REG-Pan African Resources PLC: Provisional audited results for the year ended 30.06.14 <Origin Href="QuoteRef">PAFR.L</Origin> <Origin Href="QuoteRef">PANJ.J</Origin> - Part 1
24/11/2014 14:09
Pan African Resources PLC
('Pan African Resources' or the 'company' or the 'group')
(Incorporated and registered on 25 February 2000 in England and Wales under the
Companies Act 1985, registration number 3937466)
Share code on AIM: PAF
Share code on JSE: PAN
ISIN: GB0004300496
Provisional audited results for the year ended 30 June 2014
Key features and highlights
Key features reported in South African rand ('ZAR') and pound sterling ('GBP')
- The group's gold sold increased by 44.2% to 188,179oz (2013: 130,493oz).
- Group headline earnings6 decreased by 7.2% to ZAR452.0 million (2013:
ZAR487.0 million). As previously announced, headline earnings were impacted by,
inter alia, the low grade mining cycle at Evander Gold Mining Pty Ltd and lower
average gold price received.
- For the first time, Phoenix Platinum Pty Ltd was both cash generative and
profitable in the 2014 financial year.
- Gold mineral reserve inventory increased by 9.8% to 10.1Moz (2013: 9.2Moz).
- Gold mineral resource inventory decreased by 4.6% to 33.5Moz (2013:
35.1Moz).
- The group has proposed a final dividend of ZAR0.1410 or approximately
0.7898p7 per share or ZAR258.0 million (approximately GBP14.5 million) for
approval by shareholders at the annual general meeting in November 2014.
- A dividend of ZAR0.1314 or (0.8030p) per share (2013: Nil) or ZAR240.3
million (GBP14.7 million) was paid during December 2013 in relation to the 2013
financial years results.
- Net debt for the group increased marginally to ZAR101.0 million (2013:
ZAR93.6 million).
Metric For the year end 30 June 2014
(ZAR
Revenue millions - 2,608.8 154.6
GBP
millions)
Average gold price received (ZAR/kg - 433,437 1,303
USD/oz)
Cash costs (ZAR/kg - 298,345 897.0
USD/oz)
All-in sustaining cash cost (ZAR/kg - 349,008 1,049
USD/oz)
All-in costs (ZAR/kg - 374,015 1,124
USD/oz)
(ZAR
Adjusted EBITDA1 millions - 745.5 44.2
GBP
millions)
(ZAR
Attributable earnings millions - 452.1 26.8
GBP
millions)
Earnings per share ('EPS') (cents - 24.74 1.47
pence)
Headline earnings per share ('HEPS') (cents - 24.74 1.47
pence)
(ZAR
Group capital expenditure millions - 363.0 21.5
GBP
millions)
Net asset value per share (cents - 152.4 8.7
pence)
Weighted average number of shares in issue (millions) 1,827.2 1,827.2
Average exchange rate (ZAR:GBP - 16.88 10.35
ZAR:USD)
Closing exchange rate (ZAR:GBP - 18.01 10.59
ZAR:USD)
For the year end 30 June 2013 Movement
Revenue 1,848.1 133.5 41.2% 15.8%
Average gold price received 440,824 1,553 (1.7%) (16.1%)
Cash costs 231,439 815.0 28.9% 10.1%
All-in sustaining cash cost 281,551 992 24.0% 5.7%
All-in costs 343,949 1,212 8.7% (7.3%)
Adjusted EBITDA1 735.2 53.1 1.4% (16.8%)
Attributable earnings 558.9 42.6 (19.1%) (37.1%)
Earnings per share ('EPS') 34.51 2.63 (28.3%) (44.1%)
Headline earnings per share ('HEPS') 30.07 2.17 (17.7%) (32.3%)
Group capital expenditure 381.6 27.6 (4.9%) (22.1%)
Net asset value per share 140.9 9.5 8.1% (8.4%)
Weighted average number of shares in issue 1,619.8 1,619.8 12.8% 12.8%
Average exchange rate 13.84 8.83 22.0% 17.2%
Closing exchange rate 15.01 9.88 20.0% 7.2%
Ron Holding, CEO of Pan African Resources commented: "Pan African Resources is
pleased with another satisfactory performance from Barberton Mines, whilst
Evander Mines results were impacted negatively by the low grade mining cycle.
Increased dividends and a new progressive dividend policy demonstrates the
board and management's confidence in the quality of our assets and Evander
Mine's future performance. Our statement of financial position remains strong,
whilst cash generative assets and internal projects will provide the platform
for further profitable growth".
Operational
Barberton Mines Pty Ltd ('Barberton Mines')
Combined Barberton Mines Operations
- Gold sold increased by 15.9% to 111,623oz (2013: 96,296oz).
- Revenue increased by 11.9% to ZAR1,511.1 million (2013: ZAR1,350.3 million).
- Adjusted EBITDA decreased by 1.4% to ZAR614.0 million (2013: ZAR622.9
million).
- Cash cost per kilogram increased by 8.2% to ZAR239,496/kg(2013: ZAR221,424/
kg).
- All-in sustaining cash cost per kilogram increased by 3.3% to ZAR282,716/kg
(2013: ZAR273,653/kg).
- All-in cost per kilogram decreased by 13.8% to ZAR302,058/kg (2013:
ZAR350,302/kg).
- Average underground head grade of 11.5g/t (2013: 11.8g/t).
- The operation regretfully reports three fatalities (2013: two fatalities).
Barberton Mines (Underground and surface mining operations8)
- Production was negatively affected by flooding at Sheba Mine and technical
difficulties at the BIOX ® plant, both of these issues were subsequently
resolved.
- Gold sold decreased by 7.8% to 88,738oz (2013: 96,296oz).
- Revenue decreased by 11.0% to ZAR1,201.9 million (2013: ZAR1350.3 million).
- Adjusted EBITDA decreased by 32.4% to ZAR420.9 million (2013: ZAR622.9
million).
- Cash cost per kilogram increased by 17.0% to ZAR258,972/kg (2013: ZAR221,424
/kg).
- All-in sustaining cash cost per kilogram increased by 13.9% to ZAR311,756/kg
(2013: ZAR273,653/kg).
- All-in cost per kilogram decreased by 8.3% to ZAR321,342/kg (2013:
ZAR350,302/kg).
- Life of mine increased to 19 years (2013: 17 years).
Barberton Tailings Retreatment Plant ('BTRP') (Tailings operation)
- Production commenced on 1 July 2013.
- Gold sold contribution of 22,885oz for the year to Barberton Mines.
- Revenue generated of ZAR309.2 million.
- Adjusted EBITDA generated of ZAR193.1 million.
- Cash cost per kilogram achieved of ZAR163,977/kg or USD493/oz.
- All-in sustaining cash cost per kilogram achieved of ZAR170,111/kg or USD511
/oz.
- All-in cost per kilogram achieved of ZAR227,286/kg or USD683/oz.
- Total capital expenditure spent on the project was ZAR313.6 million, funded
internally from cash generated by Barberton Mines2.
- Life of mine increased to 15 years (2013: 12 years).
Evander Gold Mining Pty Ltd ('Evander Mines')
- Gold sold decreased by 19.5% to 76,556oz (2013: 95,089oz3).
- Revenue decreased by 22.9% to ZAR1,025.8 million (2013: ZAR1,330.9
million3).
- Construction of the Evander Tailing Retreatment Plant ('ETRP') has
commenced, with production expected by January 2015.
- Cash costs per kilogram achieved increased by 36.0% to ZAR384,150/kg (2013:
ZAR282,451/kg3).
- All-in sustaining cash costs per kilogram achieved increased by 29.2% to
ZAR445,665/kg (2013: ZAR345,006/kg3).
- All-in cost per kilogram achieved increased due to the low grade mining
cycle and capital spent on the ETRP by 28.5% to ZAR478,933 (2013: ZAR372,707/
kg3.)
- Adjusted EBITDA generated of ZAR128.3 million (2013: ZAR152.2 million for
the 4 months consolidated).
- As result of the lower grade mining cycle the underground head grade
decreased to 5.2g/t (2013: 7.4g/t3), this low grade mining cycle will continue
until February 2015.
- The operation regretfully reports one fatality (2013: one fatality).
- Life of mine increased to 17 years (2013: 14 years).
Phoenix Platinum Mining Pty Ltd ('Phoenix Platinum')
- Phoenix Platinum was both cash generative and profitable for the first time
in the 2014 financial year.
- Phoenix Platinum headline earnings increased to ZAR3.7 million (2013: ZAR6.4
million headline loss).
- PGE 4 production increased by 11.2% to 7,204oz (2013: 6,480oz).
- Revenue increased by 22.1% to ZAR71.9 million (2013: ZAR58.9 million).
- The average PGE net revenue price received increased by 9.8% to ZAR9,987/oz
(2013: ZAR9,093/oz5).
- Cost per ton increased by 24.7% to ZAR222/t (2013: ZAR178/t) due to reduced
tonnages processed whilst addressing the inhibiting talc in the tailings feed.
- Cost per ounce of production increased by 2.3% to ZAR7,723/oz (2013:
ZAR7,551/oz).
- Adjusted EBITDA increased by 131.9% to ZAR16.0 million (2013: ZAR6.9
million).
- Life of mine increased to 28 years (2013: 20 years).
Notes:
Adjusted EBITDA is represented by earnings before interest, taxation,
depreciation and amortisation, bargain purchase gain, impairments and loss on
disposal of assets held for sale.
BTRP capital expenditure relates directly to plant and tailings storage
facility construction, and excludes additional Harper tailings and the
associated land purchased in the prior years for ZAR12.1 million.
Evander Mines prior year production results were obtained from Harmony Gold
Mining Company Ltd ('Harmony'), for comparative purposes only. The prior year
Evander Mines cost per kilogram figures were recalculated based on historical
financial records to allow for consistent reporting with the group's current
gold operations. Therefore the values may vary from Harmony previously reported
values. The group commenced consolidating the Evander Mines results from 1
March 2013 for accounting purposes.
PGE's are platinum, palladium, rhodium and gold.
Phoenix Platinum average PGE net revenue price received represents the value
received per ounce following refining and therefore is net of refining charges.
Refer to the profit after taxation to headline earnings reconciliation in the
statement of comprehensive income.
The GBP proposed dividend was calculated based on an exchange rate of ZAR17.85:
1. The UK shareholders are to note that a revised exchange rate will be
communicated prior to final approval at the AGM. Therefore the proposed
dividend is approximately 0.7898p per share.
Barberton Mines surface mining operations refer to historical surface waste
rock dumps located at Fairview and Sheba Mines that are currently being
processed.
Nature of business
Pan African Resources is a mid-tier African-focussed precious metals producer
with a production capacity in excess of 200,000oz gold and 12,000oz platinum
per annum. The group's assets include:
Barberton : three gold mines and the BTRP in Mpumalanga
Mines
Evander Mines : a gold mine in Mpumalanga
Phoenix : the Chrome Tailing Retreatment Plant ('CTRP') in the North
Platinum West province
Pan African Resources' growth strategy is aimed at achieving and improving
margins while driving ongoing growth in our Mineral Reserve base. We aim to
capture the full precious metals mining value chain and maximise shareholder
value by exploiting opportunities in the group and in the broader sector.
The group remains cash generative at the current gold price, with the ability
to fund all on-mine capital expenditure internally and also meet its other
funding and growth commitments.
Financial Performance
Key external drivers of the group's results
Exchange rates and their impact on results
All of the group's subsidiaries are incorporated in South Africa and their
functional currency is ZAR. The group's business is conducted in ZAR and the
accounting records are maintained in this same currency, with the exception of
precious metal product sales, which are conducted in USD prior to conversion
into ZAR. The ongoing review of the results of operations conducted by
executive management and the board is also performed in ZAR.
The group's presentation currency is GBP due to its ultimate holding company,
Pan African Resources plc, being incorporated in England and Wales and also
being dual-listed in the United Kingdom and South Africa.
In the year under review the average ZAR/GBP exchange rate was ZAR16.88:1
(2013: ZAR13.84:1) and the closing ZAR/GBP exchange rate was ZAR18.01:1 (2013:
ZAR15.01:1). The year-on-year change in the average and closing exchange rates
of 22.0% and 20.0%, respectively, must be taken into account for the purposes
of translating and comparing year-on-year results.
The group converts and records its revenue from precious metals sales in ZAR,
and the deterioration in the value of the ZAR/USD exchange rate during the year
had a compensating effect on the weaker USD metals price revenue received. The
average ZAR/USD exchange rate was 17.2% weaker at ZAR10.35:1 (2013: ZAR8.83:1).
The commentary below analyses the current and prior year's results. Key aspects
of the group's ZAR results appear in the body of this commentary and have been
used as the basis against which its financial performance is measured. The
gross GBP equivalent figures can be calculated by applying the exchange rates
as detailed above.
Commodity prices
During the course of the year a lower average USD gold price was achieved when
compared to the prior year. The group realised an average gold price of
USD1,303/oz, a decrease of 16.1% from the USD1,553/oz achieved in the prior
year.
The market PGE basket price received (applying the Phoenix Platinum prill
split) during the year decreased by 9.0% to USD1,122/oz (2013: USD1,233/oz).
Phoenix Platinum achieved an average PGE basket price of USD965/oz (2013:
USD1,030/oz), after taking into account the terms of its off-take agreement
with Western Platinum Limited.
The average ZAR gold price received by the group decreased by 1.7% to
ZAR433,437/kg (2013: ZAR440,824/kg), partially shielded by the weakening of the
ZAR against the USD exchange rate.
The average ZAR PGE basket price received by the group increased by 9.8% to
ZAR9,987/oz (2013: ZAR9,093/oz), also benefitting from the weaker ZAR.
Statement of Comprehensive Income
For the year ended 30 June 2014 For the year ended 30 June 2013
ZAR (millions) GBP (millions) ZAR (millions) GBP (millions)
Revenue 2,608.8 154.6 1,848.1 133.5
Cost of production (1,795.9) (106.4) (985.1) (71.2)
Mining profit 637.8 37.8 776.8 56.1
Adjusted EBITDA 745.5 44.2 735.2 53.1
Profit after taxation 452.1 26.8 558.9 42.6
Headline earnings 452.0 26.8 487.0 35.2
EPS (cents - pence) 24.74 1.47 34.51 2.63
HEPS (cents - pence) 24.74 1.47 30.07 2.17
Weighted average number of shares in issue (millions) 1,827.2 1,827.2 1,619.8 1,619.8
Movement
ZAR GBP
Revenue 41.2% 15.8%
Cost of production 82.3% 49.4%
Mining profit (17.9%) (32.6%)
Adjusted EBITDA 1.4% (16.8%)
Profit after taxation (19.1%) (37.1%)
Headline earnings (7.2%) (23.9%)
EPS (cents - pence) (28.3%) (44.1%)
HEPS (cents - pence) (17.7%) (32.3%)
Weighted average number of shares in issue (millions) 12.8% 12.8%
The 2014 group results include a full year of operations for Evander Mines,
whilst the comparative 2013 period only included 4 months of operations, from
the date that Evander Mines was acquired from Harmony.
Group revenue year-on-year increased by 41.2% to ZAR2,608.8 million (2013:
ZAR1,848.1 million). Of this increase, Evander Mines contributed ZAR586.9
million, Barberton Mines contributed ZAR160.8 million and Phoenix Platinum
contributed ZAR13.0 million, resulting in a ZAR760.7 million total increase
year-on-year.
Barberton Mines grew revenue as a result of an increase in gold ounces sold,
with the commissioning of the BTRP on 1 July 2013. Evander Mines' revenue
increased as result of consolidating a full year's production revenue compared
to only four months post acquisition revenue in the prior year. Phoenix
Platinum recorded an increase in revenue due to selling more ounces of PGE's at
higher prices.
Pan African Resources' year-on-year total cost of production reflects an
increase of ZAR810.8 million to ZAR1,795.9 million (2013: ZAR985.1 million), of
which Barberton Mines' contributed ZAR166.2 million , Evander Mines ZAR637.9
million and Phoenix Platinum ZAR6.7 million.
The group's cost of production per kilogram increased by 28.9% to ZAR298,345/kg
(2013: ZAR231,439/kg). Evander Mines' cost of production averaged ZAR384,150/kg
compared to Barberton Mines' average cost of production of ZAR239,496/kg.
The group's all-in sustaining cash cost of production per kilogram (including
direct cost of production, royalties, associated corporate costs and overheads
and sustaining capital expenditure) increased by 24.0% to ZAR349,008/kg (2013:
ZAR 281,551/kg), largely impacted by Evander Mines' lower grade mining cycle.
The all-in cost per kilogram (sustaining cost of production and once-off
expansion capital) increased by 8.7% to ZAR374,015/kg (2012: ZAR 343,949/kg),
due to:
Lower gold ounces sold as a result of the Evander Mines low grade mining cycle
and Barberton Mines reduced underground gold ounce sold as result of the Sheba
Mines flooding.
Once-off capital expenditure required to construct the ETRP amounted to ZAR79.2
million. The construction of the ETRP is currently funded by a ZAR200 million
gold loan facility with a remaining term of 3.5 years.
Barberton Mines incurred additional once-off capital totalling ZAR26.5 million
(2013: ZAR2.6 million) on four additional raise boreholes to improve
environmental conditions underground.
The improved overall production performance at Barberton Mines was as a result
of the commissioning of the BTRP, which contributed an additional 22,885oz of
gold production. The group's Adjusted EBITDA remained largely in line with the
previous year, with a small increase of 1.4% to ZAR745.5 million (2013:
ZAR735.2 million).
Profit after taxation decreased by 19.1% to ZAR452.1 million (2013: ZAR
ZAR558.9 million), primarily due to the points highlighted in the HEPS movement
below, as well as prior year's results which included a net once-off income
amount of ZAR71.9 million as summarised below:
Evander Mines acquisition bargain purchase gain of ZAR322.4 million;
Impairment charges of ZAR242.3 million related to Phoenix Platinum and Auroch
Minerals NL ('Auroch');
Loss on sale of asset held for sale of ZAR8.2 million (also related to Auroch).
The group's EPS in ZAR was 24.74 cents (2013: 34.51 cents) a decrease of 28.3%.
The group posted a 7.2% decrease in headline earnings to ZAR452.0 million
(2013: ZAR487.0 million). The group's HEPS in ZAR terms decreased by 17.7% to
24.74 cents (2013: 30.07 cents).
The HEPS decreased due to the following reasons:
The low grade mining cycle at Evander Mines, which resulted in reduced
production and profits compared to the prior year;
Barberton Mines underground production decreased largely as result of flooding
at Sheba Mine during March 2014, this was however off-set by the additional
gold production contributed to the group by the commissioning of the BTRP;
The group realised a 1.7% decrease in the average ZAR gold price received to
ZAR433,437/kg (2013: ZAR440,824/kg), whilst our production costs were subject
to inflationary increases.
The weighted average number of shares in issue increased by 12.8% during the
year to 1,827.2 million (2013: 1,619.8 million). This increase was due to the
new shares issued in January 2013 in the rights issue to shareholders, to
partly fund the acquisition of Evander Mines.
The group's total taxation charge decreased by 28.1% to ZAR120.8 million (2013:
ZAR167.9 million) due to:
a decrease in deferred taxation as result of an adjustment to Evander Mines'
long-term deferred taxation rate to 26.5% (2013: 28%).
a reduction in gold profit margins due to the lower average ZAR gold price and
margins in the year under review when compared to the prior year.
Statement of Financial Position
For the year ended 30 June 2014 For the year ended 30 June 2013 Movement
ZAR (millions) GBP (millions) ZAR (millions) GBP (millions) ZAR GBP
Non-current assets 3,941.5 223.4 3,726.2 249.3 5.8% (10.4%)
Current assets1 423.4 23.5 401.5 26.7 5.5% (12.0%)
Total equity 2,788.4 159.4 2,568.8 172.2 8.5% (7.4%)
Non-current liabilities 1,144.1 63.5 1,200.9 80.0 (4.7%) (20.6%)
Current liabilities 432.4 24.0 361.2 24.1 19.7% (0.4%)
Notes:
1. Current assets at 30 June 2013 exclude non-current assets held for sale of
ZAR3.2 million (GBP0.2 million),relating to Barberton Mines' Segalla Plant.
Non-current assets increased by 5.8% to ZAR3,941.5 million (2013: ZAR3726.2
million). The increase was partly attributable to further capital expenditure
at Evander Mines for the construction of the ETRP, expected to commence
production in January 2015. The group's capital expenditure by operation of
ZAR363.0 million (2013: ZAR381.6 million) is disclosed below and also
contributed to the increase in non-current assets. Included in non-current
assets is also the rehabilitation trust fund balance of ZAR278.4 million (2013:
ZAR254.8 million), which increased by ZAR23.6 million as a result of growth in
investments. The rehabilitation trust fund's amount is invested in
interest-bearing short-term investments or medium-term equity linked notes
issued by commercial banks.
Capital expenditure during the year amounted to ZAR363.0 million (2013:
ZAR381.6 million), and is detailed by operation below:
2014 2013
Group capital expenditure ZAR (millions) GBP (millions) ZAR (millions) GBP (millions)
Barberton Mines 110.3 6.5 87.2 6.3
BTRP 40.7 2.4 229.6 16.6
Evander Mines 131.3 7.8 62.4 4.5
ETRP 79.2 4.7 - -
Phoenix Platinum 0.4 - 2.2 0.2
Corporate 1.1 0.1 0.2 -
Total capital expenditure 363.0 21.5 381.6 27.6
Current assets increased by 5.5% to ZAR423.4 million (2013: ZAR401.5 million)
as a result of an increase in cash on hand to ZAR101.2 million (2013:
ZAR71.6). The group remains cash generative with a net debt position of
ZAR101.0 million (2013: ZAR93.6 million) at year-end, which includes the gold
loan outstanding with ABSA.
The increase in the group's equity is a result of an increase in retained
earnings, due to this year's profit after tax of ZAR452.1 million, less the
dividend paid of ZAR240.3 million in December 2013.
Non-current liabilities decreased by 4.7% to ZAR1,144.1 million (2013:
ZAR1,200.9 million). The decrease is a result of a 3.8% decrease in the
deferred taxation liability to ZAR780.8 million (2013: ZAR811.3 million) due to
a downward revision of the long-term effective tax rate at Evander Mines to
26.5% (2013: 28%). The deferred taxation rate applied to calculate the deferred
tax liability is based on the effective statutory taxation rate at which the
deferred taxation liability is estimated to be realised over the life of the
operation.
Current liabilities increased by 19.7% to ZAR432.4 million (2013: ZAR361.2
million). The majority of the increase is attributable to an increase in the
current portion of new long-term debt related to ABSA gold loan and an increase
in the current taxation liability from the prior year.
Operational Performance
Review of group gold operations production summary
Year Units Underground and surface Tailings
ended operations operations
30
June Barberton Evander Total BTRP
Mines Mines1
Tonnes milled - underground 2014 (t) 263,574 395,127 658,701 -
2013 (t) 274,398 127,957 402,355 -
Tonnes milled - surface 2014 (t) 28,547 260,901 289,448 -
2013 (t) 36,086 74,428 110,514 -
Tonnes milled - total underground and surface 2014 (t) 292,121 656,028 948,149 -
2013 (t) 310,484 202,385 512,869 -
Tonnes processed - tailings 2014 (t) - - - 815,736
2013 (t) - - - -
Headgrade - underground 2014 (g/t) 11.5 5.2 7.7 -
2013 (g/t) 11.8 7.8 10.5 -
Headgrade - surface 2014 (g/t) 1.3 1.4 1.4 -
2013 (g/t) 1.5 1.2 1.3 -
Headgrade - total underground and surface 2014 (g/t) 10.5 3.7 5.8 -
2013 (g/t) 10.6 5.4 8.6 -
Headgrade - tailings 2014 (g/t) - - - 1.6
2013 (g/t) - - - -
Recovered grade 2014 (g/t) 9.4 3.6 5.4 0.9
2013 (g/t) 9.6 5.1 7.9 -
Overall recovery 2014 (%) 90% 96% 92% 56%
2013 (%) 91% 96% 92% -
Gold production - underground 2014 (oz) 87,979 65,956 153,935 -
2013 (oz) 95,135 31,522 126,657 -
Gold production - surface 2014 (oz) 759 10,600 11,359 -
2013 (oz) 1,161 2,675 3,836 -
Gold production - tailings 2014 (oz) - - - 22,885
2013 (oz) - - - -
Gold sold 2014 (oz) 88,738 76,556 165,294 22,885
2013 (oz) 96,296 34,197 130,493 -
Average ZAR gold price received 2014 (ZAR/KG) 435,464 430,801 433,304 434,394
2013 (ZAR/KG) 450,829 412,641 440,824 -
Average USD gold price received 2014 (USD/oz) 1,309 1,295 1,302 1,305
2013 (USD/oz) 1,588 1,454 1,553 -
ZAR cash cost 2014 (ZAR/KG) 258,972 384,150 316,948 163,977
2013 (ZAR/KG) 221,424 259,640 231,439 -
ZAR all-in sustaining cash costs 2014 (ZAR/KG) 311,756 445,665 373,776 170,111
2013 (ZAR/KG) 273,653 303,790 281,551 -
ZAR all-in cost 2014 (ZAR/KG) 321,342 478,933 394,330 227,286
2013 (ZAR/KG) 350,302 326,061 343,949 -
USD cash cost 2014 (USD/oz) 778 1,154 952 493
2013 (USD/oz) 780 915 815 -
USD all-in sustaining cash cost 2014 (USD/oz) 937 1,339 1,123 511
2013 (USD/oz) 964 1,070 992 -
USD all-in cost 2014 (USD/oz) 966 1,439 1,185 683
2013 (USD/oz) 1,234 1,149 1,212 -
ZAR cash cost per ton 2014 (ZAR/t) 2,447 1,394 1,719 143
2013 (ZAR/t) 2,153 1,366 1,832 -
Capital expenditure 2014 (ZAR million) 110.3 210.5 320.8 40.7
2013 (ZAR million) 316.8 62.4 379.2 -
Average exchange rate 2014 (ZAR/USD) 10.35 10.35 10.35 10.35
2013 (ZAR/USD) 8.83 8.83 8.83 8.83
Revenue 2014 (ZAR million) 1,201.9 1,025.8 2,227.7 309.2
2013 (ZAR million) 1,350.3 438.9 1,789.2 -
Cost of Production 2014 (ZAR million) 714.8 914.7 1,629.5 116.7
2013 (ZAR million) 663.2 276.2 939.4 -
All-in sustainable cost of production 2014 (ZAR million) 860.5 1,061.2 1,921.7 121.1
2013 (ZAR million) 819.6 323.1 1,142.7 -
All-in cost of production 2014 (ZAR million) 886.9 1,140.4 2,027.3 161.8
2013 (ZAR million) 1,049.2 346.8 1,396.0 -
Adjusted EBITDA2 2014 (ZAR million) 420.9 128.3 549.2 193.1
2013 (ZAR million) 622.9 152.2 775.1 -
Review of group gold operations production summary
Year Units Total continuing
ended operations
30
June Barberton Evander Group
Mines Mines Total
Total Total1
Tonnes milled - underground 2014 (t) 263,574 395,127 658,701
2013 (t) 274,398 127,957 402,355
Tonnes milled - surface 2014 (t) 28,547 260,901 289,448
2013 (t) 36,086 74,428 110,514
Tonnes milled - total underground and surface 2014 (t) 292,121 656,028 948,149
2013 (t) 310,484 202,385 512,869
Tonnes processed - tailings 2014 (t) 815,736 - 815,736
2013 (t) - - -
Headgrade - underground 2014 (g/t) 11.5 5.2 7.7
2013 (g/t) 11.8 7.8 10.5
Headgrade - surface 2014 (g/t) 1.3 1.4 1.4
2013 (g/t) 1.5 1.2 1.3
Headgrade - total underground and surface 2014 (g/t) 10.5 3.7 5.8
2013 (g/t) 10.6 5.4 8.6
Headgrade - tailings 2014 (g/t) 1.6 - 1.6
2013 (g/t) - - -
Recovered grade 2014 (g/t) 3.1 3.6 3.3
2013 (g/t) 9.6 5.1 7.9
Overall recovery 2014 (%) 80% 96% 86%
2013 (%) 91% 96% 92%
Gold production - underground 2014 (oz) 87,979 65,956 153,935
2013 (oz) 95,135 31,522 126,657
Gold production - surface 2014 (oz) 759 10,600 11,359
2013 (oz) 1,161 2,675 3,836
Gold production - tailings 2014 (oz) 22,885 - 22,885
2013 (oz) - - -
Gold sold 2014 (oz) 111,623 76,556 188,179
2013 (oz) 96,296 34,197 130,493
Average ZAR gold price received 2014 (ZAR/KG) 435,244 430,801 433,437
2013 (ZAR/KG) 450,829 412,641 440,824
Average USD gold price received 2014 (USD/oz) 1,346 1,295 1,303
2013 (USD/oz) 1,588 1,454 1,553
ZAR cash cost 2014 (ZAR/KG) 239,496 384,150 298,345
2013 (ZAR/KG) 221,424 259,640 231,439
ZAR all-in sustaining cash costs 2014 (ZAR/KG) 282,716 445,665 349,008
2013 (ZAR/KG) 273,653 303,790 281,551
ZAR all-in cost 2014 (ZAR/KG) 302,058 478,933 374,015
2013 (ZAR/KG) 350,302 326,061 343,949
USD cash cost 2014 (USD/oz) 740 1,154 897
2013 (USD/oz) 780 915 815
USD all-in sustaining cash cost 2014 (USD/oz) 874 1,339 1,049
2013 (USD/oz) 964 1,070 992
USD all-in cost 2014 (USD/oz) 934 1,439 1,124
2013 (USD/oz) 1,234 1,149 1,212
ZAR cash cost per ton 2014 (ZAR/t) 751 1,394 990
2013 (ZAR/t) 2,153 1,366 1,832
Capital expenditure 2014 (ZAR million) 151.0 210.5 361.5
2013 (ZAR million) 316.8 62.4 379.2
Average exchange rate 2014 (ZAR/USD) 10.06 10.35 10.35
2013 (ZAR/USD) 8.83 8.83 8.83
Revenue 2014 (ZAR million) 1,511.1 1,025.8 2,536.9
2013 (ZAR million) 1,350.3 438.9 1,789.2
Cost of Production 2014 (ZAR million) 831.5 914.7 1,746.2
2013 (ZAR million) 663.2 276.2 939.4
All-in sustainable cost of production 2014 (ZAR million) 981.6 1,061.2 2,042.8
2013 (ZAR million) 819.6 323.1 1,142.7
All-in cost of production 2014 (ZAR million) 1,048.7 1,140.4 2,189.1
2013 (ZAR million) 1,049.2 346.8 1,396.0
Adjusted EBITDA2 2014 (ZAR million) 614.0 128.3 742.3
2013 (ZAR million) 622.9 152.2 775.1
Note:
Evander Mines 2013 production summary information represents 4 months
production information following the acquisition of Evander Mines on 28
February 2013.
Adjusted EBITDA is represented by earnings before interest, taxation,
depreciation and amortisation, bargain purchase gain, impairments and loss on
disposal of assets held for sale.
Review of Barberton Mines
Safety
Although zero harm is the top priority at Pan African Resources, it is with
deep regret that we reported three fatal accidents at Barberton Mines during
the year. Two of the incidents were fall of ground related and one involved
Trackless Mobile Machinery ('TMM').
Subsequent to these accidents, employees were counselled and engaged as to
possible causes and remedial actions to prevent similar accidents happening in
the future.
Barberton Mines' total recordable injury frequency rate ('TRIFR') decreased to
13.5 (2013: 19.2) per 1,000,000 man hours worked, and the lost time injury
frequency rate ('LTIFR') improved to 1.9 (2013: 2.6) per 1,000,000 man hours
worked. The reportable injury frequency rate ('RIFR') improved to 0.5 (2013:
1.5) per 1,000,000 man hours worked.
Operating performance
Barberton Mines (including BTRP) gold sold increased by 15.9% to 111,623oz
(2013: 96,296oz).
The total combined USD cash costs per ounce decreased by 5.1% to USD740/oz
(2013: USD780/oz). In ZAR per kilogram terms, total cash costs increased by
8.2% to ZAR239,496/kg (2013: ZAR221,424/kg).
The total
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