REG-Pan African Resources Plc: Trading Statement

Pan African ResourcesAnnouncement

01/09/2020 07:20

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

ADR ticker code: PAFRY

(Pan African or the Company or the Group)

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 (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 previous corresponding period.

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

The US$/ZAR exchange rate affects the reporting of results in US$. The average
US$/ZAR exchange rate is used in translating ZAR results into US$.

During the Reporting Period, the average US$/ZAR exchange rate was
US$/ZAR:15.67 (2019: US$/ZAR:14.19), and the closing US$/ZAR exchange rate at
30 June 2020 was US$/ZAR:17.33 (2019: US$/ZAR:14.08).

The year-on-year change in the average and closing exchange rates of 10.4% and
23.1%, respectively, must be considered when comparing period-on-period
results. The weighted average number of outstanding shares remained unchanged
at 1,928.3 million shares (2019: 1,928.3 million shares).

Pan African advises shareholders that its headline earnings per share (HEPS)
and earnings per share (EPS), in respect of its operations for the current
Reporting Period, are expected to be as follows:
* HEPS of between US 2.23 cents per share and US 2.35 cents per share compared
to US 1.19 cents per share for the previous corresponding period, being an
increase of between 87% and 97% respectively for the Reporting Period.
* EPS of between US 2.20 cents per share and US 2.40 cents per share compared
to US 1.97 cents per share for the previous corresponding period, being an
increase of between 12% and 22% respectively for the Reporting Period.
The considerable improvement in EPS and HEPS are primarily due to the
following:
* Gold revenue increased by 25.9% to US$273.7 million (2019: US$217.4 million)
predominantly due to an increase in gold sold of 1.3% to 173,864oz (2019:
171,706oz) and the average US$ gold price received increasing by 24.3% to
US$1,574/oz (2019: US$1,266/oz)
* An impairment charge reversal of US$0.1 million (net of tax) for the year
ended 30 June 2020 (2019: US$15.1 million) was excluded from the calculation
of HEPS. Impairment charges and any subsequent reversal thereof, are included
in the calculation of EPS.
The financial information contained in this announcement has neither been
reviewed nor audited by the Company’s auditors. The Group’s audited
results for the year ended 30 June 2020 will be released on 16 September 2020.

Rosebank

1 September 2020

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 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                                                                      Hethen Hira Pan African Resources PLC Head : Investor Relations Tel: + 27 (0)11 243 2900 E-mail: hhira@paf.co.za   
 Ciska Kloppers Questco Corporate Advisory Proprietary Limited JSE Sponsor Office: + 27 (0)11 011 9200                                                                             Ross Allister/David McKeown Peel Hunt LLP Nominated Adviser and Joint Broker Office: +44 (0)20 7418 8900           
 Thomas Rider/Neil Elliot BMO Capital Markets Limited Joint Broker Office: +44 (0)20 7236 1010                                                                                                                                                                                                        
 Website: www.panafricanresources.com                                                                                                                                                                                                                                                                 



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