REG-Pan African Resources Plc: Trading Statement

Pan African ResourcesAnnouncement

08/02/2021 07:05

Pan African Resources PLC

(Incorporated and registered in England and Wales under the Companies Act 1985
with registered number 3937466 on 25 February 2000)

Share code on AIM: PAF

Share code on JSE: PAN

ISIN: GB0004300496

ADR ticker code: PAFRY

(Pan African or the Company or the Group)

TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (CURRENT REPORTING
PERIOD)

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited,
a listed company is required to publish a trading statement as soon as it is
satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported upon next, will differ by at least 20%
from those of the six months ended 31 December 2019 (Corresponding Reporting
Period).

Pan African’s presentation currency is the United States dollar (US$). All
Group subsidiaries are incorporated in South Africa and their functional
currency is the South African rand (ZAR). The Group’s business is conducted
in ZAR and the accounting records are maintained in the same currency, except
precious metal product sales, which are conducted in US$ prior to conversion
into ZAR.

The US$/ZAR exchange rate affects the reporting of the Group’s results in
US$. The average US$/ZAR exchange rate is used in translating ZAR financial
performance into US$.

During the Current Reporting Period, the average US$/ZAR exchange rate was
US$/ZAR:16.26 (2019: US$/ZAR:14.70), and the closing US$/ZAR exchange rate as
at 31 December 2020 was US$/ZAR:14.70 (2019: US$/ZAR:14.08).

The year-on-year change in the average and closing exchange rates of 10.6% and
4.4%, respectively, must be considered when comparing period-on-period
results. The weighted average number of outstanding shares remained unchanged
at 1,928,329,479 shares (2019: 1,928,329,479 shares) during the Current
Reporting Period.

Pan African advises shareholders that its headline earnings per share (HEPS)
and earnings per share (EPS) for the Current Reporting Period are expected to
be as follows:
* HEPS of between US 2.05 cents per share and US 2.17 cents per share compared
to US 1.13 cents per share for the Corresponding Reporting Period, being an
increase of between 81% and 92%, respectively.
* EPS of between US 2.05 cents per share and US 2.17 cents per share compared
to US 1.14 cents per share for the Corresponding Reporting Period, being an
increase of between 80% and 90%, respectively.  
The increases in EPS and HEPS for the Current Reporting Period, relative to
the Corresponding Reporting Period, are largely as a result of an 38.4%
increase in gold revenue to US$183.8 million (2019: US$132.8 million),
attributable to the following:
* the average US$ gold price received increased by 27.4% to US$1,865/oz (2019:
US$1,464/oz); and
* gold sold increased by 8.6% to 98,386oz (2019: 90,602oz).
The financial information contained in this announcement has neither been
reviewed nor audited by the Company’s auditors. The Group’s interim
results for the six months ended 31 December 2020 will be released on 16
February 2021.

Rosebank

8 February 2021

For further information on Pan African, please visit the Company's website at

www.panafricanresources.com

 Contact information                                                                                                                                                                                                                                                                                      
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Corner Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0) 11 243 2900 info@paf.co.za  Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0) 20 7796 8644  
 Cobus Loots Pan African Resources PLC Chief executive officer Office: + 27 (0) 11 243 2900                                                                                           Deon Louw Pan African Resources PLC Financial director Office: + 27 (0) 11 243 2900                                 
 Phil Dexter/Jane Kirton St James's Corporate Services Limited Company secretary Office: + 44 (0) 20 7796 8644                                                                        Ross Allister/David McKeown Peel Hunt LLP Nominated Adviser and Joint Broker Office: +44 (0) 20 7418 8900           
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0) 11 011 9200                                                                               Thomas Rider/Nick Macann BMO Capital Markets Limited Joint Broker Office: +44 (0) 20 7236 1010                      
 Hethen Hira Pan African Resources PLC Head: Investor relations Tel: + 27 (0)11 243 2900 E-mail: hhira@paf.co.za                                                                      Website: www.panafricanresources.com                                                                                



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