Pan African Regulatory News (PAF)

Pan African Resources PLC('Pan African Resources' or the 'company' or the 'group')(Incorporated and registered on 25 February 2000 in England and Wales under theCompanies Act 1985, registration number 3937466)Share code on AIM: PAFShare code on JSE: PANISIN: GB0004300496 Provisional audited results for the year ended 30 June 2014 Key features and highlights Key features reported in South African rand ('ZAR') and pound sterling ('GBP') - The group's gold sold increased by 44.2% to 188,179oz (2013: 130,493oz). - Group headline earnings6 decreased by 7.2% to ZAR452.0 million (2013:ZAR487.0 million). As previously announced, headline earnings were impacted by,inter alia, the low grade mining cycle at Evander Gold Mining Pty Ltd and loweraverage gold price received. - For the first time, Phoenix Platinum Pty Ltd was both cash generative andprofitable in the 2014 financial year. - Gold mineral reserve inventory increased by 9.8% to 10.1Moz (2013: 9.2Moz). - Gold mineral resource inventory decreased by 4.6% to 33.5Moz (2013:35.1Moz). - The group has proposed a final dividend of ZAR0.1410 or approximately0.7898p7 per share or ZAR258.0 million (approximately GBP14.5 million) forapproval by shareholders at the annual general meeting in November 2014. - A dividend of ZAR0.1314 or (0.8030p) per share (2013: Nil) or ZAR240.3million (GBP14.7 million) was paid during December 2013 in relation to the 2013financial years results. - Net debt for the group increased marginally to ZAR101.0 million (2013:ZAR93.6 million). Metric For the year end 30 June 2014 (ZARRevenue millions - 2,608.8 154.6 GBP millions) Average gold price received (ZAR/kg - 433,437 1,303 USD/oz) Cash costs (ZAR/kg - 298,345 897.0 USD/oz) All-in sustaining cash cost (ZAR/kg - 349,008 1,049 USD/oz) All-in costs (ZAR/kg - 374,015 1,124 USD/oz) (ZARAdjusted EBITDA1 millions - 745.5 44.2 GBP millions) (ZARAttributable earnings millions - 452.1 26.8 GBP millions) Earnings per share ('EPS') (cents - 24.74 1.47 pence) Headline earnings per share ('HEPS') (cents - 24.74 1.47 pence) (ZARGroup capital expenditure millions - 363.0 21.5 GBP millions) Net asset value per share (cents - 152.4 8.7 pence) Weighted average number of shares in issue (millions) 1,827.2 1,827.2 Average exchange rate (ZAR:GBP - 16.88 10.35 ZAR:USD) Closing exchange rate (ZAR:GBP - 18.01 10.59 ZAR:USD) For the year end 30 June 2013 Movement Revenue 1,848.1 133.5 41.2% 15.8% Average gold price received 440,824 1,553 (1.7%) (16.1%) Cash costs 231,439 815.0 28.9% 10.1% All-in sustaining cash cost 281,551 992 24.0% 5.7% All-in costs 343,949 1,212 8.7% (7.3%) Adjusted EBITDA1 735.2 53.1 1.4% (16.8%) Attributable earnings 558.9 42.6 (19.1%) (37.1%) Earnings per share ('EPS') 34.51 2.63 (28.3%) (44.1%) Headline earnings per share ('HEPS') 30.07 2.17 (17.7%) (32.3%) Group capital expenditure 381.6 27.6 (4.9%) (22.1%) Net asset value per share 140.9 9.5 8.1% (8.4%) Weighted average number of shares in issue 1,619.8 1,619.8 12.8% 12.8% Average exchange rate 13.84 8.83 22.0% 17.2% Closing exchange rate 15.01 9.88 20.0% 7.2% Ron Holding, CEO of Pan African Resources commented: "Pan African Resources ispleased with another satisfactory performance from Barberton Mines, whilstEvander Mines results were impacted negatively by the low grade mining cycle.Increased dividends and a new progressive dividend policy demonstrates theboard and management's confidence in the quality of our assets and EvanderMine's future performance. Our statement of financial position remains strong,whilst cash generative assets and internal projects will provide the platformfor further profitable growth". Operational Barberton Mines Pty Ltd ('Barberton Mines') Combined Barberton Mines Operations - Gold sold increased by 15.9% to 111,623oz (2013: 96,296oz). - Revenue increased by 11.9% to ZAR1,511.1 million (2013: ZAR1,350.3 million). - Adjusted EBITDA decreased by 1.4% to ZAR614.0 million (2013: ZAR622.9million). - Cash cost per kilogram increased by 8.2% to ZAR239,496/kg(2013: ZAR221,424/kg). - All-in sustaining cash cost per kilogram increased by 3.3% to ZAR282,716/kg(2013: ZAR273,653/kg). - All-in cost per kilogram decreased by 13.8% to ZAR302,058/kg (2013:ZAR350,302/kg). - Average underground head grade of 11.5g/t (2013: 11.8g/t). - The operation regretfully reports three fatalities (2013: two fatalities). Barberton Mines (Underground and surface mining operations8) - Production was negatively affected by flooding at Sheba Mine and technicaldifficulties at the BIOX ® plant, both of these issues were subsequentlyresolved. - Gold sold decreased by 7.8% to 88,738oz (2013: 96,296oz). - Revenue decreased by 11.0% to ZAR1,201.9 million (2013: ZAR1350.3 million). - Adjusted EBITDA decreased by 32.4% to ZAR420.9 million (2013: ZAR622.9million). - Cash cost per kilogram increased by 17.0% to ZAR258,972/kg (2013: ZAR221,424/kg). - All-in sustaining cash cost per kilogram increased by 13.9% to ZAR311,756/kg(2013: ZAR273,653/kg). - All-in cost per kilogram decreased by 8.3% to ZAR321,342/kg (2013:ZAR350,302/kg). - Life of mine increased to 19 years (2013: 17 years). Barberton Tailings Retreatment Plant ('BTRP') (Tailings operation) - Production commenced on 1 July 2013. - Gold sold contribution of 22,885oz for the year to Barberton Mines. - Revenue generated of ZAR309.2 million. - Adjusted EBITDA generated of ZAR193.1 million. - Cash cost per kilogram achieved of ZAR163,977/kg or USD493/oz. - All-in sustaining cash cost per kilogram achieved of ZAR170,111/kg or USD511/oz. - All-in cost per kilogram achieved of ZAR227,286/kg or USD683/oz. - Total capital expenditure spent on the project was ZAR313.6 million, fundedinternally from cash generated by Barberton Mines2. - Life of mine increased to 15 years (2013: 12 years). Evander Gold Mining Pty Ltd ('Evander Mines') - Gold sold decreased by 19.5% to 76,556oz (2013: 95,089oz3). - Revenue decreased by 22.9% to ZAR1,025.8 million (2013: ZAR1,330.9million3). - Construction of the Evander Tailing Retreatment Plant ('ETRP') hascommenced, with production expected by January 2015. - Cash costs per kilogram achieved increased by 36.0% to ZAR384,150/kg (2013:ZAR282,451/kg3). - All-in sustaining cash costs per kilogram achieved increased by 29.2% toZAR445,665/kg (2013: ZAR345,006/kg3). - All-in cost per kilogram achieved increased due to the low grade miningcycle and capital spent on the ETRP by 28.5% to ZAR478,933 (2013: ZAR372,707/kg3.) - Adjusted EBITDA generated of ZAR128.3 million (2013: ZAR152.2 million forthe 4 months consolidated). - As result of the lower grade mining cycle the underground head gradedecreased to 5.2g/t (2013: 7.4g/t3), this low grade mining cycle will continueuntil February 2015. - The operation regretfully reports one fatality (2013: one fatality). - Life of mine increased to 17 years (2013: 14 years). Phoenix Platinum Mining Pty Ltd ('Phoenix Platinum') - Phoenix Platinum was both cash generative and profitable for the first timein the 2014 financial year. - Phoenix Platinum headline earnings increased to ZAR3.7 million (2013: ZAR6.4million headline loss). - PGE 4 production increased by 11.2% to 7,204oz (2013: 6,480oz). - Revenue increased by 22.1% to ZAR71.9 million (2013: ZAR58.9 million). - The average PGE net revenue price received increased by 9.8% to ZAR9,987/oz(2013: ZAR9,093/oz5). - Cost per ton increased by 24.7% to ZAR222/t (2013: ZAR178/t) due to reducedtonnages processed whilst addressing the inhibiting talc in the tailings feed. - Cost per ounce of production increased by 2.3% to ZAR7,723/oz (2013:ZAR7,551/oz). - Adjusted EBITDA increased by 131.9% to ZAR16.0 million (2013: ZAR6.9million). - Life of mine increased to 28 years (2013: 20 years). Notes: Adjusted EBITDA is represented by earnings before interest, taxation,depreciation and amortisation, bargain purchase gain, impairments and loss ondisposal of assets held for sale. BTRP capital expenditure relates directly to plant and tailings storagefacility construction, and excludes additional Harper tailings and theassociated land purchased in the prior years for ZAR12.1 million. Evander Mines prior year production results were obtained from Harmony GoldMining Company Ltd ('Harmony'), for comparative purposes only. The prior yearEvander Mines cost per kilogram figures were recalculated based on historicalfinancial records to allow for consistent reporting with the group's currentgold operations. Therefore the values may vary from Harmony previously reportedvalues. The group commenced consolidating the Evander Mines results from 1March 2013 for accounting purposes. PGE's are platinum, palladium, rhodium and gold. Phoenix Platinum average PGE net revenue price received represents the valuereceived per ounce following refining and therefore is net of refining charges. Refer to the profit after taxation to headline earnings reconciliation in thestatement of comprehensive income. The GBP proposed dividend was calculated based on an exchange rate of ZAR17.85:1. The UK shareholders are to note that a revised exchange rate will becommunicated prior to final approval at the AGM. Therefore the proposeddividend is approximately 0.7898p per share. Barberton Mines surface mining operations refer to historical surface wasterock dumps located at Fairview and Sheba Mines that are currently beingprocessed. Nature of business Pan African Resources is a mid-tier African-focussed precious metals producerwith a production capacity in excess of 200,000oz gold and 12,000oz platinumper annum. The group's assets include: Barberton : three gold mines and the BTRP in MpumalangaMines Evander Mines : a gold mine in Mpumalanga Phoenix : the Chrome Tailing Retreatment Plant ('CTRP') in the NorthPlatinum West province Pan African Resources' growth strategy is aimed at achieving and improvingmargins while driving ongoing growth in our Mineral Reserve base. We aim tocapture the full precious metals mining value chain and maximise shareholdervalue by exploiting opportunities in the group and in the broader sector. The group remains cash generative at the current gold price, with the abilityto fund all on-mine capital expenditure internally and also meet its otherfunding and growth commitments. Financial Performance Key external drivers of the group's results Exchange rates and their impact on results All of the group's subsidiaries are incorporated in South Africa and theirfunctional currency is ZAR. The group's business is conducted in ZAR and theaccounting records are maintained in this same currency, with the exception ofprecious metal product sales, which are conducted in USD prior to conversioninto ZAR. The ongoing review of the results of operations conducted byexecutive management and the board is also performed in ZAR. The group's presentation currency is GBP due to its ultimate holding company,Pan African Resources plc, being incorporated in England and Wales and alsobeing dual-listed in the United Kingdom and South Africa. In the year under review the average ZAR/GBP exchange rate was ZAR16.88:1(2013: ZAR13.84:1) and the closing ZAR/GBP exchange rate was ZAR18.01:1 (2013: ZAR15.01:1). The year-on-year change in the average and closing exchange ratesof 22.0% and 20.0%, respectively, must be taken into account for the purposesof translating and comparing year-on-year results. The group converts and records its revenue from precious metals sales in ZAR,and the deterioration in the value of the ZAR/USD exchange rate during the yearhad a compensating effect on the weaker USD metals price revenue received. Theaverage ZAR/USD exchange rate was 17.2% weaker at ZAR10.35:1 (2013: ZAR8.83:1). The commentary below analyses the current and prior year's results. Key aspectsof the group's ZAR results appear in the body of this commentary and have beenused as the basis against which its financial performance is measured. Thegross GBP equivalent figures can be calculated by applying the exchange ratesas detailed above. Commodity prices During the course of the year a lower average USD gold price was achieved whencompared to the prior year. The group realised an average gold price ofUSD1,303/oz, a decrease of 16.1% from the USD1,553/oz achieved in the prioryear. The market PGE basket price received (applying the Phoenix Platinum prillsplit) during the year decreased by 9.0% to USD1,122/oz (2013: USD1,233/oz).Phoenix Platinum achieved an average PGE basket price of USD965/oz (2013:USD1,030/oz), after taking into account the terms of its off-take agreementwith Western Platinum Limited. The average ZAR gold price received by the group decreased by 1.7% toZAR433,437/kg (2013: ZAR440,824/kg), partially shielded by the weakening of theZAR against the USD exchange rate. The average ZAR PGE basket price received by the group increased by 9.8% toZAR9,987/oz (2013: ZAR9,093/oz), also benefitting from the weaker ZAR. Statement of Comprehensive Income For the year ended 30 June 2014 For the year ended 30 June 2013 ZAR (millions) GBP (millions) ZAR (millions) GBP (millions) Revenue 2,608.8 154.6 1,848.1 133.5 Cost of production (1,795.9) (106.4) (985.1) (71.2) Mining profit 637.8 37.8 776.8 56.1 Adjusted EBITDA 745.5 44.2 735.2 53.1 Profit after taxation 452.1 26.8 558.9 42.6 Headline earnings 452.0 26.8 487.0 35.2 EPS (cents - pence) 24.74 1.47 34.51 2.63 HEPS (cents - pence) 24.74 1.47 30.07 2.17 Weighted average number of shares in issue (millions) 1,827.2 1,827.2 1,619.8 1,619.8 Movement ZAR GBP Revenue 41.2% 15.8% Cost of production 82.3% 49.4% Mining profit (17.9%) (32.6%) Adjusted EBITDA 1.4% (16.8%) Profit after taxation (19.1%) (37.1%) Headline earnings (7.2%) (23.9%) EPS (cents - pence) (28.3%) (44.1%) HEPS (cents - pence) (17.7%) (32.3%) Weighted average number of shares in issue (millions) 12.8% 12.8% The 2014 group results include a full year of operations for Evander Mines,whilst the comparative 2013 period only included 4 months of operations, fromthe date that Evander Mines was acquired from Harmony. Group revenue year-on-year increased by 41.2% to ZAR2,608.8 million (2013:ZAR1,848.1 million). Of this increase, Evander Mines contributed ZAR586.9million, Barberton Mines contributed ZAR160.8 million and Phoenix Platinumcontributed ZAR13.0 million, resulting in a ZAR760.7 million total increaseyear-on-year. Barberton Mines grew revenue as a result of an increase in gold ounces sold,with the commissioning of the BTRP on 1 July 2013. Evander Mines' revenueincreased as result of consolidating a full year's production revenue comparedto only four months post acquisition revenue in the prior year. PhoenixPlatinum recorded an increase in revenue due to selling more ounces of PGE's athigher prices. Pan African Resources' year-on-year total cost of production reflects anincrease of ZAR810.8 million to ZAR1,795.9 million (2013: ZAR985.1 million), ofwhich Barberton Mines' contributed ZAR166.2 million , Evander Mines ZAR637.9million and Phoenix Platinum ZAR6.7 million. The group's cost of production per kilogram increased by 28.9% to ZAR298,345/kg(2013: ZAR231,439/kg). Evander Mines' cost of production averaged ZAR384,150/kgcompared to Barberton Mines' average cost of production of ZAR239,496/kg. The group's all-in sustaining cash cost of production per kilogram (includingdirect cost of production, royalties, associated corporate costs and overheadsand sustaining capital expenditure) increased by 24.0% to ZAR349,008/kg (2013:ZAR 281,551/kg), largely impacted by Evander Mines' lower grade mining cycle. The all-in cost per kilogram (sustaining cost of production and once-offexpansion capital) increased by 8.7% to ZAR374,015/kg (2012: ZAR 343,949/kg),due to: Lower gold ounces sold as a result of the Evander Mines low grade mining cycleand Barberton Mines reduced underground gold ounce sold as result of the ShebaMines flooding. Once-off capital expenditure required to construct the ETRP amounted to ZAR79.2million. The construction of the ETRP is currently funded by a ZAR200 milliongold loan facility with a remaining term of 3.5 years. Barberton Mines incurred additional once-off capital totalling ZAR26.5 million(2013: ZAR2.6 million) on four additional raise boreholes to improveenvironmental conditions underground. The improved overall production performance at Barberton Mines was as a resultof the commissioning of the BTRP, which contributed an additional 22,885oz ofgold production. The group's Adjusted EBITDA remained largely in line with theprevious year, with a small increase of 1.4% to ZAR745.5 million (2013:ZAR735.2 million). Profit after taxation decreased by 19.1% to ZAR452.1 million (2013: ZARZAR558.9 million), primarily due to the points highlighted in the HEPS movementbelow, as well as prior year's results which included a net once-off incomeamount of ZAR71.9 million as summarised below: Evander Mines acquisition bargain purchase gain of ZAR322.4 million; Impairment charges of ZAR242.3 million related to Phoenix Platinum and AurochMinerals NL ('Auroch'); Loss on sale of asset held for sale of ZAR8.2 million (also related to Auroch). The group's EPS in ZAR was 24.74 cents (2013: 34.51 cents) a decrease of 28.3%. The group posted a 7.2% decrease in headline earnings to ZAR452.0 million(2013: ZAR487.0 million). The group's HEPS in ZAR terms decreased by 17.7% to24.74 cents (2013: 30.07 cents). The HEPS decreased due to the following reasons: The low grade mining cycle at Evander Mines, which resulted in reducedproduction and profits compared to the prior year; Barberton Mines underground production decreased largely as result of floodingat Sheba Mine during March 2014, this was however off-set by the additionalgold production contributed to the group by the commissioning of the BTRP; The group realised a 1.7% decrease in the average ZAR gold price received toZAR433,437/kg (2013: ZAR440,824/kg), whilst our production costs were subjectto inflationary increases. The weighted average number of shares in issue increased by 12.8% during theyear to 1,827.2 million (2013: 1,619.8 million). This increase was due to thenew shares issued in January 2013 in the rights issue to shareholders, topartly fund the acquisition of Evander Mines. The group's total taxation charge decreased by 28.1% to ZAR120.8 million (2013:ZAR167.9 million) due to: a decrease in deferred taxation as result of an adjustment to Evander Mines'long-term deferred taxation rate to 26.5% (2013: 28%). a reduction in gold profit margins due to the lower average ZAR gold price andmargins in the year under review when compared to the prior year. Statement of Financial Position For the year ended 30 June 2014 For the year ended 30 June 2013 Movement ZAR (millions) GBP (millions) ZAR (millions) GBP (millions) ZAR GBP Non-current assets 3,941.5 223.4 3,726.2 249.3 5.8% (10.4%) Current assets1 423.4 23.5 401.5 26.7 5.5% (12.0%) Total equity 2,788.4 159.4 2,568.8 172.2 8.5% (7.4%) Non-current liabilities 1,144.1 63.5 1,200.9 80.0 (4.7%) (20.6%) Current liabilities 432.4 24.0 361.2 24.1 19.7% (0.4%) Notes: 1. Current assets at 30 June 2013 exclude non-current assets held for sale ofZAR3.2 million (GBP0.2 million),relating to Barberton Mines' Segalla Plant. Non-current assets increased by 5.8% to ZAR3,941.5 million (2013: ZAR3726.2million). The increase was partly attributable to further capital expenditureat Evander Mines for the construction of the ETRP, expected to commenceproduction in January 2015. The group's capital expenditure by operation ofZAR363.0 million (2013: ZAR381.6 million) is disclosed below and alsocontributed to the increase in non-current assets. Included in non-currentassets is also the rehabilitation trust fund balance of ZAR278.4 million (2013:ZAR254.8 million), which increased by ZAR23.6 million as a result of growth ininvestments. The rehabilitation trust fund's amount is invested ininterest-bearing short-term investments or medium-term equity linked notesissued by commercial banks. Capital expenditure during the year amounted to ZAR363.0 million (2013:ZAR381.6 million), and is detailed by operation below: 2014 2013 Group capital expenditure ZAR (millions) GBP (millions) ZAR (millions) GBP (millions) Barberton Mines 110.3 6.5 87.2 6.3 BTRP 40.7 2.4 229.6 16.6 Evander Mines 131.3 7.8 62.4 4.5 ETRP 79.2 4.7 - - Phoenix Platinum 0.4 - 2.2 0.2 Corporate 1.1 0.1 0.2 - Total capital expenditure 363.0 21.5 381.6 27.6 Current assets increased by 5.5% to ZAR423.4 million (2013: ZAR401.5 million)as a result of an increase in cash on hand to ZAR101.2 million (2013:ZAR71.6). The group remains cash generative with a net debt position ofZAR101.0 million (2013: ZAR93.6 million) at year-end, which includes the goldloan outstanding with ABSA. The increase in the group's equity is a result of an increase in retainedearnings, due to this year's profit after tax of ZAR452.1 million, less thedividend paid of ZAR240.3 million in December 2013. Non-current liabilities decreased by 4.7% to ZAR1,144.1 million (2013:ZAR1,200.9 million). The decrease is a result of a 3.8% decrease in thedeferred taxation liability to ZAR780.8 million (2013: ZAR811.3 million) due toa downward revision of the long-term effective tax rate at Evander Mines to26.5% (2013: 28%). The deferred taxation rate applied to calculate the deferredtax liability is based on the effective statutory taxation rate at which thedeferred taxation liability is estimated to be realised over the life of theoperation. Current liabilities increased by 19.7% to ZAR432.4 million (2013: ZAR361.2million). The majority of the increase is attributable to an increase in thecurrent portion of new long-term debt related to ABSA gold loan and an increasein the current taxation liability from the prior year. Operational Performance Review of group gold operations production summary Year Units Underground and surface Tailings ended operations operations 30 June Barberton Evander Total BTRP Mines Mines1 Tonnes milled - underground 2014 (t) 263,574 395,127 658,701 - 2013 (t) 274,398 127,957 402,355 - Tonnes milled - surface 2014 (t) 28,547 260,901 289,448 - 2013 (t) 36,086 74,428 110,514 - Tonnes milled - total underground and surface 2014 (t) 292,121 656,028 948,149 - 2013 (t) 310,484 202,385 512,869 - Tonnes processed - tailings 2014 (t) - - - 815,736 2013 (t) - - - - Headgrade - underground 2014 (g/t) 11.5 5.2 7.7 - 2013 (g/t) 11.8 7.8 10.5 - Headgrade - surface 2014 (g/t) 1.3 1.4 1.4 - 2013 (g/t) 1.5 1.2 1.3 - Headgrade - total underground and surface 2014 (g/t) 10.5 3.7 5.8 - 2013 (g/t) 10.6 5.4 8.6 - Headgrade - tailings 2014 (g/t) - - - 1.6 2013 (g/t) - - - - Recovered grade 2014 (g/t) 9.4 3.6 5.4 0.9 2013 (g/t) 9.6 5.1 7.9 - Overall recovery 2014 (%) 90% 96% 92% 56% 2013 (%) 91% 96% 92% - Gold production - underground 2014 (oz) 87,979 65,956 153,935 - 2013 (oz) 95,135 31,522 126,657 - Gold production - surface 2014 (oz) 759 10,600 11,359 - 2013 (oz) 1,161 2,675 3,836 - Gold production - tailings 2014 (oz) - - - 22,885 2013 (oz) - - - - Gold sold 2014 (oz) 88,738 76,556 165,294 22,885 2013 (oz) 96,296 34,197 130,493 - Average ZAR gold price received 2014 (ZAR/KG) 435,464 430,801 433,304 434,394 2013 (ZAR/KG) 450,829 412,641 440,824 - Average USD gold price received 2014 (USD/oz) 1,309 1,295 1,302 1,305 2013 (USD/oz) 1,588 1,454 1,553 - ZAR cash cost 2014 (ZAR/KG) 258,972 384,150 316,948 163,977 2013 (ZAR/KG) 221,424 259,640 231,439 - ZAR all-in sustaining cash costs 2014 (ZAR/KG) 311,756 445,665 373,776 170,111 2013 (ZAR/KG) 273,653 303,790 281,551 - ZAR all-in cost 2014 (ZAR/KG) 321,342 478,933 394,330 227,286 2013 (ZAR/KG) 350,302 326,061 343,949 - USD cash cost 2014 (USD/oz) 778 1,154 952 493 2013 (USD/oz) 780 915 815 - USD all-in sustaining cash cost 2014 (USD/oz) 937 1,339 1,123 511 2013 (USD/oz) 964 1,070 992 - USD all-in cost 2014 (USD/oz) 966 1,439 1,185 683 2013 (USD/oz) 1,234 1,149 1,212 - ZAR cash cost per ton 2014 (ZAR/t) 2,447 1,394 1,719 143 2013 (ZAR/t) 2,153 1,366 1,832 - Capital expenditure 2014 (ZAR million) 110.3 210.5 320.8 40.7 2013 (ZAR million) 316.8 62.4 379.2 - Average exchange rate 2014 (ZAR/USD) 10.35 10.35 10.35 10.35 2013 (ZAR/USD) 8.83 8.83 8.83 8.83 Revenue 2014 (ZAR million) 1,201.9 1,025.8 2,227.7 309.2 2013 (ZAR million) 1,350.3 438.9 1,789.2 - Cost of Production 2014 (ZAR million) 714.8 914.7 1,629.5 116.7 2013 (ZAR million) 663.2 276.2 939.4 - All-in sustainable cost of production 2014 (ZAR million) 860.5 1,061.2 1,921.7 121.1 2013 (ZAR million) 819.6 323.1 1,142.7 - All-in cost of production 2014 (ZAR million) 886.9 1,140.4 2,027.3 161.8 2013 (ZAR million) 1,049.2 346.8 1,396.0 - Adjusted EBITDA2 2014 (ZAR million) 420.9 128.3 549.2 193.1 2013 (ZAR million) 622.9 152.2 775.1 - Review of group gold operations production summary Year Units Total continuing ended operations 30 June Barberton Evander Group Mines Mines Total Total Total1 Tonnes milled - underground 2014 (t) 263,574 395,127 658,701 2013 (t) 274,398 127,957 402,355 Tonnes milled - surface 2014 (t) 28,547 260,901 289,448 2013 (t) 36,086 74,428 110,514 Tonnes milled - total underground and surface 2014 (t) 292,121 656,028 948,149 2013 (t) 310,484 202,385 512,869 Tonnes processed - tailings 2014 (t) 815,736 - 815,736 2013 (t) - - - Headgrade - underground 2014 (g/t) 11.5 5.2 7.7 2013 (g/t) 11.8 7.8 10.5 Headgrade - surface 2014 (g/t) 1.3 1.4 1.4 2013 (g/t) 1.5 1.2 1.3 Headgrade - total underground and surface 2014 (g/t) 10.5 3.7 5.8 2013 (g/t) 10.6 5.4 8.6 Headgrade - tailings 2014 (g/t) 1.6 - 1.6 2013 (g/t) - - - Recovered grade 2014 (g/t) 3.1 3.6 3.3 2013 (g/t) 9.6 5.1 7.9 Overall recovery 2014 (%) 80% 96% 86% 2013 (%) 91% 96% 92% Gold production - underground 2014 (oz) 87,979 65,956 153,935 2013 (oz) 95,135 31,522 126,657 Gold production - surface 2014 (oz) 759 10,600 11,359 2013 (oz) 1,161 2,675 3,836 Gold production - tailings 2014 (oz) 22,885 - 22,885 2013 (oz) - - - Gold sold 2014 (oz) 111,623 76,556 188,179 2013 (oz) 96,296 34,197 130,493 Average ZAR gold price received 2014 (ZAR/KG) 435,244 430,801 433,437 2013 (ZAR/KG) 450,829 412,641 440,824 Average USD gold price received 2014 (USD/oz) 1,346 1,295 1,303 2013 (USD/oz) 1,588 1,454 1,553 ZAR cash cost 2014 (ZAR/KG) 239,496 384,150 298,345 2013 (ZAR/KG) 221,424 259,640 231,439 ZAR all-in sustaining cash costs 2014 (ZAR/KG) 282,716 445,665 349,008 2013 (ZAR/KG) 273,653 303,790 281,551 ZAR all-in cost 2014 (ZAR/KG) 302,058 478,933 374,015 2013 (ZAR/KG) 350,302 326,061 343,949 USD cash cost 2014 (USD/oz) 740 1,154 897 2013 (USD/oz) 780 915 815 USD all-in sustaining cash cost 2014 (USD/oz) 874 1,339 1,049 2013 (USD/oz) 964 1,070 992 USD all-in cost 2014 (USD/oz) 934 1,439 1,124 2013 (USD/oz) 1,234 1,149 1,212 ZAR cash cost per ton 2014 (ZAR/t) 751 1,394 990 2013 (ZAR/t) 2,153 1,366 1,832 Capital expenditure 2014 (ZAR million) 151.0 210.5 361.5 2013 (ZAR million) 316.8 62.4 379.2 Average exchange rate 2014 (ZAR/USD) 10.06 10.35 10.35 2013 (ZAR/USD) 8.83 8.83 8.83 Revenue 2014 (ZAR million) 1,511.1 1,025.8 2,536.9 2013 (ZAR million) 1,350.3 438.9 1,789.2 Cost of Production 2014 (ZAR million) 831.5 914.7 1,746.2 2013 (ZAR million) 663.2 276.2 939.4 All-in sustainable cost of production 2014 (ZAR million) 981.6 1,061.2 2,042.8 2013 (ZAR million) 819.6 323.1 1,142.7 All-in cost of production 2014 (ZAR million) 1,048.7 1,140.4 2,189.1 2013 (ZAR million) 1,049.2 346.8 1,396.0 Adjusted EBITDA2 2014 (ZAR million) 614.0 128.3 742.3 2013 (ZAR million) 622.9 152.2 775.1 Note: Evander Mines 2013 production summary information represents 4 monthsproduction information following the acquisition of Evander Mines on 28February 2013. Adjusted EBITDA is represented by earnings before interest, taxation,depreciation and amortisation, bargain purchase gain, impairments and loss ondisposal of assets held for sale. Review of Barberton Mines Safety Although zero harm is the top priority at Pan African Resources, it is withdeep regret that we reported three fatal accidents at Barberton Mines duringthe year. Two of the incidents were fall of ground related and one involvedTrackless Mobile Machinery ('TMM'). Subsequent to these accidents, employees were counselled and engaged as topossible causes and remedial actions to prevent similar accidents happening inthe future. Barberton Mines' total recordable injury frequency rate ('TRIFR') decreased to13.5 (2013: 19.2) per 1,000,000 man hours worked, and the lost time injuryfrequency rate ('LTIFR') improved to 1.9 (2013: 2.6) per 1,000,000 man hoursworked. The reportable injury frequency rate ('RIFR') improved to 0.5 (2013:1.5) per 1,000,000 man hours worked. Operating performance Barberton Mines (including BTRP) gold sold increased by 15.9% to 111,623oz(2013: 96,296oz). The total combined USD cash costs per ounce decreased by 5.1% to USD740/oz(2013: USD780/oz). In ZAR per kilogram terms, total cash costs increased by8.2% to ZAR239,496/kg (2013: ZAR221,424/kg). The total cost of production (including off mine costs) increased by 25.4% toZAR831.5 million (2013: ZAR663.2 million). The main year-on-year cost contributors were the following: The BTRP operations resulted in additional processing costs amounting toZAR97.1 million for the financial year. Salary and wages increased by 15.5% to ZAR369.9 million (2013: ZAR320.3million). The increase was driven by additional employees for the management ofthe BTRP, resulting in additional costs of ZAR9.5 million (or increase of3.0%), coupled with a two year wage agreement in line with the Chamber ofMines. Barberton Mines also introduced a medical aid scheme for categoryworkers 4 to 8 of which the company contributes 60% towards each member'spremium, this added costs of ZAR6.7 million in the current year. Mining costs increased by only 4.1% to ZAR102.6 million (2013: ZAR98.6 million)due to the vamping contractors gold production having decreased from the prioryear by 7.4%. The mining costs excluding the vamping contractors costsincreased by 8.9% year-on-year. Processing costs (excluding the BTRP reagents) increased by 8.4% to ZAR61.8million (2013: ZAR57.0 million). Engineering and technical services costs increased by 12.5% to ZAR64.0 million(2013: ZAR56.9 million). The majority of this increase was for additionalsecondary support installations required at Fairview mine, and increasedmaintenance on the TWM following the fatality as report above. Electricity costs excluding the BTRP increased by 6.4% to ZAR76.7 million(2013: ZAR72.1 million), which were lower than the average 8% increase in Eskomtariffs. The decrease in electricity usage reflects the three week closure ofSheba Mine following flooding during March 2014. The electricity cost of theBTRP amounted to ZAR9.2 million resulting in the total Barberton Mineselectricity costs increasing by 19.1% to ZAR85.9 million (2013: ZAR72.1million). Security costs were well controlled and only increased by 4.7% to ZAR26.8million (2013: ZAR25.6 million). Administration and other costs increased by 10.3% to ZAR33.2 million (2013:ZAR30.1 million). The higher than CPI increase was mainly due to additionalinsurance costs in relation to the BTRP. Barberton Mines had gold inventory movements decreasing the cost of productionby ZAR14.4 million due to the BIOX® locking up gold concentrates equivalent to59.4 kilograms (1,910 ounces) of gold at year end. During the last quarter ofthe financial year, the Biox® experienced a temporary set-back in recoveries,due to oil contamination resulting from a breakdown at the Fairview primarycrusher. This necessitated the management team in having to separate certaingold concentrates from the BIOX® at year end to stabilise the bacteriaorganisms. The gold concentrates will be reprocessed during the new financialyear. The overall recoveries as result of the incident decreased for the fullyear to 90% (2013: 91%). The total combined USD all-in cash cost per ounce decreased by 24.3% to USD934/oz (2013: USD1,234/oz). Barberton Mines' ZAR combined all-in cash cost perkilogram decreased by 13.8% to ZAR302,058/kg (2013: ZAR350,302/kg). Thisdecrease in all-in cash costs was mainly as a result of the once-offnon-sustainable capital expenditure decreasing by ZAR188.9 million due to theBTRP construction in the prior year. Mining operations Barberton Mines' (excluding BTRP) gold sold decreased to 88,738oz (2013:96,296oz). Mining operations tonnes milled decreased by 5.9% to 292,121t (2013:310,484t). The decrease in tonnes milled was mostly as a result of the ShebaMine flooding during March 2014, as a result of a cloud-burst, forcing the mineto close for three weeks. This effectively reduced production tonnages by 9,000tonnes (or 2.9% of the prior year's production tonnages), at an average ShebaMine's headgrade of 8.5g/t, resulting in an estimated reduction of 2,165 ouncesof gold sold. The decrease in gold sold from Barberton Mines underground and surface miningoperations was therefore as a result of: Decrease in tonnes milled due to the Sheba Mine flooding. Gold ounces in Biox® lock up, due to oil contamination from the breakdown atthe Fairview primary crusher. The underground head grade reduced marginally to 11.5g/t (2013: 11.8g/t), andgold recoveries decreased to 90% (2013: 91%) as a result of the BIOX® incidentmentioned above. The total underground and surface USD cash costs per ounce decreased by 0.3% toUSD778/oz (2013: USD780/oz). In ZAR per kilogram terms, total cash costsincreased by 17.0% to ZAR258,972/kg (2013: ZAR221,424/kg). Tailing operations - BTRP The BTRP construction was completed in the prior financial year and productioncommenced on 1 July 2013. BTRP gold sold was 22,885oz for the year. The plant processed 815,736t oftailings at a headgrade of 1.6g/t and achieved a higher than expected recoveryof 56% (originally planned recovery: 50%). The BTRP USD cash costs per ounce were USD493/oz. In ZAR per kilogram terms,total cash costs were ZAR163,977/kg. Capital expenditure Total capital expenditure at Barberton Mines decreased by 52.3% to ZAR151.0million (2013: ZAR316.8 million). Maintenance capital expenditure of ZAR33.3million (2013: ZAR45.1 million) and development capital expenditure of ZAR50.5million (2013: ZAR42.1 million) was incurred. Expansion capital incurred on theBTRP construction totalled ZAR40.7 million (2013: ZAR229.6 million), andcapital on the development of four new raise boreholes at Fairview Mine toimprove environmental conditions was ZAR26.5 million (2013: ZAR2.6 million). Review of Evander Mines Safety It is with deep regret that we report one fatal accident at Evander Minesduring the financial year. The incident related to a fall of ground accident.Preventing fall of ground accidents remains a focus area within the group, inorder to ensure a safe working environment. Evander Mines is in the process ofimproving its safety statistics by implementing phase four of its safetyprogramme ('Vuka Sizwe'). Evander Mines' TRIFR improved to 6.0 (2013: 7.7) per 1,000,000 man hoursworked, and the LTIFR increased to 4.1 (2013: 2.9) per 1,000,000 man hoursworked. The RIFR has shown a regression to 2.6 (2013: 1.7) per 1,000,000 manhours worked. Operating performance Evander Mines gold sold decreased to 76,556oz (2013: 95,089oz1). Miningoperations tonnes milled increased by 10.7% to 656,028t (2013: 592,484t1). Theincrease in tonnes milled was mostly due to an increase in surface stockpilesprocessed of 58,789t, whilst underground tonnes milled increased by 4,755t. As a result of the low grade mining cycle, the underground head grade decreasedto 5.2g/t (2013: 7.4g/t1). The Kinross processing plant performed well, andachieved improved plant recoveries of 96% (2013: 95%1). As previously announced, this low grade mining cycle at Evander Mines isexpected to continue until February 2015, and will therefore also impact groupresults and earnings for the first eight months of the 2015 financial year.Measures implemented, or in progress, to mitigate the impact of the current lowgrade cycle at Evander Mine's include the following: The construction of the ETRP to yield an estimated 10,000oz of gold per annum,with a life of mine of 17 years. The ETRP project is progressing well andexpected to be in production by January 2015. Surface sources throughput in the Evander plant has been increased from 18,000tonnes per month to approximately 30,000 tonnes per month. To maintain thesetonnages for the full 2015 financial year, additional sources are beinginvestigated. Vamping (the mining of historical "leftovers" remaining after previous miningoperations) at Evander No 7 Shaft has been expanded to include the 15 Levelreturn airway mud accumulation project. This has been contributing additionalounces from July 2014. Management is concentrating efforts to increase availability of conveyor beltsin the Evander No 8 Shaft declines. A refurbishment program has beenimplemented to effect the necessary mechanical improvements and upgrades. Management has rescheduled the mine planning and improved mining flexibility byincreasing development rates on 25 and 25A Levels at Evander No 8 Shaft toaccess more stoping areas. The total cost of production including off mine costs increased by 9.5% toZAR914.7 million (2013: ZAR835.4 million1). The Evander Mines management teamsuccessfully focused on containing their costs whilst in the lower grade miningcycle, resulting in their cost per ton decreasing by 1.1% to ZAR1,394/t (2013:ZAR1,410/t). The main year-on-year cost contributors were the following: Salary and wages increased by 7.1% to ZAR448.9 million (2013: ZAR419.0million). The salary and wages increased as result of the Chamber of Mines wagesettlement. Mining costs increased by 28.1% to ZAR89.4 million (2013: ZAR69.8 million) dueto additional vamping occurring in 7 Shaft, and additional maintenance onblasting barricades. Processing costs increased by 22.3% to ZAR33.5 million (2013: ZAR27.4 million),due to the additional surface tonnages being processed through the plant. Engineering and technical services costs increased by 26.6% to ZAR86.6 million(2013: ZAR68.4 million). The majority of this increase related to additionalcosts to improve maintenance of the 11 conveyor belts on 8 Shaft, which has atotal length of 14 kilometres, as well maintaining and improving the tracklessfleet. Electricity and water costs were well controlled and decreased by 3.2% toZAR164.2 million (2013: ZAR169.7 million) due to benefits realised from theload clipping optimisation program that manages and improves the consumption ofpower. The security costs remained well controlled and decreased by 22.6% to ZAR12.7million (2013: ZAR16.4 million), highlighting the cost benefits of acentralised security monitoring team for both Barberton Mines and EvanderMines. Administration and other costs decreased by 24.5% to ZAR57.7 million (2013:ZAR76.4 million) as result of not sharing in Harmony's corporate and othercosts in the current year. Off mines costs decreased by 23.5% to ZAR1.3 million (2013: ZAR1.7 million) inline with the lower gold production supplied to the refinery. Evander Mines had gold inventory movements increasing the cost of production byZAR20.5 million (2013: ZAR13.4 million decrease in production costs). The total underground and surface USD cash costs per ounce decreased by 16.0%to USD1,154/oz (2013: USD995/oz1). However, in ZAR per kilogram terms, totalcash costs increased by 36.0% to ZAR384,150/kg (2013: ZAR282,451/kg1). Capital expenditure Total capital expenditure at Evander Mines was ZAR210.5 million (2013: ZAR201.1million1). Maintenance capital expenditure was ZAR27.9 million (2013: ZAR65.0million1) and development capital expenditure was ZAR103.4 million (2013:ZAR54.2 million1). Expansion capital related to the ETRP plant construction wasZAR79.2 million. In the prior year Evander Mines spent expansion capital on theshaft deepening project of ZAR81.9 million1. Note: The prior year Evander Mines values were obtained from historical financialrecords to allow for consistent reporting with the group's current goldoperations costs. Therefore the values may vary from Harmony's previouslyannounced values. Review of platinum tailings operations Review of Phoenix Platinum Safety Phoenix maintained its excellent safety record, with no injuries recorded. Operating performance An improved performance at Phoenix Platinum in the year under review resultedin PGE ounces sold increasing by 11.2% to 7,204oz PGE (2013: 6,480oz PGE).Several challenges were encountered during November 2013 as a result of furnaceash and talc material which was historically deposited by IFM on theBuffelsfontein dumps affecting plant recoveries. Furnace ash and talc dilutesthe final concentrate grade and must be chemically modified to prevent anegative effect on the plant recoveries. The problem was identified by aprocess of elimination and by metallurgical test work carried out, and anestimated 500 PGE ounces were lost during the year under review as a result ofthis contamination. Despite this, Phoenix Platinum was still able to improveits recoveries to 29% (2013: 21%) and improve PGE ounce production. The CTRP was designed to treat sulphide material from the Lesedi Mine, whichinitially supplied Phoenix Platinum with sulphide-rich material. Howeversubsequent to commissioning the plant, IFM stopped its underground operationsat Lesedi and focussed on oxidised material from their open cast operation.This resulted in oxidised tailings being blended into the Phoenix Platinumfeedstock during the year under review. The metallurgy of oxidised tailingsnegatively affects the recovery and concentrate grade in the CTRP. This in turnresults in poor PGM concentrate production. In July 2014, IFM resumed mining atLesedi Mine and the expected tonnages from this sulphide material shouldimprove Phoenix Platinum production and plant recoveries. In the year under review, the effective average PGE basket price receivedincreased by 9.8% ZAR9,987/oz (2013: ZAR9,093/oz). Cost per ounce of productionincreased by 2.3% to ZAR7,723/oz (2013: ZAR7,551/oz). This marginal increase incosts was offset by improved production. The plant feed decreased during theperiod by 8.4% to 251,182t (2013: 274,190t) as result of the talc and furnaceash complications highlight above. The total cost of production increased by 13.7% to ZAR55.6 million (2013:ZAR48.9 million). The main year-on-year cost contributors were the following: Salary and wages of 9.9% to ZAR17.7 million (2013: ZAR16.1 million), comprisinga standard increase of 7.5% granted to the employees in line with the goldoperations and an incentive bonus scheme for achieving targets and realising aprofit. Processing costs increased by 16.0% to ZAR33.3 million (2013: ZAR28.7 million)as result of increased reagent costs and consumption to address the talc andfurnace ash in the tailings processed, whilst additional processing costs wereincurred due to higher chrome content fees charged during the refining process. Administration costs increased by 50.0% to ZAR0.6 million (2013: ZAR0.4million), due to an increase in consulting fees. Security cost remained well controlled at ZAR0.5 million (2013: ZAR0.5million). Electricity costs increased by 12.5% to ZAR3.6 million (2013: ZAR3.2 million).Phoenix Platinum sources electricity from IFM and the effective cost per kWhincreased as result of IFM no longer benefitting from a historical Eskomrebate. Phoenix Platinum was able to achieve its maiden headline profit of ZAR3.7million (2013: ZAR6.4 million headline loss) for the financial year, despitechallenges highlighted above and the five month platinum industrial action thatoccurred during the financial year. Year Units Tailings ended operations 30 June Phoenix Platinum Tonnes processed - tailings 2014 (t) 251,182 2013 (t) 274,190 Headgrade - tailings 2014 (g/t) 3.7 2013 (g/t) 3.7 Overall recovery 2014 (%) 29% 2013 (%) 21% PGE Sold 2014 (oz) 7,204 2013 (oz) 6,480 Average ZAR PGE price received 2014 (oz) 9,987 2013 (oz) 9,093 Average USD gold price received 2014 (USD/oz) 965 2013 (USD/oz) 1,030 ZAR cash cost 2014 (ZAR/oz) 7,723 2013 (ZAR/oz) 7,551 ZAR all-in sustaining cash costs 2014 (ZAR/oz) 7,977 2013 (ZAR/oz) 8,632 ZAR all-in cost 2014 (ZAR/oz) 7,977 2013 (ZAR/oz) 8,632 USD cash cost 2014 (USD/oz) 746 2013 (USD/oz) 855 USD all-in sustaining cash cost 2014 (USD/oz) 771 2013 (USD/oz) 978 USD all-in cost 2014 (USD/oz) 771 2013 (USD/oz) 978 ZAR cash cost per ton 2014 (ZAR/t) 222 2013 (ZAR/t) 178 Capital expenditure 2014 (ZAR million) 0.4 2013 (ZAR million) 2.2 Average exchange rate 2014 (ZAR/USD) 10.35 2013 (ZAR/USD) 8.83 Revenue 2014 (ZAR million) 71.9 2013 (ZAR million) 58.9 Cost of Production 2014 (ZAR million) 55.6 2013 (ZAR million) 48.9 All-in sustainable cost of production 2014 (ZAR million) 57.5 2013 (ZAR million) 55.9 All-in cost of production 2014 (ZAR million) 57.5 2013 (ZAR million) 55.9 Adjusted EBITDA1 2014 (ZAR million) 16.0 2013 (ZAR million) 6.9 Note: Adjusted EBITDA is represented by earnings before interest, taxation,depreciation and amortisation, bargain purchase gain, impairments and loss ondisposal of assets held for sale. Capital expenditure Total capital expenditure at Phoenix Platinum decreased to ZAR0.4 million(2013: ZAR2.2 million). Expansion /Growth projects Evander Tailings Retreatment Plant The group has begun to upgrade and rehabilitate the Carbon-in-Leach ('CIL')tanks of the Evander Mines Kinross plant. The construction of the ETRP willyield an estimated 10,000oz of gold per annum with a life of mine of 17 years.The project will leverage off the current plant infrastructure and labour,which will result in a marginal incremental cost per ton to process theadditional tailings. The ETRP project is progressing well and expected to be inproduction by January 2015. The capital expenditure is projected to be approximately ZAR200 million, with aconstruction period of less than 12 months to first gold production. The grouphad spent ZAR79.2 million of the project value during the 2014 financial year. Auroch Auroch is an exploration company focused on developing and exploring the ManicaGold Project ('Manica') in Mozambique. Manica was previously owned by PanAfrican Resources. After its sale of Manica to Auroch during January 2013, aspart of the transaction consideration, Pan African Resources was issued 42% ofthe total issued share capital of Auroch. During the reporting period, thegroup consolidated ZAR2.9 million (2013: ZAR2.1 million) of Auroch'sexploration and corporate costs incurred, this is disclosed in the Statement ofcomprehensive income under 'Loss in Associate'. The group announced on 26 November 2013 that Pan African entered into anamending agreement with Auroch: 1. Per this amendment to the agreement dated 23 May 2014, Auroch shall pay PanAfrican an amount of AUD2 million in cash, of which AUD0.55 million is payableprior to 30 June 2014, in relation to option payments and the balance AUD1.45million is a final payment due by 30 September 2015. 2. If Auroch settles the full cash consideration in accordance with theamending agreement, Pan African shall allow Auroch to reacquire or cancel theconsideration shares at no additional cost or consideration. In the event that Auroch fails to settle the cash consideration pursuant to theamended agreement, the amendment will expire and the provisions of the OriginalAgreement will be restored. Any payment made under the amending agreement isnon-refundable. Commitments The group's commitments have been presented in both ZAR and GBP for ease ofreview for both UK and SA shareholders. The group had no contingent liabilitiesin the current financial year or prior year. Commitments reported in ZAR The group had outstanding open orders contracted for at year end of ZAR89.8million (2013: ZAR72.7 million). Authorised commitments for the new financial year not yet contracted fortotalled ZAR343.3 million (2013: ZAR144.5 million). The group had guarantees of ZAR24.6 million (2013: ZAR24.6 million) in favourof Eskom, and ZAR14.0 million (2013: ZAR14.0 million) in favour of theDepartment of Mineral Resources at year end. Operating lease commitments, which fall due within the next year, amounted toZAR2.6 million (2013: ZAR1.6 million). Commitments reported in GBP The group had outstanding open orders contracted for at year end of GBP5.0million (2013: GBP4.8 million). Authorised commitments for the new financial year not yet contracted fortotalled GBP19.1 million (2013: GBP9.6 million). The group had guarantees of GBP1.4 million (2013: GBP1.6 million) in favour ofEskom, and GBP0.8 million (2012: GBP0.9 million) in favour of the Department ofMineral Resources at year end. Operating lease commitments, which fall due within the next year, amounted toGBP0.2 million (2013: GBP0.2 million). Basis of preparation of financial statements Investors should consider non-Generally Accepted Accounting Principles('non-GAAP') financial measures shown in this provisional announcement inaddition to, and not as a substitute for or as superior to, measures offinancial performance reported in accordance with International FinancialReporting Standards ('IFRS'). The IFRS results reflect all items that affectreported performance and therefore it is important to consider the IFRSmeasures alongside the non-GAAP measures. The provisional audited results announcement is only a summary of theinformation in the Integrated Report and does not contain full or completedetails. Any investment decision by investors and/or shareholders should bebased on consideration of the final Integrated Report to be published on SENSand the company's website as a whole. JSE Limited listing The company has a dual primary listing on JSE Limited ('JSE') in South Africaand the AIM market ('AIM') of the London Stock Exchange. This provisional announcement has been prepared in accordance with theframework concepts and the measurement and recognition requirements of IFRS andSAICA financial reporting guidelines as issued by the accounting practicecommittee and financial reporting pronouncement as issued by the financialreporting standards council, and the information as required by InternationalAccounting Standards ('IAS') 34: Interim Financial Reporting. The group's South African external auditors, Deloitte & Touché, have issuedtheir opinions on the group's financial statements and the summary consolidatedfinancial statements for the year ended 30 June 2014. The audit was conductedin accordance with International Standards on Auditing. Deloitte and Touchéhave expressed the unmodified opinions on the group's financial statements andthe summary consolidated financial statements. The copies of their auditreports are available for inspection at the company's registered office. Anyreference to future financial performance included in this provisional reporthave not been reviewed or reported on by the group's South African externalauditors. The auditor's report does not necessarily report on all of the informationcontained in this announcement/financial results. Shareholders are thereforeadvised that in order to obtain a full understanding of the nature of theauditor's engagement they should obtain a copy of that report together with theaccompanying financial information from the issuer's registered office. These summarised consolidated financial statements are extracted from theaudited group financial statements. The directors take full responsibility forthe preparation of the provisional audited results and confirm that thefinancial information has been correctly extracted from the underlyingfinancial statements. AIM listing The financial information for the year ended 30 June 2014 does not constitutestatutory accounts as defined in sections 435 (1) and (2) of the United Kingdom('UK') Companies Act 2006 but has been derived from those accounts. Statutoryaccounts for the year ended 30 June 2013 have been delivered to the Registrarof Companies and those for 2014 will be delivered following the company'sannual general meeting. Deloitte LLP, the external auditor registered in theUK, have reported on these accounts for the year ended 30 June 2014. Theirreport was unqualified, did not include a reference to any matters to whichauditors draw attention by way of emphasis of matter and did not contain astatement under section 498 (2) or (3) of the Companies Act 2006. Thesestatutory accounts have been prepared in accordance with IFRS and IFRSInterpretations Committee ('IFRIC') interpretations adopted for use by theEuropean Union, with those parts of the UK Companies Act 2006 applicable tocompanies reporting under IFRS. Directorship Changes The following changes took place during the year under review: Appointments: - RA Holding was appointed as a director and chief executive officer witheffect from 1 September 2013. - JAJ Loots was appointed as financial director effective 1 October 2013. JAJLoots was previously a non-executive director of the group. - TF Mosololi was appointed as an independent non-executive director effective9 December 2013. Resignations: - B Sitole resigned as the financial director, effective 30 September 2013. Shares Issued During the financial year under review 7,160,500 shares were issued in relationto share options exercised: 9 September 2013 : 3,000,000 shares issued at 5 pence per share. 16 October 2013 : 2,063,000 shares were issued as follows: 1,213,000 shares issued at 5 pence per share. 850,000 shares issued at 4 pence per share. 10 February 2014 : 282,500 shares were issued at 4 pence per share. 20 February 2014 : 965,000 shares were issued at 4 pence per share. 5 June 2014 : 850,000 shares were issued at 4 pence per share. Dividend Historically, the board has recommended an annual dividend to shareholders, forapproval at the AGM. The board recognises that where possible, shareholdersrequire a cash return on their investment. Pan African Resources has nowrevised and further clarified its dividend policy, going forward the companywill pay a progressive annual ZAR dividend. Any dividend recommendation andpayment, however, will still be dependent on prevailing gold prices and otherexternal factors, as well as the performance of and outlook for the group. The group paid a dividend of ZAR240.3 million (GBP14.7 million) for the 2013year, equating to ZAR0.1314 per share (0.8030p per share). The board has proposed a dividend of ZAR258.0 million (approximately GBP14.5million1) for the 2014 financial year, equating to ZAR0.1410 per share(approximately 0.7898p per share1), resulting in a dividend cover of 1.8 times. Note 1: The GBP proposed dividend was calculated based on an exchange rate ofZAR17.85:1. The UK shareholders are to note that a revised exchange rate willbe communicated prior to final approval at the AGM. Therefore the proposeddividend is approximately 0.7898p per share. Going concern The board confirms that the business is a going concern and that it hasreviewed the business' working capital requirements in conjunction with itsfuture funding capabilities for at least the next 12 months, and has found themto be adequate. The group has a revolving credit facility with Nedbank Limited,ABSA Limited and Rand Merchant Bank. The group at 30 June 2014 had unutilisedRCF facilities of ZAR600 million and cash on hand of ZAR101.2 million to assistin funding working capital requirements. Management are not aware of anymaterial uncertainties which may cast significant doubt on the group's abilityto continue as a going concern. Should the need arise the group can cease mostexploration and capital activities, and by doing so conserve cash. Events after the reporting period Mr RG Still resigned as a non-executive director with effect from 1 July 2014. Mr R Smith was appointed as an independent non-executive director, with effectfrom 08 September 2014. On 29 August 2014, Barberton Mines implemented a broad-based employee ownershipscheme (ESOP). A newly established employee trust will own 5% of the issuedshare capital of Barberton Mines. The transaction was fully vendor financed ona notional basis by Barberton Mines, the preference share funding attractsmarket related returns and dilution effect to Pan African Resources is limited. Accounting policies The provisional announcement has been prepared using accounting policies thatcomply with the IFRS adopted by the European Union and South Africa, which areconsistent with those applied in the financial statements for the year ended 30June 2014 and prior year end 30 June 2013. Directors' dealings Mr JAJ Loots had participated in the following transactions in the company'sshares: - 17 September 2013, purchased 50,000 shares at ZAR2.23 per share. At 30 June 2014 Mr JAJ Loots held a total of 231,575 shares (2013: 181,575)representing 0.01% of the issued share capital. Mr RG Still is a trustee of a family trust ('The Alexandra Trust'). Mr RG Stillis therefore deemed to have an indirect, non-beneficial interest in TheAlexandra Trust's holding in the company. The Alexandra trust had the following dealings in shares: - 01 October 2013, sold 360,916 shares at ZAR2.70 per share. - 02 to 06 May 2014, sold 4,312,700 shares at an average price of ZAR2.70 pershare. At 30 June 2014 the Alexandra Trust held a total of 7,000,000 shares (2013:11,673,616) representing 0.38% of the issued share capital. Segment Reporting A segment is a distinguishable component of the group that is engaged inproviding products or services in a particular business sector or segment,which is subject to risk and rewards that are different to those of othersegments. The group's business activities were conducted through five businesssegments: - Barberton Mines (Including BTRP), located in Barberton South Africa, - Evander Gold Mining (Pty) Ltd and Evander Gold Mines Ltd ('Collectively knownas Evander Mines'), located in Evander South Africa, - Phoenix Platinum, located near Rustenburg South Africa, - Corporate and growth projects and, - Pan African Resources Funding Company (Pty) Ltd ('Funding company'). The Executive committee ('Exco') reviews the operations in accordance with thedisclosures presented above. Pan African Resources Outlook The board approved construction and commissioning of the ETRP is significant,as it has an estimated resource of 0.4 million ounces and adds immediateproduction ounces to Evander Mines. Should the ETRP project meet targets, wewill evaluate a project to commission a further, much larger plant - the Elikhulu Project - situated at Evander to treat tailings from the Winkelhaak,Leslie, Bracken and Kinross Dam storage facilities, with an estimated resourceof 1.5 million ounces. Our long-term project pipeline at Evander Mines also includes the EvanderSouth, Poplar and Rolspruit projects. Evander South has estimated resources of5.2 million, Poplar 5.4 million ounces, and Rolspruit 8.9 million ounces. The refurbishment of Fairview Number 2 and 3 Decline Shafts at Barberton Mineswill continue for another 18 months, after which operations will revert to sixshifts per week. Once the above plans are actioned we will be on track to achieve our targeted250,000 ounces of annual production from our current portfolio of assets andinfrastructure. Pan African Resources is also very well positioned to take advantage of furthergrowth opportunities. We extend our thanks to our management team, our mine managers and all theirstaff for their hard work and persistence that have allowed Pan AfricanResources to continue growing from strength to strength. We also thank ourfellow directors for their support and guidance. Ronald HoldingChief Executive Officer Cobus LootsFinancial Director 16 September 2014 Summary Consolidated Financial Statements Summarised Consolidated Statement of Financial Position at 30 June 2014 30 June 2014 30 June 2013 (Audited) (Audited) GBP GBP ASSETS Non-current assets Property, plant and equipment and mineral rights 185,375,968 209,489,677 Other intangible assets 214,330 340,484 Deferred taxation 366,567 312,798 Goodwill 21,000,714 21,000,714 Investments in associate 1,009,545 1,199,071 Rehabilitation trust fund 15,458,291 16,973,713 223,425,415 249,316,457 Current assets Inventories 5,341,128 6,595,740 Current tax asset 854,568 1,479,339 Trade and other receivables 11,696,380 13,904,416 Cash and cash equivalents 5,618,323 4,768,916 23,510,399 26,748,411 Non-current assets held for sale - 213,191 TOTAL ASSETS 246,935,814 276,278,059 EQUITY AND LIABILITIES Capital and reserves Share capital 18,299,947 18,228,342 Share premium 94,792,516 94,515,562 Translation reserve (47,545,320) (22,166,345) Share option reserve 1,154,891 1,031,955 Retained income 114,106,005 102,005,124 Realisation of equity reserve (10,701,093) (10,701,093) Merger reserve (10,705,308) (10,705,308) Other reserves (5,529) - Total equity 159,396,109 172,208,237 Non-current liabilities Long term provisions 12,033,167 14,821,152 Long term liabilities 8,141,317 11,132,960 Deferred taxation 43,353,577 54,049,440 63,528,061 80,003,552 Current liabilities Trade and other payables 17,219,749 23,202,052 Current portion of long term liabilities 4,754,803 864,218 Current tax liability 2,037,092 - 24,011,644 24,066,270 TOTAL EQUITY AND LIABILITIES 246,935,814 276,278,059 Summarised Consolidated Statement of Comprehensive Income for the Year Ended 30June 2014 30 June 2014 30 June 2013 (Audited) (Audited) GBP GBP Revenue Gold sales 150,288,898 129,277,438 Platinum sales 4,262,160 4,257,512 Realisation costs (349,454) (226,738) On - mine revenue 154,201,604 133,308,212 Gold cost of production (103,099,110) (67,646,119) Platinum cost of production (3,294,975) (3,535,046) Mining depreciation (10,023,361) (5,998,267) Mining profit 37,784,158 56,128,780 Other (expenses) (1,449,853) (5,652,226) Bargain purchase consideration - 24,114,255 Loss in associate (173,177) (152,312) Loss on disposal of asset held for sale (11,848) (586,138) Impairments costs - (16,143,604) Royalty costs (2,019,066) (3,198,622) Net income before finance income and finance costs 34,130,214 54,510,133 Finance income 687,185 1,454,659 Finance costs (878,064) (1,257,696) Profit before taxation 33,939,335 54,707,096 Taxation (7,154,742) (12,133,063) Profit after taxation 26,784,593 42,574,033 Other comprehensive income: Other movements (5,529) - Foreign currency translation differences (25,378,975) (20,228,836) Total comprehensive income for the year 1,400,089 22,345,197 Profit attributable to: Owners of the parent 26,784,593 42,574,033 26,784,593 42,574,033 Total comprehensive income attributable to: Owners of the parent 1,400,089 22,345,197 1,400,089 22,345,197 Earnings per share 1.47 2.63 Diluted earnings per share 1.46 2.62 Weighted average number of shares in issue 1,827,207,555 1,619,756,902 Diluted number of shares in issue 1,831,339,174 1,625,933,891 Headline earnings per share is calculated : Basic earnings 26,784,593 42,574,033 Bargain purchase gain - (24,114,255) Profit on disposal of property plant and equipment and mineral resource (20,497) - Loss on disposal of asset held for sale 11,848 586,138 Impairment costs - 16,143,604 Headline earnings 26,775,944 35,189,520 Headline earnings per share 1.47 2.17 Diluted headline earnings per share 1.46 2.16 Summarised Consolidated Statement of CashflowsFOR THE YEAR ENDED 30 JUNE 2014 30 June 2014 30 June 2013 Audited Audited GBP GBP NET CASH GENERATED FROM OPERATING ACTIVITIES 22,170,837 48,265,537 INVESTING ACTIVITIES Additions to property, plant and equipment and mineral rights (21,461,839) (27,566,533) Net cash outflows from the acquisition of Evander - (96,006,400) Additions to intangibles (38,617) - Proceeds on disposals of assets 145,366 10,555 Funding of the rehabilitation trust fund - 359,172 NET CASH USED IN INVESTING ACTIVITIES (21,355,090) (123,203,206) FINANCING ACTIVITIES Proceeds from borrowings 22,955,725 34,763,874 Borrowings repaid (22,431,453) (22,545,100) Shares issued 348,559 50,614,255 Share issue costs - (3,502,273) NET CASH FROM FINANCING ACTIVITIES 872,831 59,330,756 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,688,578 (15,606,913) Cash and cash equivalents at the beginning of the period 4,768,916 19,782,179 Effect of foreign exchange rate changes (839,171) 593,650 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5,618,323 4,768,916 Summarised Audited Consolidated Statement of Changes in Equity for the period30 June 2014 Summarised Audited Consolidated Statement of Changes in Equity for the period30 June 2014 GBP GBP GBP GBP Realisation of Merger Other equity reserve reserve reserves Total Balance at 30 June 2012 (10,701,093) (10,705,308) - 102,625,655 Issue of shares - - - 50,614,255 Share issue costs - - - (3,502,273) Other reserves - - (1,650) Total comprehensive - - - 22,345,197income Share based payment - - - - 127,053charge for the year Balance at 30 June 2013 (10,701,093) (10,705,308) - 172,208,237 Issue of shares - - 348,559 Total comprehensive - - (5,529) 1,400,089income Dividends paid (14,683,712) Share based payment - - - 122,936charge for the year Balance at 30 June 2014 (10,701,093) (10,705,308) (5,529) 159,396,109 Summarised Audited Consolidated Segment Report for the Year Ended 30 June 2014 30 June 2014 Barberton Evander Phoenix Corporate Funding Group Mines Mines Platinum office company** and * Growth Projects GBP GBP GBP GBP GBP GBP Revenue Gold sales** 89,520,058 60,768,840 - - - 150,288,898 Platinum sales - - 4,262,160 - - 4,262,160 Realisation costs (269,403) (80,051) - - - (349,454) On - mine revenue 89,250,655 60,688,789 4,262,160 - - 154,201,604 Cost of production (48,989,722) (54,109,388) (3,294,975) - - (106,394,085) Depreciation (3,905,925) (5,558,837) (558,599) - - (10,023,361) Mining profit 36,355,008 1,020,564 408,586 - - 37,784,158 Other expenses * (1,704,438) 857,879 (20,576) (566,710) (16,008) (1,449,853) Bargain purchase - - - - - - Loss from associate - - - (173,177) - (173,177) Loss on disposal of (11,848) - - - - (11,848)asset held for sale Impairment costs - - - - - - Royalty costs (2,185,136) 166,070 - - - (2,019,066) Net income / (loss) 32,453,586 2,044,513 388,010 (739,887) (16,008) 34,130,214before finance incomeand finance costs Finance income 173,405 344,903 - 168,877 - 687,185 Finance costs (35,333) (7,743) - (31) (834,957) (878,064) Profit /(loss) 32,591,658 2,381,673 388,010 (571,041) (850,965) 33,939,335before taxation Taxation (8,969,604) 1,828,847 (172,379) 145,372 13,022 (7,154,742) Profit /(loss) 23,622,054 4,210,520 215,631 (425,669) (837,943) 26,784,593after taxation 30 June 2014 Barberton Evander Phoenix Corporate Funding Group Mines Mines Platinum office and company** Growth ** Projects GBP GBP GBP GBP GBP GBP Revenue Gold sales** 97,564,881 31,712,557 - - - 129,277,438 Platinum sales - - 4,257,512 - - 4,257,512 Realisation costs (179,270) (47,468) - - - (226,738) On - mine revenue 97,385,611 31,665,089 4,257,512 - - 133,308,212 Cost of production (47,739,505) (19,906,614) (3,535,046) - - (71,181,165) Depreciation (3,000,640) (2,056,566) (941,061) - - (5,998,267) Mining profit 46,645,466 9,701,909 (218,595) - - 56,128,780 Other expenses * (2,188,879) (8,783) (221,604) (3,231,154) (1,806) (5,652,226) Bargain purchase - 24,114,255 - - - 24,114,255 Loss from associate - - - (152,312) - (152,312) Loss on disposal of - - - (586,138) - (586,138)asset held for sale Impairment costs - - (2,495,480) (13,648,124) - (16,143,604) Royalty costs (2,450,476) (748,146) - - - (3,198,622) Net income / (loss) 42,006,111 33,059,235 (2,935,679) (17,617,728) (1,806) 54,510,133before finance incomeand finance costs Finance income 77,463 283,229 - 1,093,967 - 1,454,659 Finance costs (107,810) (296,888) - - (852,998) (1,257,696) Profit /(loss) 41,975,764 33,045,576 (2,935,679) (16,523,761) (854,804) 54,707,096before taxation Taxation (11,408,506) (962,917) (24,863) 286,257 (23,034) (12,133,063) Profit /(loss) 30,567,258 32,082,659 (2,960,542) (16,237,504) (877,838) 42,574,033after taxation * Other expenses exclude inter-company management fees and dividends ** All gold sales were made in the Republic of South Africa and the majority ofrevenue (more than 90%) was generated from a single customer, Rand Refinery. **\* The Funding company was established during the 2013 financial year witheffect from 1 March 2013. Segmental assets(Total assetsexcluding goodwill) 57,519,959 152,476,424 12,427,761 3,482,325 28,631 225,935,100 SegmentalLiabilities 23,135,981 62,144,046 622,536 1,519,598 117,544 87,539,705 Goodwill 21,000,714 - - - - 21,000,714 Net Assets(excluding goodwill) 34,383,978 90,332,378 11,805,225 1,962,727 (88,913) 138,395,395 Capital Expenditure 8,944,360 12,468,962 24,027 63,107 - 21,500,456 Segmental assets(Total assetsexcluding goodwill) 63,530,231 172,971,365 13,897,511 4,867,060 11,178 255,277,345 SegmentalLiabilities 25,018,515 65,569,101 320,175 2,151,222 11,010,809 104,069,822 Goodwill 21,000,714 - - - - 21,000,714 Net Assets(excluding goodwill) 38,511,716 107,402,264 13,577,336 2,715,838 (10,999,631) 151,207,523 Capital Expenditure 22,886,611 4,506,501 160,879 12,542 - 27,566,533 All assets are held within South Africa, with the exception of Auroch MineralsNL which is a company listed on the Australian Securities Exchange , withassets held in Mozambique. The segmental assets and liabilities above, exclude inter-company balances. Capital expenditure comprises of additions to property plant and equipment andmineral rights and intangible assets . GBP GBP GBP GBP GBP Share Share Translation Share Retained Capital Premium reserve option earnings account reserve Balance at 30 June 2012 14,482,623 51,149,299 (1,937,509) 904,902 59,432,741 Issue of shares 3,745,719 46,868,536 - - - Share issue costs - (3,502,273) - - - Other reserves - - - - (1,650) Total comprehensive - - (20,228,836) - 42,574,033income Share based payment - - - - 127,053 -charge for the year Balance at 30 June 2013 18,228,342 94,515,562 (22,166,345) 1,031,955 102,005,124 Issue of shares 71,605 276,954 - - - Total comprehensive - - (25,378,975) - 26,784,593income Dividends paid (14,683,712) Share based payment - - - - 122,936 -charge for the year Balance at 30 June 2014 18,299,947 94,792,516 (47,545,320) 1,154,891 114,106,005 Summary Consolidated ZAR Unaudited Financial Statements Summarised Consolidated ZAR Statement of Financial Position at 30 June 2014 30 June 2014 31 June 2013 (Unaudited) (Unaudited) ZAR ZAR ASSETS Non-current assets Property, plant and equipment and mineral rights 3,338,621,178 3,144,440,055 Other intangible assets 3,860,083 5,110,665 Deferred taxation 6,601,879 4,695,100 Goodwill 303,491,812 303,491,812 Investments in associate 10,558,872 13,727,146 Rehabilitation trust fund 278,403,816 254,775,427 3,941,537,640 3,726,240,205 Current assets Inventories 96,193,722 99,002,052 Current tax asset 15,390,775 22,204,873 Trade and other receivables 210,651,809 208,705,296 Cash and cash equivalents 101,186,004 71,581,436 423,422,310 401,493,657 Non-current assets held for sale - 3,200,000 TOTAL ASSETS 4,364,959,950 4,130,933,862 EQUITY AND LIABILITIES Capital and reserves Share capital 244,480,271 243,305,216 Share premium 1,322,660,134 1,318,146,974 Translation reserve - - Share option reserve 15,965,957 13,890,798 Retained income 1,500,694,965 1,288,834,738 Realisation of equity reserve (140,624,130) (140,624,130) Merger reserve (154,707,759) (154,707,759) Other reserves (99,569) - Total equity 2,788,369,869 2,568,845,837 Non-current liabilities Long term provisions 216,717,341 222,465,492 Long term liabilities 146,625,129 167,105,730 Deferred taxation 780,797,921 811,282,089 1,144,140,391 1,200,853,311 Current liabilities Trade and other payables 310,127,663 348,262,806 Current portion of long term liabilities 85,634,001 12,971,908 Current tax liability 36,688,026 - 432,449,690 361,234,714 TOTAL EQUITY AND LIABILITIES 4,364,959,950 4,130,933,862 SummarisedConsolidated ZAR Statement of Comprehensive Income for the Year Ended30 June 2014 30 June 2014 30 June 2013 (Unaudited) (Unaudited) ZAR ZAR Revenue Gold sales 2,536,876,593 1,789,199,741 Platinum sales 71,945,269 58,923,965 Realisation costs (5,898,786) (3,138,054) On - mine revenue 2,602,923,076 1,844,985,652 Gold cost of production (1,740,312,981) (936,222,287) Platinum cost of production (55,619,174) (48,925,034) Mining depreciation (169,194,334) (83,016,020) Mining profit 637,796,587 776,822,311 Other (expenses) (24,473,514) (78,226,814) Bargain purchase consideration - 322,443,757 Loss in associate (2,923,222) (2,107,999) Loss on disposal of asset held for sale (200,000) (8,221,588) Impairments - (242,315,494) Royalty costs (34,081,834) (44,268,923) Net income before finance income and finance costs 576,118,017 724,125,250 Finance income 11,599,688 20,132,477 Finance costs (14,821,716) (17,406,512) Profit before taxation 572,895,989 726,851,215 Taxation (120,772,050) (167,921,595) Profit after taxation 452,123,939 558,929,620 Other comprehensive income: Other movements (99,569) - Foreign currency translation differences - (12,386,873) Total comprehensive income for the year 452,024,370 546,542,747 Profit attributable to: Owners of the parent 452,123,939 558,929,620 452,123,939 558,929,620 Total comprehensive income attributable to: Owners of the parent 452,024,370 546,542,747 452,024,370 546,542,747 Earnings per share 24.74 34.51 Diluted earnings per share 24.69 34.38 Weighted average number of shares in issue 1,827,207,555 1,619,756,902 Diluted number of shares in issue 1,831,339,174 1,625,933,891 Headline earnings per share is calculated : Basic earnings 452,123,939 558,929,620 Bargain purchase consideration - (322,443,757) Profit on disposal of property plant and equipment and mineral resource (345,982) - Loss on disposal of asset held for sale 200,000 8,221,588 Impairment 0 242,315,494 Headline earnings 451,977,957 487,022,945 Headline earnings per share 24.74 30.07 Diluted headline earnings per share 24.70 29.95 Summarised Unaudited Consolidated ZAR Statement of Changes in Equity for theYear Ended 30 June 2014 ZAR ZAR ZAR ZAR ZAR Share Share Share Premium Translation option Retained Capital account reserve reserve earnings Balance at 30 190,646,748 707,810,082 12,386,873 12,105,628 729,929,882June 2012 Issue of shares 52,658,468 658,808,348 - - - Share issue - (48,471,456) - - -costs Other reserves - - - - (24,764) Total - - (12,386,873) - 558,929,620Comprehensiveincome Share based - - - 1,785,170 -payment -Charge for theyear Balance at 30 243,305,216 1,318,146,974 - 13,890,798 1,288,834,738June 2013 Issue of shares 1,175,055 4,513,160 - - - Share issue - - - - -costs Other reserves - - - - - Total - - - - 452,123,939Comprehensiveincome Dividends paid (240,263,712) Share based - - - 2,075,159 -payment -Charge for theyear Balance at 31 244,480,271 1,322,660,134 - 15,965,957 1,500,694,965June 2014 Summarised Unaudited Consolidated ZAR Statement of Changes in Equity for theYear Ended 30 June 2014 ZAR ZAR ZAR ZAR Realisation of Merger Other equity reserve reserve reserves Total Balance at 30 June 2012 (140,624,130) (154,707,759) - 1,357,547,324 Issue of shares - - - 711,466,816 Share issue costs - - - (48,471,456) Other reserves - - (24,764) Total Comprehensive - - - 546,542,747income Share based payment - - - - 1,785,170Charge for the year Balance at 30 June 2013 (140,624,130) (154,707,759) - 2,568,845,837 Issue of shares - - 5,688,215 Share issue costs - - - Other reserves - - (99,569) (99,569) Total Comprehensive - - 452,123,939income Dividends paid (240,263,712) Share based payment - - - 2,075,159Charge for the year Balance at 31 June 2014 (140,624,130) (154,707,759) (99,569) 2,788,369,869 Summarised Unaudited Consolidated ZAR Segment Report for the Year Ended 30 June2014 30 June 2014 Barberton Evander Phoenix Corporate Funding Group Mines Mines Platinum and Growth company Projects ZAR million ZAR million ZAR million ZAR million ZAR million ZAR million Revenue Gold sales*** 1,511.1 1,025.8 - - - 2,536.9 Platinum Sales - - 71.9 - - 71.9 Realisation costs (4.5) (1.4) - - - (5.9) On - mine revenue 1,506.6 1,024.4 71.9 - - 2,602.9 Gold cost of production (826.9) (913.4) - - - (1,740.3) Platinum cost of production - - (55.6) - - (55.6) Depreciation (65.9) (93.8) (9.4) - - (169.1) Mining Profit 613.8 17.2 6.9 - - 637.9 Other expenses ** (28.8) 14.5 (0.3) (9.8) (0.3) (24.7) Bargain purchase - - - - - - Loss from associate - - - (2.9) - (2.9) Loss on disposal of asset held for sale (0.2) - - - - (0.2) Impairment costs - - - - - - Royalty costs (36.9) 2.8 - - - (34.1) Net income / (loss) before finance 547.9 34.5 6.6 (12.7) (0.3) 576.0income and finance costs Finance income 2.9 5.8 - 2.9 - 11.6 Finance costs (0.6) (0.1) - - (14.1) (14.8) Profit /(loss) before taxation 550.2 40.2 6.6 (9.8) (14.4) 572.8 Taxation (151.4) 30.9 (2.9) 2.5 0.2 (120.7) Profit /(loss) after taxation 398.8 71.1 3.7 (7.3) (14.2) 452.1 * Other expenses exclude inter-company management fees and dividends ** All gold sales were made in the Republic of South Africa and the majority ofrevenue (more than 90%) was generated from a single customer, Rand Refinery. **\* The Funding company was established during the 2013 financial year witheffect from 1 March 2013. Segmental Assets (Total assetsexcluding goodwill) 1,035.9 2,746.1 223.8 55.1 0.5 4,061.4 Segmental Liabilities 416.7 1,119.2 11.2 27.4 2.1 1,576.6 Goodwill 303.5 - - - - 303.5 Net Assets (excluding goodwill) 619.2 1,626.9 212.6 27.7 (1.6) 2,484.8 Capital Expenditure 151.0 210.5 0.4 1.1 - 363.0 All assets are held within South Africa, with the exception of Auroch MineralsNL which is a company listed on the Australian Securities Exchange , withassets held in Mozambique. The segmental assets and liabilities above, exclude inter-company balances. Capital expenditure comprises of additions to property plant and equipment andmineral rights and intangible assets. Summarised Unaudited Consolidated ZAR Segment Report for the Year Ended 30 June2014 30 June 2013 Barberton Evander Phoenix Corporate Funding Group Mines Mines Platinum and Growth company Projects ZAR million ZAR million ZAR million ZAR million ZAR million ZAR million Revenue Gold sales*** 1,350.3 438.9 - - - 1,789.2 Platinum Sales - - 58.9 - - 58.9 Realisation costs (2.5) (0.7) - - - (3.2) On - mine revenue 1,347.8 438.2 58.9 - - 1,844.9 Gold cost of production (660.7) (275.5) - - - (936.2) Platinum cost of production (48.9) (48.9) Depreciation (41.5) (28.5) (13.0) - - (83.0) Mining Profit 645.6 134.2 (3.0) - - 776.8 Other expenses ** (30.3) (0.1) (3.1) (44.7) - (78.2) Bargain purchase - 322.4 - - - 322.4 Loss from associate - - - (2.1) - (2.1) Loss on disposal of asset held for sale - - - (8.2) - (8.2) Impairment costs - - (37.5) (204.9) - (242.4) Royalty costs (33.9) (10.4) - - - (44.3) Net income / (loss) before finance 581.4 446.1 (43.6) (259.9) - 724.0income and finance costs Finance income 1.1 3.9 - 15.1 - 20.1 Finance costs (1.5) (4.1) - - (11.8) (17.4) Profit /(loss) before taxation 581.0 445.9 (43.6) (244.8) (11.8) 726.7 Taxation (157.9) (13.3) (0.3) 4.0 (0.3) (167.8) Profit /(loss) after taxation 423.1 432.6 (43.9) (240.8) (12.1) 558.9 * Other expenses exclude inter-company management fees and dividends ** All gold sales were made in the Republic of South Africa and the majority ofrevenue (more than 90%) was generated from a single customer, Rand Refinery. **\* The Funding company was established during the 2013 financial year witheffect from 1 March 2013. Segmental Assets (Total assetsexcluding goodwill) 953.6 2,596.3 208.6 68.8 0.2 3,827.5 Segmental Liabilities 375.5 984.2 4.8 32.3 165.3 1,562.1 Goodwill 303.5 - - 303.5 Net Assets (excluding goodwill) 578.1 1,612.1 203.8 36.5 (165.1) 2,265.4 Capital Expenditure 316.8 62.4 2.2 0.2 - 381.6 All assets are held within South Africa, with the exception of Auroch MineralsNL which is a company listed on the Australian Securities Exchange , withassets held in Mozambique. The segmental assets and liabilities above, exclude inter-company balances. Capital expenditure comprises of additions to property plant and equipment andmineral rights and intangible assets. Contact Details Corporate Office The Firs Office Building 1st Floor, Office 101 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0) 11 243 2900 Facsmile: + 27 (0) 11 880 1240 Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0) 207 796 8644 Facsmile: + 44 (0) 207 796 8645 Ron Holding Cobus Loots 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 Neil Elliot/Peter Stewart St James's Corporate Services Limited Canaccord Genuity Limited Company Secretary Nominated Adviser Office: + 44 (0)207 796 8644 Office: +44 (0)207 523 8350 Nigel Gordon Sholto Simpson Fasken Martineau LLP One Capital Solicitors in the UK JSE Sponsor Office: +44 (0)207 917 8500 Office: + 27 (0)11 550 5009 Julian Gwillim Daniel Thole Aprio Strategic Communications Bell Pottinger PR Public & Investor Relations SA Public & Investor Relations UK Office: +27 (0)11 880 0037 Office: + 44 (0)203 772 2500 Ross Allister Peel Hunt Public & Investor Relations UK Office: +44 (0)20 7418 8818

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