Interim Results

27 Dec 2006 07:01

Pan African Resources PLC27 December 2006 27th December 2006 Pan African Resources PLC("Pan African" or "the Company") Interim report for the six months ended 30 September 2006 Pan African Resources PLC (AIM: PAF)("Pan African" or "the Company"), theAfrican based gold exploration Company, announces the interim statement as at 30September 2006 and operational review. Highlights • Confirmation of high (90% for oxides and 86% for sulphides) gold recoveries at the Manica project in Mozambique • Scoping study confirmed viability of Manica project as an open pit mine in Mozambique Post Interim Period Results • Signature of a conditional agreement to establish Pan African as a significant gold producer Chairman Colin Bird commented: "The Manica gold project in Mozambique is showing tremendous developmentpotential and drilling in the Central African Republic will be underway in theNew Year. The Company has taken the first step, by signing a conditionalagreement for the purchase of gold mines in South Africa, to building a balancedportfolio of gold production and exploration ounces. The Company is positioningitself as an emerging mid-tier gold company." Enquiries: Pan African Resources Ambrian Partners Limited Parkgreen CommunicationsJan Nelson, CEO Richard Brown Justine Howarth / Victoria Thomas+27 11 886 1211 +44 (0)20 7776 6417 +44 (0) 20 7851 7480Colin Bird, Chairman+44 (0) 20 7584 2155 For further information on Pan African Resources please visit the website atwww.panafricanresources.com PAN AFRICAN RESOURCES PLC Six Month Interim Statement at 30 September 2006 and Operational Review Chairman's statement Result for the period During the period under review, the Group returned a loss of £98,491 as comparedwith a loss of £791,293 in the eighteen-month period to 31 March 2006. As at 30September 2006 the Company had a cash balance of approximately £ 1,058,993 . Operational Review Metallurgical testwork and engineering mine design work has taken place duringthe period in the group's Manica gold project in Mozambique. Gold-in-soil andstream sediment sampling was ongoing at the Bogoin and Dekoa gold projects inthe Central African Republic. Metallurgical testwork at the Manica project indicated recoveries of 90,12% foroxide material and 86% for sulphide material. The Company is currentlycompleting optimisation work to assess the possibility of increasing therecoveries even further. An independent scoping study on the viability of anopen pit mine at the Manica project on the Fair Bride propsect indicated anungeared, pre-tax and royalty NPV of US$39 million and an IRR of 31%.Optimisation work is currently underway on capital and working cost estimates.Furthermore the results from a recent bulk sampling programme at the Fair Brideprospect indicate a significantly higher sulphide grade of 3.73g/t insitu asopposed to a resource estimated sulphide grade 2.61g/t in situ used in the mineengineering scoping study. This is an increase of 1.12g/t and couldsignificantly improve the current NPV if validated. Work is currently underwayto produce independent validation of these results after which Turgis willrevisit their evaluation . Drilling is planned to commence in Q1 of 2007 tovalidate these results. In the Central African Republic, the regional gold-in-soil programme at theBogoin gold project has been completed and drilling is expected to commence inQ1 of 2007 to test the 12km gold-in-soil anomaly identified to date. Streamsediment sampling is underway at the Dekoa gold project. The company is evaluating other opportunities in a number of African regions andannouncements will be made in due course as appropriate. Post Interim Period Events In addition to the above mentioned the Company announced on 20 December that ithas signed a conditional Sale of Shares Agreement with Metorex Limited topurchase 74% of Barberton Mines Limited in South Africa. The proposedtransaction is intended to provide the Company with a strong production base tofurther pursue its exploration and development strategy. The directors are proactively seeking new opportunities as well as advancing theCompany's existing interests with a view to delivering above normal returns toshareholders. The directors are confident that the second half year will be asproductive as the first with further positive progress being made in all aspectsof the business. By Order of the Board Colin Bird Chairman PAN AFRICAN RESOURCES PLC UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT Six Months Ended 30 September 2006 Six-Month Eighteen-Month Ended 30.9.2006 Ended 31.3.2006 £ £Exploration Costs - (464,575) Administrative expenses (117,617) (346,827) (operating loss) Interest receivable 19,126 30,759 Amount written off investments - (10,650) Loss on ordinary activities before (98,491) (791,293) taxation Tax on loss on ordinary activities - - Loss for the financial period (98,491) (791,293) Loss per ordinary share - basic (0.02p) (0.22p) PAN AFRICAN RESOURCES PLC UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2006 As at As at 30 September 31 March 2006 2006 £ £ £ £ FIXED ASSETS Intangible assets 5,316,658 4,847,630 Investments 4,800 4,800 4,321,458 4,852,430 CURRENT ASSETS Debtors 23,910 3,225 Cash at bank 1,058,993 1,874,702 1,082,903 1,877,927 Creditors: amounts falling due within one year (171,951) (399,455) 910,952 1,478,472 Total assets less 6,232,410 6,330,902 current liabilities CAPITAL AND RESERVES Share capital 4,077,532 4,077,532 Share premium account 3,978,178 3,978,178 Merger reserve 1,485,000 1,485,000 Profit and loss (3,308,300) (3,209,808) account Shareholders' funds 6,232,410 6,330,902 PAN AFRICAN RESOURCES PLC UNAUDITED CONSOLIDATED CASH FLOW STATEMENT Six Months Ended 30 September 2006 Six Months Eighteen Months Ended 30.09.2006 Ended 31.03.2006 £ £ CASH FLOW STATEMENT Net cash outflow from operating activities (230,155) (503,901) Returns on investments and servicing of finance 19,126 30,759 Capital expenditure and financial investment (604,680) (697,170) Financing - 1,820,881 (Decrease) / Increase in cash (815,709) 650,569 PAN AFRICAN RESOURCES PLC NOTES TO THE UNAUDITED INTERIM ACCOUNTS Six Months Ended 30 September 2006 1 The calculation of earnings per share is based on the losses of £98,491 and on the number of shares in issue being the adjusted weighted average number of shares in issue totalling . The fully diluted earnings per share are based on 407,753,235 ordinary shares allowing for the full exercise of outstanding share purchase options and the earnings as stated above. There is no dilutive effect in the period and in the previous period in accordance with FRS 14 paragraph 56. No change has been made to share based payments under FRS in respect of share options granted, as the Directors consider that the effect will not be material. 2 The current period for the company is a twelve-month period ending 31st March 2007. 3 The comparative figures were for the eighteen-month period ended 31st March 2006. 4 The interim statement for the six months ended 30th September 2006 is unaudited and was approved by the Directors on 22 December 2006. The financial information set out above does not constitute statutory accounts within the meaning of s.240 of the Companies Act 1985. 5 Copies of the Interim Report are available to the public free of charge from the company at Manfield House, 2nd Floor, 1 Southampton Street, London WC2R 0LR 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