REG-Pan African Resources Plc: Trading Statement & Notice of Results

Pan African ResourcesAnnouncement

11/09/2019 13:05

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

(“Pan African” or “the Company”)

TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 AND NOTICE OF
RESULTS

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 previous corresponding period.

The group’s presentation currency changed for the financial year ended 30
June 2019 (“current reporting period”) to United States dollars
(“USD”) from pounds sterling (“GBP”). Reporting in USD provides a more
comparable presentation currency for the group’s financial position,
financial performance and cash flow. All group subsidiaries are incorporated
in South Africa and their functional currency is South African rand
(“ZAR”). The group’s business is conducted in ZAR and the accounting
records are maintained in this same currency, except precious metal product
sales, which are conducted in USD prior to conversion into ZAR.

The ZAR:USD exchange rate affects the reporting of results in USD. For the
current reporting period, the average ZAR:USD exchange rate is used and, in
the event of material transactions, the exchange rate on the date of the
transaction is used to translate earnings from ZAR to USD.

During the current reporting period, the average ZAR:USD exchange rate was
R14.19:1 (2018: R12.85:1) and the closing ZAR:USD exchange rate was R14.08:1
(2018: R13.72:1). The year-on-year change in the average and closing exchange
rates of 10.4% and 2.6%, respectively, must be taken into account for the
purposes of translating and comparing year-on-year results. Furthermore, the
weighted average number of shares in issue increased by 6.6% to 1,928.3
million shares (2018: 1,809.7 million shares), following the disposal of 130
million Pan African shares held by PAR Gold (Pty) Ltd on 29 May 2018.

Pan African advises shareholders that its USD earnings per share (“EPS”)
and headline earnings per share (“HEPS”) in respect of its total and
continuing operations for the current reporting period are expected to be as
follows:

                                Year ended            Year ended   30 June 2018          Year ended         
                                              30 June 2019                30 June 2019         
                                            Expected results           Expected USD ranges     
                                               (USD cents)                  % change           
                         Lower range   Upper range       GBP            USD       Lower range  Upper range  
                        (pence) ((4))               (cents) ((3))  
 Total operations                                                                                           
 EPS ((1))                   1.63          2.32         (5.15)         (6.79)         124%         134%     
 HEPS ((2))                  1.14          1.24          0.73           0.99          15%          25%      
 Continuing operations                                                                                      
 EPS ((1))                   1.93          2.02          0.63           0.86          124%         134%     
 HEPS ((2))                  1.12          1.27          1.08           1.46         (23%)        (13%)     

Notes

(1)  EPS in the current reporting period includes the financial impact of a
reversal of an impairment charge of USD17.9 million which was recognised
following commencement of development at Evander Mines’ 8 Shaft Pillar
Project (“Pillar Project”). In the corresponding reporting period,
following the cessation of large-scale underground mining operations at
Evander Mines in May 2018, an impairment charge of USD140.3 million was
recognised of which USD129.5 million related to discontinued operations and
USD10.8 million, which related to the ETRP, was recognised as part of
continuing operations. The reversal of the impairment charge relates
specifically to the property, plant and equipment previously impaired at
Evander Mines in the corresponding reporting period which will be utilised by
the Pillar Project.

(2)  The movement in continuing operations HEPS is predominantly due to:

-     The weighted average number of shares in issue increasing by 6.6%;
and

-     The ZAR:USD exchange rate depreciating by 10.4% to R14.19:1 (2018:
R12.85:1), with the average USD gold price received decreasing by 2.7% to
USD1,266/oz
(2018: USD1,301/oz).

(3)  EPS and HEPS in USD, using the average exchange rates for the
corresponding reporting period.

(4)  As previously presented, given that the corresponding reporting
period’s presentation currency was GBP.

The financial information contained in this announcement has neither been
reviewed nor audited by the company’s auditors. The group’s provisional
summarised audited year-end results for the year ended 30 June 2019 will be
released on 18 September 2019.

For further information on Pan African, please visit the company’s website
at www.panafricanresources.com

11 September 2019

 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/Niel 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                                                                               



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