Pan African Resources PLC

Good morning to all of you and welcome to our 2025 Final Results presentation. Thank you very much for taking time out of your schedules to join us today. We will keep the presentation fairly brief, with an opportunity for questions afterwards. Joining me in presenting today will be Maralean Cook, our Financial Director. This will be the first time Maralean reports on a full year of financial results for the group in her role as Financial Director. A special word of thanks to Marillion, the Finance Department, and also to the rest of the amazing Pan African team for excellent work in putting these results together. You are welcome to refer to our SENS and RNS announcements and to the supplementary information available on the Pan African website, should you require detail not dealt with in today's presentation. Please note the disclaimers and information on forward looking statements on slides number two and three. Reflecting on the last year, I believe Pan African has made excellent progress in our strategy of positioning ourselves as a safe and sustainable high margin and long life gold producer with very attractive future prospects. Not many gold producers are able to successfully commission two new transformational projects within the space of 12 months. Certainly a key highlight from the last year was bringing MTR into production ahead of schedule and below budget. This is an asset with a life of almost 20 years, after the expansion currently underway, producing some 60,000 ounces per annum at a world-class oil and sustainable cost, with further growth potential in the near term. We also concluded the acquisition of Tenant Mines in Australia, an asset in a Tier 1 jurisdiction, and then proceeded with the incumbent Australian management team to deliver this project on budget and on schedule. And we are pleased to report today that Tenant's Gold Plant at Nobles reached steady state throughput in terms of tonnes in July, just after year-end. On our other surface assets, we have now successfully completed the project to extend the life of the BTRP at Barbiton by another six years, from tailings sources only. At our underground operations, we successfully restructured the Barbiton underground with an estimated cost saving of approximately R200 million for the next financial year from this initiative. Consort at Barberton is also now cash flow positive, producing some 10,000 ounces per annum. Financial year 2025 was also a year of records. We achieved record half-year production in the second half of the financial year. We are reporting record profits and record headline earnings per share. We are proposing record dividends to shareholders for approval at the upcoming annual general meeting. In US dollar terms, our proposed dividend is up almost 80% year on year. And we are expecting to be de-geared from a net debt perspective before the end of the 2026 financial year at prevailing gold prices. In the second half of the financial year, we repay a debt of almost $80 million, demonstrating the cash flow generating ability of our portfolio. I believe Pan African is now incredibly well positioned to capitalize on current gold prices and our increasing production profile, and I look forward to sharing some thoughts and further detail on many of our initiatives and plans in the following slides. critical in our business and then provide an overview of the group and our operating environment. Some key features from the last year including our new operations at MTR and Tenant Mines with detail on asset performance as well as our cost and capital outlook. We will then spend a couple of minutes on ESG before allowing Marilene the opportunity to highlight elements of the group's financial performance for the year. The presentation will then conclude by outlining focus areas for the year ahead. If we proceed to slide number six, our safety performance and our journey to zero harm. I would like to specifically mention the achievements of our surface business, with all of our operations achieving zero last time and reportable injuries for the year. MTR managed to complete construction, some 1.8 million man hours worked with only one last time injury. In terms of safety at our underground operations, we unfortunately suffered two fatal accidents. one at Evander in December of last year and the second at Barbet in Sheba in June, after achieving more than 10 years fatality free at Sheba. We are also saddened to report a fatal fall of ground accident at Evander post year end. We again wish to extend our condolences to the families, friends and colleagues of our deceased colleagues. My commitment is that we will continue to do our utmost to ensure the safety of our people and operations. We do, however, need all stakeholders to work together to realize our goal of a zero harm work environment. Slide number eight. We believe Pan African offers a compelling investment proposition. We operate a well-diversified portfolio of producing gold assets in two jurisdictions with outstanding mining pedigrees. We have a high margin and stable operating base, generating very attractive cash flows. We expect production to grow by almost 40% or more in the next year, driven primarily by the ramp-up of MTR and tenant mines. Our assets are long life and the group has a huge reserve and resource base for further expansion and development. We have a proven track record of project delivery, excellent capital allocation and a sector leading dividend. And we have the ability to leverage the existing portfolio for further attractive growth. No need for us to go buy expensive assets at high valuations at this juncture. Slide number nine. I guess the proof is in the pudding or in the numbers in this case. An investment in Pan African in 2009 when the group in its current form came into being would have increased some 38 fold versus a gold price increase also attractive around four times. You also would have received an attractive dividend over this period, further increasing returns on Pan African stock. Earlier this week we announced our intended move to the main market in London. The size and prospects of the group are such that we have outgrown our current aim listing. Slide number 10. We have built a unique portfolio of surface remining and underground assets. The addition of MTR antennaed mines means that we now have three large mining complexes in South Africa and one in Australia, all contributing towards the material increase in gold production forecast for the year ahead. Surface operations reduce unit costs and turn legacy liabilities into profits, whilst the underground mines provide long life of mines, solid returns on investment, as a result of a large sunk capital base and also attractive optionality, which we continue to bring to account in a circumspect and considerate manner, always thinking about the best way to allocate capital. Slide number 11. We have now successfully transitioned the business to be focused on long life, low cost, surface remining assets. Going forward, we expect approximately 60% of our production from surface and certainly the bulk of our earnings also. As I've said, not many gold miners can boast the fully funded production growth that we will deliver in the next year with a portfolio also well diversified. Slide number 12. A bit more detail on our current portfolio of assets. I think what is very helpful is that all of our operations now have extended lives, with the shortest life being the BTRP at 6 years, which is still quite a while. If we compare ourselves with the sector, many producers are running out of life on their assets, or have to spend significant capital for future production, not the case for Pan-African. we do not have to go and acquire more assets to maintain and grow production. Slide number 13, our operating environment. We continuously seek ways of making our business less susceptible to adverse external impacts in South Africa. We have now seen an extended period without any load shedding We are rapidly expanding our renewable energy footprint, our mining rights are long-dated and we have multi-year wage agreements in place at most operations. Pan-African's track record demonstrates that we can operate and grow in South Africa and do so very successfully. Our experienced Australian team will ensure the same success in that jurisdiction. We have found the Northern Territory Government very welcoming and supportive of our operation. It's a great place to do business, and we look forward to expanding our business there. If we then proceed to key production cost and financial features from the year past on slide 15, we produced just under 200,000 ounces of gold for the year, an increase of 6% from the prior year. In the second half of the financial year, we delivered record production, mostly on the back of MTR. Our guidance for the next financial year is 275,000 ounces or more. This production weighted to the second half of the financial year. As MTR's expansion is completed, Tenant Mines commences mining in higher grades from open pits, and we are firmly established in Evander's very high-grade, 24-level B-line. Our final all-in sustaining cost for FY25 was $1,600 per ounce, slightly above previous guidance of $1,525 to $1,575 per ounce. The primary reasons for overshooting on ASIC, or all-in sustaining cost, were a hedging loss of $30 per ounce and a Rand-dollar exchange rate 2% stronger than forecast in our guidance. Importantly, the group is completely unhedged from the 1st of July of this year. For the next financial year, with full years of production from MTR and tenant mines, and increased production from Evander H-Shaft, we can expect unit costs to decrease in real terms. We expect an oil and sustaining cost per ounce of between $1,525 to $1,575. We further expect to be net debt-free in the next year at prevailing gold prices. And despite the $32 million impact of the hedges we delivered, record profits and headline earnings in FY25. And finally, despite all of the growth and capital reinvestment, we are able to maintain our sector-leading dividends to shareholders. We are proposing a record dividend for approval at the upcoming Annual General Meeting. Slide 16 should be an interesting one for investors, demonstrating how nicely we have expanded margins in recent years. And this excludes any meaningful contribution from MTR and tenant mines, and also the full impact of prevailing record gold prices. Slide number 18. I think it is fair to say that Pan African has a record second to none in terms of conceptualizing construction and operation of tailings retreatment projects. These long life assets now form the cornerstone of our business and I believe we have further room to grow in the space which should be very attractive for our investors. If we then move on to more detail on the performance per operation starting with Elekulu on slide number 19 Clearly a flagship asset for the group, just under 9 years of production remaining, producing at under $1,100 per ounce. Gold production remains stable as expected for the year. We look forward to another year of more than 50,000 ounces of production and clearly excellent cash flow generation in the current gold price environment. The asset generated $80 million of EBITDA for the last year. Importantly, Phases 3 and 4 of the Kinross Tailings Facility, the final expansion, were delivered on budget and on schedule. We are also now constructing the Winkelhock Pump Station ahead of when required. This will enable us to feed material from both Leslie Bracken and Winkelhock from FY2027. Slide number 20, the BTRP. Another sterling performance from our first Gold Tailings Retreatment Plant commissioned in 2013 and the lowest cost producer of gold in the group. As previously flagged, very exciting news for the BTRP is that we have extended the life of this operation from surface remining only to six years. The capital requirements for this new initiative was also relatively modest, some $4 million for a new pump station. BTRP will therefore continue to form an integral part of Pan African's tailings, retreat and story for many more years. I'm also pleased to report that the new Bramber Remining Infrastructure will be delivered before the end of September this year, again on budget and ahead of schedule. MTR on slide 21, we commissioned the plant in October of last year, ahead of schedule and with savings of approximately $8 million to upfront capital. We built all of the plant and infrastructure in about 14 months, a testament again to Pan African's ability to secure, conceptualize, fund and then execute world-class mining projects. In December, we were already exceeding the plant's nameplate capacity by more than 10%. In the current gold price environment, payback on this $130 million initial investment should be approximately two years, with a project life of almost 20 years when we include the Soweto reserves. All in sustaining costs were elevated during ramp-up. Going forward, we expect these to ease to below $1,200 per ounce in the year ahead. And then further going forward, we are now expanding the MTR operation to 60,000 ounces of annual production. This expansion is on schedule and should be complete early in the 2026 calendar year. On slide 22, the Soweto cluster consists of more than 130 million tons of tailings with a mineral reserve of more than 500,000 ounces of recoverable gold. We believe we have enough gold reserves at the Soweto cluster to sustain a standalone operation treating some 1 million tons per month over an approximate 10 year life of mine. The feasibility on this option will be concluded by the end of this month. Given our presence in the area, there is definitely also scope for the consolidation of tailings facilities we do not already own. On slide 23, we cannot say enough about the socio-economic and environmental benefits of this project. Concurrent rehabilitation is in progress. We are uplifting local communities providing much needed economic and employment opportunities, and working with law enforcement to eradicate illegal mining. Slide number 25. I think the acquisition of Tenant Mines caught most of our shareholders by surprise, given the jurisdiction. But by the time we concluded the acquisition, we had spent more than a year assessing the assets and working closely with the management team. The investment in tenant mines ticked all of Pan-African's boxes in terms of deploying capital for growth, with the following brief points worth emphasizing. The project had certainly low construction risk in a Tier 1 jurisdiction, a quick payback on investment, he secured a dominant position in the gold field, and built the largest ever processing facility to operate there. The area has very exciting exploration potential with an experienced local management team taking ownership of project delivery. It is not often that one can acquire an asset like this and commission it six months later. Slide 27. We are pleased to report that the tenant mine's processing plant at Nobles is now fully commissioned. with production forecast at 40,000 to 50,000 ounces in the year ahead, at an all-in sustaining cost of just below $1,600 per ounce. Slide 28. As we have said, the Tennant Creek Goldfield offers some very exciting potential. Slide number 31. The Evander Underground. As previously flagged, a disappointing performance for the year. The delay in commissioning of the sub-vertical shaft for wasting impacted us severely. Thankfully, this project is now fully completed. The new infrastructure is pretty much doubling our wasting capacity with fewer cumbersome conveyors, lower unit costs, with a higher mine core factor. We are guiding 40,000 to 50,000 ounces of production for the next financial year, with further production increases in later years. all in sustaining unit costs will obviously reduce commensurately with a ramp up in production. If we proceed to slide 32, dealing with Fairview, our flagship underground operation at the Barbiton Mines Complex, we would have performed a bit better if it wasn't for multiple ESCOM transformer failures in November, which we estimate cost us more than 2,000 ounces of production. At Fairview, we continue to source the bulk of our ore from the MRC and Rossiter ore bodies, with development to the 263 platform well on track. Rehabilitation of existing ramp infrastructure from 38 level downwards is also progressing according to schedule. This decline will be used to transport personnel and material to the working faces on the 3 shaft section and will further alleviate logistical pressures on C-shaft, which will then mainly be used for rock wasting and improving logistics. The smaller underground operations at Barberton on slide 33. In terms of consort, the rehabilitation of the PC shaft pillar has been completed and now enables our contractor to recommence mining on the high-grade 41 to 45 level mining sections. Additional development is ongoing on the MMR and the PC shaft to access mineral reserve blocks, which will give us access to more ground to mine. I'm pleased that the operation was cash flow positive in the second half of the financial year to the tune of some 50 million Rand and sustainable at these levels. As far as our Sheba mine is concerned, we have successfully completed the restructuring and look forward to improved production in the year ahead, with significant cost savings in terms of our labour bill. On slide 35, the section dealing with our oil and sustaining costs. 85% of our portfolio produced at an all-in sustaining cost of $1,425 per ounce, impacted by lower underground production, some once-off items mentioned previously, and a stronger Rand-US dollar exchange rate. Slide 36 illustrates that our cost performance continues to be very much in line, or better, than the average for the global sector. with most producers having experienced significant cost pressures in the last couple of years. As I mentioned earlier in the presentation, the next financial year should see further improvements with full years of production from MTR and tenant mines and increased production from the Evander underground. On slide 38, Group Capital Projects. We continue to invest into our assets and into growth. For FY2026, sustaining capital is fairly subdued. In terms of growth, we are, however, using increased cash flow margins in fast-tracking development at Nobles, the Vinkelach pump station at Elekulu, and obviously the expansion of MTR. ESG on site 40. We continue to be very proud of our achievements on this front, particularly on progress with renewable energy, water retreatment and social projects. We really do make a positive difference where we operate. To elaborate further on our renewable energy roadmap in slide 41, we are targeting 15% renewable energy by 2027. I will now hand over to Marillian who will provide an overview of the financial results for the year.

Thank you Kourbis. I am very excited to present the full year results to you today for the first time as Financial Director. For presentation purposes, amounts and percentages have been rounded. From slide 43, you will notice the positive impact of the increase of 36% in the average US dollar gold price received and increased gold production on revenue for the year end of 30 June 2025. Revenue increased by 45% to $540 million relative to the prior financial year. The increase in revenue also resulted in an increase in adjusted EBITDA of 60% and an increase in earnings of 78% to $142 million. Headline earnings increased by 47% to $117 million. The gain on bargain purchase of $28 million as a result of the tenant mines acquisition is excluded from headline earnings and is the main reason for the variance between earnings and headline earnings. Earnings per share and headline earnings per share both increased by 73% and 42% respectively. During the financial year, just over 105,000 ounces representing 53% of gold sales were committed in terms of the hedging transactions and did not benefit from the spot gold price, resulting in an opportunity cost of $26 million as a result of the synthetic forward transaction and a hedge loss of $5.8 million as a result of the zero-cost collar transactions. The purpose of the hedging was to secure full funding for the construction of the MTR operation. The group is now fully unhedged from 1 July 2025 and will benefit from the prevailing record high gold prices. Production costs and oiling sustaining costs was negatively impacted by approximately 3% as a result of the appreciation of the RAND against the US dollar when compared to the previous financial year. The realized losses associated with the hedging as mentioned before had a 2% or 30 dollar per ounce adverse impact on the are primarily attributable including reagents. The lower production as a result of the delay in the commissioning of the venture of wasting project at Evander Underground also negatively impacted unit cost of production due to the large fixed cost base of the operation. The increase in operating cash flows of over 70% to 155 million US dollars is primarily as a result of the increase in the gold price during the period coupled with cost control discipline resulting in the realization of high margins. We spent $158 million in capex during the year, which resulted in an increase in net debt of 41% to $151 million compared to June 2024. The bulk of the capital expenditure related to the completion and commissioning of the NTR and tenant mines operations, as well as the Evander Underground 24 to 25 level project. Slide 44 demonstrates the ability of the group to generate excellent cash flows at prevailing gold prices. At current gold prices, the group is expected to be fully de-geared from a net debt perspective before the 2026 financial year end. The expected debt redemption profile is well in excess of the contractual requirements. The group net debt peaked in December 2024 at $229 million, with the completion of the NTR project and the tenant mines project finance included on the group's balance sheet from the effective date of the acquisition. The group reduced net debt by approximately $80 million, or 35%, to $151 million in the last six months of the current financial year, clearly demonstrating the cash flow generation potential of our current operations. The green loan facility dedicated to the funding of the Group's renewable energy projects was also settled in full by 30 June 2025. The net debt to equity ratio of approximately 20% as of 30 June 2025 obviously leaves us with very significant headroom. The Group's debt facilities currently consist of a revolving credit facility, the term loan for the MTR project and the listed corporate bonds in South Africa, combined with the funding facilities for the Australian operations from the Northern Territory Government and a private financial institution. The term loan only matures in June 2029, but will be redeemed well in advance of the maturity date. The contractual debt redemptions associated with the debt facilities are fairly muted over the next 12 months and consist primarily of the quarterly repayments on the MTR term loan facility and tenant mines facility, monthly repayments to the Northern Territory Government and the maturity of the PAR-SR1 listed bond and the RCF redemption in June 2026. The RCF facility is currently undrawn and the group will commence with a process to refinance this facility in the near future. It's likely that the RCF will again be extended, as has been the case in the past, as it constitutes a key component of our core working capital finance facilities. Slide 45 tracks the group's historical and proposed dividend payments. The proposed record dividend is 37 cents per share, which will result in a gross dividend distribution of R864 million or approximately $49 million at the closing exchange rate for the 2025 financial year. The proposed dividend is an increase to the dividend of the previous financial year of 68% in Rand terms and 77% in US dollar terms. The proposed dividend for the 2025 financial year, together with the share buyback program announced, will result in a payout ratio of approximately 38% of cash flow, as defined by the dividend policy. The dividend will be proposed to shareholders for approval at the AGM to be held in November 2025. The dividend provides an attractive return to shareholders whilst ensuring that the group has enough available liquidity to fund operations together with further renewable energy initiatives in the near future. Thank you. I will now hand back to Corbis to conclude today's presentation.

Thank you very much, Marillion. If we conclude on slide 47 and to again reinforce some key points, we now have tailwinds from the highest gold price in history and the group is completely unhedged. Even with slightly lower gold prices and our record dividend, the group should be de-geared in terms of net debt before the end of the 2026 financial year. We have just commissioned and ramped up arguably the most successful gold tailings retreatment project in South Africa's history, below budget and ahead of schedule, and we will grow this operation further in the near term. Our Elekulu, MTR and BTRP operations are performing really well and generating fantastic returns and cash flows, and will do so for many more years. Tenant was acquired with very limited dilution to shareholders, less than 6% of our market cap at the time. We are now producing from this asset in a tier one jurisdiction within six months of acquisition, having constructed the largest processing plant to ever operate in this gold field by a factor of three. We are growing gold production very materially in the year ahead with 60% of our production ounces from surface. Consort Mine has turned a corner and Fairview will continue to tick along as it has for many years. Evander Mines will perform much better with the sub-vertical hoisting shaft complete. Clearly, in this environment, the group is currently generating very significant cash flows. Let me reassure shareholders that, as always, we will continue to be incredibly prudent in terms of capital allocation and investment decisions. We have an outstanding track record in terms of generating sector-leading shareholder returns on an absolute and per share basis, and we will not compromise on this metric. Thank you very much for your time this morning. We look forward to continue mining for a future and expanding our horizons in the year ahead. I think we'll start with taking any questions from the conference call.