Pan African Resources PLC
("Pan African" or "the Company" or "the Group")
(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
TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017
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 is incorporated in England and Wales under the Companies Act 1985
and accordingly, its presentation currency is Pounds Sterling ("GBP").
The average ZAR:GBP exchange rate affects the reporting of results in GBP. For
the reporting period ended 30 June 2017 ("current reporting period"), the
average prevailing ZAR:GBP exchange rate will be used to translate earnings per
share ("EPS") and headline earnings per share ("HEPS") from ZAR to GBP.
For the reporting period ended 30 June 2016 ("prior reporting period"), the
average ZAR:GBP exchange rate was ZAR21.45:1. For the current reporting period,
the ZAR strengthened against the GBP, with an average exchange rate of
ZAR17.25:1. This 19.6% year-on-year appreciation in the average exchange rate
should be taken into account for purposes of a comparison with the prior
The Group records its revenue from precious metals sales in ZAR. The strength
in the value of the ZAR/USD exchange rate during the period under review had an
adverse impact on the USD metals revenue received when translated into ZAR. In
the current reporting period, the average ZAR/USD exchange rate was 6.3%
stronger at R13.59:1 (2016: R14.51:1).
In the current reporting period the Group's weighted average number of shares
in issue decreased by 13.6% to 1,564,346,115 shares, from 1,811,427,377 shares
in the prior reporting period. This reduction is due to the following:
- For accounting purposes, the weighted average number of shares upon
consolidation excludes the 436,358,058 shares held by PAR Gold Proprietary
Limited ("PAR Gold"). The PAR Gold shares were acquired on 7 June 2016 and, in
the current reporting period, the Group benefitted from a full year exclusion
of these shares in the calculation of the weighted average number of shares
outstanding. In the prior reporting period, these shares were only excluded for
less than a month for the purposes of calculating the weighted average number
of shares in issue.
- In the current reporting period, on 12 April 2017, the Group issued
291,480,983 ordinary shares to fund the equity component of the Elikhulu
tailings retreatment plant's construction.
Shareholders are referred to the recent Group operational update released on 20
July 2017, which highlighted the Group's production performance for the year
ended 30 June 2017.
Pan African advises shareholders that its EPS and HEPS for the current
reporting period are expected to be between:
1) EPS: 39% to 29% lower than the 30.20 cents for the prior reporting period
(being expected EPS of 18.30 cents to 21.32 cents).
2) HEPS: 38% to 28% lower than the 30.20 cents for the prior reporting period
(being expected HEPS of 18.66 cents to 21.68 cents).
Using the average ZAR:GBP 17.25:1 exchange rate that prevailed during the
current reporting period, the Group's EPS and HEPS in GBP terms for the current
reporting period are expected to be between:
1) EPS: 24% to 13% lower than the 1.41 pence for the prior reporting period
(being expected EPS of 1.07 pence to 1.22 pence).
2) HEPS: 22% to 12% lower than the 1.41 pence for the prior reporting period
(being expected HEPS of 1.10 pence to 1.24 pence).
Phoenix Platinum (Pty) Ltd. and Uitkomst Colliery (Pty) Ltd. were classified as
discontinued operations at the end of the current reporting period, therefore
the EPS and HEPS guidance provided above comprises earnings from discontinued
and continued operations. There were no discontinued operations in the prior
The Group's audited year end results for the year ended 30 June 2017 will be
released on 21 September 2017.
For further information on Pan African, please visit the Company's website at
18 August 2017
The Firs Office Building
1st Floor, Office 101
Cnr. Cradock and Biermann Avenues
Office: + 27 (0) 11 243 2900
Facsimile: + 27 (0) 11 880 1240
Office: + 44 (0) 20 7796 8644
Facsimile: + 44 (0) 20 7796 8645
Cobus Loots Deon Louw
Pan African Resources PLC Pan African Resources PLC
Chief Executive Officer Financial Director
Office: + 27 (0) 11 243 2900 Office: + 27 (0) 11 243 2900
Phil Dexter John Prior / Paul Gillam
St James's Corporate Services Limited Numis Securities Limited
Company Secretary Nominated Adviser and Joint Broker
Office: + 44 (0) 20 7796 8644 Office: +44 (0) 20 7260 1000
Sholto Simpson Matthew Armitt / Ross Allister
One Capital Peel Hunt LLP
JSE Sponsor Joint Broker
Office: + 27 (0) 11 550 5009 Office: +44 (0) 20 7418 8900
Julian Gwillim Jeffrey Couch/Neil Haycock/Thomas Rider
Aprio Strategic Communications BMO Capital Markets Limited
Public & Investor Relations SA Joint Broker
Office: +27 (0)11 880 0037 Office: +44 (0) 20 7236 1010
Bobby Morse/Chris Judd
Public & Investor Relations UK
Office: +44 (0) 207 466 5000