Pan African Resources PLC Summarised audited results for the year ended 30 June 2024
KEY FEATURES Production
- Group gold production increased by 6.2% to 186,039oz (2023: 175,209oz), in line with guidance Operational enhancements and optimisation initiatives resulted in significant improvements at Barberton Mines’ underground and Elikhulu Tailings Retreatment Plant’s (Elikhulu) surface operations, resulting in annual increases of: Gold production from Fairview and Sheba Mines increased by 13.5% to 65,580oz (2023: 57,778oz) o Elikhulu’s gold production increased by 8.4% to 54,812oz (2023: 50,573oz) Safety,Significant improvement in the Group’s industry-leading safety statistics across all operations Costs and cost outlook.
- All-in sustaining costs (AISCAPM) for the current reporting period of US$1,354/oz (2023: restated US$1,309/oz) at an average exchange rate of US$/ZAR: 18.71, marginally above guidance of between US$1,325/oz to US$1,350/oz, with the delay in commissioning Evander Mines’ subvertical hoisting shaft negatively impacting unit costs.
- AISC of US$1,170/oz (2023: restated US$1,132/oz) for our lower-cost operations, which account for more than 84% (2023: 81%) of annual production. 2025 AISC guidance of between US$1,350/oz and US$1,400/oz (assuming an exchange rate of US$/ZAR:18.50), with the Mogale Tailings Retreatment project’s (MTR project) low-cost production offsetting inflationary pressures Near-term growth projects Surface remining operations The MTR project’s commissioning is in progress, with steady-state production expected by latest December 2024. This US$135.1 million project is expected to be delivered under budget and ahead of schedule. The Barberton Tailings Retreatment Plant’s (BTRP) life-ofmine has been extended to seven years (previously two years), following a successful internal project to reassess feedstock sources, further enhancing the Group’s high-margin, long-life surface remining operations. Underground operations.
- Evander Mines’ 8 Shaft 24 and 25 Level underground expansion project is now scheduled to be completed by the end of September 2024, following delays in the equipping of the ventilation shaft for hoisting o Equipping the 17 to 24 Level subvertical hoisting shaft will significantly increase efficiencies by reducing reliance on the current cumbersome conveyor belt infrastructure for ore transport o 24 Level’s refrigeration plant will be commissioned in phases to facilitate mining at depth o 25 Level mining area access development has commenced Production guidance. 2025 financial year production guidance of 215,000oz to 225,000oz, with the expected increase in production largely attributable to the contribution from the Group’s new MTR project, but potentially impacted by: o The delay in the commissioning of Evander Mines’ subvertical shaft, scheduled to be completed during September 2024, could impact guidance by approximately 5,000oz o Evander Mines’ underground vamping operations and earlier production from the MTR project may offset the impact of the above-mentioned delay Financial.
- Revenue increased by 16.8% to US$373.8 million (2023: restated US$319.9 million). Profit for the year increased by 30.2% to US$78.8 million (2023: restated US$60.5 million).Headline earningsAPM increased by 32.1% to US$79.5 million (2023: restated US$60.2 million). Earnings per share increased by 32.1% to US 4.14 cents per share (2023: restated US 3.18 cents per share) and headline earnings per shareAPM increased by 32.2% to US 4.15 cents per share (2023: restated US 3.14 cents per share) . Net cash generated from operating activities declined by US$9.3million to US$90.8 million (2023: US$100.1 million) Net debtAPM increased to US$106.4 million, mainly as a result of the construction of the MTR project (2023: US$22.0 million) Available cash and undrawn debt facilities at year-end of US$95.0 million (2023: US$84.7 3 million).