Final Results For the period ended 30 June 2007
Pan African Resources PLC (`Pan African' or the `Company')
Final Results
For the period ended 30 June 2007
Pan African Resources PLC (AIM: PAF, AltX: PAN), the African based gold mining
and exploration company is pleased to report its final results for the 15 month
period ended 30 June 2007.
HIGHLIGHTS OF THE PERIOD UNDER REVIEW
* Acquisition of 90% stake in the Akrokerri gold project, Ghana.
* Increased resource at the Manica gold project, Mozambique to 1,550Moz in
situ.
* Commenced drilling at Bogoin gold project, Central African Republic.
* Identified 4 gold-in-soil anomalies at the Dekoa gold project, Central
African Republic.
* Loss of £922,450 (18 months ended 31 March 2006: £865,249), representing a
loss per share of 0.22p (2006: 0.24p).
POST PERIOD END HIGHLIGHTS
* Acquisition of 74% stake in Barberton Mines (Pty) Limited, South Africa,
transforming the Company into a mid tier gold producer.
CHAIRMAN'S STATEMENT
Your Company repositioned itself during 2007 with a major transaction, being
the acquisition of Barberton Mines (Pty) Ltd, which was completed after the
period under review. Going into the future, it is now a mid-tier gold Company,
with both production ounces and an exciting portfolio of exploration assets.
During the fifteen months under review, the Company incurred a loss of £922,450
(18 months ended 31 March 2006: £865,249), representing a loss per share of
0.22p (2006: 0.24p).
On 31 July 2007 your Company acquired Barberton Mines (Pty) Ltd from Metorex
Limited in exchange for a new issue of shares resulting in Metorex Limited now
holding a 55% interest in Pan African. At the time of completion, the Company
was granted a secondary listing on the Alternative Exchange (Altx) of the JSE
Limited in South Africa. Barberton Mines consists of three operational gold
mines, Fairview, Sheba and New Consort, situated in the Barberton Greenstone
belt of South Africa, which together produced 90 000 oz of gold in 2007, and
the accounts for the year ended 30 June 2007 showed a net profit before
interest, tax and depreciation of £5.8 million. This acquisition lifted your
Company from a junior exploration Company to a mid-tier exploration and gold
producing Company. The significance of this is that the profits generated from
the mining operations will be used to fund and increase the exploration effort
of the Company.
Exploration activities were accelerated during the period. The Manica project
in Mozambique has progressed well, with an independent Pre-Feasibility study
giving encouraging results to date. Further drilling has delineated additional
gold resources, which have been independently verified and are now in excess of
1.5 million ounces. This is by far the most advanced exploration site, and
during the coming year, we expect it to be progressed to a full Bankable
Feasibility Study.
In the Central African Republic, soil sampling and Reverse Air Blast (`RAB')
drilling has given encouraging results at the Bogoin prospect. Two areas have
been identified with a combined strike length of 12 km. During 2007, further
drilling using a Reverse Circulation (`RC') drill will be undertaken, with the
view of delineating and evaluating the resource. At the second concession,
Dekoa, crews have been mobilised, and a soil geochemical survey will be
conducted. The Central African Republic is a relatively unexplored tenement
which could prove to be a major gold province.
During the period, an agreement was signed with Birim Goldfields Incorporated,
to acquire the Akrokerri prospecting concession in Ghana. This concession abuts
Anglogold-Ashanti's Obuasi mine. Extensive work has been undertaken over the
years on this concession, and during 2007 this data will be analysed to
identify prospective targets. The Company's exploration projects are robust,
and have the potential to deliver significant returns in both the near and
medium term.
I believe the outlook for gold remains robust, with a spectacular increase in
the Dollar-denominated gold price during the past year. A lack of exploration
investment over the past decade has reduced gold output and this, together with
the weakening Dollar, rising oil prices and the sub-prime crisis, has once
again highlighted gold as a safe haven. These fundamentals are expected to
remain, giving support for the price and earnings growth going forward.
The Company will continue to aggressively pursue acquisitions of prospective
gold deposits with good upside potential, as well as looking for acquisitions
or Joint Ventures with other gold exploration companies who have proven
resources or operating mines which can add to the production ounces and future
cash flows.
I would like to welcome Simon Malone and Charles Needham to the Board, who
joined as Metorex Limited representatives upon the Barberton acquisition. My
sincere thanks go to my fellow Directors, particularly to Jan Nelson our CEO
and his staff for their efforts during the past year, and finally to my
predecessor, Colin Bird, who during his tenure as Chairman, took the Company to
where it is today.
KEITH SPENCER
Chairman
20 December 2007.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Period ended 30 June 2007
15 months to 18 months to
30/06/07 31/03/06
(restated)
£ £
Exploration costs (345,208) (464,575)
Administrative expenses (609,637) (420,783)
Operating loss (954,845) (885,358)
Interest receivable 37,195 30,759
Amounts written off investments (4,800) (10,650)
Loss on ordinary activities before taxation (922,450) (865,249)
Tax on loss on ordinary activities - -
Loss for the financial period (922,450) (865,249)
Loss per ordinary share - basic and diluted (0.22p) (0.24p)
CONSOLIDATED BALANCE SHEET
As at 30 June 2007
30/06/07 31/03/06
£ £
FIXED ASSETS
Intangible assets 6,312,030 4,847,630
Investments - 4,800
6,312,030 4,852,430
CURRENT ASSETS
Debtors 294,365 3,225
Cash at bank 326,847 1,874,702
621,212 1,877,927
Creditors: amounts falling due within one year (1,026,493) (399,455)
(405,281) 1,478,472
Total assets less current liabilities 5,906,749 6,330,902
CAPITAL AND RESERVES
Share capital 4,180,032 4,077,532
Share premium account 4,076,769 3,978,178
Merger reserve 1,560,000 1,485,000
Share option reserve 296,162 73,956
Profit and loss account (4,206,214) (3,283,764)
Shareholders' funds 5,906,749 6,330,902
CONSOLIDATED CASH FLOW STATEMENT
Period ended 30 June 2007
15 months to 18 months to
30/06/07 31/03/06
£ £
Net cash outflow from operating activities (559,244) (503,901)
Returns on investments and servicing of finance 37,195 30,759
Capital expenditure and financial investment (1,092,897) (697,170)
Financing 67,091 1,820,881
(Decrease)/increase in cash (1,547,855) 650,569
NOTES TO THE FINANCIAL ACCOUNTS
Period ended 30 June 2007
1. Earnings per share
The calculation of basic earnings per ordinary share is based on losses of £
922,450 (18 months ended 31 March 2006: £865,249) and on 408,922,095 ordinary
shares (18 months ended 31 March 2006: 354,281,542), being the weighted average
number of ordinary shares in issue during the year, calculated as follows:
15 months 18 months
ended 30/06/ ended 31/03/
07 06
(restated)
£ £
Losses per financial statements (922,450) (865,249)
Weighted average number of shares 408,922,095 354,281,542
Loss per share - basic and diluted (0.22p) (0.24p)
Following the Company's secondary listing on the JSE Limited post year end, the
Group is required to disclose its headline loss per share for the period in
accordance with the Listings Requirements of the JSE Limited.
Reconciliation between loss per share and headline loss per share:
15 months 18 months ended
ended 30/06/ 31/03/06
07
(restated)
£ £
Losses per financial statements (922,450) (865,249)
Costs of aborted projects written off 345,208 464,575
Headline loss (577,242) (400,674)
Loss per share - basic and diluted (0.14p) (0.11p)
2. Comparative figures
The comparative figures were for the eighteen months ended 31 March 2006.
3. Statutory accounts
The financial information set out above does not constitute statutory accounts
within the meaning of s.240 of the Companies Act 1985. The statutory accounts
in English only are being distributed to members on 21 December 2007 and will
be available for download from the Company's web site:
www.panafricanresources.com.
Copies of the statement in English only will be available to the public free of
charge from the Company at Manfield House, 2nd Floor, 1 Southampton Street,
London WC2R 0LR as well as Viewpoint House, Corner Main Road and Orchard
Avenue, Bordeaux, Randburg, Gauteng, South Africa during normal office hours,
Saturdays, Sundays and bank holidays excepted, for 31 days from today.
ENDS
For further information on Pan African Resources plc, please visit the website
at www.panafricanresources.com
Enquiries:
Pan African Resources Ambrian Partners Limited Macquarie First South Corporate St. James's Corporate
Finance (Pty) Limited Services Limited
Amanda Markman Phil Dexter
Jan Nelson CEO Richard Brown
+27 (0) 11 343 2307 +44 (20) 7499 3916
+27 (0) 11 777 7840 +44 (0) 20 7776 6417
Doné Hattingh
Richard Greenfield
+27 (0) 11 343 2308
+44 (0) 20 7776 6418
Keith Spencer
Executive Chairman
+27 (0) 11 880 3155
Nicole Stoyell
Public Relations
+27 (0) 11 777 7840
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