Final Results

30 Jun 2006 13:37

Pan African Resources PLC30 June 2006 30 June 2006 Pan African Resources plc ("Pan African" or "the Company") Final Results for the period ending 31 March 2006 PAN AFRICAN RESOURCES PLC AND SUBSIDIARIES CHAIRMAN'S STATEMENT During the period under review the Company incurred an operating loss of£791,293 (2004: £164,231) representing a loss per share of 0.22p (2004: 0.09p). A focused exploration strategy and mission to advance our projects along thevalue curve has been responsible for the Company providing its Shareholders witha high value portfolio. At the Manica gold project in Mozambique, a resource of1,311Moz has been independently verified with a pre-feasibility study currentlyunderway to assess the viability of a surface gold mine. Major technicalprogress has been made at this project for the period, and significant upsidepotential exists with only some 12% of the potentially mineralised strike-lengthbeing explored. In January 2006 the Company exercised its option to purchase an80% effective stake in the project and this will be completed in the secondquarter of the current financial year. In the Central African Republic the Company is well positioned, holdingextensive ground with good gold potential covering some 4000km(2). Theexploration programmes at the Bogoin and Dekoa gold projects has been designedwith the specific goal of testing for gold deposits larger than 2Moz in size. Todate a gold-in-soil anomaly 12km in strike-length has been delineated. Some ofthe historical boreholes drilled within the identified anomaly returned highgold values, some as high as 20m @ 5.05g/t and 19m @ 17.38g/t. The projects in the Central African Republic are a joint venture withInternational Mining Investments and Goldiam SARL. Pan African commenced with anequal contributory interest of 45% to that of International Mining Investments,but has the option on a further 20% to take its effective stake to 65% uponproject development. Pan African has operational control and manages theexploration programme on behalf of the joint venture. Participation in the Wa project in Ghana has been terminated after our initialexploration programme. Consequently expenditure incurred on this project hasbeen written off. Our projects in general have the scope to deliver significant returns with thepossibility of near term production combined with the considerable upsidepotential evident in the Central African Republic. The AIM market has been a major source of funding for global resource explorersdespite competition for funding being high. The Company has recently raised£1.7 million which is adequate for the company to maintain its currentexploration programmes. The outlook for gold appears promising against a weakening dollar, rising oilprices and global political tension. In recognition of this advancing Manica todevelopment and resource identification in the Central African Republic remainsour immediate objective. The Company will maintain its acquisition policy aimed at securing gold depositswith exceptional upside value in areas of Africa not well explored butconsidered to be favourable both technically and politically. I would like to thank my fellow directors and staff for their hard work duringthe period and particular thanks to Jan Nelson, our Chief Executive Officer, forhis tireless efforts to raise the Company's profile both in the markets and inthe industry. Colin Bird Chairman 29 June 2006 Enquiries: Pan African Resources Ambrian Partners Limited Jan Nelson, CEO Richard Brown +27 11 886 1211 +44 (0)20 7776 6417 Colin Bird, Chairman +44 (0) 20 7584 2155 Nathan Steinberg +44 (0) 20 7845 7500 CONSOLIDATED PROFIT AND LOSS ACCOUNT Period ended 31 March 2006 18 months 18 months to to 31/03/06 30/09/04 £ £ Exploration costs (464,575) - Administrative expenses (346,827) (178,374) ---------- ----------- Total administrative expenses and operating loss (811,402) (178,374) Interest receivable 30,759 14,143 Amounts written off investments (10,650) - ---------- ---------- Loss on ordinary activities before taxation (791,293) (164,231) Tax on loss on ordinary activities - - ---------- ---------- Loss for the financial period (791,293) (164,231) ====== ===== Loss per ordinary share - basic (0.22p) (0.09p) === === CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2006 31/03/06 30/09/04 £ £ £ £ FIXED ASSETS Intangible assets 4,847,630 3,831,710 Investments 4,800 24,200 ------------- ------------- 4,852,430 3,855,910 CURRENT ASSETS Debtors 3,225 18,434 Cash at bank 1,874,702 1,224,133 ------------ ------------- 1,877,927 1,242,567 Creditors: amounts falling due within one year (399,455) (107,163) ----------- ---------- 1,478,472 1,135,404 ------------ ------------ Total assets less current liabilities 6,330,902 4,991,314 ======= ======= CAPITAL AND RESERVES Share capital 4,077,532 3,520,000 Share premium account 3,978,178 2,404,829 Merger reserve 1,485,000 1,485,000 Profit and loss account (3,209,808) (2,418,515) -------------- ------------ Shareholders' funds 6,330,902 4,991,314 ======= ====== CONSOLIDATED CASH FLOW STATEMENT Period ended 31 March 2006 18 months 18 months to to 31/03/06 30/09/04 £ £ CASH FLOW STATEMENT Net cash outflow from operating activities (503,901) (118,199) Returns on investments and servicing of finance 30,759 14,143 Capital expenditure and financial investment (697,170) (777,405) Acquisitions - (43,724) Financing 1,820,881 1,578,674 ------------- ------------ Increase in cash 650,569 653,489 ======= ======= NOTES TO THE FINANCIAL ACCOUNTS Eighteen Months Ended 31 March 2006 1 The calculation of loss per ordinary share is based on losses of£791,293 (2004: £164,231) and on 354,281,542 ordinary shares (2004:170,803,279), being the weighted average number of ordinary shares in issueduring the period. There is no dilutive effect of share options. 2 The comparative figures were for the eighteen months ended 30September 2004. 3 The financial information set out above does not constitute statutoryaccounts within the meaning of s.240 of the Companies Act 1985. 4 Copies of the Statement are available to the public free of chargefrom the company at Manfield House, 2nd Floor, 1 Southampton Street, London WC2R0LR during normal office hours, Saturdays, Sundays and bank holidays excepted,for 31 days from today. This information is provided by RNS The company news service from the London Stock Exchange