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
ISIN: GB0004300496
TRADING STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER
2018
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 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 and, accordingly, its presentation
currency is pounds sterling (“GBP”) with a functional currency in
South African rand (“ZAR” or “R”).
The ZAR:GBP exchange rate affects the reporting of results in
GBP. For the six month reporting period ended 31 December 2018 (“current reporting period”),
the average prevailing ZAR:GBP exchange rate is used, and in the
event of material transactions, the exchange rate on the date of
the material transaction is used to translate earnings from ZAR to
GBP.
For the six months ended 31 December
2017 (“corresponding reporting period”), the average ZAR:GBP
exchange rate was ZAR17.65:1. For the
current reporting period, the ZAR depreciated against the GBP to an
average exchange rate of ZAR18.36:1.
This 4.0% period-on-period depreciation in the average exchange
rate should be taken into account when comparing the current
reporting period’s results with the corresponding reporting
period’s results.
The group records its revenue from precious metals sales in ZAR.
The depreciation in the value of the ZAR/USD exchange rate during
the current reporting period positively impacted the USD revenue
received when translated into ZAR. In the current reporting period,
the average ZAR/USD exchange rate depreciated by 6.0% to
ZAR14.19:1 (2017: ZAR13.39:1).
Due to the cessation of large-scale underground mining at
Evander Gold Mining Proprietary Limited (“Evander Mines”), which
includes 8 Shaft, 7 Shaft and the run-of-mine circuit in the
Kinross metallurgical plant, the
financial results from Evander Mines’ underground operations for
the corresponding reporting period were classified as discontinued
operations (“discontinued operations”). The corresponding reporting
period’s figures have therefore been restated to differentiate
between discontinued operations and the results from the continuing
operations. The combined results comprise the results of the
continuing operations and discontinued operations (“combined
operations”).
In the current reporting period, the group’s weighted average
number of shares in issue increased by 7.2% to 1,928,329,479 shares
(2017: 1,798,329,479 shares). The increase in the weighted average
number of shares in issue is due to the disposal of 130-million Pan
African shares held by PAR Gold Proprietary Limited (“PAR Gold”),
which resulted in a commensurate increase in the weighted average
number of shares in issue, as these shares had previously been
accounted for as treasury shares. The proceeds from the disposal of
the Pan African shares held by PAR Gold were partly used to fund
the incorporation of the existing throughput from the Evander
Tailing Retreatment Plant (“ETRP”) into Elikhulu’s processing
capacity, which resulted in an increased capacity to 1.2-million
tonnes per month.
ZAR range for EPS and HEPS:
Pan African advises shareholders that its earnings per share
(“EPS”) and headline earnings per share (“HEPS”) in ZAR terms, from
its combined operations for the current reporting period, are
expected to be:
- EPS: 116% to 126% higher than the 3.23
cents per share for the corresponding reporting period,
resulting in an expected EPS range of between 6.98 to 7.30 cents per share.
- HEPS: 99% to 109% higher than the 3.51
cents per share for the corresponding reporting period,
resulting in an expected HEPS range of between 6.98 to 7.34 cents per share.
EPS and HEPS, in ZAR terms, from the group’s continuing
operations, for the current reporting period are expected to range
between 8% to 18% higher than the 6.34
cents per share reported in the corresponding reporting
period, resulting in an expected EPS and HEPS range of between 6.85
to 7.48 cents per share.
GBP range for EPS and HEPS:
In GBP terms, EPS and HEPS from the group’s combined operations
for the current reporting period, are expected to be:
- EPS: 112% to 122% higher than the 0.18
pence for the corresponding reporting period, resulting in
an expected EPS range of between 0.38 to 0.40 pence per share.
- HEPS: 90% to 100% higher than the 0.20
pence for the corresponding reporting period, resulting in
an expected HEPS range of between 0.38 to 0.40 pence per share.
In GBP terms, EPS and HEPS from continuing operations for the
current reporting period, are expected to range between 3% to 13%
higher than the 0.36 pence per share
reported in the corresponding reporting period, resulting in an
expected EPS and HEPS range of between 0.37 to 0.41 pence per share.
The financial information contained in this announcement has
neither been reviewed nor audited by the company’s external
auditors. The group’s unaudited interim results for the period
ended 31 December 2018 will be
released on 20 February 2019.
For further information on Pan African, please visit the
company’s website at www.panafricanresources.com.
13 February 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
Facsimile: + 27 (0)11 880 1240 |
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
St James's Corporate Services Limited
Company Secretary
Office: + 44 (0)20 7796 8644 |
John Prior/Paul
Gillam
Numis Securities Limited
Nominated Adviser and Joint Broker
Office: +44 (0)20 7260 1000 |
Marian Gaylard
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
BMO Capital Markets Limited
Joint Broker
Office: +44 (0)20 7236 1010 |
Bobby Morse/Chris
Judd
Buchanan
Public & Investor Relations UK
Office: +44 (0)20 7466 5000
paf@buchanan.uk.com |
Website:
www.panafricanresources.com |