20th Dec 2007 07:00
Pan African Resources PLC (`Pan African' or the `Company') Final Results For the period ended 30 June 2007 Pan African Resources PLC (AIM: PAF, AltX: PAN), the African based gold miningand exploration company is pleased to report its final results for the 15 monthperiod ended 30 June 2007.
HIGHLIGHTS OF THE PERIOD UNDER REVIEW
* Acquisition of 90% stake in the Akrokerri gold project, Ghana.
* Increased resource at the Manica gold project, Mozambique to 1,550Moz in situ.
* Commenced drilling at Bogoin gold project, Central African Republic.
* Identified 4 gold-in-soil anomalies at the Dekoa gold project, Central African Republic.
* Loss of ‚£922,450 (18 months ended 31 March 2006: ‚£865,249), representing a loss per share of 0.22p (2006: 0.24p).
POST PERIOD END HIGHLIGHTS
* Acquisition of 74% stake in Barberton Mines (Pty) Limited, South Africa, transforming the Company into a mid tier gold producer.
CHAIRMAN'S STATEMENT
Your Company repositioned itself during 2007 with a major transaction, beingthe acquisition of Barberton Mines (Pty) Ltd, which was completed after theperiod under review. Going into the future, it is now a mid-tier gold Company,with both production ounces and an exciting portfolio of exploration assets.During the fifteen months under review, the Company incurred a loss of ‚£922,450(18 months ended 31 March 2006: ‚£865,249), representing a loss per share of0.22p (2006: 0.24p).On 31 July 2007 your Company acquired Barberton Mines (Pty) Ltd from MetorexLimited in exchange for a new issue of shares resulting in Metorex Limited nowholding a 55% interest in Pan African. At the time of completion, the Companywas granted a secondary listing on the Alternative Exchange (Altx) of the JSELimited in South Africa. Barberton Mines consists of three operational goldmines, Fairview, Sheba and New Consort, situated in the Barberton Greenstonebelt of South Africa, which together produced 90 000 oz of gold in 2007, andthe accounts for the year ended 30 June 2007 showed a net profit beforeinterest, tax and depreciation of ‚£5.8 million. This acquisition lifted yourCompany from a junior exploration Company to a mid-tier exploration and goldproducing Company. The significance of this is that the profits generated fromthe mining operations will be used to fund and increase the exploration effortof the Company.Exploration activities were accelerated during the period. The Manica projectin Mozambique has progressed well, with an independent Pre-Feasibility studygiving encouraging results to date. Further drilling has delineated additionalgold resources, which have been independently verified and are now in excess of1.5 million ounces. This is by far the most advanced exploration site, andduring the coming year, we expect it to be progressed to a full BankableFeasibility Study.In the Central African Republic, soil sampling and Reverse Air Blast (`RAB')drilling has given encouraging results at the Bogoin prospect. Two areas havebeen identified with a combined strike length of 12 km. During 2007, furtherdrilling using a Reverse Circulation (`RC') drill will be undertaken, with theview of delineating and evaluating the resource. At the second concession,Dekoa, crews have been mobilised, and a soil geochemical survey will beconducted. The Central African Republic is a relatively unexplored tenementwhich could prove to be a major gold province.During the period, an agreement was signed with Birim Goldfields Incorporated,to acquire the Akrokerri prospecting concession in Ghana. This concession abutsAnglogold-Ashanti's Obuasi mine. Extensive work has been undertaken over theyears on this concession, and during 2007 this data will be analysed toidentify prospective targets. The Company's exploration projects are robust,and have the potential to deliver significant returns in both the near andmedium term.I believe the outlook for gold remains robust, with a spectacular increase inthe Dollar-denominated gold price during the past year. A lack of explorationinvestment over the past decade has reduced gold output and this, together withthe weakening Dollar, rising oil prices and the sub-prime crisis, has onceagain highlighted gold as a safe haven. These fundamentals are expected toremain, giving support for the price and earnings growth going forward.The Company will continue to aggressively pursue acquisitions of prospectivegold deposits with good upside potential, as well as looking for acquisitionsor Joint Ventures with other gold exploration companies who have provenresources or operating mines which can add to the production ounces and futurecash flows.I would like to welcome Simon Malone and Charles Needham to the Board, whojoined as Metorex Limited representatives upon the Barberton acquisition. Mysincere thanks go to my fellow Directors, particularly to Jan Nelson our CEOand his staff for their efforts during the past year, and finally to mypredecessor, Colin Bird, who during his tenure as Chairman, took the Company towhere it is today.KEITH SPENCERChairman20 December 2007.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Period ended 30 June 2007 15 months to 18 months to 30/06/07 31/03/06 (restated) ‚£ ‚£ Exploration costs (345,208) (464,575) Administrative expenses (609,637) (420,783) Operating loss (954,845) (885,358) Interest receivable 37,195 30,759 Amounts written off investments (4,800)
(10,650)
Loss on ordinary activities before taxation (922,450) (865,249)
Tax on loss on ordinary activities -
- Loss for the financial period (922,450) (865,249) Loss per ordinary share - basic and diluted (0.22p) (0.24p)CONSOLIDATED BALANCE SHEETAs at 30 June 2007 30/06/07 31/03/06 ‚£ ‚£ FIXED ASSETS Intangible assets 6,312,030 4,847,630 Investments - 4,800 6,312,030 4,852,430 CURRENT ASSETS Debtors 294,365 3,225 Cash at bank 326,847 1,874,702 621,212 1,877,927 Creditors: amounts falling due within one year (1,026,493) (399,455) (405,281) 1,478,472 Total assets less current liabilities 5,906,749 6,330,902 CAPITAL AND RESERVES Share capital 4,180,032 4,077,532 Share premium account 4,076,769 3,978,178 Merger reserve 1,560,000 1,485,000 Share option reserve 296,162 73,956 Profit and loss account (4,206,214) (3,283,764) Shareholders' funds 5,906,749 6,330,902
CONSOLIDATED CASH FLOW STATEMENT
Period ended 30 June 2007 15 months to 18 months to 30/06/07 31/03/06 ‚£ ‚£
Net cash outflow from operating activities (559,244) (503,901)
Returns on investments and servicing of finance 37,195
30,759
Capital expenditure and financial investment (1,092,897) (697,170) Financing 67,091 1,820,881 (Decrease)/increase in cash (1,547,855) 650,569
NOTES TO THE FINANCIAL ACCOUNTS
Period ended 30 June 2007
1. Earnings per share
The calculation of basic earnings per ordinary share is based on losses of ‚£922,450 (18 months ended 31 March 2006: ‚£865,249) and on 408,922,095 ordinaryshares (18 months ended 31 March 2006: 354,281,542), being the weighted averagenumber of ordinary shares in issue during the year, calculated as follows:
15 months 18 months ended 30/06/ ended 31/03/ 07 06 (restated) ‚£ ‚£ Losses per financial statements (922,450)
(865,249)
Weighted average number of shares 408,922,095
354,281,542
Loss per share - basic and diluted (0.22p)
(0.24p)
Following the Company's secondary listing on the JSE Limited post year end, the Group is required to disclose its headline loss per share for the period in accordance with the Listings Requirements of the JSE Limited.
Reconciliation between loss per share and headline loss per share:
15 months 18 months ended ended 30/06/ 31/03/06 07 (restated) ‚£ ‚£ Losses per financial statements (922,450)
(865,249)
Costs of aborted projects written off 345,208 464,575 Headline loss (577,242) (400,674) Loss per share - basic and diluted (0.14p)
(0.11p)
2. Comparative figures
The comparative figures were for the eighteen months ended 31 March 2006.
3. Statutory accounts
The financial information set out above does not constitute statutory accountswithin the meaning of s.240 of the Companies Act 1985. The statutory accountsin English only are being distributed to members on 21 December 2007 and willbe available for download from the Company's web site: www.panafricanresources.com.Copies of the statement in English only will be available to the public free ofcharge from the Company at Manfield House, 2nd Floor, 1 Southampton Street,London WC2R 0LR as well as Viewpoint House, Corner Main Road and OrchardAvenue, Bordeaux, Randburg, Gauteng, South Africa during normal office hours,Saturdays, Sundays and bank holidays excepted, for 31 days from today. ENDS
For further information on Pan African Resources plc, please visit the website at www.panafricanresources.com
Enquiries:
Pan African Resources Ambrian Partners Limited Macquarie First South Corporate St. James's Corporate Finance (Pty) Limited Services Limited Amanda Markman Phil DexterJan Nelson CEO Richard Brown +27 (0) 11 343 2307 +44 (20) 7499 3916+27 (0) 11 777 7840 +44 (0) 20 7776 6417 Donĩ Hattingh Richard Greenfield +27 (0) 11 343 2308 +44 (0) 20 7776 6418 Keith Spencer Executive Chairman +27 (0) 11 880 3155 Nicole Stoyell Public Relations +27 (0) 11 777 7840
PAN AFRICAN RESOURCES PLCRelated Shares:
Pan African Resources