REG-Pan African Resources Plc: Provisional Summarised Audited Results

Pan African ResourcesAnnouncement

18/09/2019 07:05

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

(“the Company”)

Provisional Summarised Audited Results and Proposed Dividend for the year
ended 30 June 2019

Chief executive officer's statement

Pan African CEO Cobus Loots commented:

“This was a pivotal year for the group as we successfully repositioned our
operations as one of South Africa’s lowest cost gold producers, focused on
delivering safe and profitable ounces from our Evander and Barberton
operations. Our all-in sustaining cost per ounce was reduced by 27.2% to
USD988/oz (2018: USD1,358/oz). Underpinning our strong operating performance
and the delivery of 172,442oz to exceed our production guidance, is our
commitment to safety and fostering a culture focussed on creating sustainable
value for all our stakeholders. Group leadership is committed to effective ESG
management and we are extremely pleased with our operational performance and
also with progress on broader societal initiatives achieved in the year.

These positive results reflect the efforts of the team to implement our
strategy as we capitalise on the opportunities in our portfolio and invest in
future growth. Our production guidance of 185,000oz for the 2020 financial
year is a substantial increase from the year past. The Egoli Project and our
new optimisation projects at Evander and Barberton present compelling near and
mid-term growth opportunities within our portfolio that will also support an
increase in our production profile. The successful execution of Elikhulu has
enhanced our reputation of building value from our tailings operations. In
addition to maximising the value of our own asset portfolio, we will continue
to assess other value accretive opportunities.

The board is pleased to propose a final dividend of R50 million (USD3.4
million). The re-initiation of dividends demonstrates the progress our group
has made in the last year.

We enter the new financial year with confidence, a firm grasp on our cost
base, and in a good position to benefit from the current gold price
environment. In the year ahead, we will focus on debt reduction, whilst also
continuing to invest in our business.”

Key features
* Gold production from the group’s continuing mining operations increased by
54.1% to 172,442oz (2018: 111,879oz), exceeding the full-year production
guidance of 170,000oz.
* Group revenue from continuing operations, in USD terms, increased by 49.1%
to USD217.4 million (2018: USD145.8 million), due to an increase in gold
ounces produced by the BTRP, the contribution from the newly commissioned
Elikhulu Project and Barberton Mines’ underground mining operations.
* Group profit after taxation increased to USD38.0 million (2018: loss after
taxation USD122.8 million).
* Earnings per share (“EPS”) increased significantly to 1.97 USD cents per
share (2018: 6.79 USD cents loss per share).
* Headline earnings per share (“HEPS”) increased by 20.2% to 1.19 USD
cents per share (2018: 0.99 USD cents per share). HEPS was supported by
improved headline earnings, even though the weighted average number of shares
in issue increased by 6.6% year-on-year
DIVIDENDS

Proposed dividend for the financial year ended 30 June 2019

The board has proposed a final dividend of R50 million for the 2019 financial
year or approximately USD3.4 million equating to 2.23745 ZAR cents per share
or approximately 0.12660 pence per share (0.15169 USD cents per share) (2018:
0.00 ZAR cents per share). This dividend is subject to approval by
shareholders at the AGM, which will take place on Thursday, 28 November 2019.

Assuming the final dividend is approved by shareholders, the following salient
dates would apply:

 Currency conversion date                                      Thursday, 28 November 2019   
 Currency conversion announcement released by 11:00 (SA time)  Friday, 29 November 2019     
 Last date to trade on the JSE                                 Tuesday, 10 December 2019    
 Last date to trade on the LSE                                 Wednesday, 11 December 2019  
 Ex-dividend date on the JSE                                   Wednesday, 11 December 2019  
 Ex-dividend date on the LSE                                   Thursday, 12 December 2019   
 Record date on the JSE and LSE                                Friday, 13 December 2019     
 Payment date                                                  Monday, 30 December 2019     

The GBP and USD proposed final dividend was calculated based on 2,234,687,537
total shares in issue and an illustrative exchange rate of R18:25 and R14.75
respectively. Shareholders on the London register should note that a revised
exchange rate will be communicated in due course.

No transfers between the Johannesburg and London registers between the
commencement of trading on
Wednesday, 11 December 2019 and close of business on Friday, 13 December 2019
will be permitted.

No shares may be dematerialised or rematerialised between Wednesday, 11
December 2019 and Friday, 13 December 2019, both days inclusive.

The South African dividends tax rate is 20% per ordinary share for
shareholders who are liable to pay the dividends tax, resulting in a net
dividend of 1.78996 ZAR cents per share for these shareholders. Foreign
investors may qualify for a lower dividend tax rate, subject to completing a
dividend tax declaration and submitting it to Computershare Investor Services
Proprietary Limited or Capita Plc who manage the SA and UK register,
respectively. The company's South African income tax reference number is
9154588173. The proposed dividend will be paid out of the company’s retained
earnings, without drawing on any other capital reserves.

The Company has a dual primary listing on the JSE in South Africa and the AIM
market of the London Stock Exchange.

The information in this announcement has been extracted from the Provisional
Summarised Audited Results for the year ended 30 June 2019, but the short-form
announcement itself has not been reviewed by the Company’s auditors. The
Provisional Summarised Audited Results have been prepared under the
supervision of the Financial Director, Deon Louw.

This short form announcement is the responsibility of the directors and is
only a summary of the information contained in the full announcement which is
accessible via the JSE link at

https://senspdf.jse.co.za/documents/2019/jse/isse/pan/FYE2019.pdf

Copies of the full announcement are available on request by emailing
ExecPA@paf.co.za.

Any investment decisions should be based on the full announcement and the
group’s detailed operational and financial summaries which are disclosed on
the Pan African website at

http://www.panafricanresources.com/investors/financial-reports/

 Contact information                                                                                                                                                                                                                                                                                    
 Corporate Office The Firs Office Building 2nd Floor, Office 204 Cnr. 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                                                                      John Prior Numis Securities Limited Nominated Adviser and Joint Broker Office: +44 (0) 20 7260 1000                 
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0) 11 011 9200                                                                             Ross Allister/David McKeown Peel Hunt LLP Joint Broker Office: +44 (0) 20 7418 8900                                 
 Julian Gwillim Aprio Strategic Communications Public & Investor Relations SA Office: +27 (0) 11 880 0037                                                                           Jeffrey Couch/Thomas Rider/Neil Elliot BMO Capital Markets Limited Joint Broker Office: +44 (0) 20 7236 1010        
 Bobby Morse/Chris Judd Buchanan Public and Investor Relations UK Office: +44 (0) 20 7466 5000 paf@buchanan.uk.com                                                                  Website: www.panafricanresources.com                                                                                

Meeting and conference call details are as follows:

DATE: 18 September 2019

TIME: 11:00 (SAST time), 10:00 (UK time)

VENUE: Batha Room, 54 on Bath, 54 Bath Avenue, Rosebank, Johannesburg

For those attending in person

Parking is available at Rosebank Mall. Refreshments will be served after the
presentation.

For those dialling in

A live teleconference facility is available for dial-in participants on the
following numbers. Please ask to be joined to the Pan African Resources PLC
call and provide your name and company upon entering the call.

UK listeners: 0 333 300 1418

SA listeners: 010 201 6800

South Africa toll free: 0800 200 648



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