth              
                                                                                   Projects               
                                                                                                          
                                                                £           £          £           £      
                                                                                                          
Revenue                                                                                                   
                                                                                                          
Gold sales                                                  51,229,660          -          -   51,229,660 
                                                                                                          
Realisation costs                                             (84,965)          -          -     (84,965) 
                                                                                                          
On - mine revenue                                           51,144,695          -          -   51,144,695 
                                                                                                          
Cost of production                                        (23,201,120)          -          - (23,201,120) 
                                                                                                          
Depreciation                                               (1,536,448)          -          -  (1,536,448) 
                                                                                                          
Mining Profit                                               26,407,127          -          -   26,407,127 
                                                                                                          
Other expenses                                             (1,203,656)  (131,801)  (426,900)  (1,762,357) 
                                                                                                          
Royalty costs                                              (2,014,560)         -          -   (2,014,560) 
                                                                                                          
Net income/(loss) before finance income and finance costs   23,188,911  (131,801)  (426,900)   22,630,210 
                                                                                                          
Finance income                                                  29,227      4,998    189,099      223,324 
                                                                                                          
Finance costs                                                 (26,069)          -          -     (26,069) 
                                                                                                          
Profit/(loss) before taxation                               23,192,069  (126,803)  (237,801)   22,827,465 
                                                                                                          
Taxation                                                   (8,392,325)      2,077          -  (8,390,248) 
                                                                                                          
Profit/(loss) after taxation                                14,799,744  (124,726)  (237,801)   14,437,217 
                                                                                                          
                                                                         31 December 2011                 
                                                                                                          
Segmental Assets                                            55,310,901 18,656,764 15,033,401   89,001,066 
                                                                                                          
Segmental Liabilities                                       20,344,317     89,565    337,505   20,771,387 
                                                                                                          
Goodwill                                                             -          -          -   21,000,714 
                                                                                                          
Net Assets (excluding goodwill)                             34,966,584 18,567,199 14,695,896   68,229,679 
                                                                                                          
Capital Expenditure                                          4,566,352  4,566,448      7,405    9,140,205 
                                                                                                          

 

                                                                          31 December 2010                
                                                                                                          
                                                                                                          
                                                                                                          
                                                            Barberton    Phoenix   Corporate      Group   
                                                              Mines      Platinum  and Growth             
                                                                                    Projects              
                                                                                                          
                                                                 £           £          £           £     
                                                                                                          
Revenue                                                                                                   
                                                                                                          
Gold sales                                                   38,326,410          -          -   38,326,410
                                                                                                          
                                                                                 -          -     (75,604)
Realisation costs                                              (75,604)                                   
                                                                                                          
On - mine revenue                                            38,250,806          -          -   38,250,806
                                                                                                          
                                                                                 -          -             
Cost of production                                         (22,949,762)                       (22,949,762)
                                                                                                          
Depreciation                                                (1,908,836)          -          -  (1,908,836)
                                                                                                          
Mining Profit                                                13,392,208          -          -   13,392,208
                                                                                                          
Other expenses                                                (772,076)          -  (573,969)  (1,346,045)
                                                                                                          
Royalty costs                                               (1,007,987)          -          -  (1,007,987)
                                                                                                          
Net income/(loss) before finance income and finance costs    11,612,145          -  (573,969)   11,038,176
                                                                                                          
Finance income                                                   10,252          -    404,405      414,657
                                                                                                          
Finance costs                                                  (19,868)          -          -     (19,868)
                                                                                                          
Profit/(loss) before taxation                                11,602,529          -  (169,564)   11,432,965
                                                                                                          
Taxation                                                    (3,848,648)          -          -  (3,848,648)
                                                                                                          
Profit/(loss) after taxation                                  7,753,881          -  (169,564)    7,584,317
                                                                                                          
                                                                            30 June 2011                  
                                                                                                          
Segmental Assets                                             43,333,140 16,990,521 31,791,590   92,115,251
                                                                                                          
Segmental Liabilities                                        20,212,973  1,556,006    600,876   22,369,855
                                                                                                          
Goodwill                                                              -          -          -   21,000,714
                                                                                                          
Net Assets (excluding goodwill)                              23,120,167 15,434,515 31,190,714   69,745,396
                                                                                                          
Capital Expenditure                                           6,773,729 14,079,722    180,540   21,033,991
                                                                                                          
                                                                                                          
                                                                                                          

 

 

Contact Details



Pan African Resources
Jan Nelson, Chief Executive Officer
Office: +27 (0) 11 243 2900


RBC Capital Markets
Martin Eales/ Peter Barrett-Lennard/ James Kelly
Office: +44 (0) 207 653 4000


Macquarie First South (Pty) Ltd
Melanie de Nysschen/ Annerie Britz/ Yvette Labuschagne
Office: +27 (0) 11 583 2000


St James's Corporate Services Limited
Phil Dexter
Office: +44 (0) 20 7499 3916


Gable Communications
Justine James
Office: +44 (0)20 7193 7463
Mobile: +44 (0) 7525 324431

 
Vestor Media and Investor Relations
Louise Brugman
Office: +27 (0) 11 787 3015

 

Disclaimer

Statements in this presentation, other than historical facts, that address,
without limitation, exploration activities, mining potential and future plans
and objectives of Pan African Resources plc ("Pan African") are
"forward-looking statements" and "forward looking information" that involve
various risks. Assumptions and uncertainties and are not statements of fact.
The directors and management of Pan African are of the belief that the
expectations expressed in such forward-looking statements or forward looking
information are based on reasonable assumptions, expectations, estimates and
projections, however such statements should not be construed as being
guarantees or warranties (whether express or implied) of future performance.

 

There can be no assurance that such statements will prove to be accurate and
actual values, results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from statements expressed in this presentation
include, among others, the actual results of exploration activities, technical
analysis, the lack of availability to Pan African of necessary capital on
acceptable terms, general economic, business and financial market conditions,
political risks, industry trends, competition, changes in government
regulations, delays in obtaining governmental approvals, interest rate
fluctuations, currency fluctuations, changes in business strategy or
development plans and other risks. Although Pan African has attempted to
identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as
anticipated, estimated or intended.

 

Neither Pan African nor its directors, management and its affiliates represent
guarantee that the assumptions underlying such statements are free from errors
nor do they accept any responsibility for the future accuracy of the opinions
expressed in this presentation. Any statements in this presentation speak only
at the time of issue. Pan African does not undertake to update any
forward-looking statements that are included in this presentation, or revise
any changes in events, conditions or circumstances on which any such statements
are based, except in accordance with applicable securities laws and stock
exchange requirements.

 

No representation or warranty, expressed or implied, is made and no reliance
should be placed on the accuracy, actuality, fairness, or completeness of the
information presented. None of Pan African or any of its affiliates, directors,
officers, employees and advisers or any other person shall have any liability
whatsoever for any losses arising, directly or indirectly, from any information
contained in the presentation. This presentation does not constitute an offer
or invitation to purchase or subscribe for any shares of Pan African and no
part of this presentation shall form the basis of or be relied upon in
connection with any contract or commitment.

 

By accepting this presentation the recipient acknowledges that it will be
solely responsible for its own assessment of the market position of Pan African
and that it will conduct its own analysis and be solely responsible for forming
its own view of the potential future performance of Pan African.