integrated 
annual report 201 4 pan african resources plc integrated annual report 2014
stakeholder
growth
profitable
sustainable
quality assets
strong resources base in excess of 33moz
track record of profitable growth
consistent dividends
worldclass safety framework
peoplefocussed
tight cost structure
our
vision
investment
case
t o continue to build a precious metals 
business in africa by remaining focussed 
on our four pillars of business contents
further reading within this 
integrated annual report
further reading online wwwpanafricanresourcescom annual financial statements reference
pan african resources plc integrated annual report 2014 1
1 about this repor t 2
2 strategic report 4
who we are 6
 key features and highlights 7
 operating assets 8
 investment case 10
 fiveyear review 12
a working stra tegy 14
 our strategy 16
 key risks 21
 chairman’s report 24
 chief executive officer’s report 26
 stakeholder engagement 30
leadership 32
 directorate 34
 executive management 36
 ethical leadership 38
performance 40
 financial director’s report 42
 operational performance 48
3 abridged mineral resource and mineral reserve report 58
4 governance 70
 corporate governance 72
 risk management 82
 remuneration report 84
5 our impacts 86
 value added statement 88
 sustainability drive 89
 sheqc committee report safety and health abridged 90
 our people abridged 92
6 annual financial statements 94
7 shareholder information 158
 shareholders’ diary 160
 shareholder analysis 160
 notice of agm 161
 glossary 166
 form of proxy united kingdom 169
 form of proxy south africa 171
 contact details 176
about this 
report
strategic 
report
abridged
mr  mrr
governance our impacts
annual 
financial 
statements
shareholder 
information pan african resources plc integrated annual report 2014 2
about 
this report
pan african resources is incorporated in england and wales 
and with a corporate office in johannesburg south africa 
the company is dual listed on aim and the jse see who we 
are on page 6
this is pan african resources’ second integrated annual 
report and a further step in the process towards full 
integrated reporting we seek to present to shareholders a 
holistic overview of the company’s financial and nonfinancial 
performance for the period 1 july 2013 to 30 june 2014 
including the activities of the holding company pan african 
resources and all of its south african operations and 
subsidiaries the report is a reflection of our aspiration to 
adhere to the highest possible standards in all endeavours 
including reporting to stakeholders
no nonfinancial kpis are included for the company’s 
investment in the australianlisted auroch disclosure in this 
regard is limited to financial information further information 
concerning auroch is available at wwwaurochmineralscom
evander mines’ financial and nonfinancial kpis are included for 
the full year following its acquisition by pan african resources 
in march 2013
all of the group’s subsidiaries are incorporated in south africa 
and their functional currency is zar the group’s business is 
conducted in zar and the accounting records are maintained 
in this same currency with the exception of precious metal 
product sales which are conducted in usd prior to conversion 
into zar the ongoing review of the results of operations 
conducted by executive management and the board is also 
performed in zar
the report includes abbreviations and terms which have been 
defined in the glossary on page 166
corporate information
ron holding was appointed ceo during the year effective  
9 september 2013 having served as the group’s joint interim 
ceo with cobus loots since 1 march 2013 cobus loots 
was appointed fd effective 1 october 2013 following the 
resignation of busi sitole
pan african resources’ registered office has been changed 
effective 1 august 2013 to suite 31 2nd floor 107 cheapside 
london ec2v 6dn
key company data
shares in issue
pan african resources plc incorporated and registered 
in england and wales under 
the companies act 1985 with 
registered number 3937466 on 
25 february 2000
isin gb0004300496
total shares in issue 1829994763
lseaim
aim share code paf
listing date september 2005 the company 
reversed into brampton capital 
and was readmitted to aim as 
pan african resources
total shares in issue 271605032
jse
jse gold mining sector
jse share code pan
listing date july 2007
shares in issue 1558389731
strategic report
the strategic report on pages 4 to 56 has been approved by 
the board of directors and signed on their behalf by
ron holding
ceo
16 september 2014 pan african resources plc integrated annual report 2014 3
about this 
report
process for defining 
report content 
we have considered and applied many of the recommendations 
contained in the international integrated reporting framework 
issued in december 2013
in compiling this report the exco attended a workshop 
facilitated by an external consultant where group strategy 
stakeholder engagement key risks and material issues as well 
as other related matters were analysed
we have elected to focus in this report on key risks rather 
than separate material issues our prevailing focus irrespective 
of terminology remains those issues that materially impact our 
ability to create and sustain value over the short medium and 
longterm and those issues and groups on which the company 
materially impacts in the course of doing business as well as 
how these have been integrated into business strategy
further the report has been prepared in line with the lse’s aim 
rules and the jse’s listings requirements we have also applied 
the majority of principles in the king iii repor t with an explanation 
for any not so applied and the uk code has been taken into 
consideration the report was further prepared based on gri 
principles and guidance gri g31 standard disclosure guidelines 
and the mining and metals sector disclosure guidelines – the  
pan african resources’ sustainability report is compiled based 
on a selfdeclared application level b
the annual financial statements have been prepared in 
accordance with ifrs the saica financial reporting guides 
as issued by the accounting practices committee and the 
requirements of the south african companies act and the 
uk companies act 2006
supplementary information
this report represents one of three elements of pan african 
resources’ 2014 financial year communication strategy with 
stakeholders the other two being
pan african resources’ sustainability report containing 
additional nonfinancial disclosures referencing gri and
pan african resources’ mineral resources and mineral reserves 
report which provides detailed technical information on the 
mineral assets of pan african resources in compliance with the 
samrec code
the above documents together with this 2014 integrated 
annual report are available at wwwpanafricanresourcescom 
printed copies can be requested from the company secretary 
whose details appear on page 176
forwardlooking statements
statements in this report other than historical facts that 
address without limitation exploration activities mining 
potential and future plans and objectives of pan african 
resources are forwardlooking statements and forward
looking information that involve various risks assumptions and 
uncertainties and are not statements of fact the directors and 
management of pan african resources are of the belief that the 
expectations expressed in such forwardlooking statements 
or forwardlooking information are based on reasonable 
assumptions expectations estimates and projections 
however such statements should not be construed as being 
guarantees or warranties whether expressed or implied of 
future performance
there can be no assurance that such statements will prove to 
be accurate and actual values results and future events could 
differ materially from those anticipated in such statements 
important factors that could cause actual results to differ 
materially from statements expressed in this report include 
among others the actual results of exploration activities 
technical analysis the lack of availability to pan african 
resources of necessary capital on acceptable terms general 
economic business and financial market conditions political 
risks industry trends competition changes in government 
regulations delays in obtaining governmental approvals 
interest rate fluctuations currency fluctuations changes in 
business strategy or development plans and other risks
although pan african resources has attempted to identify 
important factors that could cause actual results to differ 
materially there may be other factors that cause results not to 
be as anticipated estimated or intended
pan african resources is not obliged to publically update any 
forwardlooking statements that are included in this report 
or revise any changes in events conditions or circumstances 
on which any such statements are based occurring after the 
publication date of this report other than required by regulation
assurance
pan african resources’ external auditors deloitte llp as 
the statutory auditor and deloitte  touche sa as the local 
auditor for jse reporting purposes have independently audited 
the financial statements for the year ended 30 june 2014 their 
unqualified audit reports are set out on pages 100 and 101 the 
scope of their audit is limited to the information set out in the 
annual financial statements on pages 96 to 157
business 
process
nature of 
assurance status assurance provider
financial 
statements
statutory 
audit
assured deloitte llp and 
deloitte  touche sa
barberton 
mines
iso 9001 assured alpha agency
evander 
mines
iso 9001 assured historically by the 
harmony group
keith spencer ron holding
executive chairperson ceo
hester hickey
audit committee chairperson  4 pan african resources plc integrated annual report 2014
strategic 
report 5
strategic 
report
pan african resources plc integrated annual report 2014
strategic 
report 6 pan african resources plc integrated annual report 2014
etrp
btrp
barberton mines
evander mines
phoenix platinum
100 ownership
nor th west 
province
mpumalanga
who we are
pan african resources is a midtier africanfocussed precious metals producer with a production capacity in excess of 
200000oz gold and 12000oz platinum per annum the group’s assets include
barberton mines three gold mines and the btrp in mpumalanga
evander mines  a gold mine in mpumalanga
phoenix platinum the ctrp in the north west province
pan african resources plc integrated annual report 2014 6
johannesburg
north 7
strategic 
report
pan african resources plc integrated annual report 2014
key features and
highlights
0
500
1000
1500
2000
2500
3000
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
8173 8797 12403 18481 26088
zar millions
group revenue headline earnings
0
100
200
300
400
500
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
1743 1907 3597 4870 4520
zar millions
headline earnings per share
cents
0
5
10
15
20
25
30
35
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
1188 1331 2489 3007 2474
gold sold
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
– – – – 22885
– – 1068 3836 11359
oz
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
98091
tailings
surface
under
ground
92197 93381 126657
153935
average zar cash costs vs average zar gold price
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
zar  kg
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
189308 217524 246801 281551 349008
189308 217524 265713 343949 374015
267876 306757 422215 440824 433437
158711 175520 193360 231439 298345
average 
spot price 
received
cash costs
allin 
sustaining 
cash costs
allin costs
average usd cash costs per ounce vs average usd gold price 
y ear ended
30 june 2010
y ear ended
30 june 2011
y ear ended
30 june 2012
y ear ended
30 june 2013
y ear ended
30 june 2014
usd  oz
776 968 990 992 1049
776 968 1066 1212 1124
1098 1365 1694 1553 1303
650 781 776 815 897
average 
spot price 
received
cash costs
allin 
sustaining 
cash costs
allin costs
0
200
400
600
800
1000
1200
1400
1600
1800 8 pan african resources plc integrated annual report 2014
operating 
assets
barberton mines
location mpumalanga
key facts
 
 
resource


unique greenstone belts

adapted to optimise extraction

18moz including btrp and 

37moz

ownership 100
 developed
pan african resources acquired 74 
of the operations from metorex ltd 
in july 2007 the remaining 26 was 
acquired from shanduka in  
august 2009 
description located in the barberton greenstone 
belt this is a low cost high grade 
operation comprising three mines 
fairview sheba and new consort
lom of 19 years
capacity 95koz of au per annum
 processed
300000
headgrade
btrp
location mpumalanga
key facts see barberton mines
ownership 100
 developed
zar3136 million was invested in 
the construction of the btrp up to 
june 2013 production commenced on 
1 july 2013 
description located at barberton mines the gold 
tailings retreatment plant commenced 
construction in april 2012 was 
completed on schedule and within 
budget and financed through cash 
generated by barberton mines 
lom of 15 years
capacity 20 – 25koz per annum
 processed
1200000
headgrade 9
strategic 
report
pan african resources plc integrated annual report 2014
evander mines phoenix platinum
location mpumalanga
key facts
basin which includes several 
potential brownfields projects for 
development 

826moz and resource of 


ownership 100
 developed
pan african resources acquired the 
operation from harmony during 
march 2013
description located in the witwatersrand basin 
current operations comprise no 8 
shaft several potential brownfields 
projects – rolspruit poplar evander 
south and elikhulu tailings project 
the kinross metallurgical processing 
plant and tailings storage facilities the 
new zar200 million etrp is under 
construction for commissioning by 
january 2015 with a lom of 17 years
capacity 95koz per annum
 processed
400000
headgrade
location north west
key facts

precious metals

pge from chrome tailings



ownership 100
 developed
pan african resources acquired 100 
from metorex ltd in may 2009
commenced operations 
december 2011 steady state 
production from 1 july 2012
description phoenix platinum is a tailings plant 
designed to extract pges from 
chrome tailings
lom of 28 years
capacity 12koz pge per annum sulphide 
feedstock 7koz pge per annum 
oxidised feedstock
 processed
240000
headgrade 10 pan african resources plc integrated annual report 2014

225000oz of gold 
and 12000oz of 
pges per annum

resources of 
335moz of gold 
and 06moz of 
pge supports 
sustainable  
production

mines and 
two tailings 
retreatment plants 
in south africa

record of 
replenishing 
mineral reserves 
by targeting 
exploration and 
development to 
increase the loms

expenditure was 
within budget and 
construction  
timeframes
investment case
emerging 
precious metals 
producer
africanfocussed
disciplined 
approach 
to capital 
management
pan african resources plc integrated annual report 2014 10 11
strategic 
report
pan african resources plc integrated annual report 2014
 strong and 
sustainable margins

resources of 
335moz of gold 
and 06moz of 
pge supports 
sustainable  
production

maintained 
throughout the 
current low 
precious metals 
price cycle

of financial position

on achieving 
zero harm

environmentally 
responsible mining

relationships 
with labour 
government 
and communities
committed 
to lowcost 
production 
and optimising 
extraction
delivering 
consistent 
returns
committed to 
sustainability
pan african resources plc integrated annual report 2014 11 12 pan african resources plc integrated annual report 2014
fiveyear 
review
 2014 2013 2012
1
2011 2010
operating performance
gold mining operations tonnes milled t 948149 512869 308095 296200 313167
gold tailings plant processed t 815736 ––––
gold headgrade – mining operations 58 86 106 106 106
gold headgrade – tailings operations 16 ––––
gold sold oz 188179 130493 94449 92197 98091
gold spot price received 1303 1553 1694 1366 1098
total gold mining cash costs 897 815 776 781 650
pge sold oz 7204 6480–––
2014 2013 2012
1
2011 2010
zar gbp zar gbp zar gbp zar gbp zar gbp
 millions millions millions millions millions millions millions millions millions millions
statement of comprehensive 
income extract
revenue 26088 1546 18481 1335 12403 1011 8797 792 8173 685
cost of production 17959 1064 9851 712 5660 461 5036 453 4838 406
mining profit 6378 378 7768 561 6323 515 3423 308 2942 247
adjusted ebitda
3
7455 442 7352 531 5525 450 3170 285 2945 250
impairment costs –– 2423 161 06 01 – – 40 03
profit after taxation 4521 268 5589 426 3589 292 1907 172 1730 145
headline earnings
 4
4520 268 4870 352 3597 293 1907 172 1743 146
dividends 2403 147 – – 956 74 603 54 – –
statement of financial position 
extract
noncurrent assets 39415 2234 37262 2493 11438 861 10641 972 8572 743
current assets
2
4234 235 4015 267 3678 285 1732 158 2039 177
total equity 27884 1594 25688 1722 13575 1026 9927 907 8476 735
noncurrent liabilities 11441 635 12009 800 1808 140 1467 134 1318 114
current liabilities 4324 240 3612 241 1429 111 980 90 817 71
cash flows

operating activities 3603 222 6680 483 3752 306 1817 166 2114 183
capital expenditure 3630 215 3816 276 2139 174 2336 210 708 59

and cash equivalents 296 17 2160 156 1408 115 395 36 1270 106
key ratios
return on 
shareholder’s funds  162 168 218 247 264 285 192 190 204 197
net debt equity ratio ratio 004 004 004 004 019 019 007 011 019 017
net debt adjusted 
ebitda ratio 014 013 013 012 046 044 022 035 055 051
interest cover ratio 389 379 416 419 3011 4170 – – 2148 2160
current ratio ratio 10 10 11 11 26 26 18 18 25 25 13
strategic 
report
pan african resources plc integrated annual report 2014
2014 2013 2012 2011 2010
 cents pence cents pence cents pence cents pence cents pence
statistics
shares in issue millionsnumber 18300 18228 14483 14440 14095
weighted average 
number of shares 
in issue number 18272 16198 14452 14327 13663
eps
pence 2474 147 3451 263 2483 202 1331 120 1155 104
heps
 4

pence 2474 147 3007 217 2489 203 1331 120 1188 107
nav
pence 15237 871 14093 945 9374 709 6874 628 6013 521
dps
pence 1314 080 – – 660 051 418 037 – –
yearend dividend yield  56 57 – – 30 36 30 40 00 00
yearend price earnings ratio 1079 969 554 485 975 730 1390 854 987 598
volume of shares 
traded millions number 4355 1998 7603 4592 6069 4242 4109 4654 2514 4308
volume traded as 
percentage of number 
in issue  238 109 417 252 419 293 285 322 178 306
number of transactions number 28498 11496 30814 16121 21827 13593 18343 10533 11542 5322
value of shares traded 
millions number 10296 283 17624 744 13426 602 5800 437 2252 263
traded prices
– last sale in year
pence 267 143 1910 128 242 148 185 102 114 62
– high
pence 294 168 2990 210 299 174 204 119 126 82
– low
pence 186 118 1850 118 180 95 109 55 65 44
–  average price per 
share traded

pence 236 142 2330 162 218 142 139 94 86 61
1 at 30 june 2012 phoenix platinum had not reached steady state production therefore all income and expenditure was capitalised
2  current assets at 30 june 2013 excluded noncurrent assets heldforsale of zar32 million gbp02 million and at 30 june 2012 zar1696 million gbp131 million
3 adjusted ebitda is represented by earnings before interest taxation depreciation and amortisation bargain purchase gain impairments and loss on disposal 
of assets heldforsale
4  refer to the headline earnings reconciliation in note 14 of the annual financial statements 14 pan african resources plc integrated annual report 2014
a working stra tegy  15
strategic 
report
pan african resources plc integrated annual report 2014 16 pan african resources plc integrated annual report 2014
our
strategy
stakeholder
growth
profitable
sustainable

 with regulators unions and 
communities 
 unrest 
 practices 

south african legislation 
including  mining charter and 
slps


harm 
 sustaining development 
initiatives including localised job 
creation and upskilling
 of 335moz of gold 
and 06moz of pge
 of evander mines

 cost gold production
 standardised and 
aligned with group 
sheqc policy 
 188179oz 2013 130493 oz 
 
2013 zar18481 million 

gold mining indices on lse and jse 17
strategic 
report
pan african resources plc integrated annual report 2014
fostering relationships 
through integrity and 
honesty
leadership planning 
and control
delivering on all 
our targets without 
compromise
maximise recovered 
grade
positive impact on 
earnings
pan african resources’ growth strategy is aimed at achieving and improving margins while driving ongoing growth in our mineral reserve 
base we aim to capture the full precious metals mining value chain and maximise shareholder value by exploiting opportunities in the 
group and in the broader sector
the group remains cash generative at the current gold price with the ability to fund all onmine capital expenditure internally and to also 
meet its other funding and growth commitments  
the key drivers of our strategy are
results
action
people 18 pan african resources plc integrated annual report 2014
deliverable
 attributable profit
 heps
 ebitda
 cost containment
 average gold price realised
 t otal gold cash cost
 gross profit margin from gold operations

operational and business plans
strategy scorecard
our
strategy
fy2014 objectives
 group erp system rollout 
 exploiting operational synergies in finance department
 fully integrate evander mines into the group
 cost containment
 maintain dividend payments
 remain profitable throughout the current low 
precious metals price cycle 
profitable
sustainable
stakeholder
growth
deliverable
 optimising mineral reserves for sustainable lom 
production profile
 operating profit margins
 enabling company culture
 environmental compliance
 safety record
 sufficient working capital for maintenance and growth
 decentralised and effective management
 engagement with local communities
 skills development and training
fy2014 objectives
 growth of assets evander mines acquisition bring 
btrp to full production
 maximise evander mines asset
deliverable
 ongoing engagement
 slps and mining charter compliance
 return on shareholder funds
 dividend 
 safety record
 union engagement and relationships
 labour legislative compliance
 wage increases – appropriate remuneration policies
 t otal taxes collected and paid
 job creation
 csi spend
fy2014 objectives
 improve and maintain stakeholder communication and 
relationships
deliverable
 organic achieved within  existing infrastructure
 expansion 
 replacement projects for depleting projects
 brownfield projects
 acquisitions
fy2014 objectives
 identify investors for brownfield projects
 source additional ounces at low input cost
 evaluate opportunistic acquisitions 19
strategic 
report
pan african resources plc integrated annual report 2014
fy2014 progress
 the group remained profitable while the gold price retracted profitability was supported by the commissioning of the highly cash 
generative btrp
 t otal gold cash cost increased as a result of evander mines low grade mining cycle
 the group’s finance and procurement team remained focussed on a group procurement strategy to align operations in sourcing 
improved pricing and quality of goods and services
 the gold price realised in the current year decreased reducing the operations gross profit margins
 the pge production remained positive with improved cash generation from the prior year  
 dividend paid during fy 2014 and a new dividend proposed for approval at the agm
fy2014 progress
 evander mines fully integrated at yearend
 optimisation of evander  mines ongoing – etrp approved for commissioning by january 2015
 btrp operational
 cash balance increased to zar1012 million 2013 zar716 million
 group capital expenditure incurred zar3630 million 2013 zar3816 million
 severity of accidents four fatalities
fy2014 progress
 completed phase 2 of sinqobile primary school including computer and science labs library and extra classrooms  
please see our sustainability report on our website wwwpanafricanresourcescom for further detail in this regard
 completed phase 4 of the evander mines safety programme vuka sizwe at evander mines 
please see our sustainability report on our website wwwpanafricanresourcescom for further detail in this regard
 dividend recommended subject to approval at the agm of 01410 cents per share to be paid in fy2015 paid in 2014 01314 cents 
per share
 severity of accidents four fatalities
 group salaries and wages amounted to zar8526 million 2013 zar5070 million or 327 of total group revenue
 amcu seeking recognition remains an ongoing dialogue at barberton mines interunion violence remains an industry threat 
 refer to value added statement on page 88 in relation to taxes paid and csi spend
fy2014 progress
 the group assessed and implement numerous organic projects 20 pan african resources plc integrated annual report 2014
share price
performance
pan african resources relative to jse gold mining index j150
pan african resources relative to ftse gold mines index
8
10
12
14
16
18
pence
pan african resources ftse
june14
may14
april14
march14
february14
january14
december13
november13
october13
september13
august13
july13
100
150
200
250
300
cents
pan african resources j150
june14
may14
april14
march14
february14
january14
december13
november13
october13
september13
august13
july13
our
strategy 21
strategic 
report
pan african resources plc integrated annual report 2014
the material factors impacting the group’s ability to create value in the immediate future and over the longer term can be grouped 
into three main categories 
 macroeconomic – to an extent beyond the group’s control although the effects can be anticipated as far as possible and mitigated 
 operational – managed proactively by implementing policies and process controls
 strategic – impacting on the group’s ability to execute its strategy and therefore we can anticipate and proactively address 
these issues
risk mitigation strategic pillar 
macroeconomic 
single country risk exclusive focus on 
south africa

cognisance of the single country exposure
profitability and cash flow impacted 
by gold price and pge pricing volatility 
and cost of production inflation 
future electricity increases

 proven profitable


 
on a sustainable basis

productivity and control costs

office 


exchange rate zar weakening against 
the usd and gbp


production unit
fluctuating commodity prices
price risk whilst the zar gold price remains volatile
operational
industrial action – work stoppages 
higher operating costs due to 
wage settlements changes in 
employment legislation






associated union rivalry challenging 
recognition criteria – amcu has a 
presence on barberton mines



key
risks
stakeholder growth profitable sustainable 22 pan african resources plc integrated annual report 2014
risk mitigation strategic pillar 
safety – fog transport blasting 
equipment handling underground fires
issuing of section 54 stoppages on 
barberton mines and evander mines 
by the dmr due to fatalities

standardisation and oversight 








 
low grade mining cycle at evander mines

profiles on a percentage of production

cycles at evander mines

flexibility in terms of grade
health – occupational diseases 

nihl tb


 airborne pollutants



environmental degradation – water 
pollution contaminated water from the 
kinross kariba dam at evander mines 
sheba mine flooding






stakeholder growth profitable sustainable
key
risks continued 23
strategic 
report
pan african resources plc integrated annual report 2014
risk mitigation strategic pillar 
strategic
reserves and resource estimates – 
assumptions based


to assumptions applied to lom estimates
integration of acquisitions and 
construction of new plants


factors impacting productivity – 
low grade cycle quality of tailings 
effectiveness of extraction agents 
stoppages


lom assumptions

°
 vamping
°
 surface sources
°
 kinross mill floor
°
 etrp


unavailability of infrastructure – power 
interruptions





interruptions



stakeholder growth profitable sustainable 24 pan african resources plc integrated annual report 2014
chairman’s
report
the 2014 financial year was a challenging one for the gold 
industry it recorded the first annual decline in the gold price 
in 13 years however pan african resources remains well 
positioned in relation to its peers in adapting to this and 
responded quickly to volatile markets
with the acquisition of evander mines the group has evolved 
rapidly to become a larger operator and producer and can 
now certainly be classified as an africanfocused midtier 
precious metals miner the addition of evander mines in 
2013 has diversified the group from the previous single asset 
business model and in so doing reduced operating risk the 
evander mines operations have been successfully integrated 
into the group and the newly commissioned btrp became fully 
operational during the year the group’s total gold output for 
the year increased to 188179oz 2013 130493oz of which 
evander mines contributed 76556oz
in addition the board established the following priorities for the 
year under review strengthening our board and management 
team enhancing our governance structure and driving an 
intense focus on mining sustainably i am pleased to report we 
have made solid progress in all of these areas
management changes
we implemented numerous board level changes in the year 
most notably the appointment of ron holding as ceo ron was 
previously pan african resources’ joint interim ceo and prior 
to that closely involved with the group’s operations as coo 
ron’s highly experienced record has seen him occupy a number 
of senior positions across the various stages of developing 
and mining gold and platinum mineral deposits he is a 
seasoned operator with deep technical and executive skills 
and a proven trackrecord of delivering the full potential from 
operations under his direction his appointment has significantly 
strengthened the company’s market position and will help drive 
further growth in the year ahead
in addition cobus loots was appointed fd after holding the 
position of joint interim ceo with ron cobus has been a 
pan african resources’ director since 2009 having previously 
held the position of managing director of shanduka busi sitole 
resigned as fd with effect from 30 september 2013 i would like 
to thank busi for her contribution to the company and wish her 
the best in her future endeavours
with the acquisition of evander 
mines the group has evolved rapidly 
to become a larger operator and 
producer and can now certainly be 
classified as an africanfocused 
midtier precious metals miner
pidly 
be  25
strategic 
report
pan african resources plc integrated annual report 2014
governance
pan african resources is committed to the highest standards 
of governance we are pleased to have appointed thabo 
mosololi as a nonexecutive director in the year reinforcing 
the independence of the board he brings with him a wealth of 
experience in governance and audit we also recently appointed 
rowan smith as an independent nonexecutive director he was 
previously managing director of shanduka and has more than 
20 years’ experience in the minerals and investment banking 
industries his appointment will further strengthen the technical 
and commercial expertise available to our board
rob still resigned as an independent nonexecutive director 
on 1 july 2014 after serving on the board for 10 years i thank 
rob for his invaluable contribution to pan african resources’ 
journey of growth from a junior exploration company to a mid
tier miner
financial results
both pan african resources’ earnings and headline earnings 
declined in the year under review although this decline was 
generally attributable to factors outside of our control such as 
the low grade mining cycle at evander mines and gold prices 
we are aware that shareholders require a return on investment 
even over the short term the new dividend policy refer to 
page 125 and attractive dividend recommended by the board 
demonstrates our confidence in pan african resources’ business 
going forward
mining sustainably
while the pervasive local labour unrest continues to pose a 
significant risk in our industry we are proud to report that we did 
not experience significant disruptions at our operations during 
the year under review despite our best efforts we believe that 
the labour environment in south africa will be challenging for 
some time yet and as such all parties have to cooperate in 
order to ensure the sustainability of our industry in the future 
we are committed to maintaining our good relationships with 
the unions by continually adopting a proactive consultative 
opendoor approach
more than 10 years ago the south african government set formal 
targets for social development and community upliftment as 
encapsulated in the mining charter with 2014 marking a decade 
since the charter’s inception the government expectation is for 
mining companies to now reach full compliance we continue to 
strive to meet and also exceed these targets
a key target of the mining charter includes the conversion 
of all hostels into family units as part of a larger scheme 
of improving living conditions for mineworkers we have 
committed substantial investment to an extensive improvement 
programme in this regard upgrading and converting old hostels 
into single accommodation and family units at evander mines 
in line with the mining charter barberton mines recruits only 
from its local region an area with high unemployment which 
sees the majority of its employees living offmine
we are committed to eliminating or minimising the negative 
impacts of our operations and continuously look to improve 
our environmental performance to this end environmental 
management is well integrated into management practices 
in terms of our longterm environmental obligations 
environmental plans at the mines are compliant with presiding 
regulatory requirements provisions in this regard are based on 
the net present value of the estimated cost of restoring the 
environmental disturbance the estimated cost of rehabilitation 
is reviewed annually and adjusted as appropriate for changes in 
legislation or technology we are also constantly rehabilitating 
old mining areas and reducing final closure costs in this manner
at pan african resources we strongly believe that our employees 
and communities should benefit from our mining activities and 
we continue to undertake a number of community projects 
with the goal that they become fully sustainable organisations in 
their own right over time
please see our sustainability report on our website  
wwwpanafricanresourcescom for further detail on our efforts in this 
regard
outlook
looking forward to 2015 we expect to see further 
improvements in our business as we continue to drive 
efficiencies and streamline our activities specifically 2015 will 
see the commissioning of the etrp at evander mines in the third 
quarter of the financial year and in the second half it will exit the 
current low grade mining cycle i am confident that the company 
has the team and resources in place to continue on a path of 
operational excellence
thank you
i would like to thank my fellow board members for their 
guidance and insight during the year thank you as well to our 
shareholders our employees all business partners and the 
industry regulators for your ongoing support of pan african 
resources
keith spencer
chairman
16 september 2014 26 pan african resources plc integrated annual report 2014
chief executive officer’s
report
year in review
i am pleased to report that we have delivered on our strategic 
priorities for the year under review despite challenges 
on which i will elaborate further in this report pan african 
resources’ quality assets and dedicated experienced staff and 
management have again delivered returns for shareholders 
these returns can be measured in profits but also importantly 
in another attractive dividend to shareholders this dividend 
and also our new policy to pay a progressive annual dividend 
refer to page 125 demonstrates the board’s confidence in  
pan african resources’ operations our people and our ability 
to continue to deliver and improve results
we have made good progress towards solidifying our position 
as an africanfocussed midtier precious metals miner 
our annual revenue was up by 412 and gold production up 
by 442 evander mines is now fully integrated and part of the 
group at barberton mines the btrp became fully operational 
and has been delivering ounces at above the originally 
planned margin
nonetheless we continued to see a challenging macro
environment during the year and our results and margins were 
impacted by the continued weakness in precious metals prices 
as well as inflationary and other cost pressures in south africa 
in addition and as anticipated at evander mines mining in lower 
grade areas also had a significant adverse impact on our financial 
results we are actively implementing a number of measures to 
mitigate the impact of this lower grade mining cycle measures 
implemented or in progress to mitigate the impact of the 
current low grade cycle at evander mines include the following
 the construction of the etrp to yield an estimated 10000oz 
of gold per annum with a lom of 17 years the etrp project 
is progressing well and expected to be in production by 
january 2015
 surface sources throughput in the evander mines’ plant has 
been increased from 18000t per month to approximately 
30000t per month to maintain these tonnages for the full 
2015 financial year additional sources are being investigated
 vamping the mining of historical “leftovers” remaining after 
previous mining operations at evander mines no 7 shaft 
has been expanded to include the 15 level return airway mud 
accumulation project this has been contributing additional 
ounces from july 2014
 management is concentrating efforts to increase availability 
of conveyor belts in the evander mines no 8 shaft declines 
a refurbishment programme has been implemented to effect 
the necessary mechanical improvements and upgrades
pan african resources’ quality 
assets and dedicated experienced 
staff and management have again 
delivered returns for shareholders 27
strategic 
report
pan african resources plc integrated annual report 2014
 management has rescheduled the mine planning and 
improved mining flexibility by increasing development rates 
on 25 and 25a levels at evander mines no 8 shaft to access 
more stoping areas
through focussed initiatives exploration and planning at our 
operations we have positively enhanced these valuable assets’ 
respective loms
 barberton mines’ lom increased to 19 years 2013 17 years 
due to exploration ounces added at fairview mine and 
sheba mine
 btrp’s lom has been increased to 15 years 2013 12 years 
by remodelling the tonnages at the harper south dam 
and converting the consort and sheba tailings dams into 
a probable mineral reserve
 evander mines’ lom was increased to 17 years 2013 
14 years as a result of including the mining area between 
25 and 26 levels at evander mines no 8 shaft not previously 
in the lom plan – now termed the decline extension project 
a robust mine design was considered in order to convert the 
mineral resource into a mineral reserve
 etrp has established a lom of 17 years aligning with the life 
of no 8 shaft and will exploit the slimes on kinross tailings 
dams and
 phoenix platinum’s lom has increased to 28 years 2013 
20 years
strategy
in the year under review we made good progress in targeting 
high margins at a low cost this is borne out by the highly 
costeffective btrp operation the construction of the etrp 
at evander mines and a potentially larger successor plant – the 
elikhulu project see ’looking ahead’ below
the lom at evander mines no 8 shaft has been increased 
by extending the decline system down to 26 level the decline 
extension project to access the resources between 25 and 
26 level which will also alleviate mining flexibility constraints by 
creating additional stoping areas
our strong balance sheet and wellestablished cashgenerative 
operations are key differentiators from our peers these 
provide pan african resources with a competitive advantage 
to further growth through our operations and organic project 
pipeline and also position the group to capitalise on potential 
acquisition opportunities in the year ahead we will focus on 
maintaining our statement of financial position while also 
seeking new opportunities to create value for shareholders 
we plan to continue rewarding shareholders through dividends
health and safety
our commitment to safety remains at the heart of our culture 
and is evident in the way we operate and manage the group 
it was with great sadness that we experienced four fatalities in the 
group during the year  we extend our deepest condolences to 
the families friends and colleagues of the deceased in an effort to 
prevent a recurrence the group continues to focus on safety we 
have implemented corrective actions to as far as possible prevent 
any further recurrences further detail in this regard can be found in 
our sustainability report on our website wwwpanafricanresourcescom
performance
our flagship asset barberton mines continues to underpin 
the group’s performance with highmargin underground 
production it remains one of the lowest cost mines in south 
africa the btrp was completed in 2013 on schedule and on 
budget it supports barberton mines as a long life low cost gold 
producer the btrp has increased efficiencies and further dilutes 
the costs at the mine as a whole the plant became operational 
at the beginning of the year in review and has already achieved 
its targets at yearend it was producing gold at an allin cost of 

at barberton mines the successful commissioning of the btrp 
assisted in offsetting a reduction in underground production 
which occurred when the sheba mine lost a month’s production 
due to flooding caused by excessively high rainfall just on 
200mm in 10 hours during march 2014 as well as a temporary 
technical setback at the central biox
®
 plant
during the year barberton mines’ wage costs increased in 
excess of inflation in line with our twoyear wage agreement 
with num labour and staff costs were further impacted by 
the introduction of a medical aid scheme for barberton mines’ 
employees salaries and wages represent the greatest single cost 
at barberton mines at 447 2013 485 of total production 
costs these necessary increases and initiatives reflect our 
commitment to our people and our social obligations
evander mines is performing as anticipated and contributed 
to the group for the full year as opposed to four months’ 
contribution in the prior year as planned the mine is 
currently operating in a low grade mining cycle that is 
impacting underground gold production and cash unit costs 
we expect this cycle to continue until february 2015 where 
after mining will gradually move into the high grade cycle 
by august 2015 to compensate for the lower grade cycle 
we have increased tonnages from surface sources targeted 
additional vamping areas at no 7 shaft and are recovering gold 
from the kinross plant mill floor during the year the board 
approved the necessary capital expenditure for construction 
of the etrp through the refurbishment of dormant sections 
of the existing kinross metallurgical plant to recover gold from 
the retreatment of gold tailings this is envisaged to increase 
evander mines’ gold production by up to 10000oz per annum 

at our ctrp phoenix platinum’s performance improved during 
the year and the operation saw its first year of profitability plant 
recovery rates increased to 29 during the year 2013 21 
this was achieved through adjusting the reagent suite in the 
extraction process to deal with variable feed sources 28 pan african resources plc integrated annual report 2014
finally the depreciation of the zar against the usd and 
good control of aggregate and unit costs in zar terms 


in capital expenditure spent on the btrp even though evander 
mines’ gold production declined as result of the low grade 
mining cycle
financial performance
group revenue yearonyear increased by 412 to 
zar26088 million 2013 zar18481 million in terms of costs 
the total cost of production was up 823 to zar17959 million 
2013 zar9851 million
during the year zar390 million was added to the bottom line 
upon realising profits from zero cost collars
we have proposed a dividend of zar2580 million a 74 
increase from zar2403 million declared in the 2013 
financial year
please refer to the fd’s report on page 42 and the financial 
statements for further detail
commodity prices
during the year under review gold prices retreated considerably 
 
a decrease of 161 yearonyear please refer to the fd’s 
report on page 42 for further detail
looking ahead
the construction and commissioning of the etrp is significant 
as it has an estimated resource of 04 million ounces and 
adds immediate production ounces to evander mines should 
the etrp project meet targets we will evaluate a project to 
commission a further much larger plant – the elikhulu project – 
situated at evander mines to treat tailings from the winkelhaak 
leslie bracken and kinross dam storage facilities with an 
estimated resource of 15 million ounces
the refurbishment of fairview no 2 and 3 decline shafts at 
barberton mines will continue for another 18 months after 
which operations will revert to six shifts per week
once the above plans are actioned we will be on track to 
achieve our targeted 250000oz of annual production from our 
current portfolio of assets and infrastructure 
our commitment to safety remains at the heart of our culture 
and is evident in the way we operate and manage the group  
chief executive officer’s
report continued 29
strategic 
report
pan african resources plc integrated annual report 2014
our brownfields project pipeline at evander mines also includes 
the evander south poplar and rolspruit projects evander 
south has estimated resources of 52 million ounces poplar 
54 million ounces and rolspruit 89 million ounces 
pan african resources is also well positioned to take advantage 
of further growth opportunities
thank you
we extend our thanks to our management team our mine 
managers and all their staff for their hard work and persistence 
that have allowed pan african resources to continue growing 
from strength to strength we also thank our fellow directors 
for their support and guidance
ron holding
ceo
16 september 2014
strategic 
report 30 pan african resources plc integrated annual report 2014
stakeholder 
engagement
stakeholders are integral to the group’s growth and sustainability 
and have been identified as one of the four key strategic pillars 
stakeholder feedback and concerns are therefore carefully 
considered when reviewing and refining strategy to the group’s 
advantage this in turn fosters an accurate perception by our 
stakeholders of our business decisions and performance
on reflection we consider our stakeholder communication 
to have been a key contributor to our growth trajectory 
for instance in a year characterised in the mining industry by 
widespread industrial action our operations did not suffer 
a single organised labour unrest incident post yearend 
barberton mines did however have a oneday strike action 
following the issuance by the ccma of a nonresolution 
certificate on the matter of amcu seeking organisational rights 
management successfully interdicted amcu as they do not 
meet the necessary requirements of 45 plus one membership 
target as required in the recognition agreement with num
a detailed account of pan african resources’ stakeholders and 
their key concerns as identified are set out in the table below
stakeholder what matters to them nature of engagement
how feedback informs 
strategy responsibility
investors
 performance



regulatory compliance

reporting

roadshows


aim and jse
 with investor community

announcements


terms of conformance with 
debt covenants
 poll results and feedback from 
presentations and oneonone 
meetings discussed at exco 
ceo
fd and financial team
employees




occupational health

training
 exposure




structures

documents


 discussed at opsco exco 
and board level
operational hr 
managers
group hr executive  31
strategic 
report
pan african resources plc integrated annual report 2014
stakeholder what matters to them nature of engagement
how feedback informs 
strategy responsibility
unions



reward




discussions between unions 
and management occur on the 
mines and filter through to the 
corporate office
discussed at opsco exco 
and board level
group hr executive

committees
communities
protection

 discussed at the sheqc 
committee exco and 
board level
general managers
community liaison 
managers at each 
operation
csi officers at each 
operation
suppliers
performance



growth
 discussed at a opsco and 
exco
general managers 
and financial 
managers
group procurement 
manager newly 
appointed
government 
departments


compliance




communication with 
departments dmr labour 
water affairs education 
and public works local 
municipalities independent 
development plans 
discussed at exco and board 
level
general managers
ceo
customers
 discussed at exco and board 
level
general managers
metallurgical 
managers 32 pan african resources plc integrated annual report 2014
leadership  33
strategic 
report
pan african resources plc integrated annual report 2014 34 pan african resources plc integrated annual report 2014
directorate  
keith spencer 64
independent non
executive director
chairman
appointed 8 october 2007
bsc eng mining
keith is a qualified mining engineer 
with 35 years’ practical mining 
experience he has managed 
some of the largest gold mines 
in the world in 1984 keith was 
appointed as general manager of 
greenside colliery and in 1986 
moved to kloof gold mine as 
general manager in 1989 he was 
appointed as consulting engineer 
for gold fields south africa 
to doornfontein gold mine 
driefontein consolidated gold 
mine greenside colliery and 
tsumeb base metals mine he also 
served as managing director 
of driefontein consolidated 
chairman and managing director 
of deelkraal gold mine and 
as a board member of all gold 
mines belonging to gold fields 
south africa in 1999 keith joined 
metorex limited first as a private 
consultant and later as a permanent 
member of the executive managing 
the wakefield coal operations 
o’okiep copper company 
barberton gold mines and metmin 
manganese mine in 2001 keith 
became operations director for 
metorex limited
hester hickey 60
independent non
executive director
appointed 12 april 2012
casa
hester worked at anglogold 
ashanti initially as group internal 
audit manager and later as 
executive officer head of risk 
prior to this she worked at ernst 
 young and liberty life and was 
acting head of internal audit 
at transnet in her early career 
she lectured at the university of 
witswatersrand was a partner 
of ironside greenwood and 
was the national technical and 
training manager at bdo spencer 
stewart hester has also previously 
served as chairman of saica 
she currently performs board 
evaluations and director training for 
the iodsa and serves on several 
boards and audit committees
phuthi mahanyele 43
nonexecutive director
deputy chairman
appointment 20 july 2011
ba economics mba
phuthi is the ceo of shanduka 
group she joined shanduka in 
2004 as the managing director 
of shanduka energy pty 
ltd a subsidiary company of 
the shanduka group she was 
previously the head of the project 
finance south africa unit at the 
development bank of southern 
africa prior to that phuthi was 
vice president at fieldstone where 
she joined the firm in new york in 
1997 and later transferred to the 
south african office she is a board 
member of a number of shanduka 
group investee companies she 
completed the kennedy school of 
government executive education 
program’s global leadership and 
public policy for the 21st century 
at harvard university in 2008
thabo mosololi 44
independent non
executive director
appointed 9 december 2013
bcom hons uwc casa
thabo brings a wealth of 
experience in corporate 
governance and audit having 
started his career at kpmg and 
since 1999 having served on a 
variety of boards as a member and 
chairman of audit committees in 
the resources and other industries 
in south africa he is currently 
a director of mft investment 
holdings where he is responsible 
for investment decisions in 
respect of bbbee investment 
opportunities 35
strategic 
report
pan african resources plc integrated annual report 2014
rowan smith 50
independent non
executive director
appointed 8 september 2014
bsc hons bcom hons
rowan was the managing director 
of shanduka and has almost two 
decades of collective experience in 
the minerals and merchant banking 
industries he was previously a 
director at pan african resources 
from 17 september 2009 until 
20 july 2011 his experience 
includes geological valuation work 
for rand mines seven years with 
societe generale de surveillance 
in both geneva and south africa 
as a manager and four years as 
a director of investec’s resource 
finance division rowan’s passion 
for business development coupled 
with his technical and merchant 
banking expertise have provided 
him with the skills to originate 
structure and implement a host 
of investments across the various 
resourcebased sectors
ron holding 62
executive director
ceo
appointed 9 september 2013
national diploma for technicians 
mining metalliferous south african 
mine managers certificate of 
competency metalliferous mining 
and programme for management 
development university of cape 
town
ron began his mining career in 
1973 with gencor and has since 
occupied a number of senior 
positions with exposure to the 
various stages of developing and 
mining mineral deposits in addition 
to deep level gold mining his vast 
experience includes the mining of 
platinum diamonds and copper 
he has been intricately involved 
with all pan african resources’ 
operations since 2009 and was 
appointed as coo in 2010 
during 2013 ron was joint ceo 
and subsequently appointed ceo 
in september 2013
cobus loots 36
executive director
fd
appointed 26 august 2009
casa cfa
®
 charterholder
cobus served articles with deloitte 
 touche and became an audit 
manager with the firm before 
leaving to pursue a career in 
finance his experience includes 
miningspecific acquisitions and 
finance as well as the management 
of both exploration and production 
of mineral assets most recently 
before 2009 as managing director 
of shanduka cobus has been a 
director of pan african resources 
since 2009 fd during 2009–2011 
and a nonexecutive director 
during 2011–2013 and served as 
joint ceo alongside ron holding 
until assuming the office of fd on 
1 october 2013
rob still 59
independent non
executive director
appointed 8 september 2004
resigned 1 july 2014
bcom hons
rob has vast experience in mining 
specialising in mining finance 
he has been involved in the mining 
industry worldwide having held 
executive and nonexecutive 
directorships in companies listed 
in south africa australia canada 
and the united kingdom including 
chairman of zimbabwe platinum 
mines limited and of metorex 
limited he has participated in 
the evaluation and development 
of several new mining projects 
including rhovan ticor titanium 
pangea gold fields limited 
southern mining corporation 
limited corridor sands and 
zimbabwe platinum mines 
limited he started his career as a 
chartered accountant and became 
a partner of ernst  whinney 
before leaving in 1986 to cofound 
rhombus exploration limited
strategic 
report 36 pan african resources plc integrated annual report 2014
anaki karigeni 46
coo
bsc mining engineer
23 years of miningrelated 
experience
andre van den bergh 58
executive human resources
diploma in hr management 
diploma lr management
40 years of miningrelated 
experience
 58
s
t
arig
engin
ning
ber
esour
geme
ent
ated 2
ex
ana
coo
bsc mi
ars o
ence
n
a
ex
dip
dipl
40 ye
expe
ni 46
r
ed
van 
hum
hr 
ma
executive  
management
ron holding 62
ceo
see directorate for cv
cobus loots 36
fd
see directorate for cv
exco 37
strategic 
report
pan african resources plc integrated annual report 2014
bertin mcleod 37
plant manager metallurgy phoenix 
platinum
btech chemical engineering 
management development 
certificate senior management 
development certificate
13 years platinum industry 
experience
neal reynolds 31
group financial controller
bcom accounting hons nmmu 
casa
8 years financialrelated experience
casper strydom 56
general manager barberton mines
mines national higher diploma 
metalliferous mining mine 
managers certificate
38 years of miningrelated 
experience
manny da silva 44
general manager evander mines
bsc mining engineering wits 
mine managers certificate of 
competency mine overseers 
certificate of competency
24 years of miningrelated 
experience
opsco
strategic 
report
mandla ndlozi 43
group sheqc manager
nadsm unisa eia pu for che 
mdp gibs samtrac nosa 
integrated sheq management 
potch university
14 years miningrelated experience
barry naicker 41
group mineral resource and 
reserves manager
meng mineral resource 
management wits grad dip 
engineering mrm bsc hons 
geology and economic geology
11 years miningrelated experience
wayne allen 45
group consulting engineer
national diploma engineering 
mechanical engineer’s certificate 
of competency map wits 
amre sa
24 years miningrelated experience
opsco 38 pan african resources plc integrated annual report 2014
ethical
leadership 
highlights fy2014


oversee groupwide procurement practices

and other policies
the board strives to ensure that the group conducts its business 
with integrity leading by example this commitment is formalised 
in a code of conduct available at wwwpanafricanresourcescom 
which applies beyond the board to prescribed officers and all 
employees of the group
the code of conduct sets out the group’s values and practices 
over and above requirements of formal governance codes and 
legal requirements such as the king iii report and the south 
african and uk companies acts it is designed to provide 
guidance as to ethical conduct in all areas and across all activities
to supplement the efficacy of the code of conduct directors 
executive management and operational management receive 
ongoing training in regulations and separately in ethical 
leadership
further pan african resources has a zerotolerance approach 
to bribery and corruption a separate bribery and corruption 
policy is in place which is again communicated to all employees 
as well as to mine contractors all of whom are expected to 
comply fully
during the year the group evolved its focus on ethics to establish 
a dedicated group tenders committee to oversee tender 
processes and ensure that pan african resources complies 
fully with the uk bribery act in this area in addition a group 
procurement manager was appointed to oversee the group 
procurement practices in order to ensure maximum efficiency 
and ethical conduct when procuring goods and services within 
the group each relevant employee at each operation in the 
group is trained in these procurement procedures and practices
in the event of a breach of the code of conduct policies or 
practices above by an employee the group hr disciplinary 
procedures are followed no breaches were reported during 
the year 39
strategic 
report
pan african resources plc integrated annual report 2014
strategic 
report 40 pan african resources plc integrated annual report 2014
performance  41
strategic 
report
pan african resources plc integrated annual report 2014 42 pan african resources plc integrated annual report 2014
financial director’s
report
pan african resources remains committed to creating value 
for all stakeholders for shareholders specifically value is 
determined by share price performance sustainable earnings 
and cash flow growth and by consistent dividends paid by 
the company
the group amended its dividend policy in order to provide 
more certainty to its shareholders historically the board has 
recommended an annual dividend to shareholders for approval 
at the agm the board recognises that where possible 
shareholders require a cash return on their investment  
pan african resources has now revised and further clarified its 
dividend policy going forward the company will pay a progressive 
annual zar dividend any dividend recommendation and 
payment however will still be dependent on prevailing gold 
prices and other external factors as well as the performance of 
and outlook for the group it has also recommended an attractive 
dividend for the 2014 financial year demonstrating confidence 
in pan african resources’ prospects going forward in the 2014 
financial year earnings and cash flows were negatively affected 
by the low grade mining cycle at evander mines coupled with 
a twoyear low on the gold price
all of the group’s subsidiaries are incorporated in south africa 
and their functional currency is zar the group’s business is 
conducted in zar and the accounting records are maintained 
in this same currency with the exception of precious metal 
product sales which are conducted in usd prior to conversion 
into zar the ongoing review of the results of operations 
conducted by executive 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 being incorporated 
in england and wales and also being duallisted in the uk and 
south africa


exchange rate was zar18011 2013 zar15011 the year
onyear change in the average and closing exchange rates of 
220 and 200 respectively must be taken into account for 
the purposes of translating and comparing yearonyear results
pan african resources has now 
revised and further clarified its 
dividend policy going forward the 
company will pay a progressive 
annual zar dividend 43
strategic 
report
pan african resources plc integrated annual report 2014
average gold price in usdoz and zarkg
external drivers of financial 
results
the profitability of the group is impacted by various external 
and economic drivers the most significant of which are
 usd precious metal spot prices – determines the price 
received for gold and pge produced

zar for gold and other metals produced and ultimately the 
group’s revenue also drives specific costs of production and 
capital goods
 south african general inflation wage rate and other price 
increases – determine the rate of increase in the group’s 
costs – the most significant of which is salary and wage costs

performance in gbp
 interest rates – determine interest payable and received for 
borrowings and cash on hand
usd precious metals spot prices
during the course of the year a lower average usd gold price 
was achieved when compared to the prior year the group 


the market pge basket price received applying the phoenix 
platinum prill split during the year decreased by 90 



offtake agreement with western platinum limited
usdzar exchange rate
the group converts and records its revenue from precious 
metals sales in zar and the deterioration in the value of the 

effect on the weaker usd metals price revenue received 

zar10351 2013 zar8831
the average zar gold price received by the group decreased 

shielded by the weakening of the zar against the usd 
exchange rate
the average zar pge basket price received by the group 

benefiting from the weaker zar
usd and zar gold prices for the previous two years are 
represented graphically in the chart below
360000
380000
400000
420000
440000
460000
480000
500000
zar
30062014
31052014
30042014
31032014
28022014
31012014
31122013
30112013
31102013
30092013
31082013
31072013
30062013
31052013
30042013
31032013
28022013
31012013
31122012
30112012
31102012
30092012
31082012
31072012
zarkg
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
2000
usd
usdoz 44 pan african resources plc integrated annual report 2014
south african inflation wage rate and other cost 
increases
during the year the cpi was reported at 66 2013 55 
the main indicator of ppi was recorded at 81 2012 59
the group was able to negotiate a twoyear wage deal effective 
1 july 2013 to 30 june 2015 at our gold mining operations 
the agreed increases were
year 1
1 category workers union – num – between 75 – 85
2 union officials union – uasa – 75
year 2
1 category workers union – num – average cpi  1
2 union officials union – uasa – average cpi  1
electricity price inflation
electricity remains one of the largest cost contributors to the 
gold mining and platinum retreatment operations the group’s 
electricity costs of zar2536 million represent a total of 141 
of the group’s total cost of production of zar17959 million 
eskom’s electricity increases in the current year amounted to 
8 2013 16 eskom’s most recent communication that there 
is a possibility of an additional 4 increase above the planned 
8 increase in the 2015 financial year will have a material effect 
on the group’s production costs
gbpzar exchange rate
given that the zar’s performance against the gbp is a key 
determinant of the gbp results it is important for shareholders 
both in south africa and in the uk to be aware of the effect this 
exchange rate has on reported results the value of the zar 
against the gbp deteriorated for the major part of the year 

weaker at zar16881 when compared to the previous year 
2013 zar13841
interest rates
the group pays a margin of 280 basis points above the 
johannesburg interbank agreed rate jibar on its revolving 
credit facility rcf balance outstanding and receives interest 
on cash on hand at quoted call account rates changes in interest 
rates affect the interest expense and income jibar at 30 june 
2014 was quoted at 57 2013 50
financial objectives scorecard
in the 2013 integrated annual report the group set specific 
financial objectives for the 2014 financial year the objectives 
and detail of the performance against these objective are 
summarised as follows
1 fully integrate evander mines into the group
evander mines successfully implemented a new enterprise 
resources planning system microsoft dynamics 2012 during 
the year to align with barberton mines’ systems in turn 
assisting the group in aligning the reporting of and comparison 
between the operations evander mines’ procurement 
has been integrated into barberton mines’ procurement 
department to leverage group economies of scale and 
achieve improved pricing sourcing and quality of goods the 
new system was also successfully implemented at phoenix 
platinum and the pan african resources’ corporate office
2 cost containment
management teams at our gold mining operations were 
able to lock in a twoyear wage agreement wage costs 
significantly impact the cost of the operations averaging 
about 475 of the group’s cost of production the effective 
increases of the wage in year two would be closely linked 
to cpi versus the current year under review due to the 
introduction of a medical aid scheme at barberton mines 
over and above the standard agreed increases
cpi increased from 55 to 66 in fy2014 putting pressure 
on the annual production cost increases production costs 
at barberton mines increased in the current year due 
to the commissioning of the btrp resulting in additional 
gold production as well as costs the procurement teams 
now reporting to a newly appointed dedicated group 
procurement function have implemented a procurement 
strategy to ensure longterm effective procurement to assist 
with cost containment
3 maintain dividend payments
the group paid a dividend of zar2403 million in december 
2013 therefore reintroducing the dividend following the 
evander mines’ acquisition the dividend represented 
a yield of 56 when recommended by the pan african 
resources board
financial director’s
report continued 45
strategic 
report
pan african resources plc integrated annual report 2014
unpacking the financial performance
revenue profitability and dividends
metric
for the year ended 
30 june 2014
for the year ended 
30 june 2013
movement

revenue zar millions – gbp millions 26088 1546 18481 1335 412 158
average gold price received 433437 1303 440824 1553 17 161
cash costs 298345 8970 231439 8150 289 101
allin sustaining cash cost 349008 1049 281551 992 240 57
allin costs 374015 1124 343949 1212 87 73
adjusted ebitda
1
zar millions – gbp millions 7455 442 7352 531 14 168
attributable earnings zar millions – gbp millions 4521 268 5589 426 191 371
eps 2474 147 3451 263 283 441
heps 2474 147 3007 217 177 323
group capital expenditure zar millions – gbp millions 3630 215 3816 276 49 221
net asset value per share 1524 87 1409 95 81 84
weighted average number 
of shares in issue millions 18272 18272 16198 16198 128 128
average exchange rate zargbp – zarusd 1688 1035 1384 883 220 172
closing exchange rate zargbp – zarusd 1801 1059 1501 988 200 72
1 adjusted ebitda is represented by earnings before interest taxation depreciation and amortisation and loss on disposal of assets heldforsale
the 2014 group results include a full year of operations for 
evander mines whilst the comparative 2013 period only 
included four months of operations from the date that evander 
mines was acquired from harmony
group revenue yearonyear increased by 412 to 
zar26088 million 2013 zar18481 million of this increase 
evander mines contributed zar5869 million barberton 
mines contributed zar1608 million and phoenix platinum 
contributed zar130 million resulting in a zar7607 million 
total increase yearonyear
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’ revenue increased as result of consolidating a 
full year’s production revenue compared to only four months 
postacquisition revenue in the prior year phoenix platinum 
recorded an increase in revenue due to selling more ounces of 
pges at higher prices



pan african resources’ yearonyear total cost of production 
reflects an increase of zar8108 million to zar17959 million 
2013 zar9851 million of which barberton mines’ contributed 
zar1662 million evander mines zar6379 million and phoenix 
platinum zar67 million
the group’s cost of production per kilogram increased by 289 



the group has adopted reporting cash costs in line with the 
recommendation of the world gold council
the group’s allin sustaining cash cost of production per 
kilogram including direct cost of production royalties 
associated corporate costs and overheads and sustaining capital 


grade mining cycle
the allin cost per kilogram sustaining cost of production 
and onceoff expansion capital increased by 87 to 

1 lower gold ounces sold as a result of the evander mines 
low grade mining cycle and barberton mines reduced 
underground gold ounce sold as result of the sheba mines 
flooding
2 onceoff capital expenditure required to construct the 
etrp amounted to zar792 million the construction of 
the etrp is currently funded by a zar200 million gold loan 
facility with a remaining term of 35 years
3 barberton mines incurred additional onceoff capital totalling 
zar265 million 2013 zar26 million on four additional 
raise boreholes to improve environmental conditions 
underground 46 pan african resources plc integrated annual report 2014
the improved overall production performance at barberton 
mines was as a result of the commissioning of the btrp which 
contributed an additional 22885oz of gold production the 
group’s adjusted ebitda remained largely in line with the 
previous year with a small increase of 14 to zar7455 million 
2013 zar7352 million
profit after taxation decreased by 191 to zar4521 million 
2013 zar5589 million primarily due to the points highlighted 
in the heps movement below as well as prior year’s results 
which included a net income amount of zar719 million as 
summarised below
 evander mines acquisition bargain purchase gain of 
zar3224 million
 impairment charges of zar2423 million related to phoenix 
platinum and auroch
 loss on sale of asset heldforsale of zar82 million
the group’s eps in zar was 2474 cents 2013 3451 cents 
a decrease of 283
the group posted a 72 decrease in headline earnings to 
zar4520 million 2013 zar4870 million the group’s 
heps in zar terms decreased by 177 to 2474 cents 2013 
3007 cents
the heps decreased due to the following reasons
 the low grade mining cycle at evander mines which resulted 
in reduced production and profits compared to the prior year
 barberton mines underground production decreased largely 
as result of flooding at sheba mine during march 2014 this 
was however offset by the additional gold production 
contributed to the group by the commissioning of the btrp
 the group realised a 17 decrease in the average zar gold 
 
whilst our production costs were subject to inflationary  
increases
 the weighted average number of shares in issue increased by 
128 during the year to 18272 million 2013 16198 million 
this increase was due to the new shares issued in january 
2013 in the rights issue to shareholders to partly fund the 
acquisition of evander mines
the group’s total taxation charge decreased by 281 
to zar1208 million 2013 zar1679 million due to
 a decrease in deferred taxation as result of an adjustment 
to evander mines’ longterm deferred taxation rate to 265 
2013 28
 a reduction in gold profit margins due to the lower average 
zar gold price and margins in the year under review when 
compared to the prior year
the group paid a dividend of zar2403 million gbp147 million 
for the 2013 year equating to zar01314 per share 
080p per share
the board has proposed a dividend of zar2580 million 
approximately gbp145 million
1
 for the 2014 financial year 
equating to zar01410 per share approximately 07898p per 
share
1
 resulting in a dividend cover of 18 times
1 the gbp proposed dividend was calculated based on an exchange rate of 
zar17851 the uk shareholders are to note that a revised exchange rate will 
be communicated prior to final approval at the agm therefore the proposed 
dividend is approximately 07898p per share
financial position and resource allocation
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 
noncurrent assets 39415 2234 37262 2493 58 104
current assets 4234 235 4015 267 55 120
total equity 27884 1594 25688 1722 85 74
noncurrent liabilities 11441 635 12009 800 47 206
current liabilities 4324 240 3612 241 197 04
1 current assets at 30 june 2013 exclude noncurrent assets heldforsale of zar32 million gbp02 million relating to barberton mines’ segalla plant
financial director’s
report continued 47
strategic 
report
pan african resources plc integrated annual report 2014
noncurrent assets increased by 58 to zar39415 million 
2013 zar37262 million the increase was partly attributable 
to further capital expenditure at evander mines for the 
construction of the etrp expected to commence production 
in january 2015 the group’s capital expenditure by operation of 
zar3630 million 2013 zar3816 million is disclosed below 
and also contributed to the increase in noncurrent assets 
included in noncurrent assets is also the rehabilitation trust 
fund balance of zar2784 million 2013 zar2548 million 
which increased by zar236 million as a result of growth in 
investments the rehabilitation trust fund’s amount is invested 
in interestbearing shortterm investments or mediumterm 
equity linked notes issued by commercial banks
capital expenditure during the year amounted to  
zar3630 million 2013 zar3816 million and is detailed by 
operation below
2014 2013
group capital expenditure zar millions gbp millions zar millions gbp millions
barberton mines 1103 65 872 63
btrp 407 24 2296 166
evander mines 1313 78 624 45
etrp 792 47 ––
phoenix platinum 04 – 22 02
corporate 11 01 02 –
total capital expenditure 3630 215 3816 276
current assets increased by 55 to zar4234 million 
2013 zar4015 million as a result of an increase in cash on 
hand to zar1012 million 2013 zar716 the group remains 
cash generative with a net debt position of zar1010 million 
2013 zar936 million at yearend which includes the gold 
loan outstanding with absa
the increase in the group’s equity is a result of an increase 
in retained earnings due to this year’s profit after tax of 
zar4521 million less the dividend paid of zar2403 million 
in december 2013
noncurrent liabilities decreased by 47 to zar11441 million 
2013 zar12009 million the decrease is a result of a 38 
decrease in the deferred taxation liability to zar7808 million 
2013 zar8113 million due to a downward revision of 
the longterm effective tax rate at evander mines to 265 
2013 28 the deferred taxation rate applied to calculate the 
deferred tax liability is based on the effective statutory taxation 
rate at which the deferred taxation liability is estimated to be 
realised over the life of the operation
current liabilities increased by 197 to zar4324 million 
2013 zar3612 million the majority of the increase is 
attributable to an increase in the current portion of new long
term debt related to the absa gold loan and an increase in the 
current taxation liability from the prior year
share price and return performance
pan african resources’ share price performed well in the year 

index and outperformed its peers within the sa gold mining 
index see page 20 the aim share price performance reflects 
that the group remained competitive and in line with its peers 
during the year again outperforming on occasion
the group’s dividend yield had improved from 30 in 2011 to 
56 in the 2014 financial year
financial objectives for the 2015 financial year
1  maintain attractive dividend payments
2 improve profitability from current operations
3 implement earnings and cash flow accretive growth
cobus loots
fd
16 september 2014 48 pan african resources plc integrated annual report 2014
operational
performance
gold operations
year ended
 30 june units
underground and  
surface operations
tailings 
operations total continuing operations
barberton
 mines
evander 
mines
1
total btrp
barberton
 mines 
total
evander 
mines 
total
1
group
total
tonnes milled – 2014 t 263574 395127 658701 – 263574 395127 658701
underground 2013 t 274398 127957 402355 – 274398 127957 402355
tonnes milled – surface 2014 t 28547 260901 289448 – 28547 260901 289448
2013 t 36086 74428 110514 – 36086 74428 110514
tonnes milled – 2014 t 292121 656028 948149 – 292121 656028 948149
underground and surface 2013 t 310484 202385 512869 – 310484 202385 512869
tonnes processed – 2014 t – – – 815736815736 –815736
tailings 2013 t –––––––
headgrade – 2014 115 52 77 – 115 52 77
underground 2013 118 78 105 – 118 78 105
headgrade – surface 2014 13 14 14 – 13 14 14
2013 15 12 13 – 15 12 13
headgrade – total 
underground and surface
2014 105 37 58 – 105 37 58
2013 106 54 86 – 106 54 86
headgrade – taililngs 2014 – – – 16 16 – 16
 2013 –––––––
recovered grade 2014 94 36 54 09 31 36 33
 2013 96 51 79 – 96 51 79
overall recovery 2014  90 96 92 56 80 96 86
 2013919692–919692
gold production – 2014 oz 87979 65956 153935 – 87979 65956 153935
 underground 2013 oz 95135 31522 126657 – 95135 31522 126657
gold production – 2014 oz 759 10600 11359 – 759 10600 11359
 surface 2013 oz 1161 2675 3836 – 1161 2675 3836
gold production – tailings 2014 oz – – – 22885 22885 – 22885
 2013oz–––––––
gold sold 2014 oz 88738 76556 165294 22885 111623 76556 188179
 2013oz9629634197130493–9629634197130493
average zar gold price 
received
2014 435464 430801 433304 434394 435244 430801 433437
2013 450829 412641 440824 – 450829 412641 440824
average usd gold price 
received
2014 1309 1295 1302 1305 1346 1295 1303
2013 1588 1454 1553 – 1588 1454 1553
zar cash cost 2014 258972 384150 316948 163977 239496 384150 298345
 2013 221424 259640 231439 – 221424 259640 231439 49
strategic 
report
pan african resources plc integrated annual report 2014
year ended
 30 june units
underground and  
surface operations
tailings 
operations total continuing operations
barberton
 mines
evander 
mines
1
total btrp
barberton
 mines 
total
evander 
mines 
total
1
group
total
zar allin sustaining 2014 311756 445665 373776 170111 282716 445665 349008
cash costs 2013 273653 303790 281551 – 273653 303790 281551
zar allin cost 2014 321342 478933 394330 227286 302058 478933 374015
 2013 350302 326061 343949 – 350302 326061 343949
usd cash cost 2014 778 1154 952 493 740 1154 897
 2013 780 915 815 – 780 915 815
usd allin sustaining 
cash cost
2014 937 1339 1123 511 874 1339 1049
2013 964 1070 992 – 964 1070 992
usd allin cost 2014 966 1439 1185 683 934 1439 1124
 2013 1234 1149 1212 – 1234 1149 1212
zar cash cost per tonne 2014 2447 1394 1719 143 751 1394 990
 2013 2153 1366 1832 – 2153 1366 1832
capital expenditure 2014 zar million 1103 2105 3208 407 1510 2105 3615
 2013zar million31686243792–31686243792
average exchange rate 2014 1035 1035 1035 1035 1006 1035 1035
 2013 883 883 883 883 883 883 883
revenue 2014 zar million 12019 10258 22277 3092 15111 10258 25369
 2013zar million13503438917892–13503438917892
cost of production 2014 zar million 7148 9147 16295 1167 8315 9147 17462
 2013zar million663227629394–663227629394
allin sustainable cost 
of production
2014 zar million 8605 10612 19217 1211 9816 10612 20428
2013 zar million 8196 3231 11427 – 8196 3231 11427
allin cost of production 2014 zar million 8869 11404 20273 1618 10487 11404 21891
 2013zar million10492346813960–10492346813960
adjusted ebitda
2
2014 zar million 4209 1283 5492 1931 6140 1283 7423
 2013zar million622915227751–622915227751
1 evander mines 2013 production summary information represents four months production information following the acquisition of evander mines on 28 february 2013
2 adjusted ebitda is represented by earnings before interest taxation depreciation and amortisation bargain purchase gain impairments and loss on disposal of 
assets heldforsale 50 pan african resources plc integrated annual report 2014
operational
performance continued
barberton mines
highlights fy2014
 remained one of lowest cost producers in 
the industry
 operating below anticipated costs
 btrp commenced production with an 
exceptional performance ahead of expectations
 no labour unrest
 wage negotiations concluded
 low employee turnover
overview
barberton mines consists of three mines fairview sheba and 
new consort and now the btrp fairview produces 50 
of barberton mines’ gold production with sheba and new 
consort producing 30 and 20 respectively operating three 
mines continues to provide flexibility and versatility in terms of 
resource allocation
the mix of high grade ore from the mines is planned monthly to 

giving barberton mines the advantage of managing cash flows 
from an early stage in the mining process the operation 
has a proven track record of consistently delivering a solid 
performance driven to a large extent by an embedded culture 
of cost control
the mining methods used are an underground semimechanised 
updip cut and fill and updip room and stick an estimated  
16–18 of gold is recovered by sweeping and vamping 
contractors focusing on workedout areas and high grade pillars 
gold is extracted using the biox
®
 gold extraction process an 
environmentally friendly process which uses bacteria to release 
gold from the sulphide ore
gold was originally discovered in the barberton area in 1886 
and comprises the sediments and metavolcanics within the 
barberton greenstone belt barberton mines has therefore 
been mined for over a century with current production practices 
now embedded given the aged mine infrastructure the 
operations undergo ongoing maintenance and refurbishment
historically barberton mines’ relative isolation has spurred 
creative engineering solutions which contribute to its cost 
control facilities established over the years such as an inhouse 
workshop for maintenance of the mines’ fleet not only help 
control costs but also allow for inhouse manufacture or 
customisation of equipment barberton mines has been 
iso 90012008 certified for 10 years
management team
casper strydom 56
general manager
national higher diploma metalliferous mining mine managers 
certificate
37 years of miningrelated experience
pierre human 53
manager mining
mine overseers certificate of competency mdp stellenbosch
over 30 years of miningrelated experience
jonathan irons 48
manager metallurgy
national higher diploma extractive metallurgy programme 
for management development gibs – university of pretoria 
competence levels include refractory gold extraction technologies – 
roasting and hydrobiological
over 25 years of metallurgyrelated experience
hans grobler 50
manager engineering
mechanical engineers certificate of competency professional 
certificated engineer
over 30 years of engineeringrelated experience
tp maepa 29
manager finance and administration
bcom accounting hons
10 years of financialrelated experience
essie esterhuizen 53
manager hr
gencor learner officials programme certificate in personnel 
management skills development facilitator – nqf level 5
over 30 years of hrrelated experience
year in review
barberton mines including btrp gold sold increased by 159 
to 111623oz 2013 96296oz
the total combined usd cash costs per ounce decreased by 



the total cost of production including offmine costs increased 
by 254 to zar8315 million 2013 zar6632 million 51
strategic 
report
pan african resources plc integrated annual report 2014
the main yearonyear cost contributors were the following
 the btrp operations resulted in additional processing costs 
amounting to zar971 million for the financial year
 salary and wages increased by 155 to zar3699 million 
2013 zar3203 million the increase was driven by 
additional employees for the management of the btrp 
resulting in additional costs of zar95 million or increase 
of 30 coupled with a twoyear wage agreement in 
line with the chamber of mines barberton mines also 
introduced a medical aid scheme for category workers four 
to eight of which the company contributes 60 towards each 
member’s premium this added costs of zar67 million in the 
current year
 mining costs increased by only 41 to zar1026 million 
2013 zar986 million due to the vamping contractors gold 
production having decreased from the prior year by 74 
the mining costs excluding the vamping contractors costs 
increased by 89 yearonyear
 processing costs excluding the btrp reagents increased by 
84 to zar618 million 2013 zar570 million
 engineering and technical services costs increased by 125 to 
zar640 million 2013 zar569 million the majority of this 
increase was for additional secondary support installations 
required at fairview mine and increased maintenance on the 
twm following the fatality as reported
 electricity costs excluding the btrp increased by 64 to 
zar767 million 2013 zar721 million which were lower 
than the average 8 increase in eskom tariffs the decrease 
in electricity usage reflects the threeweek closure of sheba 
mine following flooding during march 2014 the electricity 
cost of the btrp amounted to zar92 million resulting in the 
total barberton mines electricity costs increasing by 191 to 
zar859 million 2013 zar721 million
 security costs were well controlled and only increased by 
47 to zar268 million 2013 zar256 million
 administration and other costs increased by 103 to 
zar332 million 2013 zar301 million the higher than 
cpi increase was mainly due to additional insurance costs in 
relation to the btrp
 barberton mines had gold inventory movements decreasing 
the cost of production by zar144 million due to the biox
®
 
locking up gold concentrates equivalent to 594 kilograms 
1910 ounces of gold at yearend during the last quarter 
of the financial year the biox
®
 experienced a temporary 
setback in recoveries due to oil contamination resulting 
from a breakdown at the fairview primary crusher this 
necessitated the management team in having to separate 
certain gold concentrates from the biox
®
 at yearend to 
stabilise the bacteria organisms the gold concentrates will 
be reprocessed during the new financial year the overall 
recoveries as a result of the incident decreased for the full 
year to 90 2013 91
 the total combined usd allin cash cost per ounce 

barberton mines’ zar combined allin cash cost per kilogram 

kg this decrease in allin cash costs was mainly as a result of 
the onceoff nonsustainable capital expenditure decreasing 
by zar1889 million due to the btrp construction in the 
prior year
mining operations
barberton mines’ excluding btrp gold sold decreased to 
88738oz 2013 96296oz mining operations tonnes milled 
decreased by 59 to 292121t 2013 310484t the decrease in 
tonnes milled was mostly as a result of the sheba mine flooding 
during march 2014 as a result of a cloudburst forcing the mine 
to close for three weeks this effectively reduced production 
tonnages by 9000t or 29 of the prior year’s production 

resulting in an estimated reduction of 2165 ounces of gold sold
the decrease in gold sold from barberton mines underground 
and surface mining operations 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 at the fairview primary crusher


91 as a result of the biox
®
 incident mentioned above
the total underground and surface usd cash costs per ounce 

per kilogram terms total cash costs increased by 170 to 

from a people perspective the mines continue to operate in an 
area with a high unemployment rate causing constant demand 
from the community for job creation further and sadly during 
the year three fatalities were suffered please see group safety 
and health on page 90 for further details
capital expenditure
total capital expenditure at barber ton mines decreased by 523 
to zar1510 million 2013 zar3168 million maintenance 
capital expenditure of zar333 million 2013 zar451 million 
and development capital expenditure of zar505 million 2013 
zar421 million was incurred expansion capital incurred 
on the btrp construction totalled zar407 million 2013 
zar2296 million and capital on the development of four new 
raise boreholes at fairview mine to improve environmental 
conditions was zar265 million 2013 zar26 million
new ore reserve projects and exploration drilling projects 
continued to grow organically which resulted in the extension 
of barberton mines’ lom to 19 years 2013 17 years
looking ahead
barberton is expected to maintain its current levels of 
production which given the age of the mine infrastructure is a 
commendable achievement 52 pan african resources plc integrated annual report 2014
btrp
highlights fy2014
 inaugural gold pour
 on target for recoveries
overview
when barberton’s mines were first exploited mining extended 
into the sulphiderich zones where recoveries fell dramatically 
the aged mines therefore produced substantial mill tailings 
some with relatively good grades by modern mining standards of 

treatment processes have resulted in more efficient recovery 
from these tailings
the zar3136 million btrp was designed to retreat 100000t 
of old and new gold tailings per month at an estimated average 

followed by electrowinning and smelting to produce a saleable 
gold product the plant is expected to treat about 12000t per 
month of current tailings via a pipeline from the existing fairview 
mine concentrator and biox
®
 plant and some 88000t per 
month from the older tailings dumps
management
casper strydom 56
general manager
national higher diploma metalliferous mining mine managers 
certificate
37 years of miningrelated experience
jonathan irons 48
manager metallurgy
national higher diploma extractive metallurgy programme 
for management development gibs – university of pretoria 
competence levels include refractory gold extraction  
technologies – roasting and hydrobiological
over 25 years of metallurgyrelated experience
ruben mathada 34
plant manager
btech metallurgy
over 10 years of metallurgyrelated experience
richard kunneman 53
engineering manager
government certificate of competency
over 25 years of miningrelated experience
the year in review
the btrp construction was completed in the prior financial 
year and production commenced on 1 july 2013
the plant recovers tailings from the fairview dams according to a 
mining plan while it is not yet operating at full capacity in terms 
of tonnage it nonetheless remains on target for recoveries 
further with the operational costs lower than expected it is also 
expected to pay back the initial capital expenditure investment 
within three years based on the operations profitability
btrp gold sold was 22885oz for the year the plant processed 

than expected recovery of 56 originally planned recovery 
50

 looking ahead
sheba and new consort tailings dams will provide potential 
future sources of tailings which has supported the increased 
lom of 15 years 2013 12 years
operational
performance continued 53
strategic 
report
pan african resources plc integrated annual report 2014
evander mines
highlights fy2014
 integration into the group effectively  
implemented
 approval of zar200 million investment in 
etrp for commissioning in january 2015
overview
evander mines exploits the kimberley reef in the evander 
basin part of the greater witwatersrand basin mining methods 
employed are underground conventional scraper mining 
and rail bound equipment with some trackless mechanised 
development
with no 8 shaft at a depth of 23km it takes the workforce 
approximately an hour to reach the mining area via a lift and 
locomotive and two chairlifts the rock is then hauled along 
11 conveyors from the rock face to the bottom of no 7 
shaft where it is hoisted to surface the gold is extracted at a  

unfortunately there was one fatality during the year please see 
group safety and health on page 90 for further details
management team
manny da silva 44
general manager
bsc mining engineering mine overseers certificate of competency 
mine managers certificate of competency
over 23 years’ miningrelated experience
marius pelser 55
mine manager
mine overseers certificate of competency mine managers certificate 
of competency
38 years’ miningrelated experience
bernhard georg lindner 51
manager engineering
national higher diploma mechanical engineering engineering 
certificate of competency
35 years’ miningrelated experience
walter seymore 36
manager mineral resource
national diploma in geotechnology
15 years’ miningrelated experience
thabang hlalele 36
manager metallurgy
national diploma in chemical engineering btech metallurgy
7 years’ miningrelated experience
craig richard le court de billot 44
manager finance and administration
bcompt hons
20 years’ miningrelated experience
louis gouws van wyk 49
manager hr
ba hons industrial psych
28 years’ miningrelated experience
the year in review
evander mines has now been successfully integrated into the 
group with all health and safety policies and standard operating 
procedures aligned with group policies
the strategic highlight of the year was undoubtedly the approval 
of the etrp following the positive outcome of the feasibility 
study the etrp comprises a total mineral reserve of 
416koz in dams one and two of the kinross tailings facility 
the zar200 million plant is expected to retreat 216mt per 
annum of gold tailings over a 17year life span once completed it 
is anticipated to contribute approximately 10000oz per annum 
to evander mines’ gold production commissioning of the 
etrp is scheduled to start in january 2015 with full production 
expected by june 2015
evander mines gold sold decreased to 76556oz 2013 
95089oz
1
 mining operations tonnes milled increased by 107 
to 656028t 2013 592484t
1
 the increase in tonnes milled was 
mostly due to an increase in surface stockpiles processed of 
58789t whilst underground tonnes milled increased by 4755t
as a result of the low grade mining cycle the underground 

1
 the kinross 
processing plant performed well and achieved improved plant 
recoveries of 96 2013 95
1

as previously announced this low grade mining cycle at evander 
mines is expected to continue until february 2015 and will 
therefore also impact group results and earnings for the first 
eight months of the 2015 financial year measures implemented 
or in progress to mitigate the impact of the current low grade 
cycle at evander mine’s have been highlighted in the ceo’s 
report on page 26 54 pan african resources plc integrated annual report 2014
the total cost of production including offmine costs increased 
by 95 to zar9147 million 2013 zar8354 million
1
 the 
evander mines management team successfully focussed on 
containing their costs whilst in the lower grade mining cycle 
resulting in their cost per tonnage decreasing by 11 to 

the main yearonyear cost contributors were the following
 salary and wages increased by 71 to zar4489 million 
2013 zar4190 million
1
 the salary and wages increased as 
a result of the chamber of mines wage settlement
 mining costs increased by 281 to zar894 million 2013 
zar698 million
1
 due to additional vamping occurring in no 7 
shaft and additional maintenance on blasting barricades
 processing costs increased by 223 to zar335 million 
2013 zar274 million
1
 due to the additional surface 
tonnages being processed through the plant
 engineering and technical services costs increased by 266 
to zar866 million 2013 zar684 million
1
 the majority 
of this increase related to additional costs to improve 
maintenance of the 11 conveyor belts on no 8 shaft which 
has a total length of 14 kilometres as well maintaining and 
improving the trackless fleet
 electricity and water costs were well controlled and decreased 
by 32 to zar1642 million 2013 zar1697 million
1
 due to 
benefits realised from the load clipping optimisation programme 
that manages and improves the consumption of power
 the security costs remained well controlled and decreased by 
226 to zar127 million 2013 zar164 million
1
 highlighting 
the cost benefits of a centralised security monitoring team for 
both barberton mines and evander mines
 administration and other costs decreased by 245 to 
zar577 million 2013 zar764 million
1
 as result of not 
sharing in harmony’s corporate and other costs in the 
current year
 offmines costs decreased by 235 to zar13 million 
2013 zar17 million
1
 in line with the lower gold production 
supplied to the refinery
 evander mines had gold inventory movements increasing the 
cost of production by zar205 million 2013 zar134 million 
decrease in production costs
1

the total underground and surface usd cash costs per ounce 

1
 
however in zar per kilogram terms total cash costs increased 

1

capital expenditure
total capital expenditure at evander mines was 
zar2105 million 2013 zar2011 million
1
 maintenance capital 
expenditure was zar279 million 2013 zar650 million
1
 and 
development capital expenditure was zar1034 million 2013 
zar542 million
1
 expansion capital related to the etrp plant 
construction was zar792 million in the prior year evander 
mines spent expansion capital on the shaft deepening project 
of zar819 million
1

1
 the prior year evander mines values were obtained from historical financial 
records to allow for consistent reporting with the group’s current gold 
operations costs therefore the values may vary from harmony’s previously 
announced values
looking ahead
by february 2015 evander mines is expected to have gradually 
moved out of the low grade mining cycle
potential projects on the horizon include exploiting the mineral 
resources of longstanding poplar evander south and rolspruit 
projects the group is currently assessing the financial viability 
of progressing these brownfield projects from prefeasibility to 
bankable studies with poplar between 500m and 12km in depth 
and evander south between 350m and 1km options will be 
explored to find a business case that will optimise these deposits
evander mines is projected to return to 100000oz a year 
operation towards the end of fy2015 which could see the 
mine become a 160000ozayear operation once the etrp and 
possibly the elikhulu tailings projects are in production in the 
long term
phoenix platinum
highlights fy2014
 excellent safety record maintained
 recovery increased to 29
 first year of profitability
phoenix platinum recovers pges from chrome tailings at a ctrp 
located on ifm’s lesedi mine the buffelsfontein elandskraal 
and kroondal mineral resources originates from the mining 
of chromitite seams from the bushveld igneous complex 
the bushveld complex is host to the world’s largest deposits 
of pges
the operation is expected to produce pges over a lom of 
28 years it has a total process capacity of 240kt per annum 
the pges are extracted in the flotation plant and the 
concentrate is delivered to lonmin’s mooinooi smelter for toll 
extraction
the ctrp was designed to treat sulphide material from the 
lesedi mine which initially supplied phoenix platinum with 
sulphiderich material however subsequent to commissioning 
the plant ifm stopped its underground operations at lesedi and 
focussed on oxidised material from their opencast operation 
operational
performance continued 55
strategic 
report
pan african resources plc integrated annual report 2014
this resulted in oxidised tailings being blended into the 
phoenix platinum feedstock during the year under review the 
metallurgy of oxidised tailings negatively affects the recovery 
and concentrate grade in the ctrp this in turn results in poor 
pge concentrate production
management
bertin mcleod 37
plant manager metallurgy
btech chemical engineering management development certificate 
senior management development certificate
12 years of platinum industry experience
avinash kandhai 32
cost accountant
btech accounting
eight years of mining experience and nine years of financial 
experience
john martin 58
plant engineer 
diploma t4 electrical engineering
over 26 years of engineeringrelated experience
hendrik snyman 41
manager metanza
beng metallurgical extractive certificate in business management 
certificate in leadership programme professional engineer
over 16 years of metallurgyrelated experience
hector mapheto 34
operations manager metanza
bsc eng chemical professional engineer
nine years of metallurgyrelated experience
daniel maponya 34
site manager fraser
national diploma civil engineering mine residue deposits 
certificate btech engineering water
six years of tailings dams experience
phoenix platinum production table
tailings 
operations
year ended
30 june units
phoenix 
platinum
tonnes processed – 
tailings
2014 t 251182
2013 t 274190
headgrade – tailings 2014 37
 2013 37
overall recovery 2014  29
2013  21
pge sold 2014 oz 7204
 2013oz6480
average zar pge price 
received
2014 oz 9987
2013 oz 9093
average usd gold price 
received
2014 965
2013 1030
zar cash cost 2014 7723
 2013 7551
zar allin sustaining 
cash costs
2014 7977
2013 8632
zar allin cost 2014 7977
 2013 8632
usd cash cost 2014 746
 2013 855
usd allin sustaining 
cash cost
2014 771
2013 978
usd allin cost 2014 771
 2013 978
zar cash cost per tonne 2014 222
 2013 178
capital expenditure 2014 zar million 04
 2013zar million22
average exchange rate 2014 1035
 2013 883
revenue 2014 zar million 719
 2013zar million589
cost of production 2014 zar million 556
 2013zar million489
allin sustainable cost 
of production
2014 zar million 575
2013 zar million 559
allin cost of production 2014 zar million 575
 2013zar million559
adjusted ebitda
1
2014 zar million 160
 2013zar million69
1
 adjusted ebitda is represented by earnings before interest taxation 
depreciation and amortisation bargain purchase gain impairments and loss 
on disposal of assets heldforsale 56 pan african resources plc integrated annual report 2014
the year in review
an improved performance at phoenix platinum in the year 
under review resulted in pge ounces sold increasing by 112 
to 7204oz pge 2013 6480oz pge several challenges were 
encountered during november 2013 as a result of furnace ash 
and talc material which was historically deposited by ifm on the 
buffelsfontein dumps affecting plant recoveries furnace ash and 
talc dilutes the final concentrate grade and must be chemically 
modified to prevent a negative effect on the plant recoveries 
the problem was identified by a process of elimination and by 
metallurgical test work carried out and an estimated 500 pge 
ounces were lost during the year under review as a result of this 
contamination despite this phoenix platinum was still able to 
improve its recoveries to 29 2013 21 and improve pge 
ounce production
in the year under review the effective average pge basket price 



improved production the plant feed decreased during the period 
by 84 to 251182t 2013 274190t as result of the talc and furnace 
ash complications highlight above
the total cost of production increased by 1 37 to zar556 million 
2013 zar489 million
the main yearonyear cost contributors were the following
 salary and wages of 99 to zar177 million 2013 
zar161 million comprising a standard increase of 75 
granted to the employees in line with the gold operations and 
an incentive bonus scheme for achieving targets and realising 
a profit
 processing costs increased by 160 to zar333 million 
2013 zar287 million as result of increased reagent costs 
and consumption to address the talc and furnace ash in the 
tailings processed whilst additional processing costs were 
incurred due to higher chrome content fees charged during 
the refining process
 administration costs increased by 500 to zar06 million 
2013 zar04 million due to an increase in consulting fees
 security cost remained well controlled at zar05 million 
2013 zar05 million
 electricity costs increased by 125 to zar36 million 
2013 zar32 million phoenix platinum sources electricity 
from ifm and the effective cost per kwh increased as result 
of ifm no longer benefiting from a historical eskom rebate
 phoenix platinum was able to achieve its maiden headline 
profit of zar37 million 2013 zar64 million headline loss 
for the financial year despite challenges highlighted above 
and the fivemonth platinum industrial action that occurred 
during the financial year
capital expenditure
total capital expenditure at phoenix platinum decreased to 
zar04 million 2013 zar22 million
looking ahead
in july 2014 ifm resumed mining at lesedi mine and the 
expected tonnages from this sulphide material should improve 
phoenix platinum’s production and plant recoveries
operational
performance continued 57
strategic 
report
pan african resources plc integrated annual report 2014
strategic 
report pan african resources plc integrated annual report 2014
abridged mineral resource 
and mineral reserve report strategic 
report
pan african resources plc integrated annual report 2014
abridged
mr  mrr pan african resources plc integrated annual report 2014 60
scope of report
this abridged version of the pan african resources’ mineral 
resources and mineral reserves report 2014 “mrmr” 
conforms to the standards determined by the south african 
code for the reporting of exploration results mineral 
resources and mineral reserves the samrec code 2007 
edition and forms part of the pan african resources’ integrated 
annual report including the annual financial statements for the 
year ended 30 june 2014 the other major document in this 
suite of reports is the sustainability review 2014 the entire 
suite of documents is available in full on wwwpanafricanresourcescom 
following publication of pan african resources’ annual financial 
statements including a full mrmr
the mineral resource is inclusive of the mineral reserve 
component unless otherwise stated information is presented 
either by operation mine or project as indicated the tables and 
graphs used to illustrate developments across the operations of 
pan african resources in fy2014 include
 mineral resource tables by group and commodity
 development sampling results
 mineral reserve tables by group and commodity
 yearonyear reconciliation of the group’s mineral resource
 mineral reserve modifying factors
 yearonyear reconciliation of the group’s mineral 
reserve and
 appointed competent persons
matters on which detail is provided in this abridged version 
include regional geology location exploration drilling and 
organic ore reserve projects
note rounding of numbers in this document may result in minor computational 
discrepancies
reporting code
the guiding principle in the mrmr is to ensure integrity 
transparency and materiality in informing all stakeholders on the 
status of the group’s mineral asset base pan african resources 
uses the samrec code which sets out the internationally 
recognised procedures and standards for reporting mineral 
resources and mineral reserves in south africa developed 
by the south african institute of mining and metallurgy as the 
recommended guideline for reserve and resource reporting for 
jselisted companies the group complies with the aim rules 
for mining and oil and gas companies of the lse
gold
relationship between exploration results mineral resources 
and mineral reserves showing pan african resources 
attributable resources and reserves as at 30 june 2014
increasing level 
of geoscientific 
knowledge and 
confidence
exploration results
resources reserves
total 335moz au total 101moz au
reported as in situ mineralisation estimates reported as mineable production estimates
inferred
21moz au
indicated
208moz au
measured
106moz au
probable
92moz au
proved
09moz au
consideration of mining metallurgical economic marketing legal environmental social and governance factors 
the “modifying factors”
abridged mineral resource
and mineral reserve report continued pan african resources plc integrated annual report 2014 61
abridged
mr  mrr
pges
relationship between exploration results mineral resources and mineral reserves showing pan african resources attributable 
resources and reserves as at 30 june 2014
increasing level 
of geoscientific 
knowledge and 
confidence
exploration results
resources reserves
total 06moz pges total 05moz pges
reported as in situ mineralisation estimates reported as mineable production estimates
inferred
01moz pegs
indicated
04moz pegs
measured
01moz pegs
probable
04moz pegs
proved
01moz pegs
consideration of mining metallurgical economic marketing legal environmental social and governance factors 
the “modifying factors”
pan african resources’ reporting in 
compliance with the samrec code
to meet the requirement of the samrec code that the material 
reported as a mineral resource should have “reasonable and 
realistic prospects for eventual economic extraction” pan 
african resources has determined an appropriate cutoff 
grade which has been applied to the quantified mineralised 
body in determining the cutoff grade pan african resources 

the optimal cutoff is defined as the lowest grade at which 
an orebody can be mined such that the total profits under a 
specified set of mining parameters are maximised the mineral 
resource optimiser tool that was accordingly developed 
inhouse was applied to the mineral resource inventory
the optimiser programme requires the following inputs to 
convert the mineral resource to the mineral reserve
 the database inventory of all mineral resource blocks

 planned production rates for each mine
 mcf
 plant recovery factors and
 planned cash operating costs and other efficiency factors 
which are calculated using historical achievements as 
a baseline
the mineral reserves represent that portion of the measured 
and indicated mineral resources above cutoff in the lom 
plan and have been estimated after consideration of the 
modifying factors affecting extraction a range of disciplines 
has been involved at each mine in the lom planning process 
including geology surveying planning mining engineering rock 
engineering metallurgy financial management hr management 
and environmental management
phoenix platinum btrp and the etrp are optimised on a 
100 extraction plan on their mineral reserves no selectivity 
was applied on tonnages and thus no cutoff grades were 
determined
the competent person for pan african resources mr barry 
naicker the group mineral resource manager signs off the 
mrmr for the group he is a member of the south african 

has 13 years of experience in economic geology and mineral 
resource management
he is based at 1st floor the firs cnr cradock and biermann 
avenues rosebank 2196 gauteng pan african resources plc integrated annual report 2014 62
abridged mineral resource
and mineral reserve report continued
1 gold
group mineral resource
the total mineral resource for the group decreased from 351 million ounces moz in june 2013 to 335moz in june 2014 – 
a gross annual decrease of 16moz or 45 of this variance a decrease of 19moz can be attributed to evander mines and an 
increase of 03moz to barberton mines
tonnes grade contained gold
as at 30 june 2014 category million gt kg moz
mineral resource measured 63 1067 66958 21
indicated 2773 223 645929 208
inferred 427 774 330126 106
pan african resources total 3263 320 1043013 335
the 03moz positive variance in contained gold at barberton mines was a result of adding new surface resources and extending 
the mrc orebody on fairview mine
the total decrease in mineral resource can be attributed to a lower gold price and inflationary cost drivers in the reporting 
of the 2014 mineral resources
group mineral reserve
pan african resources’ mineral reserve increased from 92moz in june 2013 to 101moz in june 2014 – a gross annual increase of 
09moz or 98 of this variance 06moz increase can be attributed to barberton mines and a 03moz increase to evander mines
tonnes grade contained gold
as at 30 june 2014 category million gt kg moz
mineral reserve proved 38 738 27826 09
probable 836 341 286103 92
pan african resources total 874 358 313929 101
the total increase in the mineral reserve can be attributed to the conversion of mineral resources of evander no 8 – 26 level 
and at barberton the fairview mine extension of mrc orebody and the inclusion of new consort and sheba mine tailings dams
group – gold 2014
98
45
mineral reserve mineral resource pan african resources plc integrated annual report 2014 63
abridged
mr  mrr
2 pge 4e
group mineral resource
the group’s total mineral resource pges decreased from 07moz in june 2013 to 06moz in june 2014 – a gross annual decrease 
of 01moz or 14
tonnes grade contained pges
as at 30 june 2014 category million gt kg moz
mineral resource measured 18 258 4559 01
indicated 33 356 11574 04
inferred 09 305 2833 01
pan african resources total 60 319 18966 06
group mineral reserve
pan african resources’ mineral reserve pges increased from 03moz in june 2013 to 05moz in june 2014 – a gross annual 
increase of 02moz or 67 this significant increase can be attributed to the restating of the modifying factors in the mineral 
reserve of phoenix platinum
tonnes grade contained pges
as at 30 june 2014 category million gt kg moz
mineral reserve proved 18 258 4559 01
probable 32 356 11574 04
pan african resources total 50 321 16133 05
67
mineral reserve
14
mineral resource
group – pges 2014 pan african resources plc integrated annual report 2014 64
group reconciliation – mineral resource and mineral reserve 2013 – 2014
1 gold
abridged mineral resource
and mineral reserve report continued
mineral reserves
mineral reserves
mineral resource
mineral resource
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
2013 depletion cost gold price exploration methodology acquistion 2014
35130000 197200 704000 1056000 360100 – – 33500000
ounces
ounces
0
2000000
4000000
6000000
8000000
10000000
12000000
9200000 167200 5300 360100 389400 323000 10100000
ounces
ounces
depletion 2013 economics exploration methodology organic 2014
0
100000
200000
300000
400000
500000
600000
700000
800000
685614 22357 75263 – – – 21746 609117
ounces
ounces
2013 depletion cost pgm basket price exploration methodology organic 2014
0
100000
200000
300000
400000
500000
600000
ounces
ounces 252792 9643 – – – 264938 9659 517746
2013 depletion cost gold price exploration methodology acquistion 2014
2 pges pan african resources plc integrated annual report 2014 65
abridged
mr  mrr
group strategy – mineral resource and mineral reserve
pan african resources has an exceptional asset base and attractive growth opportunities both in established projects and brownfield 
exploration prospects strategy in this regard is based on global best practice in mrm to aggressively explore and develop projects 
that will become next generation longterm business units
this strategy includes
 improving the conversion of mineral resource to mineral reserve by accessing developing and exploiting underground 
orebodies and surface assets
 unlocking the value of major organic projects and
 identifying new expansion opportunities to sustain growth
the mineral resource and mineral reserve underpin the enterprise value of pan african resources and position the group to realise 
its four strategic pillars as below




term hedging 
arrangements

cost gold production
 sustainable mining
stakeholder
growth
profitable
sustainable



depreciation and amortisation



infrastructure




relationships with 
regulators organised 
labour and communities

remuneration practices

relevant south african 
labour legislation
 mining charter and 
implementation of social 
and labour plans pan african resources plc integrated annual report 2014 66
profitable
pan african resources’ mineral deposits are located in geological 
terrains that are described as worldclass quality mineral assets 
with high grade and significant production tonnage profiles 
enabling operational and profitable delivery to maximise value 
to stakeholders
applying the mrm framework of survey geology resource 
estimation and mine planning the focus is to optimise the allin 
cost margin and maximise earnings and returns to shareholders 
this requires a clear understanding of the nature of the 
orebody its resource inventory and the ability to effectively 
exploit its mineral endowment profitably effective lom plans 
are designed to execute mining methods that are safe and low 
cost which in turn enables optimal cutoff grades to yield the 
desired financial margins
stakeholder
the group’s strategy of investing in large longlife mines and 
operations means that pan african resources operates on 
extended time horizons this longterm vision provides 
the opportunity to plan and implement projects to deliver 
sustainable contribution to social wellbeing environmental 
stewardship and economic prosperity pan african resources 
is pleased to report zero production stoppages due to labour 
issues during the year under review this positively impacted 
the realisation of targeted grade tonnage profiles at each of 
the operations
the group is committed to complying with the mineral and 
petroleum resources development act and achieving the 
objectives of the mining charter in this regard it continues to 
engage with stakeholders both within and outside the group
sustainable
mrm at barberton mines evander mines and phoenix platinum 
plays a strategic role in converting a mineral asset from an 
initial inferred resource at the exploration phase to a proved 
reserve at the production stage and ultimately to a saleable 
product the diligent application of this methodology allows for 
greenfield brownfield nearmine and organic growth projects 
to be realised and economic value add to deliver a sustainable 
business model
brownfield exploration aims to grow or sustain the value 
of our existing operations it capitalises on projects in which 
we have already made significant investment the acquisition 
of evander mines comprised a substantial brownfield gold 
mineral resource inventory of 213moz pan african resources 
is diligently developing these assets to increase the economic 
value of the company recent brownfield successes include the 
accretive earnings of btrp for the year under review and the 
current construction of etrp
growth
a key objective is to create value by growing the mrmr – the 
major asset of the group this is driven by an active acquisition 
strategy a welldefined exploration programme innovation in 
 continual optimisation of the asset portfolio
in the current year the acquisition of evander mines has 
propelled pan african resources to a midtier status through 
the significant increase in its mineral asset the group’s mineral 
reserve increased by 95 resulting in all operations increasing 
their respective lom production profiles
abridged mineral resources
and mineral reserve report continued pan african resources plc integrated annual report 2014 67
abridged
mr  mrr
project lifecycle of mineral assets at pan african resources
increasing level 
of geoscientific 
knowledge and 
confidence
resources and reserves
resources reserves
reported as in situ mineralisation 
estimates
reported as mineable in situ 
rom and saleable estimates
inferred
indicated
measured
probable
mineable in situ rom saleable
proved
mineable in situ rom saleable
consideration of mining metallurgical economic marketing legal environmental social and governance factors 
the “modifying factors”
inferred
measured
probable
proved
a function of the amount of knowledge on a mineral resourceproperty and
the degree of probability of it being brought to account
project value
confidence
mineral
reserves
reconnaissance
mineral
resources
indicated
discovery
desk top
study
prefeasibility
study
project
commissioning
evander south
rolspruit
etrp
evander 7 shaft no3 decline
phoenix platinum
evander 8 shaft
barberton mines
btrp
elikhulu
poplar
exploration project
development 
project mine construction
mine 
production pan african resources plc integrated annual report 2014 68
the evolution of a project from initial testing to commissioning can take 12 to 18 months or longer and involves a series of study 
stages to reach investment approval and implementation
we distinguish the group from our peers by having a clear focus on growth and only mining resources that must be profitable in all parts 
of the price cycle in order to deliver longterm economic value to pan african resources the graph on the previous page demonstrates 
the group’s mineral assets within the value chain and how value is realised through projects such as the btrp and etrp
group organic growth
the operations’ robust lom plans support the group business plans current exploration drilling as well as accessing and developing 
of the orebody were aggressively maintained during the year the strategy of converting mineral resource to mineral reserve was 
progressed by moving organic projects further up the mining value chain towards commissioning the tables below reflect the 
progress of nearmine growth projects that have contributed ounces to the mineral resource for the year
exploring the orebody – exploration drilling
operation total metres
number of
 boreholes
average 
channel width
 cm
number of 
intersections 
above cutoff
average
 grade
 gt
total 
expenditure
rm
barberton mines 11993 150 121 93 2452 79
evander mines 732 22 22 – 1465 054
phoenix platinum ––––––
accessing the orebody – onreef development
operation
total onreef development 
metres
average grade
 gt
barberton mines 1656 431
evander mines 1015 4311
phoenix platinum – –
developing the orebody – capital ore reserve projects 
project
2014 
metres
2013 
metres
2012 
metres
potential 
resource
 target oz
barberton mines
sheba – pillar development 351 317 – 2006
sheba – edwin bray to thomas and joe’s luck area 171 102 303 13286
fairview – 11 level royal reef equipping 01 – 17000
fairview – 1 ore reserve opening 154 179 – 14821
fairview – 3 shaft deepening – 228 109 1600
fairview – 62 level 295 601 – 552253
new consort – 40 level 193 252 267 10000
new consort – 50 level decline west – 150 197 26000
new consort – mmr pillar development 173 129 – new target area 
new consort – 3 shaft – 253 – 900
sheba western cross – 71 –44263
evander mines
2 decline 24 – 25 level 686 554 778
25 a block ventilation 925 124 – 1200000
abridged mineral resource
and mineral reserve report continued pan african resources plc integrated annual report 2014 69
abridged
mr  mrr
abridged
mr  mrr 70 pan african resources plc integrated annual report 2014
governance
  71
governance
pan african resources plc integrated annual report 2014
governance 72 pan african resources plc integrated annual report 2014
corporate 
governance
highlights fy2014
 executive team bolstered
 new independent nonexecutive 
director appointed
 group procurement manager appointed
 corporate office procurement policy formalised 
and approved
 all board and subcommittee charters post year
end
 improved operational reporting to head office 
and the board
 group shecq charter approved facilitates 
reporting to the board
the board acknowledges that applying good corporate 
governance principles is a dynamic responsibility in line with 
developments in the uk south africa and internationally 
pan african resources’ board is committed to responsibility 
accountability fairness and transparency in accordance with the 
king iii report the uk code and applicable laws reflecting in 
integrity in all business dealings the board aims to integrate 
this responsible corporate citizenship into the group’s business 
strategy audits and assessments and to embed sound corporate 
governance practices into daily operations and processes 
throughout the group
the standards of disclosure relating to corporate governance 
at the group are regulated by the uk companies act 2006 
the companies act aim rules the jse listings requirements 
and king iii in addition the board has considered the principles 
of corporate governance contained in the uk code and the 
guidance published by the institute of chartered accountants 
in england and wales commonly known as the turnbull 
report concerning the internal control requirements of the 
combined code
in line with king iii’s “apply or explain” approach the directors 
will continue to state the extent to which the company applies 
good corporate governance principles to create and sustain 
value for stakeholders over the short medium and long term 
and to explain any nonapplication
to optimally manage its application of king iii the company 
has adopted the iodsa governance assessment instrument 
allowing for the maintenance of a register recording its progress 
in applying the principles of king iii as well as the jse listings 
requirements
please see chapter 2 compliance on page 79 and the full king 
iii checklist on wwwpanafricanresourcescom 73
governance
pan african resources plc integrated annual report 2014
pan african resources’ governance structure
audit committee
nominations committee
hester hickey chairman
thabo mosololi
rob still resigned 1 july 2014
keith spencer
keith spencer chairman
rob still resigned 1 july 2014
rowan smith appointed 8 september 2014
executive directors
independent nonexecutive directors
nonexecutive directors
ron holding ceo
cobus loots fd
keith spencer chairman
hester hickey
thabo mosololi
rob still resigned 1 july 2014
rowan smith appointed 8 september 2014 
phuthi mahanyele deputy chairperson
remuneration committee
sheqc committee
phuthi mahanyele chairman
rob still resigned 1 july 2014 
thabo mosololi
rowan smith appointed 8 september 2014
keith spencer chairman
ron holding ceo
hester hickey
board 
subcommittees
board
exco
ron holding ceo
cobus loots fd
anaki karigeni coo
andre van den bergh executive hr
casper strydom gm barberton mines
manny da silva gm evander mines
bertin mcleod  plant manager metallurgy phoenix platinum
neal reynolds group financial controller
mandla ndlozi group sheqc 
barry naicker mineral resource and reserve manager
wayne allen group consulting engineer
opsco 74 pan african resources plc integrated annual report 2014
corporate 
governance continued
the board
the board is responsible and accountable for the performance 
and affairs of the group and has full control over all subsidiaries 
and operations it acts as the focal point for and custodian of 
our corporate governance in doing so it ensures the group 
remains a responsible corporate citizen cognisant of the impact 
our operations may have on the environment and society in 
which we operate while acting in accordance with our own 
code of conduct
at report date our unitary board comprised seven directors
executive directors ron holding ceo
cobus loots fd
nonexecutive director phuthi mahanyele  
deputy chairperson
independent nonexecutive 
directors
keith spencer chairman
1
hester hickey
thabo mosololi
rowan smith appointed on 
8 september 2014
1  keith spencer is an independent nonexecutive director as per the king iii 
requirement but a nonexecutive director as per the aim rules
changes to the board during the year were as follows
 ron holding was appointed ceo with effect 9 september 
2013 having served as joint interim ceo with cobus loots
 busi sitole resigned as fd with effect 30 september 2013
 cobus loots was appointed fd with effect 1 october 2013
 thabo mosololi was appointed independent nonexecutive 
director with effect 9 december 2013
 rob still resigned as an independent nonexecutive director 
with effect 1 july 2014
 rowan smith was appointed on 8 september 2014 as an 
independent nonexecutive director
our board reflects a balance of executive and nonexecutive 
directors the majority of whom are independent as required 
more importantly the board reflects significant experience in 
mining and related activities adding depth to board discussions 
with a wealth of industry knowledge
the responsibilities of the independent nonexecutive 
chairman and the ceo and the remaining nonexecutive and 
executive directors are strictly separated to ensure checks and 
balances in decisionmaking no single director is positioned to 
exercise unfettered decisionmaking which protects against the 
influence of possible personal interests and thereby ensures 
that the interests of all stakeholders are represented and taken 
into account
the chairman provides independent board leadership and 
guidance and facilitates suitable deliberation on all matters 
requiring the board’s attention he further ensures the board 
operates efficiently and as a unit the ceo and fd supported 
by the exco are accountable for strategy implementation 
and daytoday operational decisions and business activities 
nonexecutive directors are not involved in the daily operations 
of the company
a formal board charter is in place to regulate the parameters 
within which the board operates and to ensure the application 
of good corporate governance in compliance with the group’s 
code of conduct the charter was reviewed in the year under 
review and will be adopted in the current year a copy of the 
board charter is available from the group company secretary 
on request 75
governance
pan african resources plc integrated annual report 2014
the board meets quarterly with additional meetings as and when necessary attendance at board and committee meetings is 
set out below
keith 
spencer
phuthi 
mahanyele
hester 
hickey
ron 
holding
cobus 
loots
thabo 
mosololi
rob 
still
board meetings





audit committee meetings


remuneration committee meeting

sheqc committee meetings





in addition to these meetings adhoc meetings and calls are held on a regular basis not all of these are recorded above
the nomination committee meetings are held jointly with the board meetings
board committees
we have an established audit committee remuneration committee nominations committee and sheqc committee to assist 
the board in discharging its collective responsibility of corporate governance the sheqc committee serves as a social and ethics 
committee in terms of the companies act requirements all committees have satisfied their responsibilities during the year in 
compliance with their formal charters all charters were reviewed during the year and will be adopted in their revised form in the 
current year a copy of committee charters is available from the group company secretary on request
audit committee remuneration committee nominations committee sheqc committee
members hester hickey 
chairman
thabo mosololi 
keith spencer rob still
by invitation
external auditors
internal auditors
ron holding 
cobus loots 
financial executives
phuthi mahanyele 
chairman
thabo mosololi rob still
executives invited to the 
meeting
ron holding 
cobus loots 
andre van den bergh 
group hr executive
keith spencer chairman
rob still 
keith spencer 
hester hickey 
ron holding 
executives on the 
committee
anaki karigeni coo 
mandla ndlozi group 
sheqc manager
andre van den bergh 
group hr executive
general managers 76 pan african resources plc integrated annual report 2014
corporate 
governance continued
audit committee remuneration committee nominations committee sheqc committee
independence
keith spencer is 
considered an 
independent director in 
terms of king iii and as 
such by the company 
as a result of historical 
share options issued 
during 2007 the uk 
companies act does 
not consider keith 
spencer independent

the chair of the 
remuneration committee is 
not independent as required 
by the king iii and the jse 
listings requirements 
nevertheless the board is 
satisfied that the interests 
of the executive directors 
and employees can be 
fairly and adequately met 
this point notwithstanding 
and that the chair’s 
contribution outweighs the 
legislative interpretation of 
independence

mandate the audit committee 
is responsible for 
ensuring that the 
financial performance 
position and prospects 
of the group are 
properly monitored 
controlled and reported 
on and for meeting the 
auditors and reviewing 
their reports relating to 
accounts and internal 
controls
the remuneration 
committee reviews 
the performance of 
the executive directors 
and determines their 
remuneration and the basis 
of their service agreements 
with due regard to the 
interests of shareholders 
it also determines the 
payment of any bonuses 
to executive directors 
and the grant of options 
to employees including 
executive directors under 
the group’s share option 
scheme as well as short or 
longterm incentives 
the nominations committee is 
required to review the composition 
of the board and board committees 
and to make recommendations 
to the board in this regard the 
appointment of directors is a 
transparent and formal process 
governed by the committee’s 
mandate and terms of reference as 
well as the board charter 
with regard to composition of the 
board the committee ensures that 
its size diversity and demographics 
make for an effective board and that 
it is structured to ensure a wide 
range of skills views knowledge 
and experience in order to guide 
the group to meet our strategic 
objectives 
the committee also ensures that 
a formal succession plan for key 
executive directors is in place and 
that induction and ongoing training 
and development of directors 
continues
the sheqc committee 
is the cornerstone of 
ensuring the group 
maintains its social licence 
to operate see page 89 
for an abbreviated 
sustainability report 
responsibility of the 
sheqc committee 
which is available in full at  
wwwpanafricanresourcescom
activities during 
the year
reviewed and 
appointed a company 
secretary
reviewed the annual salary 
and wage increases granted 
to all employees
appointment of ron holding as 
ceo and cobus loots as fd
nominated new independent non
executive directors thabo mosololi 
and rowan smith 
reviewed group succession strategy
reviewed and updated 
charter to include 
quality
going forward the function of the nominations committee will be performed by the board as a whole 77
governance
pan african resources plc integrated annual report 2014
board processes
rotation of directors
in terms of king iii and the group’s moi onethird of the board’s 
nonexecutive directors must retire from office at each agm 
on a rotation basis the directors to retire are those who have 
been longest in office since their last election retiring directors 
may make themselves available for reelection provided that 
they remain eligible as required by the moi and in compliance 
with the aim rules and jse listings requirements accordingly 
cobus loots hester hickey and thabo mosololi will retire 
by rotation at the upcoming agm and being eligible will offer 
themselves for reelection
a brief cv of each director standing for election at the agm is 
contained in this integrated annual report the nominations 
committee having assessed the performance of those directors 
who are due for reelection makes a formal recommendation 
for reelection to the board and shareholders
reviews
an annual effectiveness evaluation is undertaken in respect of 
the board and the audit committee both from a selfevaluation 
and independent evaluation perspective the evaluations in the 
year found the board and audit committee to be satisfactorily 
effective subject to the caveat that the composition of the 
board and all its committees would benefit from the inclusion of 
one more independent nonexecutive director thabo mosololi 
was subsequently appointed as above the audit committee 
further performed an assessment of the independence of each 
independent nonexecutive director as above
share dealings
all group employees above patterson grading d which 
includes operational management exco and opsco  with 
access to financial and any other pricesensitive information 
are prohibited from dealing in pan african resources’ shares 
during “closed periods” as defined by the aim and jse rules or 
while the company is trading under cautionary an appropriate 
communication is sent to all such employees alerting them 
that the company is entering a closed period should any of 
the relevant employees wish to trade pan african resources’ 
shares written permission must be obtained from either the 
ceo or fd and confirmed with the south african and uk
based corporate advisors prior to the trade taking place there 
were no contraventions of this policy during the year
succession planning
succession planning for the board management team and 
senior executives falls to the board assisted by the nominations 
committee the committee regularly reviews the group’s 
succession strategy succession plans are in place for the 
incumbent key executives with an informal “onthejob” mentor 
programme for identified successors supporting this process
new appointments
the nominations committee identifies interviews and 
proposes potential candidates to the board the board 
evaluates each individual in the context of the board as a whole 
– the objective remains having a board that can best perpetuate 
our success and represent shareholder interests through the 
exercise of sound judgement using its diversity of experience 
the company ensures all new directors are informed of the 
jse and aim rules with the assistance of the uk nomad and 
jse sponsor given that all appointees are accomplished board 
directors and familiar with the fiduciary duties expected of 
them however new appointees are provided with the latest 
annual and interims results integrated annual report and 
minutes of previous board meetings it is intended that a formal 
induction programme will be introduced in the short term
ongoing development
all directors receive ongoing training on relevant matters and 
in addition directors who are chartered accountants comply 
with saica cpd requirements the ukbased nomad ensures 
that the directors remain up to date with aim regulations 
while the south african sponsor ensures the same visàvis the  
jse listings requirements the company secretary and chair of 
the audit committee are further responsible for keeping the 
board abreast of new legislation recommendations and best 
practice
support functions
independent advice
all independent nonexecutive directors have unrestricted 
access to management at any time as well as to the groups’ 
external auditor further all directors are entitled to seek 
independent professional advice on any matters pertaining to 
the group as they deem necessary and at the group’s expense
company secretary
pan african resources outsources the company secretarial 
function st james’ corporate services limited has been the 
group’s company secretary since 8 july 2008 the company 
secretary advises the board of any relevant regulatory changes 

specifically the company secretary keeps record of inter alia 
shareholder registers meeting attendance registers meeting 
minutes resolutions directors’ declarations of personal 
interests all notices and circulars issued by the company 
directors training guidance on directors’ duties and good 
governance and assistance of evaluation of board and board 
committees performance he is well versed in all relevant 
updates to current legislation and regulation and is responsible 
for advising the board in this regard  78 pan african resources plc integrated annual report 2014
corporate 
governance continued
further he reviews the rules and procedures applicable to the 
conduct of the board to this end he will involve wherever 

experts to ensure that the directors have adequate information 
to sufficiently discharge their responsibilities in the best interests 
of the company
the appointment and removal of the company secretary is a 
matter for the board as a whole the audit committee review 
the company secretary’s qualifications and competence
the board is comfortable that the company secretary 
st james’s corporate services limited maintains an arm’s length 
relationship with the board at all times and is sufficiently qualified 
and skilled to act in accordance with and update directors in 
terms of the recommendations of the king iii report and other 
relevant local uk and international regulations and legislation
advisers
one capital is the company’s appointed sponsor in accordance 
with the jse listings requirements one capital is responsible 
for ensuring that the company is at all times guided and advised 
as to the application of the jse listings requirements as above
the group’s nomad and joint broker in the uk is canaccord 
genuity peel hunt also acted as joint broker during the 
reporting period with their contract having been terminated 
in july 2014
it governance
recognising the importance of this aspect to sustainability 
the group is currently in the process of implementing an it 
governance framework which will be governed by an it charter 
to be formalised adopted and rolled out in the current year 
niel symington part of the finance team will assume the 
responsibilities of chief information officer
to date each operation has formal business continuity and 
disaster management plans in place which are the responsibility 
of the respective general managers
legal compliance
the group complies with the following acts and regulations
uk company
 uk bribery act
 uk companies act 2006
sa company
 south african companies act 2008
 broadbased black economic empowerment act 2003
taxation
 income tax act
 value added tax act
 customs and excise act
 transfer duty act
 estate duty act
 securities transfer tax act
 securities transfer tax administration act
labour
 skills development act 1998
 skills development levies act
 unemployment insurance act 2001
 unemployment insurance contributions act
 basic conditions of employment act 1997
 compensation for occupational injuries and diseases 
act 1993
 employment equity act 1998
 labour relations act 1995
 manpower training act 1981
 occupational diseases in mines and works act 1973
 occupational health and safety act 1993
minerals and energy
 mine health and safety act 1996
 mineral and petroleum resources royalty administration 
act 2008
 mineral and petroleum resources royalty act 2008
 national energy act 2008
 national nuclear regulator act 1999
 nuclear energy act 1999
 precious metals act 2005
safety and security
 disaster management act 2002
 explosives act 2003
 firearms control act 2000
 national radioactive waste disposal institute act 2008
 prohibition or restriction of certain conventional weapons 
act 2008
 protection from harassment act 2010
water
 national water act 1998
 water services act 1997 79
governance
pan african resources plc integrated annual report 2014
king iii application
king iii chapter 2 as below
principle 
number description compliance
chapter 2 boards and directors
21 the board should act as the focal 
point for and custodian of corporate 
governance
the board is the focal point and custodian of corporate governance for 
pan african resources in accordance with the board charter and code of 
conduct the board is committed to the highest standards of corporate 
governance
22 the board should appreciate that 
strategy risk performance and 
sustainability are inseparable
in accordance with the board charter and all committee terms of reference 
reviewed according to king iii the board is responsible for aligning the 
strategic objectives vision and mission with performance and sustainability 
considerations the group’s formalised risk management process takes into 
account the full range of risks including strategic and operational risk as well 
as performance and sustainability 
23 the board should provide effective 
leadership based on an ethical 
foundation
the board provides effective leadership and is committed to the highest 
standards of ethical conduct see “ethical leadership” on page 38
24 the board should ensure that the 
company is and is seen to be a 
responsible corporate citizen
see 21 above
25 the board should ensure that the 
company’s ethics are managed effectively
a code of conduct is in place and extends to the all group operations see 
“ethical leadership” on page 38
26 the board should ensure that 
the company has an effective and 
independent audit committee
the board is satisfied that the audit committee is independent and 
effective the committee’s chairman is keith spencer an independent non
executive director as per king iii requirements keith spencer is considered 
a nonexecutive director per the aim rules the committee further consists 
of two independent nonexecutive directors
27 the board should be responsible for the 
governance of risk
the board’s audit committee has conducted an evaluation of risk and is 
satisfied with the effective management of risk
28 the board should be responsible for 
information technology it governance 
the board is addressing it governance in its corporate governance practices 
and will be implementing an it governance framework including a charter 
during financial year 2015
29 the board should ensure that the 
company complies with applicable laws 
and considers adherence to nonbinding 
rules codes and standards
the board ensures that the company complies with applicable laws and 
considers adherence to nonbinding rules codes and standards the south 
african sponsor and external auditor and uk nomad are responsible 
for monitoring compliance the directors take cognisance of legislation 
regulation and best practice
210 the board should ensure that there is an 
effective riskbased internal audit
the audit committee has oversight of internal audit by approval of the 
internal audit plan and review of the reporting of any findings on a regular 
basis the internal audit function currently outsourced to bdo has direct 
access to the chair of the audit committee and internal audit are invited to 
attend each audit committee meeting
211 the board should appreciate that 
stakeholders’ perceptions affect the 
company’s reputation
the board recognises the importance of developing and nurturing positive 
and stable relationships with stakeholders as a key driver of business 
success as articulated in its key business pillars as described on page 16 
also see stakeholder engagement on page 30 80 pan african resources plc integrated annual report 2014
corporate 
governance continued
principle 
number description compliance
212 the board should ensure the integrity of 
the company’s integrated annual report
the board continues to ensure that the integrated annual report 
endeavours to provide a true view of the group’s commitment to financial 
social governance economic and environmental value creation although 
the sustainability information in the integrated annual report is not 
independently assured 
213 the board should report on the 
effectiveness of the company’s system of 
internal controls
the board is responsible for maintaining a sound system of internal controls 
to safeguard shareholders’ investment and group assets nothing has come 

caused a material breakdown in the system of internal controls
214 the board and its directors should act in 
the best interests of the company 
the board acknowledges its role as a steward on behalf of the shareholders 
215 the board should consider business 
rescue proceeding or other turnaround 
mechanisms as soon as the company is 
financially distressed as defined in the 
companies act
the board monitors the company’s solvency and liquidity business rescue 
has not been required 
216 the board should elect a chairman 
of the board who is an independent 
nonexecutive director the ceo of the 
company should not also fulfil the role of 
chairman of the board
the chairman keith spencer is an independent nonexecutive chairman 
for jse purposes and the roles of ceo and chairman are clearly defined 
and separated
217 the board should appoint the ceo and 
establish a framework for the delegation 
of authority
the board should appoint the ceo and establish a framework for the 
delegation of authority 
218 the board should comprise a balance of 
power with a majority of nonexecutive 
directors the majority of nonexecutive 
directors should be independent
after the appointment of rowan smith the board comprises a majority 
five of nonexecutive directors four of whom are independent  
nonexecutive directors 
the responsibilities of the chairman and ceo and those of other non
executive and executive directors are clearly separated to ensure a balance 
of power and prevent any one director from exercising unfettered powers 
of decisionmaking the chairman provides leadership to the board in 
all deliberations ensuring independent input and oversees its efficient 
operation the ceo is responsible for proposing updating implementing 
and maintaining the strategic direction of pan african resources as well as 
ensuring appropriately supervised and controlled daily operations in this 
regard the ceo is assisted by the fd 
the independent nonexecutive directors and nonexecutive director are 
high merit individuals who objectively contribute a wide range of industry 
skills knowledge and experience to the board’s decisionmaking process 
these directors are not involved in the daily operations of the company 
219 directors should be appointed through 
a formal process
the entire board participates in a formal and transparent process for the 
appointment of new board members including the ceo the nominations 
committee recommends suitable candidates to the board following a 
vetting process which takes into account a candidate’s skills offering 
experience and interests such as diversity  81
governance
pan african resources plc integrated annual report 2014
principle 
number description compliance
220 the induction of and ongoing training 
and development of directors should be 
conducted through formal processes
all directors receive ongoing general training with the assistance of saica 
in reference to qualified chartered accountants the uk nomad the 
south african sponsor the company secretary and the chair of the audit 
committee the induction programme is managed and controlled by the 
nomad and south african sponsor
221 the board should be assisted by a 
competent suitably qualified and 
experienced company secretary
the company secretary function is outsourced to st james’ corporate 
services limited represented by phil dexter who is not a director of pan 
african resources the company secretary is accountable to the board as a 
whole and accordingly maintains an arm’s length relationship with the board 
and its directors the appointment and removal of the company secretary 
is a matter for the board as a whole the audit committee reviews the 
company secretary’s qualifications and competence 
the board is comfortable that the company secretary maintains an arm’s 
length relationship with the board at all times and is sufficiently qualified 
and skilled to act in accordance with and update directors in terms of the 
recommendations of the king iii report and other relevant local uk and 
international regulations and legislation
222 the evaluation of the board its 
committees and the individual directors 
should be performed every year
an annual effectiveness evaluation is undertaken in respect of the board 
and the audit committee both from a selfevaluation and independent 
evaluation perspective
223 the board should delegate certain 
functions to wellstructured committees 
but without abdicating its own 
responsibilities
the board delegates certain functions without abdicating its own 
responsibilities to the following committees 




224 a governance framework should be 
agreed between the group and its 
subsidiary boards
the whollyowned subsidiary directors are executives employed within the 
group and authority is delegated to these executives is governed by the 
group’s authority framework
225 companies should remunerate directors 
and executives fairly and responsibly
the group’s remuneration philosophy reflects pan african resources’ 
commitment to best practice the remuneration committee determines 
the remuneration policy on executive and senior management 
remuneration in line with the group’s remuneration philosophy a detailed 
remuneration report is contained in the integrated annual report on  
page 84 
226 companies should disclose the 
remuneration of each individual director 
and certain senior executives
the remuneration of directors is disclosed in the integrated annual report 
on page 146
227 shareholders should approve the 
company’s remuneration policy
shareholders consider and endorse by way of a nonbinding advisory vote 
the company’s remuneration policy at the agm 
the full king iii checklist is available at wwwpanafricanresourcescom 82 pan african resources plc integrated annual report 2014
risk
management
we recognise that the ongoing and effective management of business risk is vital to pan african resources’ continued growth and 
success
the system of internal controls and monitoring relating to risk is designed to provide reasonable but not absolute assurance as to 
the integrity and reliability of the financial statements further the systems are designed to manage rather than eliminate applicable 
risks safeguard and verify the accountability of the group’s assets and to identify and minimise significant fraud potential liability loss 
and material misstatement while complying with applicable laws and regulations
the identification of risks is informed by the external environment and the nature of the individual operations’ activities
a formal risk management process is in place as below
the board of the company 
is ultimately responsible for 
the management of risk in 
this endeavour the directors 
are assisted by the audit 
committee the board 
regularly reviews the risk 
reports from the operations 
ensuring that the appropriate 
risk management programmes 
and monitoring of progress 
against key risk indicators are 
being effectively implemented 
the board together with 
executive management 
is also responsible for the 
identification of strategic 
risks and opportunities 
strategic workshops are 
conducted to evaluate risks 
and opportunities confirm 
or amend group strategy and 
establish strategic actions for 
the forthcoming period
controls and actions to 
mitigate strategic risks can 
be implemented at the level 
of individual operations 
across a group discipline hr 
for example or at executive 
management level
board of directors audit committee
internal audit 
function
executive 
management
this committee reports 
directly to the board and 
has several responsibilities 
including internal control 
internal audit risk 
management and assurance
the committee meets at 
least three times a year 
attendance is outlined 
on page 75 and makes 
recommendations to the 
board which retains ultimate 
responsibility with regard 
to risk tolerance levels it 
also works closely with the 
internal audit function and 
approves and reviews the 
internal audit plan and its 
execution
on an ongoing basis 
the committee works 
closely with the executive 
management team as well as 
the external auditors
the internal audit function is 
outsourced to bdo which 
evaluates the effectiveness 
and general compliance of 
controls aimed at addressing 
risks within the group
executive management 
implements operational 
controls to ensure the 
validity accuracy and 
completeness of financial 
information they demand 
that each employee assumes 
responsibility for conducting 
himherself in accordance 
with established policies and 
procedures to minimise the 
potential occurrence of any 
risk event and constantly 
to seek opportunities to 
improve performance and 
efficiencies
pan african resources plc integrated annual report 2014 82 83
governance
pan african resources plc integrated annual report 2014
operations
external audit 
function
jse and aim
initiatives to mitigate risks at 
operational level are designed 
to ensure continuous safe 
and responsible production 
of gold and pges risks 
are identified at risk 
workshops and in strategy 
session each of the group’s 
operations maintains a risk 
register which includes risk 
identification risk mitigating 
factors and responsibilities 
the group’s key risks are set 
out on page 21
external audit reports on the 
fair presentation of financial 
information on a statutory 
reporting level in compliance 
with ifrs as adopted by the 
eu and article 4 of the ias 
regulation uk companies 
act 2006 and the companies 
act the board assisted 
by the audit committee 
evaluates the effectiveness 
and independence of the 
external auditors – the 
south african and uk firm of 
deloitte  touche
the company is compliant 
with the jse listings 
requirements and aim rules
pan african resources plc integrated annual report 2014 83
governance 84 pan african resources plc integrated annual report 2014
the remuneration committee assists the board in ensuring 
that group remuneration and recruitment are aligned with the 
overall business strategy with the aim of enabling pan african 
resources to attract and retain personnel who will create long
term value for all stakeholders
the committee is an independent and objective body which 
monitors and strengthens the credibility of the group’s executive 
remuneration system it reviews the performance of the ceo 
executives and senior management and sets the scale structure 
and basis of their remuneration and the terms of their service 
agreements it also considers and makes recommendations to 
the board on remuneration packages and policies in this regard
all executive directors have employment contracts with the 
company and are remunerated by the company for services 
performed
pan african resources’ remuneration philosophy seeks to reward 
executive directors and other senior management for individual 
and group performance it recognises that these individuals 
have the ability to significantly impact the performance of the 
group in both the short and longer terms executive directors 
and other senior management carry significant responsibility 
legal and otherwise and appropriate skills are difficult to attract 
and retain in what is increasingly a challenging environment 
it is therefore critical that remuneration achieves inter alia
 attracts the “right” senior staff
 incentivises key staff to perform and then measures and 
rewards performance
 retains critical skills
in order to achieve these objectives the remuneration 
committee in consultation with and with oversight from the 
board retains flexibility in terms of how it incentivises and 
rewards performance
remuneration framework
remuneration key features criteria for eligibility
basic salary and 
benefits

competitive market data and 
analysis pwc remchannel survey
employment at the group
shortterm 
incentives


group’s performance or personal 
contribution 
executive directors
collective kpis account for 40 of assessment these are based on 
the group’s gold sold ounces costs of production and safety targets 
– objective measurements based on the group’s actual achievements 
against the set business plan for the financial year
individual kpis account for 60 of assessment and are specific to the 
employee concerned
excoopsco
collective kpis account for 50 of assessment these are based on 
the group’s gold sold ounces costs of production and safety targets 
– objective measurements based on the group’s actual achievements 
against the set business plan for the financial year
individual kpis account for 50 of assessment and are specific to the 
employee concerned
operational management
collective kpis account for 80 of assessment these are based on 
gold sold ounces costs of production and safety targets – objective 
measurements based on the group’s actual achievements against the 
set business plan for the financial year
individual kpis account for 20 of assessment and are specific to the 
employee concerned 
share options for 
further detail see 

or contact the 
company secretary


appreciation bonus plan
the main objective of the group equity share option plan and share 
appreciation bonus plan is to appropriately incentivise select employees 
who are employed at a managerial level within the group to ensure 
retention of key skills required for the group’s ongoing profitable 
performance and growth and to align management interests with those 
of shareholders 
remuneration
report 85
governance
pan african resources plc integrated annual report 2014
governance 86 pan african resources plc integrated annual report 2014
our
impacts 87
our impacts
pan african resources plc integrated annual report 2014
our impacts 88 pan african resources plc integrated annual report 2014
note the report below constitutes a summary of the key points explained more fully in our full sustainability report available on 
our website at wwwpanafricanresourcescom
30 june 30 june
2014 2013
zar million zar million
revenue from all operations 26088 18481
paid to suppliers for material and services 7382 3862
value added 18706 14619
income from investments 85 98
total value created 18791 14717
value distribution
employees costs 8526 6184
capital providers 2551 174
finance costs 148 174
dividends to 2403 –
central and local government 1311 1724
company taxation 1208 1679
skills development levy 103 45
csi

190 216
reinvested in group to maintain and develop operations 6213 6419
depreciation and amortisation 1692 830
retained profits 4521 5589
18791 14717
value added ratios
average number of employees

4425 4345
revenue per employee 06 04
value created per employee 04 03
csi –  of profit after tax  42 39

 as previously reported in the prior year

 csi includes education food and water security and poverty alleviation projects

  income from investments includes interest received and share of associate losses and losses on disposal of assets heldforsale

 average number of permanent group employees throughout the year which included four months of evander mines employees in the prior year
value added 
statement unaudited 89
our impacts
pan african resources plc integrated annual report 2014
for the full sustainability report 
please refer to our website
wwwpanafricanresourcescom
sheqc committee and responsibilities
the sheqc committee’s responsibilities encompass monitoring 
and regulating the impact of the group on its stakeholders and 
thus its social licence to operate the committee serves as the 
social and ethics committee as required by the companies act
pan african resources is committed to conducting its mining 
operations in strict compliance with the mining licence 
conditions set by the dmr and the mhsa and other relevant 
regulations this compliance is driven by the group sheqc 
manager mandla ndlozi within the group philosophy of 
continuous improvement ultimate responsibility for the group’s 
sheqc performance rests with the board and radiates from 
the board down through the group 
see pan african resources sustainability report at wwwpanafricanresources
com for further details
during the year under review a formal integrated sheqc policy 
and charter were approved and implemented extending to 
safety health environment quality and communities
the committee comprises independent nonexecutive directors 
keith spencer who chairs the committee and hester hickey 
it further comprises ceo ron holding coo anaki karigeni 
group sheqc manager mandla ndlozi executive hr andre 
van den bergh and the general manager of each operation
the committee has free and unrestricted access to the 
company’s management employees and the findings of outside 
consultants in all matters pertaining directly or indirectly to 
sheqc concerns
the committee meets at least four times a year details of 
meeting attendance are set out on page 75
the role of the committee includes specifically to
 develop the framework policies and guidelines for 
sheqc management
 review the policies and performance of the group and the 
ongoing implementation of such policies
 monitor sheqc risks and liabilities at head office all 
operations of the group and any managed subsidiaries and 
significant investments
 monitor key indicators on accidents and incidents and 
ensure such information is communicated to other 
companies managed by or associated with the company
 consider substantive national regulatory and technical 
developments in the sheqc fields
 facilitate participation cooperation and consultation on 
sheqc matters with relevant stakeholders including but 
not limited to governments national and international 
organisations other companies and other sheqc bodies
health and safety
pan african resources is committed to continually improving 
its occupational health and safety performance and strives to 
reduce the risk of exposure associated with unhealthy or unsafe 
conditions in the workplace
for further details please see the pan african resources sustainability report at 
wwwpanafricanresourcescom
environment
pan african resources is committed to responsible stewardship 
of natural resources and the ecological environment and 
accordingly to eliminating or minimising the negative impacts of 
our operations environmental management is well integrated 
into management practices throughout the group
the group is steadfast in its commitment to enhancing its 
approach through processes practices and techniques to avoid 
reduce or control the creation emission or discharge of any 
type of pollutant or waste and to reduce adverse environmental 
impacts
the group acknowledges that with the pending introduction 
of a national carbon tax environmental monitoring must be 
enhanced and developed to extend to an accurate and complete 
determination of its emissions
for further details please see pan african resources sustainability report at 
wwwpanafricanresourcescom
quality
pan african resources is committed to the highest standards 
of quality and endeavours to meet the requirements of its 
stakeholders in this regard in order to continue creating value 
effective communication with relevant stakeholders is therefore 
a vital element of quality management
to achieve this the group drives continuous improvement at 
operations by providing adequate and appropriate resources 
and relevant training and development to its employees and 
contractors quality is further monitored through regular audits
communities
pan african resources strives to minimise potentially negative 
social impacts while promoting opportunities for the local 
communities in its areas of operation to this end it endeavours 
to monitor measure and manage its social and economic impacts
the group’s operations engage in a range of development 
and community relations activities which aim to ensure the 
selfsustainable welfare of communities management at the 
mines are proactive in building and maintaining stakeholder 
relationships with the local communities and have forged close 
working relationships with ward councillors and local leaders
for further details please see pan african resources sustainability report at 
wwwpanafricanresourcescom
sustainability
drive 90 pan african resources plc integrated annual report 2014
safety and health
safety highlights fy2014
 11 improvement in ltifr
 12 improvement in rifr
 continued alignment and standardising of safety 
across operations
 alignment of safety risk assessment process 
across operations
 improvement on incident and accident reporting 
system within the group
 applying lessons learnt from individual incidents 
across the group
safe mining is a business imperative and an underpin of one 
of the group’s four key strategic pillars pan african resources 
therefore expends considerable effort in promoting a safe and 
healthy work environment aiming for worldclass standards 
and zero injuries the group’s enabling culture wherein 
employees at all levels are encouraged to engage freely around 
sheqc matters is conducive to achieving this objective
all the group’s operations comply with the requirements of 
the mhsa
regretfully pan african resources reported four fatalities in 
fy2014 three occurred at barberton mines and one at evander 
mines of which three were fog incidents and the fourth 
involved a tmm subsequent to these incidents the following 
precautionary measures were enforced
 a group fog strategy was implemented
 the barberton mines safety action plan which focusses on 
“journey to zero tolerance” was reviewed and  
reimplemented
 all tmm operators and underground employees underwent 

sheqc committee
report
2010 2011 2012 2013 2014
ltifr
target
rates per million man hours
626 291 363 274 297
754 580 494 441 392
rifr
target
202 162 194 163 152
243 211 173 165 145
0
1
2
3
4
5
6
7
8
ltifr and rifr
in terms of this pan african resources has increased its focus 
on the behaviour and attitude of employees towards health 
and safety
the group safety trend for ltifr was ahead of set targets and 
the tifr has improved by 27 from 1342 to 975 the rifr 
regressed due to the fatalities as explained above the group 
fifr regressed to 030 compared to 022 in the prior year 91
our impacts
pan african resources plc integrated annual report 2014
trifr
2010 2011 2012 2013 2014
ltifr
target
rates per million man hours
2095 1651 1534 1342 975
2109 1824 1633 1398 1197
0
5
10
15
20
25
0
5
10
15
20
25
health highlights fy2014
 decline in diagnosed sporotrichosis at 
barberton mines
pan african resources recognises that mining as a profession 
carries inherent health risks effectively managing associated 
conditions and diseases is a direct investment by the group in 
its people and therefore in our longterm sustainability
the group provides a work environment that minimises health 
risks by ensuring adequate surveillance of workplaces and 
employees promoting work practices that are conducive to the 
longterm wellbeing of employees and providing appropriate 
and adequate healthcare facilities and resources

diabetes hypertension silicosis and nihl and the “big 7” at 
barberton mines which includes sporotrichosis are monitored 
at an operational level and reported to the group sheqc 
committee
fifr
rates per million man hours
00
01
02
03
04
05
2010 2011 2012 2013 2014
019 0 048 022 030
fifr 92 pan african resources plc integrated annual report 2014
our
people
highlights fy2014
 zero incident of labour unrest
 largely stable workforce
 ongoing improvement initiatives in 
people management
 114 new jobs created at barberton mines
 evander mines concluded industryfirst twoyear 
wage agreement
people are a primary driver of the group’s fourpillar business 
strategy and we see our employees as fundamental to the 
sustainability of the business andre van den bergh – the group’s 
executive hr – assisted by all management is responsible for 
our employee relations and overseeing initiatives in this regard
our operations are controlled by mining rights and each has 
devised a slp which has been submitted to the dmr
the group has a commendable employee average turnover rate 
of 68 the workforce is largely stable and continually benefits 
from improvement initiatives at the operations such as the 
medical aid scheme that was launched at barberton mines in 
the year
1 14 new jobs were created in fy2014 through the commissioning 
of the btrp
the group is committed to providing equal opportunity for 
individuals in all aspects of employment the group gives every 
consideration to applications for employment by disabled 
persons where the requirements of the job may be adequately 
filled by a disabled person where existing employees become 
disabled it is the group’s policy wherever practicable to provide 
continuing employment under similar terms and conditions 
and to provide training career development and promotion 
wherever appropriate
skills development and training
pan african resources is committed to skills development and 
spent zar201 million on training for the year barberton mines 
and evander mines have onsite accredited training centres 
offering a range of occupational skills training programmes 
while phoenix platinum provides onsite training or outsources 
this where applicable learnership programmes are also in place 
at the operations
labour relations
pan african resources complies with all applicable legislation 
and bargaining arrangements and in addition each operation 
has a strategic proactive and consultative engagement process 
with unions and employees notwithstanding a volatile labour 
situation in the south african mining sector in the year the 
group did not experience a single incident of organised labour 
unrest at any operation which we attribute to the success of 
the above
at barberton mines num represents 80 of the labour force 
uasa represents the officials artisans and miners although 
barberton mines is not a member of the chamber of mines 
it nonetheless uses many of its policies as guidance for its own 
procedures and policies however the mine conducts its own 
wage negotiations which were successfully concluded during 
the year without incident barberton mines currently has the 
presence of amcu on the mine although the union does not 
meet the recognition criteria at barberton mines there remains 
a risk of future industrial action regarding recognition
at evander mines num represents 90 of the workforce with 
uasa representing 85
100 of the workforce is covered by collective bargaining 
agreements the mine is a member of the chamber of mines 
and in july 2013 was the first in the industry to sign a twoyear 
wage agreement
phoenix platinum employs four individuals all in management 
positions the operations at the processing plant are 
outsourced to a specialist metallurgical company metanza who 
is responsible for further employment at the operation
the group has committed substantial investment to upgrade 
and convert old hostels into single accommodation and family 
units which is well underway at evander mines in line with the 
mining charter scorecard barberton mines recruits only from 
its labour setting – an area of high unemployment the majority 
of barberton mines’ employees live offmine
pan african resources recognises that it has a responsibility 
beyond its own employees in the wider employment context 
accordingly wherever possible and beyond barberton mines 
the group employs from and upskills the local communities 
which surround its operations 93
our impacts
pan african resources plc integrated annual report 2014
csi
our csi focus is on the empowerment of the communities 

negotiated with local economic fora the group targets 1 of 
npat for contribution to these beneficiaries in addition to the 
per operation contributions
transformation
pan african acknowledges that integrating genuine 
transformation that permeates the group is critical for the 
sustainability of its business in south africa
in august 2009 shanduka exchanged its shareholding of 26 
in barberton mines for 21 of pan african resources and 
further acquired an additional 5 in the group from metorex 
for cash taking the blackowned and managed shanduka to a 
26 shareholding in pan african resources black ownership in 
the group is therefore in line with mining charter requirements 
shanduka’s current shareholding at 30 june 2014 is 238
shanduka is as a blackowned investment holding company with 
interests in a diverse portfolio of listed and private companies 
primarily in the resources and food and beverage industries 
its investments are spread across south africa mozambique 
mauritius ghana and nigeria
a total of 932 of the group’s 4426 average number of 
employees are black
keith spencer
chairman sheqc committee
16 september 2014
our impacts 94 pan african resources plc integrated annual report 2014
audit committee report 96
directors report 98
independent auditors report uk 100
independent auditors report sa 101
certificate of the company secretary 102
consolidated and company statement of comprehensive income 103
consolidated and company statement of financial position 104
consolidated and company statement of changes in equity 105
consolidated and company statement of cash flows 106
notes to the financial statements 107
annual
financial statements 95
annual 
financial 
statements
pan african resources plc integrated annual report 2014
annual 
financial 
statements pan african resources plc integrated annual report 2014 96
audit
committee report
financial statements
the committee has evaluated the group and company financial 
statements for the year ended 30 june 2014 and based on the 
information provided to the committee considers that the group 
and company complies in all material respects with the 
requirements of the companies act and ifrs the requirements 
from king iii are continuously being assessed and improved on 
with significant issues resolved
external auditor
the committee nominated  deloitte llp as the statutory auditor 
and deloitte  touche sa for jse reporting requirement purposes 
for reappointment as external auditors of pan african resources
the committee satisfied itself through enquiry that the external 
auditors are independent as defined by the uk companies act 
2006 and the standards stipulated by the auditing profession
the audit committee in consultation with executive management 
agreed to the terms of engagement the audit fee for the external 
audit has been considered and approved for the 2014 financial 
yearend taking into consideration such factors as the timing of 
the audit the extent of the work required and the scope
the committee approved a nonaudit services policy which 
determines the nature and extent of any nonaudit services 
which deloitte  touche may provide to the company the policy 
allows for limited tax and corporate governance advice as well as 
the provision of reporting accountant services in relation to capital 
market transactions
fd 
the directors have considered the functioning of pan african 
resources’ financial department and believe that it functions 
effectively with the required controls and systems in place
the committee has assessed and is satisfied that the fd cobus 
loots has the appropriate skill expertise and experience as 
required by the jse listings requirement 384h
internal auditor
the committee plays an oversight role of internal audit by approval 
of the internal audit plan and review of the reporting of any 
findings on a regular basis the committee satisfied itself that the 
internal audit function is independent and has the necessary 
resources standing and authority to discharge its duties the head 
of internal audit has direct access to the chairman of the audit 
committee and internal auditors are invited to attend each audit 
committee meeting
accounting practices and internal control
based on the available and communicated information together 
with discussions with the independent external auditor the 
committee is satisfied that there was no material breakdown in 
the internal accounting controls during the financial year under 
review the committee reviewed the auditor’s report to those 
charged with governance and can report that there were no 
material issues requiring immediate additional attention the value 
added issues raised are receiving the appropriate attention to 
ensure increased effectiveness in all areas of financial and business 
systems and controls 
on behalf of the audit committee
hh hickey
chairperson audit committee
16 september 2014 pan african resources plc integrated annual report 2014 97
annual 
financial 
statements
directors’
statement of responsibility
the directors are responsible for preparing the integrated annual 
report and the financial statements in accordance with applicable 
law and regulations
company law requires the directors to prepare such financial 
statements for each financial year in accordance with ifrs as 
adopted by the eu and article 4 of the ias regulation  
the directors have also chosen to prepare the parent company 
financial statements under ifrs as adopted by the eu under 
company law the directors must not approve the accounts unless 
they are satisfied that they give a true and fair view of the state of 
affairs and of the profit or loss of the group for that period 
legislation in the uk governing the preparation and dissemination 
of financial statements may differ from legislation in other 
jurisdictions
in preparing these financial statements the ias requires that 
directors


that provides relevant reliable comparable and understandable 
information

specific requirements in ifrs are insufficient to enable users to 
understand the impact of particular transactions other events 
or conditions on the entity’s financial position and financial 
performance

concern
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the group’s 
transactions disclose with reasonable accuracy at any time the 
financial position of the group and ensure that the financial 
statements comply with the uk companies act 2006 they 
are also responsible for safeguarding the assets of the company 
and therefore for taking reasonable steps for the prevention 
and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the company’s 
website  pan african resources plc integrated annual report 2014 98
the directors present their annual report and the audited financial 
statements for the year ended 30 june 2014
principal activities
the group’s principal activity during the year was gold and pge 
mining a full review of the activities of the business and of future 
prospects is contained in the ceo’s report that accompanies 
these financial statements with financial and nonfinancial kpis 
shown on page 26
results and dividends 
the results for the year are disclosed in the consolidated statement 
of comprehensive income on page 103 the salient features of 
these results can be found on page 12
the pan african resources board of directors previously stated 
the company’s policy is to pay an annual dividend and have 
therefore proposed to declare a dividend in respect of the 2014 
financial year subject to the approval of the shareholders at the 
next agm currently with the satisfactory results from barberton 
mines and evander mines the board remains committed to 
continue with the company’s dividend policy and had resumed the 
dividend payment as proposed in the 2013 financial year
the board has proposed a dividend of approximately zar2580 
million gbp145 million
1
 for the 2014 financial year equating to 
zar01410 per share 07898p per share1 resulting in a dividend 
cover of 18 times  
the proposed final dividend is calculated on 1829994763 issued 
shares currently outstanding and is to be approved by shareholders 
at the forthcoming agm of the company 
note 1 the gbp proposed dividend was calculated based on an exchange rate 
of zar17851 the uk shareholders are to note that a revised exchange rate 
will be communicated prior to final approval at the agm therefore the 
proposed dividend is approximately 07898p per share
policy for payment of creditors
it is the company’s policy to settle all agreed transactions within 
the terms established with suppliers the company’s target credit 
days are 60 days
risk management
the key business risks to which the company is exposed have 
been considered and addressed under the operational review of 
each business segment refer to page 48 for gold operations and 
page 54 for pge operations 
a separate risk committee is not considered necessary as this role 
is fulfilled by the board its subcommittees and executive 
management the identification and management of critical risks is 
a strategic focus area for executive management reviewed on a 
monthly basis and together with action plans reported regularly 
to the board executive management has the ability to call for 
emergency board meetings should the need arise risk registers 
for each business segment are in place the board has reviewed 
the current risks to the business and at the time of reporting 
believes that the current business risks do not exceed the risk 
appetite of the group 
residual risks include the current south african labour market and 
associated union rivalry usd gold price usdzar exchange 
rate and government and regulatory frameworks as well as 
unforeseen natural disasters 
the board believes that the current processes of identifying and 
dealing with risks are effective
internal control
the board is responsible for maintaining a sound system of internal 
controls to safeguard shareholders’ investment and group assets 
the directors monitor the operation of internal controls the 
objective of the system is to safeguard group assets ensure proper 
accounting records are maintained and that the financial 
information used within the business and for publication is reliable 
any such system of internal control can only provide reasonable 
but not absolute assurance against material misstatement or loss
internal financial control procedures undertaken by the board 
include







the board has reviewed the operation and effectiveness of 
the group’s system of internal control for the financial year and 
the period up to the date of approval of the financial statements
political donations
the board confirms that no political donations were made and no 
political expenditure was incurred during the current or prior 
year 
going concern
the board confirms that the business is a going concern and that 
it has reviewed the business’ working capital requirements in 
conjunction with its future funding capabilities for at least the next 
12 months and has found them to 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 unutilised 
rcf facilities of zar600 million and cash on hand of 
zar1012 million to assist in funding working capital requirements 
directors’
report pan african resources plc integrated annual report 2014 99
annual 
financial 
statements
management are not aware of any material uncertainties which 
may cast significant doubt on the group’s ability to continue as a 
going concern should the need arise the group can cease most 
exploration and capital activities and by doing so conserve cash 
events after the reporting period
rob still resigned as a nonexecutive director with effect from 
1 july 2014
rowan smith was appointed as an independent nonexecutive 
director with effect from 8 september 2014
on 29 august 2014 barberton mines implemented a broad
based employee ownership scheme esop a newly established 
employee trust will own 5 of the issued share capital of 
barberton mines the transaction was fully vendor financed on a 
notional basis by barberton mines the preference share funding 
attracts market related returns and dilution effect to pan african 
resources is limited
peel hunt llp acted as joint broker during the year with effect 
from 1 july 2014 the contract with finncap ltd was terminated
post year end bell pottinger were appointed as investor relations 
consultants
directors
the following were directors during the year under review
kc spencer chairman
p mahanyele deputy chairman
yb sitole resigned effective 30 september 2013
jaj loots fd appointed 1 october 2013
rg still resigned 1 july 2014 subsequent to the financial year end
hh hickey
ra holding ceo appointed 9 september 2013
t mosololi appointed 9 december 2013
  independent nonexecutive director per king iii whilst a non
executive director per aim rules
auditors
deloitte llp has been appointed as the statutory auditor and 
deloitte  touche south africa has been appointed as auditor for 
jse reporting requirements until the conclusion of the next agm
each of the persons who are directors at the date of approval of 
this annual report confirms that



taken as a director in order to make himherself aware of any 
relevant audit information and to establish that the group’s 
auditors are aware of that information
this confirmation is given and should be interpreted in accordance 
with s418 of the uk companies act 2006
deloitte llp and deloitte  touche south african have expressed 
their willingness to continue in office as auditors and a resolution 
to reappoint it will be proposed at the forthcoming agm
approval of financial statements
the board of directors therefore approves the integrated report 
and associated financial statements
by order of the board
ron holding
ceo 
16 september 2014 pan african resources plc integrated annual report 2014 100
independent auditor’s
report uk
independent auditor’s report to the members of 
pan african resources plc
we have audited the financial statements of pan african resources 
plc for the year ended 30 june 2014 which comprise the 
consolidated and company statement of comprehensive 
income the consolidated and company statement of financial 
position the consolidated and company cash flow statements 
the consolidated and company statements of changes in equity 
and the related notes 1 to 39 the financial reporting framework 
that has been applied in their preparation is applicable law and 
international financial reporting standards ifrss as adopted by 
the european union
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 
2006 our audit work has been undertaken so that we might state 
to the company’s members those matters we are required to 
state to them in an auditor’s report and for no other purpose to 
the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the 
company’s members as a body for our audit work for this report 
or for the opinions we have formed
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities 
statement the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true 
and fair view our responsibility is to audit and express an opinion 
on the financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those 
standards require us to comply with the auditing practices board’s 
ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to 
the group’s and the parent company’s circumstances and have 

reasonableness of significant accounting estimates made by the 

in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that is 
apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing 
the audit if we become aware of any apparent material 
misstatements or inconsistencies we consider the implications for 
our report
opinion on financial statements
in our opinion the financial statements

parent company’s affairs as at 30 june 2014 and of the group’s 



 the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and 
the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters 
where the companies act 2006 requires us to report to you if 
in our opinion

company or returns adequate for our audit have not been 






require for our audit
timothy biggs fca senior statutory auditor
for and on behalf of deloitte llp
chartered accountants and statutory auditor
london united kingdom
16 september 2014 pan african resources plc integrated annual report 2014 101
annual 
financial 
statements
independent auditor’s
report sa
to the shareholders of pan african resources plc
we have audited the consolidated and separate financial 
statements of pan african resources plc set out on pages 103 to 
157 which comprise the statements of financial position as at 
30 june 2014 and the statements of comprehensive income 
statements of changes in equity and statements of cash flows for 
the year then ended and the notes comprising a summary of 
significant accounting policies and other explanatory information
directors’ responsibility for the consolidated and separate 
financial statements
the company’s directors are responsible for the preparation and 
fair presentation of these consolidated and separate financial 
statements in accordance with international financial reporting 
standards and for such internal control as the directors determine 
is necessary to enable the preparation of consolidated and 
separate financial statements that are free from material 
misstatement whether due to fraud or error
auditor’s responsibility
our responsibility is to express an opinion on these consolidated 
and separate financial statements based on our audit 
we conducted our audit in accordance with international 
standards on auditing those standards require that we comply 
with ethical requirements and plan and perform the audit to 
obtain reasonable assurance about whether the consolidated and 
separate financial statements are free from material misstatement
an audit involves performing procedures to obtain audit evidence 
about the amounts and disclosures in the consolidated and 
separate financial statements the procedures selected depend 
on the auditor’s judgement including the assessment of the risks 
of material misstatement of the consolidated and separate financial 
statements whether due to fraud or error in making those risk 
assessments the auditor considers internal control relevant to the 
entity’s preparation and fair presentation of the consolidated and 
separate financial statements in order to design audit procedures 
that are appropriate in the circumstances but not for the purpose 
of expressing an opinion on the effectiveness of the entity’s 
internal control an audit also includes evaluating the 
appropriateness of accounting policies used and the reasonableness 
of accounting estimates made by management as well as evaluating 
the overall presentation of the consolidated and separate financial 
statements
we believe that the audit evidence we have obtained is sufficient 
and appropriate to provide a basis for our audit opinion
opinion
in our opinion the consolidated and separate financial statements 
present fairly in all material respects the consolidated and 
separate financial position of pan african resources plc as at 
30 june 2014 and its consolidated and separate financial 
performance and consolidated and separate cash flows for the 
year then ended in accordance with international financial 
reporting standards
deloitte  touche
registered auditor
per mle tshabalala
partner
16 september 2014 pan african resources plc integrated annual report 2014 102
i hereby certify that pan african resources has lodged with the registrar of companies all such returns as are required of a public 
company in terms of the uk companies act 2006 all such returns are true correct and up to date
st james’s corporate services limited
16 september 2014
certificate
of the company secretary pan african resources plc integrated annual report 2014 103
annual 
financial 
statements
consolidated and company statement of
comprehensive income
for the year ended 30 june 2014
group company
30 june 2014
 audited
30 june 2013
 audited
30 june 2014
 audited
30 june 2013
 audited
notes ££££
revenue
gold sales 4 150288898 129277438 – –
platinum sales 4 4262160 4257512 – –
realisation costs 349454 226738 – –
onmine revenue 154201604 133308212 – –
gold cost of production 5 103099110 67646119 – –
platinum cost of production 5 3294975 3535046 – –
mining depreciation 1617 10023361 5998267 – –
mining profit 37784158 56128780 – –
other expenses 8 1449853 5652226 565499 3229348
bargain purchase gain 39 – 24114255 – –
loss in associate 19 173177 152312 173177 152312
loss on disposal of asset held for sale 36 11848 586138 – 586138
impairments 10 – 16143604 – 18058860
royalty costs 2019066 3198622 – –
net income before finance income  
and finance costs 34130214 54510133 738676 22026658
finance income 4 687185 1454659 168877 1079235
finance costs 9 878064 1257696 31 –
profit before taxation 10 33939335 54707096 569830 20947423
taxation 13 7154742 12133063 145372 289876
profit after taxation 26784593 42574033 424458 20657547
other comprehensive income  
net of taxes
items that may be reclassified subsequently to profit 
and loss
other movements 5529 – – –
foreign currency translation differences 25378975 20228836 1071988 1596822
total comprehensive income  
for the year 1400089 22345197 647530 22254369
profit attributable to
owners of the parent 26784593 42574033 424458 20657547
 26784593 42574033 424458 20657547
total comprehensive income attributable to
owners of the parent 1400089 22345197 647530 22254369
 1400089 22345197 647530 22254369
earnings per share 14 147 263 – –
diluted earnings per share 14 146 262 – – pan african resources plc integrated annual report 2014 104
consolidated and company statement of
financial position
at 30 june 2014
group company
30 june 2014
 audited
30 june 2013
 audited
30 june 2014
 audited
30 june 2013
 audited
notes ££££
assets
noncurrent assets
property plant and equipment and mineral rights 16 185375968 209489677 70950 85141
other intangible assets 17 214330 340484 23108 –
deferred taxation 29 366567 312798 366567 267281
goodwill 18 21000714 21000714 – –
investments 19 – – 122007254 122007254
investments in associate 19 1009545 1199071 1009429 1182606
rehabilitation trust fund 20 15458291 16973713 – –
 223425415 249316457 123477308 123542282
current assets
inventories 21 5341128 6595740 – –
receivables from other group companies 35 – – 22455618 12524940
current tax asset 26 854568 1479339 147911 –
trade and other receivables 22 11696380 13904416 60426 1221443
cash and cash equivalents 23 5618323 4768916 1803545 3304949
 23510399 26748411 24467500 17051332
noncurrent assets held for sale 36 – 213191 – –
total assets 246935814 276278059 147944808 140593614
equity and liabilities
capital and reserves
share capital 24 18299947 18228342 18299947 18228342
share premium 94792516 94515562 94792516 94515562
translation reserve 47545320 22166345 5682886 6754874
share option reserve 1154891 1031955 1016661 897658
retained income 114106005 102005124 1116204 16224374
realisation of equity reserve 10701093 10701093 – –
merger reserve 10705308 10705308 1560000 1560000
other reserves 5529 – – –
equity attributable to owners of the parent 159396109 172208237 111102442 124671062
total equity 159396109 172208237 111102442 124671062
noncurrent liabilities
longterm provisions 27 12033167 14821152 – –
longterm liabilities 28 8141317 11132960 153721 390681
deferred taxation 29 43353577 54049440 – –
 63528061  80003552 153721 390681
current liabilities
trade and other payables 25 17219749 23202052 803607 1758875
current portion of longterm liabilities 28 4754803 864218 560882 –
payable to other group companies 35 – – 35324156 13772996
current tax liability 26 2037092 – – –
 24011644 24066270 36688645 15531871
total equity and liabilities 246935814 276278059 147944808 140593614 pan african resources plc integrated annual report 2014 105
annual 
financial 
statements
consolidated and company statement of
changes in equity 
for the year ended 30 june 2014
share 
capital
share 
premium 
translation
 reserve
share 
option 
reserve
retained 
income
realisation of 
equity reserve
merger 
reserve
other 
reserves total
 £ £ £ £ £ £ £ £ £
group
balance at 30 june 2012 14482623  51149299  1937509 904902  59432741  10701093 10705308 –  102625655 
issue of shares 3745719  46868536  –  –  –  –  –  –  50614255 
share issue costs –  3502273 –  –  –  –  –  –  3502273
other reserves –  –  –  –  1650 –  –  –  1650
total comprehensive 
income –  –  20228836 –  42574033  –  –  –  22345197 
share based payment – 
charge for the year –  –  –  127053  –  –  –  –  127053 
balance at 30 june 2013 18228342  94515562  22166345 1031955  102005124  10701093 10705308 –  172208237 
issue of shares 71605  276954  –  –  –  –  –  –  348559 
other reserves –  –  –  –  –  –  –  –  – 
total comprehensive 
income –  –  25378975 –  26784593  –  –  5529 1400089 
dividends paid –  –  –  –  14683712 –  –  –  14683712
share based payment – 
charge for the year –  –  –  122936  –  –  –  –  122936 
balance at 30 june 2014 18299947  94792516  47545320 1154891  114106005  10701093 10705308 5529 159396109 
company
balance at 30 june 2012 14482623  51149299  5158052 792143  36881921  –  1560000  –  99707934 
issue of shares 3745719  46868536  –  –  –  –  –  50614255 
share issue costs –  3502273 –  –  –  –  –  –  3502273
total comprehensive 
income –  –  1596822 –  20657547 –  –  –  22254369
share based payment – 
charge for the year –  –  –  105515  –  –  –  –  105515 
balance at 30 june 2013 18228342  94515562  6754874 897658  16224374  –  1560000  –  124671062 
issue of shares 71605  276954  –  –  –  –  –  –  348559 
share issue costs –  –  –  –  –  –  –  –  – 
total comprehensive 
income –  –  1071988  –  424458 –  –  –  647530 
dividends paid –  –  –  –  14683712 –  –  –  14683712
share based payment – 
charge for the year –  –  –  119003  –  –  –  –  119003 
balance at 30 june 2014 18299947  94792516  5682886 1016661  1116204  –  1560000  –  111102442  pan african resources plc integrated annual report 2014 106
consolidated and company statements of
cashflows
for the year ended 30 june 2014
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
notes ££££
net cash generated fromused in operating activities 38 22170353  48265537  14345011 757723
investing activities
additions to property plant and equipment and 
mineral rights 16 21461839 27566533 37748 12542
net cash outflows from the acquisition of evander mines –  96006400 –  – 
additions to other intangible assets 17 38617 –  25359 – 
investments acquired –  –  –  72026895
loans tofrom subsidiaries –  –  9930678 9415791 
proceeds on disposals of assets 145366  10555  1120  – 
funding of the rehabilitation trust fund –  359172  –  – 
net cash used in investing activities 21355090 123203206 9992665 62623646
financing activities
proceeds from borrowings 28 22955725  34763874  –  – 
borrowings repaid 28 22431453 22545100 233386 – 
loans from subsidiaries –  –  21551160  – 
shares issued 24 348559  50614255  348559  50614255 
share issue costs –  3502273 –  3502273
net cash from financing activities 872831  59330756  21666333  47111982 
net decreaseincrease in cash and cash equivalents 1688094  15606913 2671343 16269387
cash and cash equivalents at the beginning of the year 4768916  19782179  3304949  17812893 
effect of foreign exchange rate changes 838687 593650  1169939  1761443 
cash and cash equivalents at the end of the year 23 5618323  4768916  1803545  3304949  107
annual 
financial 
statements
pan african resources plc integrated annual report 2014
1 general information
pan african resources is a company incorporated in england and 
wales under the companies act 2006 the company has a dual 
primary listing on the aim of the lse and jse the nature of the 
group’s operations and its principal activities relate to gold and 
pge mining and exploration activities the financial statements 
are presented in pounds sterling foreign operations are included 
in accordance with the policies set out below the individual 
financial results of each group company are maintained in their 
functional currencies which are determined by reference to the 
primary economic environment in which it operates
for the purpose of the consolidated financial statements the 
results and financial position of each group company is expressed 
in pounds sterling the financial statements have been prepared 
on the going concern basis
the financial statements have also been prepared in accordance 
with the ifrs adopted by the eu and south africa
2 accounting policies
basis of preparation and general information
the annual financial statements have been prepared under the 
historical cost basis except for certain financial instruments which 
are stated at fair value the principal accounting policies are set 
out below and are consistent in all material respects with those 
applied in the previous year except where otherwise indicated
historic reverse acquisition
on 31 july 2007 the company acquired 74 of barberton mines in 
a shareforshare transaction ifrs3 ‘business combinations’ 
defines the acquirer in a business combination as the entity that 
obtains control accordingly the combination was accounted for 
as a reverse acquisition
going concern
the financial position of the group its cash flows and liquidity 
position are described in these financial statements in addition 
note 30 to the financial statements includes the group’s objectives 


exposure to credit foreign currency commodity price interest 
rate and liquidity risk
management is not aware of any material uncertainties which may 
cast significant doubt on the group’s ability to continue as a going 
concern based on the current status of the group’s finances the 
directors have formed a judgement at the time of approving the 
financial statements that there is a reasonable expectation that 
the group has or will have adequate resources to enable the 
group to continue to meet its financial commitments for the 
foreseeable future accordingly the directors continue to adopt 
the going concern basis in preparing the financial statements 
further details are provided in the going concern section of the 
directors’ report
new and revised ifrs’s not yet adopted
the group applies all applicable ifrs in preparation of the financial 
statements consequently all ifrs statements adopted by the eu 
that were effective at 30 june 2014 and are relevant to its 
operations have been applied
at the date of authorisation of these financial statements the 
following standards and interpretations which have been applied 
in these financial statements for the first time were in issue and 
effective as at 30 june 2014
new and revised international financial reporting standards in 
issue but not yet effective 
the company has not applied the following new and revised or 
amended international financial reporting standards that have 
been issued but are not yet effective 
new and revised ifrs’s effective date
ifrs 1 firsttime adoption of international financial reporting standards 
– amendments for government loan with a belowmarket rate of 
interest when transitioning to ifrss
annual periods beginning on or after 1 january 2013
ifrs 1 firsttime adoption of international financial reporting standards 
– amendments resulting from annual improvements 20092011 
cycle repeat application borrowing costs
annual periods beginning on or after 1 january 2013
ifrs 7 financial instruments disclosures – amendments enhancing 
disclosures about offsetting of financial assets and financial liabilities
annual periods beginning on or after 1 january 2013
ifrs 9 financial instruments annual periods beginning on or after 1 january 2013
ifrs 10 consolidated financial statements annual periods beginning on or after 1 january 2013
ifrs 10 consolidated financial statements – amendments to transitional 
guidance
annual periods beginning on or after 1 january 2013
ifrs 11 joint arrangements annual periods beginning on or after 1 january 2013
ifrs 11 joint arrangements – amendments to transitional guidance annual periods beginning on or after 1 january 2013
notes to the consolidated and company
annual financial statements 
for the year ended 30 june 2014 108
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
ifrs 12 disclosure of interests in other entities annual periods beginning on or after 1 january 2013
ifrs 12 disclosure of interests in other entities – amendments to 
transitional guidance
annual periods beginning on or after 1 january 2013
ifrs 13 fair value measurement annual periods beginning on or after 1 january 2013
ias 1 presentation of financial statements – amendments resulting from 
annual improvements 2009 – 2011 cycle comparative information
annual periods beginning on or after 1 january 2013
ias 16 property plant and equipment – amendments resulting from 
annual improvements 2009 – 2011 cycle servicing equipment
annual periods beginning on or after 1 january 2013
ias 19 employee benefits annual periods beginning on or after 1 january 2013
ias 27 separate financial statements annual periods beginning on or after 1 january 2013
ias 28 investments in associates annual periods beginning on or after 1 january 2013
ias 32 financial instruments presentation – amendments resulting from 
annual improvements 2009 – 2011 cycle tax effect of equity 
distributions
annual periods beginning on or after 1 january 2013
ias 34 interim financial reporting – amendments resulting from annual 
improvements 2009 – 2011 cycle interim reporting of segment 
assets
annual periods beginning on or after 1 january 2013
at the date of authorisation of these financial statements the following standards and interpretations which have not been applied in 
these financial statements were in issue and not yet effective as at 30 june 2014 
new and revised ifrs’s effective date
ifrs 2 amendments resulting from annual improvements 2010 – 2012 
cycle definition of ‘vesting condition’
annual periods beginning on or after 1 july 2014
ifrs 3 amendments resulting from annual improvements 2010 – 2012 
cycle accounting for contingent consideration
annual periods beginning on or after 1 july 2014
ifrs 3 amendments resulting from annual improvements 2011 – 2013 
cycle scope exception for joint ventures
annual periods beginning on or after 1 july 2014
ifrs 7 deferral of mandatory effective date of ifrs 9 and amendments to 
transition disclosures
annual periods beginning on or after 1 january 2015
ifrs 8 amendments resulting from annual improvements 2010 – 2012 
cycle aggregation of segments reconciliation of segment assets
annual periods beginning on or after 1 july 2014
ifrs 9 original issue classification and measurement of financial assets contains no stated effective date and includes 
consequential amendments which remove the 
mandatory effective date of ifrs 9 2010 and ifrs 9 
2009 leaving the effective date open but allowing 
each version of the standard to be available for 
application
ifrs 9 accounting for financial liabilities and derecognition contains no stated effective date and includes 
consequential amendments which remove the 
mandatory effective date of ifrs 9 2010 and ifrs 9 
2009 leaving the effective date open but allowing 
each version of the standard to be available for 
application
ifrs 9 deferral of mandatory effective date of ifrs 9 and amendments to 
transition disclosures
contains no stated effective date and includes 
consequential amendments which remove the 
mandatory effective date of ifrs 9 2010 and ifrs 9 
2009 leaving the effective date open but allowing 
each version of the standard to be available for 
application 109
annual 
financial 
statements
pan african resources plc integrated annual report 2014
ifrs 9 reissue to incorporate a hedge accounting chapter and permit the 
early application of the requirements for presenting in other 
comprehensive income the ‘own credit’ gains or losses on financial 
liabilities designated under the fair value option without early 
applying the other requirements of ifrs 9
contains no stated effective date and includes 
consequential amendments which remove the 
mandatory effective date of ifrs 9 2010 and ifrs 9 
2009 leaving the effective date open but allowing 
each version of the standard to be available for 
application
ifrs 9 finalised version incorporating requirements for classification and 
measurement impairment general hedge accounting and 
derecognition
effective for annual periods beginning on or after 1 
january 2018
note ifrs 9 2014 supersedes ifrs 9 2009 ifrs 9 2010 and 
ifrs 9 2013 but these standards remain available for application if 
the relevant date of initial application is before 1 february 2015
ifrs 10 amendments for investment entities annual periods beginning on or after 1 january 2014
ifrs 11 amendment requiring the acquirer of an interest in a joint 
operation in which the activity constitutes a business as defined in 
ifrs 3 business combinations to apply all of the principles on 
business combinations accounting in ifrs 3 
annual periods beginning on or after 1 january 2016
ifrs 12 amendments for investment entities annual periods beginning on or after 1 january 2014
ifrs 13 amendments resulting from annual improvements 2011 – 2013 
cycle scope of the portfolio exception in paragraph 52
annual periods beginning on or after 1 july 2014
ifrs 14 original issue annual periods beginning on or after 1 january 2016
ifrs 15 original issue annual periods beginning on or after 1 january 2017
ias 16 amendments resulting from annual improvements 2010 – 2012 
cycle proportionate restatement of accumulated depreciation on 
revaluation
annual periods beginning on or after 1 july 2014
ias 16 amendments resulting from clarification of acceptable methods of 
depreciation and amortisation amendments to ias 16 and ias 38
annual periods beginning on or after 1 january 2016
ias 16 amendments to include ‘bearer plants’ within the scope of ias 16 
rather than ias 41
annual periods beginning on or after 1 january 2016
ias 19 the narrow scope amendments apply to contributions from 
employees or third parties to defined benefit plans  the objective 
of the amendments is to simplify the accounting for contributions 
that are independent of the number of years of employee service 
for example employee contributions that are calculated according 
to a fixed percentage of salary
annual periods beginning on or after 1 july 2014
ias 24 amendments resulting from annual improvements 2010 – 2012 
cycle management entities
annual periods beginning on or after 1 july 2014
ias 27 amendments for investment entities annual periods beginning on or after 1 january 2014
ias 27 amendments reinstating the equity method as an accounting 
option for investments in in subsidiaries joint ventures and 
associates in an entity’s separate financial statements
annual periods beginning on or after 1 january 2016
ias 28 amendments regarding the sale or contribution of assets between 
an investor and its associate or joint venture
annual periods beginning on or after 1 january 2016
ias 32 amendments to application guidance on the offsetting of financial 
assets and financial liabilities
annual periods beginning on or after 1 january 2014
ias 36 amendments resulting from recoverable amount disclosures annual periods beginning on or after 1 january 2014 110
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
ias 38 amendments resulting from annual improvements 20102012 
cycle proportionate restatement of accumulated depreciation on 
revaluation
annual periods beginning on or after 1 july 2014
ias 38 amendments resulting from clarification of acceptable methods of 
depreciation and amortisation amendments to ias 16 and ias 38
annual periods beginning on or after 1 july 2016
ias 39 amendments for novations of derivatives annual periods beginning on or after 1 january 2014
ias 40 amendments resulting from annual improvements 20112013 cycle 
interrelationship between ifrs 3 and ias 40
annual periods beginning on or after 1 july 2014
ifric 21 original issue annual periods beginning on or after 1 january 2014
the impact of the adoption of the above standards and 
interpretations still needs to be considered but is not expected to 
have a material impact on the financial results
basis of consolidation
the consolidated financial statements incorporate the financial 
statements of the company and entities controlled by the company 
its subsidiaries to 30 june each year control is achieved where 
the company has the power to govern the financial and operating 
policies of an investee enterprise so as to obtain benefits from its 
activities the results of the subsidiaries acquired or disposed of 
during the year are included in the consolidated statement 
of comprehensive income from the effective date of acquisition 
or up to the effective date of disposal as appropriate inter
company transactions and balances between group entities are 
eliminated on consolidation
business combinations
acquisitions of subsidiaries and businesses are accounted for using 
the purchase method the cost of a business combination is 
measured as the aggregate of the fair values at the date of 
exchange of assets given liabilities incurred or assumed and 
equity instruments issued by the group in exchange for control of 
the acquiree the acquiree’s identifiable assets liabilities and 
contingent liabilities that meet the conditions for recognition 
under ifrs 3 business combinations are recognised at their fair 
values at the acquisition date except for noncurrent assets or 
disposal groups that are classified as heldforsale in accordance 
with ifrs 5 noncurrent assets heldforsale and discontinued 
operations which are recognised and measured at fair value less 
coststosell
goodwill arising on acquisitions is recognised as an asset and 
initially measured at cost being the excess of the cost of the 
business combination over the group’s interest in the net fair value 
of the identifiable assets liabilities and contingent liabilities 
recognised if after reassessment the group’s interest in the net 
fair value of the acquiree’s identifiable assets liabilities and 
contingent liabilities exceeds the cost of the business combination 
the excess is recognised immediately in profit or loss the interest 
of minority shareholders in the acquiree is initially measured at the 
minority’s proportion of net fair value of the assets liabilities and 
contingent liabilities recognised
change in ownership interest
in terms of ias 27 changes in a parent’s ownership interest in a 
subsidiary that do not result in a change of control are accounted 
for as equity transactions
investment in associate
an associate is an entity over which the group and the company 
have significant influence and that is neither a subsidiary nor an 
interest in a joint venture
in the company’s separate financial statements an investment in 
associate is stated at fair value less impairment losses if any 
an investment in associate is accounted for in the consolidated 
financial statements using the equity method of accounting the 
investment in associate in the consolidated balance sheet is initially 
recognised at fair value and adjusted thereafter for the post 
acquisition change in the group’s share of net assets of the 
investment
property plant and equipment
mining assets
mining assets including mine development costs and mine plant 
facilities are recorded at cost less provision for impairment and 
accumulated depreciation
expenditure incurred after feasibility stage to develop new ore 
bodies to define mineralisation in existing ore bodies to establish 
or expand productive capacity and expenditure designed to 
maintain productive capacities is capitalised within capital under 
construction until commercial levels of production are achieved 
capital under construction is not depreciated all revenue 
generated during the commissioning phase is capitalised back to 
the property plant and equipment as per ias16
mineral and surface rights
mineral and surface rights are recorded at cost less provision for 
impairment and accumulated depreciation 111
annual 
financial 
statements
pan african resources plc integrated annual report 2014
land
land is shown at cost and is not depreciated
gain or loss on disposal or retirement of assets
the gain or loss arising on the disposal or retirement of an item of 
property plant and equipment is determined as the difference 
between the sales proceeds and the carrying amount of the asset 
and is recognised in profit or loss
depreciation
mining assets mineral and surface rights mining assets mine 
development costs mineral and surface rights and plant 
mine facilities are depreciated over the estimated life of mine 
‘lom’ to their residual values using the unitsofproduction 
method based on estimated proven and probable ore reserves
other mining plant and equipment is depreciated on the straight
line basis over the shorter of the lom or their estimated 
useful lives
depreciation of nonmining assets
buildings and other nonmining assets are recorded at cost and 
depreciated on the straightline basis over their expected useful 
lives which vary between three to ten years
research development mineral exploration and evaluation 
costs
research development mineral exploration and evaluation costs 
are expensed in the year in which they are incurred until they 
result in projects that the group


once these criteria are met all directly attributable development 
costs and ongoing mineral exploration and evaluation costs are 
capitalised within other intangible assets capitalisation of  
preproduction expenditure ceases when the mining property is 
capable of commercial production
capitalised preproduction expenditure is assessed for impairment 
in accordance with the group accounting policy stated below
impairment except for goodwill
at each statement of financial position date the group reviews 
the carrying amounts of its tangible and intangible assets to 
determine whether there is any indication that those assets have 
suffered an impairment loss if any such indication exists the 
recoverable amount of the asset being the higher of fair value less 
costs to sell or value in use is estimated in order to determine the 
extent of the impairment loss if any where it is not possible to 
estimate the recoverable amount of an individual asset the group 
estimates the recoverable amount of the cashgenerating unit 
“cgu” to which the asset belongs impairment losses are 
immediately recognised as an expense a reversal of an impairment 
loss is recognised in the statement of comprehensive income
goodwill
goodwill arising on consolidation represents the excess of the 
cost of acquisition over the group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary associate or jointly
controlled entity at the date of acquisition goodwill is initially 
recognised as an asset at cost and is subsequently measured at 
cost less accumulated impairment losses
for the purpose of impairment testing goodwill is allocated to 
each of the group’s cgus expected to benefit from the synergies 
of the combination cgus to which goodwill has been allocated 
are tested for impairment annually or more frequently when 
there is an indication that the cgu may be impaired if the 
recoverable amount of the cgu is less than the carrying amount 
of the cgu the impairment loss is allocated first to reduce the 
carrying amount of any goodwill allocated to the unit and then to 
the other assets of the cgu pro rata on the basis of the carrying 
amount of each asset in the cgu an impairment loss recognised 
for goodwill is not reversed in a subsequent period on disposal of 
a subsidiary associate or jointlycontrolled entity the attributable 
amount of goodwill is included in the determination of the profit 
or loss on disposal
taxation
the charge for current tax is based on the results for the year as 
adjusted for items which are nondeductible or disallowed it is 
calculated using tax rates that have been enacted or substantively 
enacted by the statement of financial position date
deferred tax is accounted for using the liability method in respect 
of temporary differences arising from differences between the 
carrying amount of assets and liabilities in the financial statements 
and the corresponding tax basis used in the computation of 
taxable profit in principle deferred tax liabilities are recognised 
for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profit will 
be available against which deductible temporary differences can 
be utilised such assets and liabilities are not recognised if the 
temporary difference arises from goodwill or from the initial 
recognition other than a business combination of other assets 
and liabilities in a transaction which affects neither tax nor 
accounting profit
deferred tax is calculated at the tax rates that are expected to 
apply to the period when the asset is realised or the liability is 
settled based on tax rates and laws that have been enacted or 
substantively enacted by the statement of financial position date 
the measurement of deferred tax liabilities and assets reflects 
the tax consequences that would follow from the manner in which 
the group expects at the reporting date to recover or settle 
the carrying amount of its assets and liabilities deferred tax is 
charged or credited to the statement of comprehensive income 
except when it relates to items credited or charged directly to 
equity in which case the deferred tax is also recorded within 
equity or where they arise from the initial accounting for a  112
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
business combination in a business combination the tax effect is 
taken into account in calculating goodwill or in determining the 
excess of the acquirer’s interest in the net fair value of the 
acquiree’s identifiable assets liabilities and contingent liabilities 
over the cost of the business combination
the carrying amount of deferred tax assets are reviewed at each 
statement of financial position date and reduced to the extent 
that it is no longer probable that sufficient taxable profits will be 
available to allow all or parts of the assets to be recovered
revenues expenses and assets are recognised net of the amount 
of associated vat unless vat incurred is not recoverable from 
the taxation authority in this case it is recognised as part of the 
cost of acquisition of the asset or as part of the expense 
receivables and payables are stated inclusive of the amount of 
vat receivable or payable the net amount of vat recoverable 
from or payable to the taxation authority is included with other 
receivables or payables in the consolidated statement of 
financial position
provisions
provisions are recognised when the group has a legal or 
constructive obligation resulting from past events it is probable 
that an outflow of resources embodying economic benefits will 
be required to settle the obligation and a reliable estimate can 
be made of the amount of the obligation
the amount recognised as a provision is the best estimate of 
the consideration required to settle the present obligation at 
the statement of financial position date taking into account the 
risks and uncertainties surrounding the obligation
when some or all of the economic benefits required to settle a 
provision are expected to be received from a third party the 
receivable is recognised as an asset if it is virtually certain that 
reimbursement will be received and the amount of the receivable 
can be measured reliably
lease assets
the group leases certain property plant and equipment a lease is 
classified as a finance lease if it transfers substantially all the risks 
and rewards incidental to ownership to the group other leases 
are classified as operating leases
finance lease assets are capitalised at the lease’s commencement 
at the lower of the fair value of the leased property and the 
present value of the minimum lease payments
operating leases
operating lease payments are recognised as an expense on a 
straightline basis over the lease term the difference between the 
amounts recognised as an expense and the contractual payments 
are recognised as an operating lease liability
foreign currencies
transactions in currencies other than the functional currency 
of the relevant subsidiary are initially recorded at the rates 
of exchange ruling on the dates of the transactions monetary 
assets and liabilities denominated in such other currencies are 
translated at the rates ruling at the statement of financial position 
date profits and losses arising on exchange are recorded in the 
statement of comprehensive income in order to hedge its 
exposure to foreign exchange risks the group may enter into 
forward contracts on consolidation the assets and liabilities of 
the group’s foreign operations are translated into pounds sterling 
at exchange rates ruling at the statement of financial position 
date income and expense items are translated at the average 
exchange rates for the period exchange differences arising from 
the translation of foreign operations are classified as equity and 
are recognised as income or expenses in the period in which the 
operation is disposed of translation differences on foreign loans 
to subsidiaries which are classified as equity loans are also 
accounted for as equity
inventories
inventories include the gold bullion on hand pge concentrate 
gold or pge in process and consumable stores
bullion on hand and pge concentrate are valued at the lower of 
cost determined on a weightedaverage basis and net realisable 
value costs include direct mining costs and mine overheads
gold or pge in process inventories represent materials that are 
currently in the process of being converted to a saleable gold or 
pge product the gold or pge in process inventories are valued 
only if they are reliably measurable and are valued at the average 
cost of the material fed to process plus the inprocess conversion 
costs
consumable stores are valued at the lower of cost determined on 
a weighted average basis and estimated net realisable value 
net realisable value represents the estimated selling price less all 
estimated costs of completion and costs to be incurred in 
marketing selling and distribution obsolete and slowmoving 
consumable stores are identified and are written down to their 
economic or realisable values
retirement and pension benefits
payments to defined contribution retirement benefit plans are 
charged as an expense as they fall due payments made to state
managed schemes are dealt with as defined contribution plans 
where the group’s obligations under the schemes are equivalent 
to those arising in a defined contribution retirement benefit plan 
and are charged as an expense as they fall due
postretirement benefits other than pension
historically barberton mines and evander mines provided 
retirement benefits by way of medical aid scheme contributions 
for certain employees the practice has been discontinued for  113
annual 
financial 
statements
pan african resources plc integrated annual report 2014
some years the net present value of estimated future costs of 
company contributions towards medical aid schemes for these 
retirees is recorded as a provision on the group statement of 
financial position the provision is reviewed annually with 
movements in the provision recorded in the statement of 
comprehensive income
equity participation plan
equitysettled sharebased payments to employees are measured 
at the fair value of the equity instruments at the grant date 
the fair value determined at the grant date of the equitysettled 
share based payments is expensed on a straightline basis over the 
vesting period based on the group’s estimate of equity instruments 
that will eventually vest at each statement of financial position 
date the group revises its estimate of the number of equity 
instruments expected to vest the impact of the revision of the 
original estimates if any is recognised in the statement of 
comprehensive income such that the cumulative expense reflects 
the revised estimate with corresponding adjustments to the 
equitysettled employee benefits reserve
cash participation plan
cashsettled sharebased payments to employees are measured 
at the fair value of the cash instruments at the grant date the fair 
value determined at the grant date of the cashsettled share based 
payments is expensed on a straightline basis over the vesting 
period based on the company’s estimate of cash instruments that 
will eventually vest at each statement of financial position date 
the company revises its estimate of the number of cash instruments 
expected to vest the impact of the revision of the original 
estimates if any is recognised in the statement of comprehensive 
income such that the cumulative expense reflects the revised 
estimate with corresponding adjustments to the cashsettled 
employee benefits liability
provision for environmental rehabilitation costs
longterm environmental obligations are based on barberton 
mines evander mines and phoenix platinum environmental plans 
in compliance with current environmental and regulatory 
requirements the provision is based on the net present value of 
the estimated cost of restoring the environmental disturbance 
that has occurred up to the statement of financial position date 
increases due to additional environmental disturbances are 
capitalised and amortised over the remaining lives of the mines 
the estimated cost of rehabilitation is reviewed annually and 
adjusted as appropriate for changes in legislation or technology 
cost estimates are not reduced by the potential proceeds from 
the sale of assets or from plant clean up at closure
contributions to rehabilitation trust
contributions are made to a dedicated environmental 
rehabilitation trust to fund the estimated cost of rehabilitation 
during and at the end of the life of the group’s mines the trust’s 
assets are recognised separately on the statement of financial 
position as noncurrent assets at fair value interest earned on 
funds invested in the environmental rehabilitation trust is accrued 
on a time proportion basis and credited to the provision for 
environmental rehabilitation costs
provision for decommissioning costs
the group provides for decommissioning costs other than 
rehabilitation costs if any when the directors have prepared a 
detailed plan for closure of the particular operation the remaining 
life of which is such that significant changes to the plan are unlikely 
and the directors have raised a valid expectation in those affected 
that it will carry out the closure by starting to implement that plan 
or announcing its main features to those affected by it
revenue recognition
sales represents the value of minerals sold excluding valueadded 
tax and is recognised when goods are delivered and risk and 
reward has passed and is measured at the fair value of the 
consideration received or receivable interest income is accrued 
on a time basis by reference to the principal outstanding and at 
the interest rates applicable which is the rate that exactly 
discounts estimated future cash receipts through the expected life 
of the financial asset to that asset’s net carrying amount dividend 
income from investments is recognised when the shareholders’ 
rights to receive payment have been established revenue is 
recognised when the buyer takes title provided that

b the item is on hand identified and ready for delivery to the 
 c the buyer specifically acknowledges the deferred delivery 

d the usual payment terms apply
loans and receivables
trade receivables loans and other receivables that have fixed or 
determinable payments and that are not quoted in an active 
market are classed as loans and receivables loans and receivables 
are measured at amortised cost using the effective interest 
method less impairment if necessary interest income is recognised 
by applying the effective interest rate except for shortterm 
receivables when the recognition of interest would be immaterial
impairment of financial assets
financial assets other than those at fair value through profit and 
loss “fvtpl” are assessed for indicators of impairment at each 
statement of financial position date financial assets are impaired 
where there is objective evidence that as a result of one or more 
events that occurred after the initial recognition of the financial 
asset the estimated future cash flows of the financial asset have 
been negatively impacted
derecognition of financial assets
the group derecognises a financial asset only when the contractual 
rights to the cash flows from the asset expire or when it transfers 
the financial asset and substantially all the risks and rewards of  114
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
ownerships of the asset to another entity if the group neither 
transfers nor retains substantially all the risks and rewards of 
ownership and continues to control the transferred asset the 
group recognises its retained interest in the asset and an associated 
liability for amounts it may have to pay if the group retains 
substantially all the risks and rewards of ownership of a transferred 
financial asset the group continues to recognise the financial asset 
and also recognises a collateralised borrowing for the proceeds 
received
financial liabilities and equity instruments issued by the group
classification as debt or equity
debt and equity instruments are classified as either financial 
liabilities or as equity in accordance with the substance of the 
contractual arrangement
equity instruments
an equity instrument is any contract that evidences a residual 
interest in the assets of an entity after deducting all of its liabilities 
equity instruments issued by the group are recorded at the 
proceeds received net of direct issue costs
financial liabilities
financial liabilities are classified as either financial liabilities at 
fvtpl or “other financial liabilities”
financial liabilities at fvtpl
financial liabilities are classified as at fvtpl where the financial 
liability is either heldfortrading or it is designated as at fvtpl
a financial liability is classified as heldfortrading if


 the group manages together and has a recent actual pattern of 


instrument
a financial liability other than a financial liability heldfortrading 
may be designated as at fvtpl upon initial recognition if

measurement or recognition inconsistency that would 


financial liabilities or both which is managed and its performance 
is evaluated on a fair value basis in accordance with the group’s 
documented risk management or investment strategy and 
information about the grouping is provided internally on that 


derivatives and ias 39 financial instruments recognition and 
measurement permits the entire combined contract asset or 
liability to be designated as at fvtpl
financial liabilities at fvtpl are stated at fair value with any 
resultant gain or loss recognised in profit or loss the net gain or 
loss recognised in profit or loss incorporates any interest paid on 
the financial liability the group has no financial liabilities classified 
as fvtpl
other financial liabilities
other financial liabilities are initially valued at fair value and 
subsequently measured at amortised cost using the effective 
interest method with interest recognised on an effective yield 
basis
the effective interest method is a method of calculating the 
amortised cost of a financial liability and of allocating interest 
expense over the relevant period the effective interest rate is the 
rate that discounts the estimated future cash payments through 
the expected life of the financial liability or where appropriate 
a shorter period
derecognition of financial liabilities
the group derecognises financial liabilities only when the group’s 
obligations are discharged cancelled or they expire
derivative financial instruments
in the ordinary course of its operations the group may enter into 
a variety of derivative financial instruments to manage its exposure 
to commodity prices volatility of interest rates and foreign 
exchange rate risk
derivatives are initially recognised at cost at the date a derivative 
contract is entered into and are subsequently remeasured to 
their fair value at each statement of financial position date 
the resulting gain or loss is recognised in statement of 
comprehensive income immediately unless the derivative is 
designated and effective as a hedging instrument in which event 
the timing of the recognition in statement of comprehensive 
income depends on the nature of the hedge relationship a 
derivative is presented as a noncurrent asset or a noncurrent 
liability if the remaining maturity of the instrument is more than 
12 months and it is not expected to be realised or settled within 
12 months other derivatives are presented as current assets or 
current liabilities
hedge accounting
the group may designate certain hedging instruments which 
include derivatives embedded derivatives and nonderivatives in 
respect of foreign currency risk as either fair value hedges cash 
flow hedges or hedges of net investments in foreign operations 
hedges of foreign exchange risk or firm commitments are 
accounted for as cash flow hedges at the inception of the hedge 
relationship the entity documents the relationship between the 
hedging instrument and the hedged item along with its risk 
management objectives and its strategy for undertaking various 
hedge transactions furthermore at the inception of the hedge 
and on an ongoing basis the group documents whether the  115
annual 
financial 
statements
pan african resources plc integrated annual report 2014
hedging instrument that is used in a hedging relationship is effective 
in offsetting changes in fair values or cash flows of the hedged 
item
fair value hedge
changes in the fair value of any derivatives that are designated and 
qualify as fair value hedges are recorded in profit or loss 
immediately together with any changes in the fair value of the 
hedged item that are attributable to the hedged risk the change 
in the fair value of the hedging instrument and the change in 
the hedged item attributable to the hedged risk are recognised in 
the line of the statement of comprehensive income relating to 
the hedged item hedge accounting is discontinued when 
the group revokes the hedging relationship the hedging instrument 
expires or is sold terminated or exercised or no longer qualifies 
for hedge accounting the adjustment to the carrying amount of 
the hedged item arising from the hedged risk is amortised to profit 
or loss from that date
cash flow hedge
the effective portion of changes in the fair value of any derivatives 
that are designated and qualify as cash flow hedges are deferred in 
equity the gain or loss relating to the ineffective portion is 
recognised immediately in profit or loss and is included in the 
“other gains and losses” line of the statement of comprehensive 
income amounts deferred in equity are recycled in profit or loss 
in the periods when the hedged item is recognised in profit or 
loss in the same line of the statement of comprehensive income 
as the recognised hedged item however when the forecast 
transaction that is hedged results in the recognition of a  
nonfinancial asset or a nonfinancial liability the gains and losses 
previously deferred in equity are transferred from equity and 
included in the initial measurement of the cost of the asset or 
liability hedge accounting is discontinued when the group revokes 
the hedging relationships the hedging instrument expires or is 
sold terminated or exercised or no longer qualifies for hedge 
accounting any cumulative gain or loss deferred in equity at that 
time remains in equity and is recognised when the forecast 
transaction is ultimately recognised in profit or loss when a 
forecast transaction is no longer expected to occur the cumulative 
gain or loss that was deferred in equity is recognised immediately 
in profit or loss
cash and cash equivalents
cash and cash equivalents comprise cashonhand and demand 
deposits and other shortterm highlyliquid investments that are 
readily convertible to a known amount of cash and are subject to 
an insignificant risk of changes in value
noncurrent assets heldforsale
a noncurrent asset is designated as heldforsale when its 
carrying amount will be recovered principally through a sale 
transaction rather than through continuing use and the asset is 
available for immediate sale in its present condition and the sale is 
highly probable a sale is considered highly probable if management 
is committed to a plan to sell the noncurrent asset an active 
divestiture programme has been initiated the noncurrent assets 
is marketed at a price reasonable to its fair value and the disposal 
is expected to be completed within one year from classification 
noncurrent assets heldforsale are stated at lower of carrying 
value and fair value less cost to sell and are reviewed for impairment 
at each subsequent reporting date
at the time of classification as heldforsale these assets are 
reviewed for impairment the impairment charged to the income 
statement is the excess of the carrying value of the noncurrent 
asset and its expected net selling price fair value less costs to sell 
at each subsequent reporting date the carrying values are 
reassessed for possible impairment a reversal of impairment is 
recognised for any subsequent increase in net selling price but not 
in excess of the cumulative impairment loss already recognised 
no depreciation is provided on noncurrent assets from the date 
they are classified as heldforsale
segment reporting
operating segments are reported in a manner consistent with the 
internal reporting provided to the chief operating decisionmaker 
the chief operating decisionmaker who is responsible for 
allocating resources and assessing performance of the operating 
segments has been identified as the pan african resources’ 
executive committee management has determined the operating 
segments of the group based on the reports reviewed by the 
executive committee that are used to make strategic decisions 
the executive committee considers the business principally 
according to the nature of the products and service provided with 
the segment representing a strategic business unit the reportable 
operating segments derive their revenue primarily from mining 
extraction production and selling of gold and 6pges
3  critical accounting estimates 
and judgements
in preparing the annual financial statements in terms of ifrs the 
group’s management is required to make certain judgements 
estimates and assumptions that may materially affect reported 
amounts of assets and liabilities at the date of the financial 
statements and the reported amounts of revenue and expense 
during the reported year and the related disclosures the estimates 
and judgements are based on historical experience current and 
expected future economic conditions and other factors actual 
results may differ from these estimates
critical accounting estimates and judgements made by 
management
the following judgements that have the most significant effect on 
the amounts recognised in the financial statements have been 
made by management in the process of applying the group’s 
accounting policies 116
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014

environmental provisions including decommissioning and 
rehabilitation this includes the scope and timing of work 


assets this includes the estimation of cash flows and the 
discount rates used including future production levels 



mine management’s estimates and includes total mineral 
reserve and a portion of the mineral resource these plans are 
updated from time to time and take into consideration the 
actual current cost of extraction as well as certain forward 
projections these projections are reviewed by the board

the raising of provisions and the expected date of probable 
outflow of economic benefits to assess whether the provision 

 with the samrec code 2000 for south african properties 
such estimates relate to the category for the resource 
measured indicated or inferred the quantum and the grade


accordance with ifrs and take into account the replacement 


and growth projects and hence the recoverability of any related 


liabilities at acquisition in terms of ifrs 3 business combinations 
to recognise goodwill or gains on bargain purchases 117
annual 
financial 
statements
pan african resources plc integrated annual report 2014
4revenue
group company
year ended
 30 june 2014
year ended
 30 june 2013
year ended
 30 june 2014
year ended
 30 june 2013
££££
gold sales 150288898  129277438  –  – 
platinum sales 4262160  4257512  –  – 
 154551058  133534950  –  – 
finance income 687185  1454659  168877  1079235 
 155238243  134989609  168877  1079235 
5 cost of production
gold cost of production
salaries and wages 48504902 33352148 –  – 
mining 11303131 10020621 –  – 
processing 11468725 4460161 –  – 
engineering and technical services 8921246 5165876 –  – 
electricity 14817185 8993056 –  – 
security 2339247 3476653 –  – 
inventory valuation adjustment 358291 –  –  – 
administration and other 5386383 2177604 –  – 
 103099110 67646119 –  – 
platinum cost of production
salaries and wages 824052 973776 –  – 
mining 973840 655780 –  – 
other plant operation costs 1127674 1544243 –  – 
electricity 205782 219661 –  – 
 163627 141586 –  – 
 3294975 3535046 –  –  118
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
6 segmental analysis
a segment is a distinguishable component of the group that is engaged in providing products or services in a particular business 
sector or segment which is subject to risks and rewards that are different to those of other segments the group’s business activities 
were conducted through five business segments
 pty ltd “rand refinery”

africa derive revenue from the sale of gold to a single customer rand refinery

western platinum ltd a subsidiary of lonmin plc
 providing management services and administration to other group companies management fee income is disclosed in other 
expenses refer to note 8
 the exco reviews the operations in accordance with the disclosures presented below
 barberton 
mines 
 evander 
mines 
 phoenix 
platinum 
 corporate 
office and 
growth 
projects 
 funding 
company

  group 
 2014 £ £ £ £ £ £
revenue
gold sales

 89520058  60768840  –  –  –  150288898 
platinum sales –  –  4262160  –  –  4262160 
realisation costs 269403 80051 –  –  –  349454
onmine revenue 89250655  60688789  4262160  –  –  154201604 
cost of production 48989722 54109388 3294975 –  –  106394085
depreciation 3905925 5558837 558599 –  –  10023361
mining profit 36355008  1020564  408586  –  –  37784158 
other expenses

 1704438 857879  20576 566710 16008 1449853
bargain purchase –  –  –  –  –  – 
loss from associate –  –  –  173177 –  173177
loss on disposal of asset held for sale 11848 –  –  –  –  11848
impairment costs –  –  –  –  –  – 
royalty costs 2185136 166070  –  –  –  2019066
net incomeloss before finance 
income and finance costs 32453586  2044513  388010  739887 16008 34130214 
finance income 173405  344903  –  168877  –  687185 
finance costs 35333 7743 –  31 834957 878064
profitloss before taxation 32591658  2381673  388010  571041 850965 33939335 
taxation  8969604 1828847  172379 145372  13022  7154742
profitloss after taxation 23622054  4210520  215631  425669 837943 26784593 

 other expenses exclude intercompany management fees and dividends

 
 119
annual 
financial 
statements
pan african resources plc integrated annual report 2014
 barberton 
mines 
 evander 
mines 
 phoenix 
platinum 
 corporate 
office and 
growth 
projects 
 funding 
company

  group 
 2013 £ £ £ £ £ £
revenue
gold sales

 97564881  31712557  –  –  –  129277438 
platinum sales –  –  4257512  –  –  4257512 
realisation costs 179270 47468 –  –  –  226738
onmine revenue 97385611  31665089  4257512  –  –  133308212 
cost of production 47739505 19906614 3535046 –  –  71181165
depreciation 3000640 2056566 941061 –  –  5998267
mining profit 46645466  9701909  218595 –  –  56128780 
other expenses

 2188879 8783 221604 3231154 1806 5652226
bargain purchase –  24114255  –  –  –  24114255 
loss from associate –  –  –  152312 –  152312
loss on disposal of asset held for sale –  –  –  586138 –  586138
impairment costs –  –  2495480 13648124 –  16143604
royalty costs 2450476 748146 –  –  –  3198622
net incomeloss before finance 
income and finance costs 42006111  33059235  2935679 17617728 1806 54510133 
finance income 77463  283229  –  1093967  –  1454659 
finance costs 107810 296888 –  –  852998 1257696
profitloss before taxation 41975764  33045576  2935679 16523761 854804 54707096 
taxation  11408506 962917 24863 286257  23034 12133063
profitloss after taxation 30567258  32082659  2960542 16237504 877838 42574033 

 other expenses exclude intercompany management fees and dividends

 
 120
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
6 segmental analysis continued
 barberton 
mines 
 evander 
mines 
 phoenix 
platinum 
 corporate 
office and 
growth 
projects 
 funding 
company

  group 
 £ £ £ £ £ £
2014
segmental assets 
total assets excluding goodwill 57519959  152476424  12427761  3482325  28631  225935100 
segmental liabilities 23135981  62144046  622536  1519598  117544  87539705 
goodwill 21000714  –  –  –  –  21000714 
net assets excluding goodwill 34383978  90332378  11805225  1962727  88913 138395395 
capital expenditure 8944360  12468962  24027  63107  –  21500456 
2013
segmental assets 
total assets excluding goodwill 63530231  172971365  13897511  4867060  11178  255277345 
segmental liabilities 25018515  65569101  320175  2151222  11010809  104069822 
goodwill 21000714  –  –  –  –  21000714 
net assets excluding goodwill 38511716  107402264  13577336  2715838  10999631 151207523 
capital expenditure 22886611  4506501  160879  12542 – 27566533 

 all assets are held within south africa with the exception of auroch which is a company listed on the australian securities exchange 
“asx” with assets held in mozambique the segmental assets and liabilities above exclude intercompany balances
capital expenditure comprises of additions to property plant and equipment and mineral rights and intangible assets refer to 
note 16 and 17
7operating leases
at the financial yearend the group and company had outstanding commitments under noncancellable operating leases mainly in 
respect of office equipment security cameras building rentals and compressors which fall due as follows
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
not later than one year 144090  109462  62432  92191 
later than one year and no later than five years  101713  96609 – 73210 
 245803  206071  62432  165401 
minimum lease payments under operating leases recognised as an 
expense in the year 105768  124554  85535  83222 
leases are negotiated for an average term of three to five years
majority of the group’s lease arrangements relate to the copier machines leased out at the mining operations the only material 
operating lease relates to the corporate office building and has the following terms as at 30 june 2014
remaining lease term 9 months 
escalation rate 8
lessor
 finlay and
 associates 
monthly lease payments  7128  121
annual 
financial 
statements
pan african resources plc integrated annual report 2014
8 other expenses 
group
30 june 2014 30 june 2013
££
management fees –  – 
foreign exchange gainloss 71678  79861 
operating leases 105768 124554
nonmining depreciation 37342 41197
nonexecutive directors’ emoluments 146004 223376
executive directors’ emoluments 615085 1068060
equity settled share option expense refer to note 34 122936 127053
cash settled share option expense refer to note 28 1607709 209465
auditors’ fees 148870 198979
salaries head office  1180277 2310305
investor and public relations 126899 249245
new business 246000 230304
evander mines transaction costs –  1348819
legal fees 28917 59025
community projects 1125628 1462907
profits arising from realised financial instruments refer to note 30 2310426  1589595 
profit on disposal of assets 20497  11768 
other net incomeexpense 1638981  319839 
 1449853 5652226
9 finance incomecosts
interest received – bank 272388  1184443 
interest income – rehabilitation trust fund 414797  270216 
 687185  1454659 
interest expense – bank 834957 1257696
interest expense – sars 32933 – 
interest expense – other 10174 – 
 878064 1257696
net finance costsincome 190879 196963  122
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
10 profit before taxation
group
30 june 2014 30 june 2013
££
profit before taxation has been arrived at after charging
management fee expenseincome
 shanduka refer to note 35 63084  76203 
 barberton mines –  – 
 phoenix platinum –  – 
 evander mines –  – 
equity settled share option expense refer to note 34 122936  127053 
cash settled share options expense refer to note 28 1607709  209465 
mining depreciation 10023361  5998267 
impairment costs –  16143604 
staff costs 50509231  36636229 
royalty costs 2019066  3198622 
new business 246000  230304 
evander mines transaction costs –  1348819 
operating leases 105768  124554 
impairment costs
property plant and equipment and mineral rights refer to note 16 –  6662225 
phoenix platinum intercompany investments refer to note 35 –  – 
investment in auroch refer to note 19 –  9481379 
 –  16143604 
11 auditors’ remuneration
fees payable to the company’s auditors for the audit of the company’s annual financial 
statements 7911  9000 
audit of the consolidated financial statements 61315  68973 
audit of the company’s subsidiaries pursuant to legislation 79644  83611 
under provision of audit fee in the prior year –  37395 
total audit fees 148870  198979 
other services rendered by the auditors
tax advisory services –  14000 
corporate finance services –  271491 
other  21271  – 
total nonaudit fees 21271  285491 
all audit fees were paid within south africa with the exception of £42000 2013 £38000 which was paid in the united kingdom  123
annual 
financial 
statements
pan african resources plc integrated annual report 2014
12 staff costs
group
30 june 2014 30 june 2013
££
their aggregate remuneration comprised
salaries and wages 45761629  34179081 
other retirement costs refer to note 31 4747602  2457148 
 50509231  36636229 
the average number of operating cost employees were
corporate  14  14 
evander mines 2424  2408 
phoenix platinum 4  3 
barberton mines 1690  1618 
 4132  4043 
capital employees
barberton mines 189 197
evander mines 105 105
294 302
total average number of employees 4426  4345 
13 taxation
income tax expense
south african normal taxation
– current year 8649810  6605516 
– prior year 423827  48535 
deferred taxation
– current year 1918895 5479012 
total taxation charge 7154742  12133063 
profit before taxation 33939335  54707096 
taxation at the domestic taxation rate of 28  9503014  15317987 
exempt incomenondeductible expenses 40158 2211489
under provisionoverprovision – prior year 21399  – 
taxation rate differential 2289169 973435
tax effect of utilisation of tax losses 40344 – 
taxation expense for the year 7154742  12133063 
effective taxation rates    
south african statutory rate 2800  2800 
taxation rate differential 674 178
nondeductible expensesexempt income 012 404
under provisionoverprovision – prior year 006  – 
tax effect of utilisation of tax losses 012 – 
effective taxation rate 2108  2218  124
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
there are no significant unrecognised temporary differences associated with undistributed profits of overseas subsidiaries south 
african income tax on mining income is determined according to a formula which takes into account the profit and revenue from 
mining operations south african mining taxable income is determined after the deduction of all mining capital expenditure with the 
proviso that these deductions cannot result in an assessed loss capital expenditure amounts not deducted are carried forward as 
unredeemed capital expenditure to be deducted from future mining income at yearend the group has the following unredeemed 
capital expenditure carried forward and deductible against future profits held within phoenix platinum and evander mines due to 
the expenditure on the etrp
30 june 2014 30 june 2013
££
phoenix platinum 6889777 8875902
evander mines 7725719 – 
14615496 8875902
14 earnings per share
basic and diluted earnings per share
basic and diluted earnings per share are based on the group’s profit for the year attributable to owners of the parent divided by the 
weighted average number of shares in issue during the year
30 june 2014 30 june 2013
net profit
£
weighted 
average 
number 
of shares
earnings
per share
pence
net profit
£
weighted 
average 
number 
of shares
earnings
per share
pence
basic earnings per share 26784593  1827207555  147  42574033  1619756902  263 
share options –  4131619  001 –  6176989  001
diluted earnings per share 26784593  1831339174  146  42574033  1625933891  262 
headline earnings per share
headline earnings per share is based on 
the group’s headline earnings divided by 
the weighted average number of shares 
in issue during the year
reconciliation between earnings and 
headline earnings from continuing 
operations
earnings as reported 26784593  1827207555  147  42574033  1619756902 263
adjustments
impairment costs –  –  –  16143604  – 099 
bargain purchase gain –  –  –  24114255 –  149
profit on sale of property plant and 
equipment and mineral rights 20497 –  –  –  –  – 
loss on disposal of asset held for sale 11848  –  –  586138  – 004 
headline earnings per share

 26775944  1827207555  147  35189520  1619756902  217 
share options –  4131619  001 –  6176989  001
diluted headline earnings per share 26775944  1831339174  146  35189520  1625933891  216 

 headline earnings per share is required to be disclosed in terms of the listing requirements of the jse limited  125
annual 
financial 
statements
pan african resources plc integrated annual report 2014
14 earnings per share continued
group group
pence pence
30 june 2014 30 june 2013
net asset value per share  871  945 
tangible net asset value per share

  393  377 

 total assets less goodwill noncurrent assets held for sale noncurrent liabilities current liabilities and mineral rights and mining property
15 dividends
historically the board has recommended an annual dividend to shareholders for approval at the agm the board recognises that 
where possible shareholders require a cash return on their investment pan african resources has now revised and further clarified 
its dividend policy going forward the company will pay a progressive annual zar dividend any dividend recommendation 
and payment however will still be dependent on prevailing gold prices and other external factors as well as the performance of 
and outlook for the group
the group paid a dividend of zar2403 million gbp147 million for the 2013 year equating to zar01314 per share 080p per share
the board of directors has proposed a dividend of approximately zar2580 million gbp145 million1 for the 2014 financial year 
equating to zar01410 per share 07898p per share1 resulting in a dividend cover of 18 times
note 1 the gbp proposed dividend was calculated based on an exchange rate of zar17851 the uk shareholders are to note that 
a revised exchange rate will be communicated prior to final approval at the agm therefore the proposed dividend is 
approximately 07898p
16 property plant and equipment and mineral rights
land
1
mineral 
rights
and mining
property
6
building 
and
infra
structure
plant and
machinery
capital 
under
construc
tion
shafts and
exploration
surface 
tailings
 acquired other total
££ £ £ £ £ £ £ £
group
balance at 30 june 2012 188699 18554630 1938760 16522976 14653365 30725266 – 290406 82874102
arising from the acquisition of 
evander mines refer to note 39 2472770 83465070 16223711 41574902 17577384 – – – 161313837
reclassification of software costs to 
other intangible assets – – – 715792 – – – – 715792
transfer from assets under construction
3
 – – – 10739524 10739524 – – – –
additions – – 765513 4322776 19014400 3451302 – 12542 27566533
disposal – – – 5780 – – – – 5780
foreign currency translation reserve 296288 12452533 2101467 7896994 4581738 4560735 – 93620 31983375
balance at 30 june 2013 2365181 89567167 16826517 64541612 35923887 29615833 – 209328 239049525
transfer from assets under construction – – 11244560 9246059 20450444 40175 – – –
additions – – 4368427 6288165 7552843 3214656 – 37748 21461839
disposal 1315 – – – – – – 1598 2913
reclassification to surface tailings 
acquired
5
 – 555247 – – – – 555247 – –
foreign currency translation reserve 393896 14919573 3782467 11725625 5174758 5132407 – 37137
 
41165863
balance at 30 june 2014 1969970 74092347 28657037 68350211 17851528 27657907 555247 208341 219342588 126
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
16 property plant and equipment and mineral rights continued
land
1
mineral 
rights
and mining
property
6
building 
and
infra
structure
plant and
machinery
capital 
under
construc
tion
shafts and
exploration
surface 
tailings
 acquired other total
££ ££ £ £ £ £ £
group
accumulated depreciation
balance at 30 june 2012 – 2979847 839880 6699888 – 9848643 – 9418920462447
reclassification of software costs to 
other intangible assets – – – 174105 – – – – 174105
charge for the year
2
 – 1004630 441816 3147399 18761 1249508 – 41197 5903311
impairment
4
 – 4166745 – 2495480 – – – – 6662225
foreign currency translation reserve – 494536 151754 1148749 1462 1473432 – 24097 3294030
balance at 30 june 2013 – 7656686 1129942 11019913 17299 9624719 – 11128929559848
charge for the year
2
 – 1466161 2196230 5090610 170136 987036 – 37826 9947999
disposal – – – – – – – 480 480
foreign currency translation reserve – 1367397 326017 2155032 6262 1665158 – 20881 5540747
balance at 30 june 2014 – 7755450 3000155 13955491 181173 8946597 – 12775433966620
carrying amount
at 30 june 2013 2365181 81910481 15696575 53521699 35906588 19991114 – 98039 209489677
at 30 june 2014 1969970 66336897 25656882 54394720 17670355 18711310 555247 80587 185375968
company
cost
balance at 30 june 2012 – – – – – – – 210294 210294
additions – – – – – – – 12542 12542
foreign currency translation reserve – – – – – – – 28331 28331
balance at 30 june 2013 – – – – – – 194505 194505
additions – – – – – – – 37748 37748
disposals – – – – – – – 1599 1599
foreign currency translation reserve – – – – – – – 34668 34668
balance at 30 june 2014 – – – – – – – 195986 195986
company
accumulated depreciation
balance at 30 june 2012 – – – – – – 84085 84085
charge for the year – – – – – – – 40154 40154
foreign currency translation reserve – – – – – – – 14875 14875
balance at 30 june 2013 – – – – – – 109364 109364
charge for the year – – – – – – – 36638 36638
disposals – – – – – – – 480 480
foreign currency translation reserve – – – – – – – 20486 20486
balance at 30 june 2014 – – – – – – – 125036 125036
carrying amount
at 30 june 2013 – – – – – – – 85141 85141
at 30 june 2014 – – – – – – – 70950 70950
1

agents the group reviews the residual values used for purposes of depreciation calculations annually
2
 a total depreciation charge of £10023361 has been recognised in the statement of comprehensive income 2013 £5998267 this includes direct mining depreciation 
of £9911361 2013 £5862114 and a depreciation charge relating to intangible assets of £112000 2013 £136153 as disclosed in note 17 excluding company 
depreciation charge other nonmining depreciation of £37342 2013 £41197 is disclosed in the other expensesincome in note 8
3
 capitalisation of phoenix platinum on 1 july 2012 due to reaching steady state production
4
 experienced the impairment was based on its estimated fair value less disposal costs using a post tax real discount rate of 1625 applied to estimated post tax 
 5
 6
 included within this category are £604 million exploration assets evander south rolspruit e8 poplar and minilibra arising from the acquisition of evander mines for 
which the technical feasibility and commercial viability of extracting a mineral resource are not yet demonstrable 127
annual 
financial 
statements
pan african resources plc integrated annual report 2014
17 other intangible assets
group company
££££
30 june 2014 30 june 2013 30 june 2014 30 june 2013
software costs
balance at the beginning of the period 340484  –  –  – 
reclassification of software costs from property plant and 
equipment and mineral rights refer to note 16 –  541687  –  – 
additions 38617  –  25359  – 
current year amortisation 112704 136153 704 – 
foreign currency translation reserve 52067 65050 1547 – 
balance at the end of the period 214330  340484  23108  – 
18 goodwill 
goodwill acquired in a business combination is allocated 
at acquisition to the cash generating units “cgu’s” that 
are expected to benefit from that business combination 
all the group’s goodwill has been allocated to barberton 
mines cgu
opening and closing balance 21000714  21000714  –  – 
the group tests the barberton mines goodwill carrying amount annually for impairment or more frequently if there are indications 
that goodwill may be impaired the goodwill carrying amount is not considered to be impaired and the review was performed in 
accordance with the group’s accounting policies
the recoverable amounts of the cgus are determined from valueinuse calculations the key assumptions for the valueinuse 
calculations are those regarding the discount rates growth rates and expected changes to selling prices and direct costs during 
the year management estimates the discount rate using posttax rate of 900 2013 1100 for barberton mines which reflect 
the current market assessments of the time value of money and the risks specific to the cgu to the extent not already reflected in 
the cash flows being discounted an average gold price of r440000kg 1294oz 2013 r400000kg 1261ozover the life of 
projects the life of mine was estimated at 19 years 2013 17 years for barberton mines at the end of the financial year changes in 
selling prices and direct costs are based on past practices and expectations of future changes in the market 128
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
19 investments in subsidiaries and investments in associate
at 30 june 2014 the company and group held the following shares in subsidiaries and associate
group company
name of company
country of 
incorporation
principal 
activity
proportion 
of capital 
effectively 
held by 
company
carrying 
amount
 30 june 2014
£
carrying 
amount
 30 june 2013
£
carrying 
amount
 30 june 2014
£
carrying 
amount
 30 june 2013
£
barberton mines south africa mining 100 –  –  45770663  45770663 
phoenix platinum south africa mining 100 –  –  4209696  4209696 
auroch minerals nl
5
 australia exploration 42 1009429  1182606  1009429  1182606 
funding company
1
 south africafinance 100 –  –  263  263 
emerald panther 
investments 91 proprietary 
limited “emerald 
panther”
2
south africa
holding 
company 100 –  –  72026632  72026632 
pan african resources 
management services 
company proprietary 
limited
4
 
at zar 1 investment south africa
management 
services and 
administration 100 –  –  –  – 
other investments 116  16465  –  – 
 1009545  1199071  123016683  123189860 
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
investments reconciliation
opening balance 1199071  –  123189860  50101244 
issue of share in auroch minerals nl “auroch” –  4501947  –  4501947 
loss in associate 173177 152312 173177 152312
impairment of investment in auroch minerals nl
3
 –  3167029 –  3167029
impairment in phoenix platinum –  –  –  120885
issue of shares in emerald panther investments 91 pty ltd “emerald 
panther”evander mines  –  –  –  72026632 
issue of shares in funding company –  –  –  263 
fair value adjustment  16349 –  –  – 
other investments –  16465  –  – 
closing balance 1009545  1199071  123016683  123189860 
1
 funding company was established for the purpose of providing funding for the groups activities
2
 emerald panther is a company acquired to facilitate the acquisition of evander mines from harmony gold mining company limited and therefore holds the investment 
in evander mines emerald panther holds 100 of evander gold mines ltd and evander gold mining pty ltd which are both incorporated in south africa and operate in 
mining
3
 during the prior year the group disposed of its investment in the manica exploration project to auroch the consideration partly comprised a 42 shareholding in auroch 
which was recorded at fair value at the date of acquisition and has been subsequently treated as an investment in associate the transaction triggered a loss on disposal 

the gold price in the prior year and related challenges in the mining and operating environment recorded a £32 million impairment against the carrying value of its 
direct shareholding based on auroch’s prior yearend share price being the best estimate of its fair valueand also fully impaired the £7024203 deferred consideration 
the resulting total impairment charge was £9481379
4
 pan african resources management services company pty ltd previously known as clidet 790 pty ltd was acquired within the group ordinary shares previously held 
by evander gold mines ltd where transferred to pan african resources plc this company was acquired to function as a management and other services provider and 
administrator to the group
5
 pursuant to a share sale and purchase greement dated 27 august 2012 relating to the sale of manica gold projects certain terms were amended between the 
contract parties and as a result the company made a decision to sell its investment in auroch minerals 42 shareholding for a total consideration of aud 2000000 
the following proceeds have been received during the year 129
annual 
financial 
statements
pan african resources plc integrated annual report 2014
aud zar
proceed received on 5 december 2013 150000 1400560
proceeds received on 6 march 2014 100000 940430
proceeds received on 3 april 2014 100000 952270
350000 3293260
the contract parties concluded that the consideration of aud 350000 already received will constitute an option fee income to 
pan african resources plc and shall in no circumstances be refundable therefore these proceeds were recognised on the statement 
of comprehensive income
at yearend the investment in auroch is still recognised as an investment in an associate due to uncertainty of the amended terms 
being fulfilled therefore the investment in auroch will be reported as such until the terms of the sales agreement have been fulfilled
the remainder of the total consideration is scheduled to be received according to the following time frame
aud
no later than 30 june 2014 received on 03 july 2014 150000
no later than 30 september 2014 50000
no later than 30 september 2015 1450000
20 rehabilitation trust fund
barberton 
mines
evander 
mines total
£££
funds held in trust fund refer to note 27
opening balance as at 30 june 2012 2662934  –  2662934 
arising from the acquisition of evander mines refer to 
note 39 –  16282652  16282652 
appreciation earned on the rehabilitation fund 123839  68676  192515 
foreign currency translation reserve 381611 1782777 2164388
closing balance as at 30 june 2013 2405162  14568551  16973713 
appreciation earned on the rehabilitation fund 109193  305604  414797 
fair value adjustment –  923188  923188 
foreign currency translation reserve 407489 2445918 2853407
closing balance as at 30 june 2014 2106866  13351425  15458291 
the funds available from contributions are held within pan african resources group rehabilitation trust
the amounts are invested in a number of instruments including interestbearing shortterm investments or 
mediumterm equity linked notes issued by commercial banks
the evander mines rehabilitation trust fund is currently under transfer from harmony
 refer to note 27 for the associated rehabilitation provision disclosure 130
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
21 inventories
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
consumable stores 2590889  4564282  –  – 
mineral stocks 2066648  2276532  –  – 
gold inventory 801828  –  –  – 
provision for obsolete stock 118237 245074 –  – 
 5341128  6595740  –  – 
22 trade and other receivables
trade receivables 8181293  10812937  –  1194826 
other receivables and prepayments 1100114  1082911  60426  26617 
vat receivable 2414973  2008568  –  – 
 11696380  13904416  60426  1221443 
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the statement of financial position 
are net of allowances for doubtful receivables of £35578 2013 £36051 relating to other receivables estimated by the group’s 
management based on the current economic environment and individual debtor circumstances the credit risk on liquid funds is 
limited because the counterparties are dealt with in accordance with the group’s credit policy rand refinery is the one major 
customer that represents more than 5 of the trade receivables balance for the individual gold mining subsidiaries barberton mines 
and evander mines and western platinum ltd subsidiary of lonmin plcis the one major customer that represents more than 5 
of the trade receivables balance of phoenix platinum 
the average credit period is
group
30 june 2014 30 june 2013
number of days 22 30
the ageing of trade receivables decreased due to improved cash collection initiatives especially from evander mines although 
overall debtors days improved from the prior year phoenix platinum reported trade receivables of £23 million 2013 £19 million 
at yearend this is due to five months pge production from phoenix platinum which was delivered to western platinum ltd 
subsidiary of lonmin plc prior to yearend however payment for these deliveries will only be realised in the 2015 financial year 
as a result of the platinum sector strike delaying the processing of concentrates by lonmin
no interest is charged on trade receivables
before accepting any new customers the group uses a credit bureau or performs a credit assessment to assess the potential 
customer’s credit limit and credit quality the group only transacts with creditworthy customers and large institutions within 
south africa
the fair value of trade receivables is not materially different from the carrying value presented receivables have been pledged as 
security in terms of the revolving credit facility 131
annual 
financial 
statements
pan african resources plc integrated annual report 2014
23 cash and cash equivalents
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with an original maturity of three months 
or less the carrying amount of these assets approximates their fair value
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
cash and cash equivalents 5618323  4768916  1803545  3304949 
credit facilities
the group has the following credit facilities
nedbank limited revolving credit facility

16657413 19986676  –  – 
rand merchant bank

6940589 – – –
absa bank limited revolving credit facility

9716824 19986676  –  – 
absa bank limited overdraft facility held at barberton 
mines

 999445  1199201  – –
absa bank limited credit card facilities  83287  99933 55525 66622 
guarantee

 2142250  2570414  –  – 
usd trading facility

 5274847  6329114  –  – 
 41814655  50172014  55525  66622 


an interest rate of the monthly jibar rate plus 28 margin and is secured against barberton mines evander mines and phoenix platinum’s property plant and 
equipment the revolving credit facility was utilised during the current year however at yearend there were no outstanding amounts payable in relation to the facility 
the absa limited overdraft facility at barberton mines remains unsecured and unutilised at yearend the barberton mines overdraft facility attracts interest at prime in 
south africa 

 the guarantees relate to £1365525 2013 £1638448 for eskom electricity utility and £776725 2013 £931966 for the dmr

 the usd trading facility relates to trading facilities held by barberton mines for the purposes of trading usd for zar rand on usd gold sales
24 share capital
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
2000000000 
2013 2000000000 ordinary shares of £001 each 20000000  20000000  20000000  20000000 
issued and fully paid up 1829994763 
2013 1822834263 ordinary shares of £001 each 18299947  18228342  18299947  18228342 
the following cash issue of shares were made during the year
during the year under review the following share issues occurred 


 1213000 shares issued at 5 pence per share
 850000 shares issued at 4 pence per share



current number of equity settled share options outstanding at 30 june 2014 is 2622000 2013 9782600 excluding the new issue 
of equity options disclosed in note 34 132
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
25 trade and other payables
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
trade and other payables 9962167  11514399  –  – 
accruals and other payables 7231053  10671829  777079  743051 
vat payable 26529  189708  26528  189708 
other –  826116  –  826116 
total trade and other payables 17219749  23202052  803607  1758875 
the average credit period is
number of days 37 59
on the acquisition of the evander mines from harmony trade payables were effectively paid a month later due to settlement of 
obligations on behalf the evander mines by harmony evander mines took over the settlement of its trading obligation before year
end resulting in the decrease of creditors days at yearend
the fair value of trade payables is not materially different from the carrying value presented
26 current tax
30 june 2014 30 june 2013 30 june 2014 30 june 2013
current tax asset 854568 1479339 147911  – 
current tax liability 2037092  –  –  – 
current taxes payable and receivable by the group relate to the south african revenue service “sars”
27 longterm provisions
group company
total total
££££
balance at 30 june 2012 3043954  3043954  –  – 
provision arising from acquisition of evander mines refer 
to note 39 13325862  13325862  –  – 
provided during the year 359172  359172  –  – 
foreign currency translation reserve 1907836 1907836 –  – 
balance at 30 june 2013 14821152  14821152  –  – 
provided during the year 340530 340530 –  – 
foreign currency translation reserve 2447455 2447455 –  – 
balance at 30 june 2014 12033167  12033167  –  – 
rehabilitation provision
the provision includes the estimate of the costs of decommissioning and the cost of environmental and other remedial work such 
as reclamation costs close down and restoration and pollution control estimates are made on an annual basis based on the 
estimated life of the mine following which payments are made to a rehabilitation trust set up as required by south african laws and 
regulations the provision represents the net present value of the best estimate of the expenditure required to settle the obligation 
to decommission and rehabilitate environmental disturbances caused by mining operations these costs are expected to be incurred 
over the following life of mine and rates
30 june 2014 30 june 2013
life of mine
barberton mines 19 17
evander mines 17  14 
phoenix 28  20 
risk free rate 831 789 133
annual 
financial 
statements
pan african resources plc integrated annual report 2014
28 longterm liabilities
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
cash settled share options

opening balance 879254  797513  390681  429565 
expense for the year 1607709  209465  648426  22903 
payments during the year 701871 –  233386 – 
transfer to current portion  1136372 –  560882 – 
foreign currency translation reserve 205169 127724 91118 61787
closing balance 443551  879254  153721  390681 
postretirement benefits
opening balance 108781  71368  –  – 
arising from the acquisition of evander mines refer to note 39 –  65434  –  – 
utilised for the year 184  11832 –  – 
foreign currency translation reserve 18133 16189 –  – 
closing balance 90832  108781  –  – 
revolving credit facilities
opening balance 10144925  –  –  – 
drawdowns 11719076  34763874  –  – 
finance costs incurred 713395  852998  –  – 
repayments of capital 21729582 22545100 –  – 
repayments of finance costs 724899 834241 –  – 
transfer to current portion –  864218 –  – 
foreign currency translation reserve 122915 1228388 –  – 
closing balance –  10144925  –  – 
 
finance costs incurred exclude £121562 2013 nil relating to commitment fees 
accrued but not paid at yearend however these commitment fees are included in the 
 gold loan
opening balance –  –  –  – 
gold loan receipts 11236649 –  –  – 
fair value adjustment 128484 –  –  – 
transfer to current portion 3618431 –  –  – 
foreign currency translation reserve 139768 –  –  – 
closing balance 7606934  –  –  – 
total 8141317  11132960  153721  390681 
the gold loan has been designated as an instrument to be measured 
at fair value through profit and loss gains or losses on re
measurement to fair value at each reporting period will be reflected 
in the statement of comprehensive income
current and noncurrent portions of longterm liabilities
current portion  4754803  864218 560882 – 
noncurrent portion – capital to be paid on maturity 8141317  14839707 153721 – 
 12896120  15703925  714603  –  134
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
28 longterm liabilities continued
terms of the revolving credit facilities
interest rate jibar quoted at 573 at yearend
interest rate margin 28
term of loan 5 years from 7 march 2013
repayment period full repayment of the outstanding at the end of 5 years
final repayment date 7 march 2018
financial covenant limits
the ratio of the net debt to equity must be less than 11 measured on a semi 
annual basis
the interest cover ratio refer to note 30 must be greater than four times measured 
on a semi annual basis
the ratio of net debt to ebitda refer to note 30 as defined in the agreement 
must be less than 251 measured on a semi annual basis
bonds as security for revolving credit facilities
the following bonds were entered into by the group
continuing covering mortgage bond b15342013 – barberton minesbowwood and main no 40 pty ltd
continuing covering mortgage bond b17402013 – evander minesbowwood and main no 40 pty ltd
special notarial bond bn67852013 – barberton minesbowwood and main no 40 pty ltd
special notarial bond bn69122013 – evander minesbowwood and main no 40 pty ltd
general notarial bond bn70752013 – barberton minesbowwood and main no 40 pty ltd
general notarial bond bn65922013 – evander minesbowwood and main no 40 pty ltd
ceded rights as security for the revolving credit facility
bank accounts
debts

insurance

insurance proceeds
the above listed rights are ceded whether actual prospective or contingent direct or indirect whether a claim to payment of money 
or to the performance of any other obligation and whether or not the said rights and interest were within the contemplation of the 
parties at signature date
 all claims which the cedent has or may in future have in respect of agreements entered into or to be entered into by the cedent pursuant to which goods andor services 
are provided or to be provided to or by the cedent including but not limited to book debts against trade debtors from time to time
 all contracts and policies of insurance and reinsurance of any kind which are effected and maintained by or on behalf of the cedent
terms of the gold loan
during the current financial year in may 2014 a gold loan transaction of zar 200 million was entered into with absa bank ltd 
as a counterparty the purpose of this gold loan was to provide funds for the etrp that is under construction at evander mines 
the gold loan will be repaid quarterly in gold ounces produced from the evander mines operation from july 2014 to october 
2017 refer to terms below
effective delivery price per ounce zar 12694
effective delivery price per kg zar 408129 
repayment period 35 years 
final repayment date 31 october 2017
spread over swap zero curve yearend valuation 645
average discount rate nominal 1304 135
annual 
financial 
statements
pan african resources plc integrated annual report 2014
financial covenant limits  the ratio of the net debt to equity must be less than 11 measured on a semiannual basis
  the interest cover ratio refer to note 30 must be greater than four times measured on a semi 
annual basis
  the ratio of net debt to adjusted ebitda refer to note 30 as defined in the agreement must be 
less than 251 measured on a semi annual basis
security of gold loan security of the gold loan is included in the revolving credit facility security package
group cashsettled share options
on 9 may 2011 the company established a cash settled share appreciation right programme entitling selected executives and 
employees of the group as approved by the board of directors and the remuneration committee of the company to be allocated 
notional shares in the group these notional shares confers the conditional right on the participant to be paid a cash settlement equal 
to the appreciation in the company share price from the date of allocation to the date of surrender or deemed surrender of notional 
shares participation in the share appreciation program is subject to the agreement of a selected participant and acceptance by said 
participant of the rules and regulations governing the share appreciation programme
the share appreciation settlement is determined no later than the sixth anniversary of the date that the notional shares are 
allocated however the participant can elect subject to approval by the companies remuneration committee to surrender hisher 
notional shares and receive the share appreciation settlement at a date prior to the sixth anniversary date
the share appreciation settlement is regarded as remuneration for income tax purposes and thus subject to the deduction of pay 
as you earn “paye” and all other taxes and contributions via the payroll of the company or the relevant subsidiary these taxes 
are for the account of the participant
gold loan repayment schedule
delivery date
 ounces 
delivered 
31 july 2014 120736 
31 october 2014 120012 
31 january 2015 118201 
30 april 2015 116473 
31 july 2015 116083 
31 october 2015 114397 
29 january 2016 113129 
29 april 2016 111862 
29 july 2016 110594 
31 october 2016 109396 
31 january 2017 108114 
28 april 2017 106707 
31 july 2017 105550 
31 october 2017 104269 
 1575523  136
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
28 longterm liabilities continued
no share appreciation rights settlements can be made until after the period calculated from the date the notional shares were 
allocated of



 referred to as “surrenderable notional shares”
remco may by resolution amend and postpone any of these vesting periods with the consent of the participant concerned
the participant is entitled within a period of 60 days after the date of resignation to surrender all hisher surrenderable notional 
shares and request the payment of the share appreciation bonus in respect thereof if the participant is subject to retirement 
including early retirement approved by the company after the age of 55 in terms of company policy retrenchment death or 
permanent disability the participant or the participants estate is entitled within a period of six months after the termination date 
to surrender all hisher surrenderable notional shares and request the payment of the share appreciation settlement in respect 
thereof 
details of the share options outstanding during the year in relation to this scheme are as follows
group cash settled share options
30 june 2014 30 june 2013
weighted
 average 
exercise price
rands
number 
of options
weighted 
average 
exercise price
 rands
number 
of options
outstanding at 1 july 174  52355077  115  31863103 
granted during the year 224  12742142  218  29869622 
exercised during the year 115  8195411 115  967500
forfeited in the year 211  3625828 115  8410148
outstanding and exercisable at 30 june  192  53275980  174  52355077 
cash settled share options are valued annually at fair value
these fair values were calculated using the binomial pricing model the inputs in the model were as follows
30 june 2014 30 june 2013
weighted average share price 258 210
weighted average exercisestrike price 216 213 
expected volatility 3000 4500
expected life 3 – 6 years 3 – 4 years
risk free rate 713 – 779 700 – 754
expected dividend yield 400 350
the group recognised total expenses of £1738093 2013 £209465 relating to cashsettled share based payments transactions 
during the year 137
annual 
financial 
statements
pan african resources plc integrated annual report 2014
vesting schedule 2014
description grant date
vesting
 period 
years
vesting
 period 
days vesting date
valuation 
zar
options
 granted
options 
expected 
to vest
tranche 1 11 may 2011 2 731 11 may 2013 144 3572511 3572511
tranche 2 11 may 2011 3 1096 11 may 2014 144 3572511 3572511
tranche 3 11 may 2011 4 1461 11 may 2015 144 7145022 7145022
tranche 1 1 march 2013 2 731 1 march 2015 078 1604717 1604717
tranche 2 1 march 2013 3 1096 1 march 2016 078 1604717 1604717
tranche 3 1 march 2013 4 1461 1 march 2017 078 3209434 3209434
tranche 1 1 april 2013 2 731 1 april 2015 086 3275055 3275055
tranche 2 1 april 2013 3 1096 1 april 2016 086 3275055 3275055
tranche 3 1 april 2013 4 1461 1 april 2017 086 6550110 6550110
tranche 1 1 may 2013 2 731 1 may 2015 097 871859 871859
tranche 2 1 may 2013 3 1096 1 may 2016 097 871859 871859
tranche 3 1 may 2013 4 1461 1 may 2017 097 1743717 1743717
tranche 1 1 june 2013 2 731 1 june 2015 086 563864 563864
tranche 2 1 june 2013 3 1096 1 june 2016 086 563864 563864
tranche 3 1 june 2013 4 1461 1 june 2017 086 1127727 1127727
tranche 1 1 july 2013 2 731 1 july 2015 086 245455 245455
tranche 2 1 july 2013 3 1096 1 july 2016 086 245455 245455
tranche 3 1 july 2013 4 1461 1 july 2017 086 490908 490908
tranche 1 29 august 2013 2 731 29 august 2015 094 1500000 1500000
tranche 2 29 august 2013 3 1096 29 august 2016 094 1500000 1500000
tranche 3 29 august 2013 4 1461 29 august 2017 094 3000000 3000000
tranche 1 27 september 2013 2 731 27 september 2015 084 221515 221515
tranche 2 27 september 2013 3 1096 27 september 2016 084 221515 221515
tranche 3 27 september 2013 4 1461 27 september 2017 084 443030 443030
tranche 1 13 november 2013 2 731 13 november 2015 076 168909 168909
tranche 2 13 november 2013 3 1096 13 november 2016 076 168909 168909
tranche 3 13 november 2013 4 1461 13 november 2017 076 337818 337818
tranche 1 1 april 2014 2 731 1 april 2016 090 727612 727612
tranche 2 1 april 2014 3 1096 1 april 2017 090 727612 727612
tranche 3 1 april 2014 4 1461 1 april 2018 090 1455220 1455220
tranche 1 1 may 2014 2 731 1 may 2016 074 567500 567500
tranche 2 1 may 2014 3 1096 1 may 2017 074 567500 567500
tranche 3 1 may 2014 4 1461 1 may 2018 074 1135000 1135000
53275980 53275980 138
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
28 longterm liabilities continued
vesting schedule 2013
description grant date
vesting
 period 
years
vesting
 period 
days vesting date
valuation 
zar
options
 granted
options 
expected 
to vest
tranche 1 11 may 2011 2  731 11 may 2013 077  4895739  4895739 
tranche 2 11 may 2011 3  1096 11 may 2014 077  5863239  5863239 
tranche 3 11 may 2011 4  1461 11 may 2015 077  11726478  11726478 
tranche 1 6 march 2013 2  731 6 march 2015 079  1762450  1762450 
tranche 2 6 march 2013 3  1096 6 march 2016 079  1762450  1762450 
tranche 3 6 march 2013 4  1461 6 march 2017 079  3524900  3524900 
tranche 1 1 april 2013 2  731 1 april 2015 084  3450157  3450157 
tranche 2 1 april 2013 3  1096 1 april 2016 084  3450157  3450157 
tranche 3 1 april 2013 4  1461 1 april 2017 084  6900314  6900314 
tranche 1 1 may 2013 2  731 1 may 2015 090  1276730  1276730 
tranche 2 1 may 2013 3  1096 1 may 2016 090  1276730  1276730 
tranche 3 1 may 2013 4  1461 1 may 2017 090  2553461  2553461 
tranche 1 1 june 2013 2  731 1 june 2015 084  978068  978068 
tranche 2 1 june 2013 3  1096 1 june 2016 084  978068  978068 
tranche 3 1 june 2013 4  1461 1 june 2017 084  1956136  1956136 
 52355077  52355077 
participation in sharebased and other longterm incentive schemes is restricted to employees and directors as described above
29 deferred taxation
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
arising from temporary differences relating to
property plant and equipment 45125596  55332754  –  – 
provisions 4272995 4667052 –  – 
investment in rehabilitation trust 2609133  3400586  –  – 
other 108157 16848 –  – 
net deferred tax liabilities 43353577  54049440  –  – 
group company
note 30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
reconciliation of deferred tax liabilities
net deferred liabilities at the beginning of the year 54049440  10088530  –  – 
transfer to deferred tax asset –  79555  –  – 
arising from the acquisition of evander mines 39 –  45132359  –  – 
deferred tax charge for the year 13 1765459 5744025  –  – 
deferred tax asset raised during the current year –  200340 –  – 
foreign currency translation reserve 8930404 6794689 –  – 
net deferred liabilities at the end of the year 43353577  54049440  –  –  139
annual 
financial 
statements
pan african resources plc integrated annual report 2014
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
arising from temporary differences relating to
property plant and equipment –  57139  –  – 
provisions 174199  289940  174199  267281 
other 192368  34281 192368  – 
 366567  312798  366567  267281 
group company
note 30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
reconciliation of deferred tax assets
net deferred assets at the beginning of the year 312798  –  267281  – 
transfer from deferred tax liabilities –  79555  –  – 
deferred tax credit for the year 13 153436  265013  153436  289876 
foreign currency translation reserve 99667 31770 54150 22595
net deferred assets at the end of the year 366567  312798  366567  267281 
deferred tax assets not recognised for the company amounted to nil 2013 £9536 in the prior these related to assessed losses 
carried forward as a result of temporary differences
assessed loss carried forward for company amounted to nil 2013 £34056 unredeemed capital expenditure in relation to phoenix 
platinum and etrp carried forward was £146 million 2013 £89 million
30 financial instruments
the group manages its capital to ensure that it will be able to continue as a going concern while maximising the sustainable return 
to shareholders through the optimisation of the debt and equity ratios the group’s overall strategy remains unchanged from the 
prior year
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
components of capital and financial covenants
cash and cash equivalents 5618323 4768916 1803545 3304949
interestbearing debtgold loan 11225365  11009143  –  – 
net interestbearing assets liabilities 5607042  6240227  1803545 3304949
equity 159396109  172208237  111102442  124671062 
net debt to equity ratio  004  004  002 003
finance costs of the revolving credit facilities 713395 852998 –  – 
earnings before interest and taxation 34130214  54510133  738676 22026658
interest cover ratio 48 64 –  – 
adjusted ebitda is represented by earnings before interest taxation 
depreciation and amortisation bargain purchase gain impairments and 
loss on disposal of assets held for sale 44165423  53123887  738676 3381660
net debt to adjusted ebitda 013  012  244  098 
financial covenant limits
the ratio of the net debt to equity must be less than 11
the interest cover ratio must be greater than four times
the ratio of net debt to adjusted ebitda must be less than 251 140
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
30 financial instruments continued
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
categories of financial instruments
financial assets

cash and cash equivalents 5618323  4768916  1803545  3304949 
investment in associate 1009545  1199071  1009429  1182606 
receivables 8181293  10812937  –  1194826 
financial liabilities
trade and other payables 17193220  22186228  777079  743051 
longterm liabilities 8141317 10253706 153721 – 
current portion of longterm liabilities 4754803 864218 560882 – 
all of the financial instruments above are carried at amortised cost except for the gold loan which is measured at fair value
 
net debt is calculated on cash and cash equivalents less interest bearing debt
 
at yearend the group did not have trade receivables that are past overdue and not impaired
financial risk management objectives
the group seeks to minimise the effects of financial risks by using derivative financial instruments to hedge risk exposures where 
appropriate the use of any financial derivatives is approved by the board of directors who also on a continuous basis provide guidance 
on managing foreign exchange risk interest rate risk credit risk the use of financial derivatives and nonderivative financial instruments 
and the investment of excess liquidity exposure limits are reviewed on a continuous basis the group does not enter into or trade 
financial instruments including derivative financial instruments for speculative use
credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group 
the group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where 
appropriate as a means of mitigating the risk 
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the statement of financial position 
are net of allowances for doubtful receivables of £35578 2013 £36051 relating to other receivables estimated by the group’s 
management based on the current economic environment and individual debtor circumstances the credit risk on liquid funds is 
limited because the counterparties are dealt with in accordance with the group’s credit policy rand refinery pty ltd is the one major 
customer that represents more than 5 of the trade receivables balance for the individual gold mining subsidiaries barberton mines 
and evander mines and western platinum limited subsidiary of lonmin plc is the one major customer that represents more 
than 5 of the trade receivables balance of phoenix platinum 
££
30 june 2014 30 june 2013
customers above 5
rand refinery pty ltd 5726230  8379514 
western platinum limited subsidiary of lonmin plc 2285276  1387795 
 8011506  9767309 
market risk
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and the gold price 
where appropriate the group enters into a variety of derivative financial instruments to manage its exposure to foreign currency 
risk and the commodity price risk market risk exposures are measured using sensitivity analysis 141
annual 
financial 
statements
pan african resources plc integrated annual report 2014
foreign currency risk
the group undertakes certain transactions in foreign currencies hence exposures to exchange rate fluctuation arise exchange rate 
exposures are managed within approved policy parameters the group specifically ensure usd receipts are converted into zar as 
quickly and economically as possible
commodity price and foreign exchange rate risk
the group may enter into forward contracts to hedge their exposure to fluctuations in gold prices and exchange rates on specific 
transactions the contracts are matched with anticipated future cash flows from gold sales receipts
interest rate and liquidity risk
fluctuations in interest rates impact on shortterm investment and financing activities giving rise to interest rate risk in the ordinary 
course of business the group receives cash proceeds from its operations and is required to fund working capital and capital 
expenditure requirements cash is managed to ensure that surplus funds are invested to maximise returns whilst ensuring that 
capital is safeguarded to the maximum extent by only investing with reputable financial institutions contractual arrangements for 
committed borrowing facilities are maintained to meet the group’s normal and contingent funding needs
currency and commodity price risk
closing 
rate at 
30 june 2014 
average 
rate for the 
year ended 
30 june 2014
currency and gold spot price
pound sterlingzar exchange rate 1801 1688
usd gold spot price oz 1327  1303 
impact of 
10 currency 
or gold price 
movement 
on profit
£
foreign currencygold price sensitivity 
2014 11701311 
2013 9334799 
£

value of 
the gold on 
10 increase 
in gold price
gold price sensitivity
2014 11225365 12347901 142
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
30 financial instruments continued
the pound sterling carrying amount of the group’s foreign currency denominated monetary assets and liabilities at statement of 
financial position date is as follows
£

impact of 
10 currency 
movement
 on
 translation
 reserve
2014
assets 23510399  21373090 
liabilities 24011644  21828767 
2013
assets 26748411  24316737 
liabilities 24066270  21878427 
 
the functional currency within the group is zar therefore the sensitivity details the effect of the zargbp exchange rate on the foreign currency translation reserve
commodity zero cost collar
the group entered into two zero cost collar gold transaction during the year similar to transactions that were undertaken in the 
prior year during the current financial year the group realised a profit of £2310426 upon agreeing to realise the two contracts 
with absa bank limited
financial instruments derivatives
group group company company
££££
30 june 2014 30 june 2013 30 june 2014 30 june 2013
opening balance –  –  –  – 
financial instruments during the year 2310426  1589595  2310426  1589595 
fair valuing of financial instruments –  –  –  – 
financial instruments realised during the year 2310426 1589595 2310426 1589595
closing balance –  –  –  – 
group group
££ £
30 june 2014 30 june 2013 total 
cost collar derivative profits
cash profits realised on the statement of comprehensive income 2310426 1589595   3900021  143
annual 
financial 
statements
pan african resources plc integrated annual report 2014
terms of the zero cost collar gold transaction
30 june 2014 30 june 2013
call option terms contract one  contract two contract one
trade date 20 august 2013 24 january 2014 june 26 2013
commodity gold gold gold
total notional quantity
78000 ounces 
2426 kilograms
60000 ounces 
1866 kilograms
78000 ounces 
2426 kilograms
option style asian asian asian
option type call call call
commodity option buyer absa bank limited absa bank limited absa bank limited
option term

from and including 
1 september 2013 to and 
including 31 august 2015 
2 years
from and including 
1 february 2014 to and 
including 31 january 2016 
2 years
from and including 
31 may 2013 to and including
 30 june 2015 2 years
strike price per unit zar 502815 per kilogram zar 519237 per kilogram zar518500 per kilogram
put option terms
trade date 20 august 2013 24 january 2014 june 26 2013
commodity gold gold
total notional quantity
78000 ounces 
2426 kilograms
60000 ounces 
1866 kilograms
78000 ounces 
2426 kilograms
option style asian asian asian
option type put put put
commodity option buyer absa bank limited absa bank limited absa bank limited
option term

from and including 
1 september 2013 to and 
including 31 august 2015 
2 years
from and including 
1 february 2014 to and 
including 31 january 2016 
2 years
from and including 
31 may 2013 to and including
 30 june 2015 2 years
strike price per unit zar 425012 kilogram zar 430012 per kilogram zar 425000 per kilogram
realised profits 1777251 533175 1589595

 redeemed during the year and not open at yearend
interest rate risk
the group is exposed to interest rate risk as entities within the group borrow and invest funds at both fixed and floating 
interest rates
interest rate sensitivity
during the current year the group took out a gold loan refer to note 28 the gold loan measurement and valuation is subject to 
interest rate and gold price variations refer to below for gold loan sensitivity on interest rates variations 144
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
30 financial instruments continued
10 decrease 
in interest 
rates
5 decrease 
in interest 
rates
valuation 
of the 
gold loan
5 increase 
in interest 
rates
10 increase 
in interest 
rates
zar 206054217 204092742 202168810 200281437 198429669
gbp 11441100 11332190 11225365 11120568 11017750
liquidity risk
ultimate responsibility for liquidity risk management rests with the board which has built an appropriate liquidity risk management 
framework for the management of the group’s short term funding and liquidity management requirements this framework involves 
constant weekly monitoring of the group’s cash position cash flow forecast and matching maturity profiles of financial assets and 
liabilities to enable management of the liquidity risk by maintaining adequate reserves banking facilities and reserve borrowings 
facilities
the group has access to financing facilities at barberton mines and its funding company of which all of the facilities were undrawn 
as at 30 june 2014 however a gold loan of £11225364 was outstanding at yearend refer to note 28 the group expects to meet 
its other obligations from operating cash flows and proceeds of maturing financial assets
liquidity risk analysis
the following table indicates the group’s remaining contractual maturity from its financial liabilities
££££
weighted
 average 
interest rate
less than 
12 months 1–5 years total
group
2014
trade and other payables –  17193220  –  17193220 
longterm liabilities noninterest bearing –  4754803 8141317 12896120 
longterm liabilities interest bearing 853 –  –  – 
other shortterm liabilities –  –  –  – 
2013
trade and other payables –  22186228  –  22186228 
longterm liabilities noninterest bearing –  – 988035 988035 
longterm liabilities interest bearing 785 864218 14839707 15703925 
other shortterm liabilities –  –  –  – 
company
2014
trade and other payables –  777079  –  777079 
longterm liabilities –  560882 153721 714603 
other shortterm liabilities –  –  –  – 
2013
trade and other payables –  743051  –  743051 
longterm liabilities –  –  390681  390681 
other shortterm liabilities –  –  –  – 
fair value of financial instruments
the directors consider that the carrying amounts of financial assets and liabilities recorded approximate their fair values 145
annual 
financial 
statements
pan african resources plc integrated annual report 2014
financial asset right to future share

group group
££
30 june 2014 30 june 2013
opening balance –  – 
right to future shares raised on sale –  7024203 
foreign currency translation reserve –  460153
closing balance before impairment –  6564050 
impairment –  6564050
closing balance –  – 
 fair value hierarchy
the following is an analysis of the financial instruments that are measured at fair value
they are grouped into levels i to 3 based on the extent to which fair value is observable
the levels are classified as follows
level 1 –  fair value is based on quoted prices in active markets for identical financial assets or 

level 2 –  fair value is determined using inputs other than quoted prices included within level 1 that 
are observable for the asset or liability either directly ie prices or indirectly ie derived 

level 3 – fair value is determined on inputs not based on observable market data
30 june 2014
level 1level 2level 3 total
derivative financial liabilities

 – 11225365 – 11225365
30 june 2013
level 1level 2level 3 total
derivative financial liabilities –  –  –  – 

 the fair value of the gold loan which is a recurring fair value measurement treated as level 2 of the fair value hierarchy was estimated by discounting future expected 
 forward curve these are discounted at a rate of approximately 8 which takes into consideration the credit risk
31 postretirement benefit information
predominantly most employees are required to be members of either the barberton pension umbrella fund sentinel retirement 
fund mine workers provident fund or the shanduka group provident fund these are defined contribution funds and are registered 
under and governed by the south african pension act 1956 as amended the assets of the scheme are held separately from those 
of the group in funds and they are in the control of the trustees the total costs charged to the statement of comprehensive income 
of £4747602 2013 £2457148 at group level and £112853 2013 £85063 at company level and represent employer contributions 
payable to the schemes by the group and company at rates specified in the rules of the scheme the calculation of the provision for 
post retirement medical benefits is performed internally by management using the south african revenue services life expectancy 
tables as the benefits payable are a fixed amount per pensioner the balance of post retirement medical benefits were 
£90832 2013 £108781 146
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
32 commitments contingent liabilities and guarantees
group
commitments
the group had outstanding open orders contracted for at yearend of £4986259 2013 £4840876
authorised commitments for the new financial year not yet contracted for totalled £19061631 2013 £9626040
contingent liabilities
the group had no contingent liabilities in the current financial year or prior year
guarantees
the group had guarantees of £1365525 2013 £1638448 in favour of eskom and £776725 2012 £931966 in favour of the dmr 
at yearend
company
there were no commitments contingent liabilities and guarantees for the company for the year ended 30 june 2014 2013 £nil 
except for the operating lease commitments disclosed in note 7
33 directors’ emoluments
the key management personnel for which remuneration has been disclosed below are considered to be the executive directors 
nonexecutive directors and ra holding
group group
30 june 2014 30 june 2013
££
executive directors
emoluments 615085  1068060 
share options exercised  –  – 
total 615085  1068060 
nonexecutive directors
emoluments 146004  223376 
total  146004  223376 
total remuneration 761089  1291436 
individual
share 
option 
taxable 
benefit
basic
remuneration
retirement
fund
life and 
disability 
plan allowances
other
remuneration bonuses
total
2014
total 
2013
££ £ £ £ £ £ £ £
executive
mr ra holding

 –  148703  24377  3044  14758  –  109139  300021  – 
mr jaj loots

 –  84311  8316  1271  6198  –  –  100096  – 
mr j nelson  –  –  –  –  –  –  –  –  925603 
ms yb sitole

 –  21675  2301  352  3555  187085  –  214968  142457 
total –  254689  34994  4667  24511  187085  109139  615085  1068060  147
annual 
financial 
statements
pan african resources plc integrated annual report 2014
individual
total
2014
total 
2013
££
nonexecutive
mr rg still 26931  48497 
ms p mahanyele

 28983  33348 
mr kc spencer 44885  86196 
mrs hh hickey 24979  33548 
mr t mosololi

 10758  – 
mr jaj loots

 9468  21787 
total 146004  223376 
three highest 
paid non
directors
share 
option 
taxable 
benefit
basic 
remuneration
retirement 
fund
life and 
disability 
plan allowances
other 
remuneration bonuses
total
2014
total 
2013
££ £ £ £ £ £ £ £
mr c strydom 311441 120154 12533 –  4274  –  66363  514765  212436 
mr a van den 
bergh 267787 127321 11897 –  869  –  71943  479817  177841 
mr p human 195226 103196 12978 –  5190  –  52798  369388  256200 

 directors fees accruing to these directors are paid by the company to shanduka

 
 mr jaj loots was appointed financial director effective from 1 october 2013 mr jaj loots was also previously a nonexecutive director of the group and fees paid in this 
capacity were paid to shanduka

 ms yb sitole resigned as financial director effective 30 september 2013

 mr t mosololi was appointed as an independent nonexecutive director from 9 december 2013
executive directors
mr ra holding and mr jaj loots were appointed ceo and fd respectively
nonexecutive directors
mr jaj loots resigned as a nonexecutive during the year and mr t mosololi was appointed as an independent nonexecutive 
director the following appointments did not change during the year under review
– mr kc spencer chairman
– ms p mahanyele 
– mr rg still
– mrs hh hickey 
no retirement fund contributions are currently made by the company on behalf of nonexecutive directors
nonexecutive directors are entitled to the following fees as approved annually by the remuneration committee for services 
rendered based on their appointment to the respective board subcommittees and meetings attended 148
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
33 directors’ emoluments continued
30 june 2014
mr 
kc spencer
chairperson 
of the board
ms 
p mahanyele 
deputy 
chairperson 
of the board
mr 
rg still
mrs 
hh hickey
mr 
t mosololi
mr 
jaj loots
££££££
board of directors 33175  19322  15222  15222  8806  7536 
remuneration committee 
deputy chairperson as chairperson –  5797  3903  –  –  – 
audit committee  
member 2 as chairperson –  –  3903  5855  1952  1932 
shec committee 5855  –  –  3902  –  – 
nominations committee 5855  3864  3903  –  –  – 
total 44885 28983 26931 24979 10758 9468
30 june 2013
mr 
kc spencer
chairperson 
of the board
ms 
p mahanyele 
deputy 
chairperson 
of the board
mr 
rg still
mrs 
hh hickey
mr 
t mosololi
mr 
jaj loots
££££££
board of directors 72856 22232 35159 22432 17341  – 
remuneration committee 
deputy chairperson as chairperson –  6670  4446  –  –  – 
audit committee  
member 2 as chairperson –  –  4446  6670  4446  – 
shec committee 6670  –  –  4446  –  – 
nominations committee 6670  4446  4446  –  –  – 
total 86196 33348 48497 33548 21787 –
total
 options
outstanding 
1 july 2013 grant date
strike 
price 
pence
options 
granted
exercised
 during 
the period
grant
exercise
 date
grant
exercise
 price
 pence
transferred 
out
total 
options
30 june 2014
mr kc spencer 1500000 21 july 2008 52  – – –  –  1500000 
mr ra holding –  – 1500000 1 september 2013 –  –  1500000 
mr jaj loots –  – 1150000 1 september 2013 –  –  1150000 
1500000 2650000 4150000
total
 options
outstanding 
1 july 2012 grant date
strike 
price 
pence
options 
granted
exercised
 during 
the period
grant
exercise
 date
grant
exercise
 price
 pence
transferred 
out
total 
options
30 june 2013
mr kc spencer 3000000 21 july 2008 52  1500000 – 52 –  1500000 
total 3000000  –  1500000 – –  –  1500000  149
annual 
financial 
statements
pan african resources plc integrated annual report 2014
directors’ dealings in shares
during the year under review mr jaj loots had participated in the following transactions in the company’s shares
– on 17 september 2013 purchased 50000 shares at zar223 per share
at 30 june 2014 mr jaj loots held a total of 231575 shares 2013 181575 representing 001 of the issued share capital
during the year under review mr rg still participated in the following transactions in the company’s shares through his related 
entities
mr rg still is a trustee of a family trust ‘the alexandra trust’ mr rg still is therefore deemed to have an indirect non–beneficial 
interest in the alexandra trust’s holding in the company
during the year under review the alexandra trust had the following dealings in shares
alexandra trust
– on 01 october 2013 sold 360916 shares at zar270 per share
– on 02–06 may 2014 sold 4312700 shares at an average price of zar270 per share
at 30 june 2014 the alexandra trust held a total of 7000000 shares 2013 11673616 representing 038 of the issued share 
capital
cash settled options
listed per grant
exercise
total 
options 
outstanding
 1 july 2013 grant date
strike 
price 
pence
options 
granted
exercised 
during the 
period
grant
exercise
 date
grant
exercise
 price
pence
options 
forfeited
total 
options 
30 june 
2014
mr ra holding 5127134 9 may 2011 011  1000000 29 august 2013 013  –  6127134 
mr jaj loots – – –  5000000 29 august 2013 013  –  5000000 
mr c strydom 2325000 9 may 2011 011  1162500 23 september 2013 007  –  1162500 
mr c strydom 2325000 9 may 2011 011  1162500 8 may 2014 006  –  1162500 
mr a van den bergh 1812589 9 may 2011 011  906294 23 september 2013 007  –  906295 
mr a van den bergh 1812589 9 may 2011 011  906294 8 may 2014 006  –  906295 
mr p human 2902500 9 may 2011 011  967500 8 may 2014 006  –  1935000 
ms yb sitole 1619487 1 may 2012 014  – – –  1619487 – 
 17924299 0 010  894912  –  –  1619487 17199724 
 highest paid nondirectors 150
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
34 equity settled share options
on 1 september 2005 the company established a share option programme relating to equitysettled share options entitling specific 
employees officers directors and qualifying consultants as approved by the board of directors of the company and its subsidiaries 
to purchase shares in the company the share option exercise price is determined using the closing price at which shares are traded 
on the jse or aim as determined by the board of directors on the trading date immediately preceding the date upon which the 
board authorised the grant of the opportunity to acquire the relevant share options as the case may be to a participant pursuant 
to resolutions of the board passed in accordance with the rules of the share option programme share options may be released from 
the share option programme to participants share options may be exercised by participants and allocation shares may be delivered 
to participants as follows for allocations prior to 21 july 2008

ii up to 6667 of the total number of shares allocated after two years have elapsed from the grant date by the participant of the 

iii the balance of the shares allocated after three years have elapsed from the grant date by the participant of the grant
and for allocations subsequent to 21 july 2008 the vesting date was amended from three years to four years as follows 
 ii  up to 50 of the total number of shares allocated after two years have elapsed from the grant date by the participant of 

iii up to 75 of the total number of shares allocated after three years have elapsed from the grant date by the participant of 


board may at its discretion anticipate or postpone such dates 
an option holder may not exercise a share option under the share option programme by later than the end of the year preceding 
the tenth anniversary of the grant date upon death of an option holder the estate would be entitled to exercise the options vested 
to date within twelve months of the date of death if the options are not exercised the total available share options would lapse 
the directors have the discretion to approve the vesting of the deceased total number of unvested share options
the number of vested share options to which an option holder is entitled to expires after of period of six months due to resignation 
retirement redundancy or disability of the option holder
during the year an equity linked incentive was implemented for the new executive directors appointed  
the terms of the scheme are as follows
total number of potential shares 2650000
grant date 1 september 2013
vesting date 28 february 2015
vesting period 18 months
exercise price nil
market conditions to be met
in the event that the 30day vwap jse share price of pan african resources has 
outperformed the jse gold index by 10 or more during the 18month period starting 
1 september 2013 1750000 ordinary shares of pan african resources will be issued by the 
vesting date or alternatively cash settled
in the event that the 30day vwap jse share price of pan african resources has 
outperformed the jse gold index by 25 or more during the 18month period starting 
1 september 2013 further 900000 ordinary shares of pan african resources will be issued 
by the vesting date or alternatively cash settled
the remuneration committee may elect to settle the obligation in cash should it be unable 
to issue shares provided that the beneficiary is in a net neutral position after taking account 
of taxes and other costs 151
annual 
financial 
statements
pan african resources plc integrated annual report 2014
the number and weighted average exercise price of share options is as follows
30 june 2014 30 june 2013
weighted 
average
 exercise 
price
number 
of options
weighted 
average 
exercise 
price
number 
of options
outstanding at 1 july 64p 9782600 64p 14282600 
granted during the year

 nil  2650000  –  – 
forfeited 64p  100 –  – 
exercised during the year 49p 7160500 65p 4500000
outstanding 30 june 53p 5272000 64p 9782600 
30 june 2014 30 june 2013
vested unvested vested unvested
total number share options at yearend 2622000  2650000  9782600  – 
the fair value of services received for share options granted is based on the fair value of share options granted measured by using for all 
issues prior to 20 march 2010 a black scholes model and a variant of the binomial model for issues on the 20 march 2010 with the 
following inputs
last fair value measurements
30 june 2014 30 june 2010 30 june 2008
share price 206 r068 r 062
exercise price nil r068 r 070
expected volatility 30 5861 7239
expected life 18 months 3–6 years 1–3 years
ftsejse sa gold mining index at grant date 130410 na na
riskfree interest rate 603 815 531
a company dividend rate has not been determined and therefore is not taken into account in option fair value calculations the volatility 
of the company’s share price on each date of grant was calculated as the average of volatilities of share prices of the company on the 
corresponding dates the volatility of share price of the company was calculated as the average of annualised standard deviations of daily 
continuously compounded returns on the company’s stock calculated over 1 to 4 years back from the date of grant therefore volatility 
of the company’s share prices was calculated over the period commensurate with the expected life of the options under consideration 
giving more weight to more recent historical data to account for volatility persistence
there are no market conditions attached to the exercise of the share options except the share options issued during the current year
the group recognised total expenses of £122936 2013 £127053 related to equity settled sharebased payment transactions during the 
reporting period
participation in sharebased and other longterm incentive schemes is restricted to employees and directors 152
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
related party transactions
the group entered into the following transactions and held yearend balances with related parties
statement of 
comprehensive income 
transactions
statement of financial 
position transactions
company 30 june 2014 30 june 2013 30 june 2014 30 june 2013
 £  £  £  £ 
– dividends received from barberton mines –  –  –  – 
– fee income from barberton mines 509478 1161720 –  – 
– fee income from phoenix platinum 29621 216763 –  – 
– fee income from evander mines 337678 –  –  – 
– directors fees expense to shanduka 38451  55136  –  – 
– receivable from other group companies
– barberton mines –  –  –  1194826 
– pan african resources management services company –  –  29  – 
– evander mines –  –  15238735  4210542 
– phoenix platinum

 –  –  7216854  8314398 
– payable to other group companies
– evander mines –  –  4976726 – 
– barberton mines loan payable –  –  30339085 13772763
– emerald panther –  –  8151 9780
– funding company –  –  194 233
payable to other related parties
fee payable to shanduka

 –  –  6791 – 
barberton mines
– dividends paid to company –  –  –  – 
– fees expense to company 509478  1161720  – 
– fees expense to shanduka 63084  76203  –  – 
– loans with group companies
– receivable from company –  –  30339085  13772763 
– payable to other group companies
– payable to company accounts payable –  –  –  1194826
funding company
– finance income from evander mines 863345 865245 –  – 
– loans with group companies
– receivable from company –  –  194  233 
– receivable from evander mines –  –  101934  10988018 
phoenix platinum

– fees paid to company 29621  216763  –  – 
– payable to other group companies
– payable to company

 –  –  7216854 8314398
evander mines subsidiaries
– receivable from other group companies
– receivable from evander mines –  –  7068166  8480858 
– payable to other group companies
– payable to evander mines –  –  164566 198369 153
annual 
financial 
statements
pan african resources plc integrated annual report 2014
statement of 
comprehensive income 
transactions
statement of financial 
position transactions
company 30 june 2014 30 june 2013 30 june 2014 30 june 2013
 £  £  £  £ 
evander gold mines ltd

– gold sales invoiced to evander gold mining pty ltd 54563057 26363367 –  – 
– cost of gold production from evander gold mining pty ltd 54022829  26102343  –  – 
– receivable from other group companies
receivable from evander gold mining pty ltd –  –  51245704  27711569 
receivable from evander subsidiaries –  –  164566  198369 
– payable to other group companies
payable to evander gold mining pty ltd –  –  –  27570010
payable to funding company –  –  6281 – 
payable to evander subsidiaries –  –  7068166 8480858
evander gold mining pty ltd

– gold purchases from evander gold mines ltd 54022829 26102343 –  – 
– cost of gold production income invoiced to evander gold mines ltd 54563057  26363367  –  – 
– finance costs paid to funding company 863345  865245  –  – 
– receivable from other group companies
– receivable from evander gold mines ltd –  –  –  27570010 
– payable to evander gold mines ltd –  –  51245704 27711569
– payable to other group companies
– payable to funding company –  –  101934 10988018
– payable to company –  –  15238735 4210542
  these related party transactions related to pan african and eliminate on consolidation 
 included in trade and other payables
 company loan to phoenix platinum reconciliation
company
 £  £ 
30 june 2014 30 june 2013
carrying amount of loan before impairment 7216854  16642179 
impairment of intercompany loan –  8327781
net carrying amount intercompany loan 7216854  8314398 
total investment by company in phoenix platinum comprises of the acquisition investment and a intercompany loan during the prior 
year the intercompany loan was impaired due to external reduction in metal prices and internal reduction in production and lower 
processing plant recoveries indicators the impairment was calculated using a weighted average cost of capital wacc of 1625 no 
impairment was required during the current year

 evander gold mines ltd and evander gold mining pty ltd are collectively referred to as evander mines due to a interimmining arrangement in place since 1 march 2013 154
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
noncurrent asset held for sale
the carrying value of noncurrent assets held for sale on 30 june 2014 are as follows
group company
££££
description
30 june 
2014
30 june 
2013
30 june 
2014
30 june 
2014
opening balance 213191  13135215  –  13155070 
disposal of the segalla plant

 177982 –  –  – 
disposal of manica projects

 –  12887411 –  12887411
foreign currency translation reserve 35209 34613 –  267659
 –  213191  –  – 
 during the prior year the group completed this disposal as described further in note 19 a loss on disposal arose as follows
 company 
£
30 june 2013
issue of share in auroch refer to note 19 4501947 
deferred consideration 7024203 
 11526150 
foreign currency translation reserve 775123 
net book value 12887411
loss on disposal of asset held for sale 586138 
 segalla plant
the decision was taken in during the 2012 financial year to sell the segalla plant in the current year the 
segalla plant was sold for a total consideration of £166859
group
30 june 2014 30 june 2013
££
opening balance 213191 247804 
proceeds 166859 – 
loss on sale of asset held for sale 11848 – 
foreign currency translation reserve 34484 34613
net book value – 213191 155
annual 
financial 
statements
pan african resources plc integrated annual report 2014
events after the reporting period
 the company announced on 2 july 2014 the following appointments and resignations 
– mr rg still resigned as a non executive director effectively from 1 july 2014
– mr r smith was appointed as an independent nonexecutive director with effect from 8 september 2014
on 29 august 2014 barberton mines implemented a broadbased employee ownership scheme a newly established employee trust will 
own 5 of the issued share capital of barberton mines the transaction was fully vendor financed on a notional basis by barberton mines 
the preference share funding attracts market related returns and dilution to pan african resources remains limited
reconciliation of profit before taxation to cash generated byused in operations
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
profit before taxation 33939335  54707096  569830 20947423
adjusted for 14887531  2092224  809102  17859752 
impairment –  16143604  –  18058860 
equity and cash settled share options costs 1730645  336518  767429  128418 
net finance income 190879  196963 168846 1079235
lossprofit on disposal of assets 20497 11768 –  – 
royalty costs 2019066  3198622  –  – 
bargain purchase consideration –  24114255 –  – 
loss on sale of asset held for sale 11848  586138  –  586138 
loss on associate 173177  152312  173177  152312 
decrease in provision for environmental rehabilitation 340530 –  –  – 
fair value adjustment on gold loan 128484  –  –  – 
fair value adjustment on rehab trust fund 923188  –  –  – 
nonmining depreciation  37342  41197  37342  40154 
mining depreciation 10023361  5998267  –  – 
other 10568  41448 –  26895
operating cash flows before working capital changes 48826866  56799320  239272  3087671
working capital changes 2831174 4818817  96460  1275834 
decreaseincrease in inventories 1254612  871992 –  – 
decreaseincrease in trade and other receivables 2208036  4666510 1161017  399776 
decreaseincrease in trade and other payables 5982303 10043929  955268 872306 
noncash items 311519 313390  109289 3752 
cash generated byutilised in operations 45995692  61618137  335732  1811837
income taxes paid 6966377 10116451 165877 – 
royalties paid 1569574 3549657 –  – 
net finance costsincome 605676 313508  168846  1054114 
dividends paid 14683712 –  14683712 – 
net cash fromused in operating activities 22170353  48265537  14345011 757723 156
notes to the consolidated and company
annual financial statements continued
for the year ended 30 june 2014
pan african resources plc integrated annual report 2014
reconciliation of profit before taxation to cash generated byused in operations continued
group company
30 june 2014 30 june 2013 30 june 2014 30 june 2013
££££
taxation paid during the year
taxation charge per the statement of comprehensive income  7154742  12133063  145372 289876
less deferred taxation  1918895  5479012 153436  289876 
 9073637  6654051  8064  – 
taxation receivablepayable at beginning of year  1322671 2870283  –  – 
taxation receivablepayable at end of year  891435 1322671  147911  – 
foreign currency translation 106846  730554 9902  – 
taxation paid during year  6966377  10116451  165877  – 
royalty paid during the year £  £ 
royalty costs receivablepayable at beginning of year  156668 482447 
royalty costs receivable acquired –  33436
royalty costs payable at end of year  291089 156668 
royalty costs charge for the year 2019066  3198622 
foreign currency translation 1735 254644
royalty paid during the year 1569574  3549657 
acquisition of evander mines
in the prior year 28 february 2013 the group acquired 100 of the recorded voting shares of evander mines thus obtaining control of 
evander mines cash consideration paid for the acquisition was zar1313 billion it was determined that this transaction represents a 
business combination with emerald panther identified as the acquirer the group began consolidating the operating results cash flows 
and net assets of evander mines from 1 march 2013 evander mines was a public unlisted mining company that was wholly owned by 
harmony the tables below present the purchase cost and our provisional allocation of the purchase price to the assets and liabilities 
acquired this allocation was calculated as at the date of acquisition to reflect the provisional determination of the fair values of the assets 
and liabilities acquired the significant adjustments were to increase property plant and equipment by zar1058 million and deferred 
income taxes by zar465 million with a corresponding bargain purchase gain of zar322 million recognised in the consolidated results 
there were no significant adjustments made to the consolidated statements of comprehensive income after applying these adjustments 
retroactively to the acquisition date
28 february 2013
purchase cost zar £
purchase consideration based on 1 october 2012 effective date 1500000000  112178888 
increased consideration for the period 1 october 2012 to  
28 february 2013 23104110  1727862 
dividend payment by evander mines 210000000 15705044
 1313104110  98201706 
cash acquired with evander mines  29354529 2195306
net cash consideration 1283749581  96006400  157
annual 
financial 
statements
pan african resources plc integrated annual report 2014
the purchase consideration was funded entirely by cash as follows
28 february 2013
purchase cost zar £
rights issue 707301534  50321260 
proceeds from long term debt 350000000  25729051 
break fee paid from operational cash 50000000  3739296 
operational cash  205802576  15391136 
foreign currency translation reserve –  3020963 
 1313104110  98201706 
summary of final purchase price allocation
fair value at 
acquisition
fair value at
 acquisition
zar £
property plant and equipment 2157007971  161313837 
other noncurrent assets
other investments 257129  19230 
environmental trust fund 217723481  16282652 
other noncurrent assets 3059085  228775 
current assets
inventory 51547305  3855013 
trade and other receivables 32223423  2409859 
cash 29354529  2195306 
noncurrent liabilities
deferred tax 603487340 45132359
provision for environmental rehabilitation 178186760 13325862
provision for post retirement benefit 874951 65434
current liabilities
trade and other payables 72853204 5448394
tax liability 222801 16662
net assets acquired at fair value 1635547867  122315961 
bargain purchase gain

 322443757 24114255
effective purchase price 1313104110  98201706 

 the bargain purchase gain arose due to net consideration paid being less than the fair value of assets and liabilities acquired
in accordance with the acquisition method of accounting the acquisition cost has been allocated to the underlying assets acquired and 
liabilities assumed based upon their estimated fair values at the date of acquisition bdo corporate finance was used to assist the group 
in determining the fair value of the mining rights and property plant and equipment acquired
evander mines results post and pre acquisition to 30 june 2013
revenue
profits 
after tax
post acquisition revenue profitloss from 1 march 2013 to  
30 june 2013 31712557 7968404
pre acquisition revenue profitloss from 1 july 2012 to  
28 february 2013 64447224 9499890
evander results for the financial year under review 96159781 17468294 158
shareholder
information
pan african resources plc integrated annual report 2014
shareholder
information 159
shareholder 
information
pan african resources plc integrated annual report 2014
shareholder 
information 160 pan african resources plc integrated annual report 2014
financial yearend 30 june 2014
preliminary annual results announcement 16 september 2014
annual report posted 29 october 2014
agm 21 november 2014
interim results announcement tba
shareholders’ 
diary
number of
 shareholders 
number 
of shares 
1 – 1000 shares 501  905  253834  001 
1001 – 10000 shares 2085  3767  10166164  056 
10001 – 100000 shares 2169  3919  71278084  389 
100001 – 1000000 shares 570  1030  177855185  972 
1000001 shares and over 210  379  1570441496  8582 
total 5535  10000  1829994763  10000 
distribution of shareholders
banks 5 009 206893 001 
brokers 23 042 12189243 067 
close corporations 66 119 4591482 025 
endowment funds 28 051 7871935 043 
individuals 4330 7823 135148976 739 
insurance companies 28 051 37240296 203 
investment companies 3 005 27438747 150 
medical aid schemes 12 022 7794865 043 
mutual funds 140 253 431468113 2358 
nominees and trusts 584 1055 345358209 1887 
other corporations 65 117 2129112 012 
pension funds 162 293 353666866 1933 
private companies 75 136 460585853 2517 
public companies 14 024 4304173 022 
total 5535 10000 1829994763 10000 
publicnonpublic shareholders
nonpublic shareholders 7 013 450553347 2462 
director 6 011  14195289  078 
strategic holder more than 10 1 001 436358058 2384 
public shareholders 5528 9987 1379441416 7538
total 5535 10000 1829994763 10000
shareholder 
analysis
shareholder spread
register date 30 june 2014
issued share capital 1829994763 shares
beneficial shareholders holding of 3 or more
number 
of shares 
shanduka 436358058  2384 
coronation fund managers 184569254  1009 
allan gray  182816486  999 
afena capital 112583127  615 
prudential portfolio managers 111558158  610 
public investment corporation 99476830  544  161
shareholder 
information
pan african resources plc integrated annual report 2014
notice of 
annual general meeting
notice is hereby given that the 2014 annual general meeting of pan african resources plc will be held at the office of canaccord 
genuity limited eighth floor 88 wood street london ec2v 7qr on 21 november 2014 at 1000 all times stated are united kingdom 
times unless otherwise stated to consider and if thought fit transact the following business
ordinary business
1 to receive and adopt the directors’ report the audited statement of accounts and auditors’ report for the year ended 30 june 2014
2 to approve the payment of a final dividend for the year ended 30 june 2014 of zar01410 per share 
3 to reelect mrs h h hickey as a member of the audit committee
4 to reelect mr k c spencer as a member of the audit committee
5 to reelect mr t mosololi as a member of the audit committee
6 to endorse the company’s remuneration policy for the year ended 30 june 2014
7 to reelect mr j a j loots as a director of the company who retires by rotation pursuant to the articles of association of the 
company
8 to reelect mrs h h hickey as a director of the company who retires by rotation pursuant to the articles of association of the 
company
9 to reelect mr t mosololi as a director of the company who was appointed since the last annual general meeting 
10 to reelect mr r m smith as a director of the company who was appointed since the last annual general meeting
11 to reappoint deloitte llp as auditors of the company and to authorise the directors to determine their remuneration
special business
as special business to consider and if thought fit to pass the following resolutions of which resolution 12 will be proposed as an ordinary 
resolution and resolution 13 will be proposed as special resolution
12 that the directors be and are hereby generally and unconditionally authorised pursuant to section 551 of the companies act 2006 
“the act” in substitution for all previous powers granted to them thereunder to exercise all the powers of the company to allot 
and make offers to allot equity securities within the meaning of section 560 of the act up to an aggregate nominal amount of 

of the next annual general meeting of the company or on 31 december 2015 whichever is the earlier provided that the company 
may at any time before such expiry make an offer or enter into an agreement which would or might require equity securities to be 
allotted after such expiry and the directors may allot equity securities pursuant to any such offer or agreement as if the authority 
conferred hereby had not expired
13 that the company be generally and unconditionally authorised for the purposes of section 701 of the companies act 2006 “the 
act” to make market purchases as defined in section 693 of the act of ordinary shares of the company on such terms and in such 
manner as the directors shall determine provided that 
a the maximum aggregate number of ordinary shares which may be purchased is shares with an aggregate nominal value of 

b the minimum price excluding expenses which may be paid for each ordinary share is 1p or the equivalent at the prevailing 

c the maximum price excluding expenses which may be paid for any ordinary share does not exceed 5 per cent above the average 

d this authority shall expire at the conclusion of the next annual general meeting of the company or on 31 december 2015 
whichever is the earlier unless such authority is renewed prior to that time except in relation to the purchase of ordinary shares 
the contract for which was concluded before the expiry of such authority and which might be executed wholly or partly after 
 162 pan african resources plc integrated annual report 2014
notice of 
annual general meeting continued
e any market purchases by the company of ordinary shares in the company on the jse limited as contemplated in this resolution 
shall comply to the extent required with the provisions of the listings requirements of the jse limited “the listings 
requirements” pertaining to the general authority to repurchase securities for cash which in summary provide as follows




shares traded on the jse limited over the five business days immediately preceding the date on which the transaction is 


 and its subsidiaries engaged in such repurchases have passed solvency and liquidity test and confirming that since such tests 


has complied with the conditions set out in paragraph 572h of the listings requirements 
the other general information referred to in paragraph 1126b of the listings requirements regarding the company is contained 
elsewhere in this notice of agm as follows
 directors and management of the company and of its material subsidiary on pages 34 to 37 
 major shareholders on page 160
 directors’ interests in the company’s shares on pages 146 to 147
 company’s share capital on page 131 
furthermore neither the company nor its subsidiaries is involved in any legal or arbitration proceedings nor are any such proceedings 
pending or threatened that may have or have had any material effect on the group’s financial position
directors’ responsibility statement
the directors of the company whose names are given on pages 34 – 35 of the group’s integrated annual report in which this notice is 
incorporated collectively and individually accept full responsibility for the accuracy of the information given in this notice and certify that 
to the best of their knowledge and belief there are no facts that have been omitted which would make any statement false or misleading 
and that all reasonable enquiries to ascertain such facts have been made and that this notice contains all information required by the 
listings requirements
material change
the directors of the company confirm that there has not been any material change in the financial or trading position of the company and 
its subsidiaries that has occurred since the end of the last financial period
the intention of the directors is that the repurchase of the company’s shares will be effected within the parameters laid down by this 
resolution as well as by the act the jse limited and the board as and when the directors of the company deem such repurchases to be 
appropriate having regard for prevailing market and business conditions the directors will ensure that the requisite prior resolution of 
the board has been taken authorising such repurchases confirming that the company and its subsidiaries engaged in such repurchases 
have passed the solvency and liquidity test and confirming that since such tests were performed there have been no material adverse 
changes to the financial position of the group 163
shareholder 
information
pan african resources plc integrated annual report 2014
after considering the effect of a general repurchase within the parameters set out above the directors are of the view that for a period 
of at least 12 months after the date of the agm referred to in this notice


respectively such assets and liabilities being fairly valued and recognised and measured in accordance with the accounting policies used 




notes
i the company will publish an announcement complying with the listings requirements if and when any of its shares have been 
repurchased in terms of the aforementioned general authority
ii the company’s sponsor will discharge its duties in terms of the listing requirements before the company commences any share 
repurchases in terms of the general authority being hereby sought
by order of the board
st james’s corporate services limited 
company secretary
16 september 2014
suite 31 second floor
107 cheapside
london
england
ec2v 6dn
explanatory notes 
entitlement to attend and vote
1 the company specifies that only those members registered on the company’s register of members at


vote at the agm
appointment of proxies
2 if you are a member of the company at the time set out in note 1 above you are entitled to appoint a proxy to exercise all or any of 
your rights to attend speak and vote at the agm and you should have received a proxy form with this notice of meeting
 you can only appoint a proxy using the procedures set out in these notes and the notes to the proxy form
3 a proxy does not need to be a member of the company but must attend the agm to represent you details of how to appoint the 
chairman of the agm or another person as your proxy using the proxy form are set out in the notes to the proxy form
 if you wish your proxy to speak on your behalf at the agm you will need to appoint your own choice of proxy not the chairman 
and give your instructions directly to them
4 you may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares you may not 
appoint more than one proxy to exercise rights attached to any one share to appoint more than one proxy you may photocopy this 
form 164 pan african resources plc integrated annual report 2014
notice of 
annual general meeting continued
5 a vote withheld is not a vote in law which means that the vote will not be counted in the calculation of votes for or against the 
resolution if you either select the “discretionary” option or if no voting indication is given your proxy will vote or abstain from voting 
at his or her discretion your proxy will vote or abstain from voting as he or she thinks fit in relation to any other matter which is 
put before the agm
appointment of proxy using hard copy proxy form
6 the notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote
 to appoint a proxy using the proxy form the form must be

pty limited ground floor 70 marshall street johannesburg 2001 south africa po box 61051 marshalltown 2107 johannesburg 

 in the case of a member which is a company the proxy form must be executed under its common seal or signed on its behalf by an 
officer of the company or an attorney for the company
 any power of attorney or any other authority under which the proxy form is signed or a duly certified copy of such power or 
authority must be included with the proxy form
appointment of proxy by joint members
7 in the case of joint holders where more than one of the joint holders purports to appoint a proxy only the appointment submitted 
by the most senior holder will be accepted seniority is determined by the order in which the names of the joint holders appear in 
the company’s register of members in respect of the joint holding the firstnamed being the most senior
changing proxy instructions
8 to change your proxy instructions simply submit a new proxy appointment using the methods set out above note that the cutoff 

received after the relevant cutoff time will be disregarded
 where you have appointed a proxy using the hard copy proxy form and would like to change the instructions using another hard 
copy proxy form please contact capita asset services pxs 34 beckenham road beckenham br3 4tu or computershare investor 
services pty limited ground floor 70 marshall street johannesburg 2001 south africa po box 61051 marshalltown 2107 
johannesburg south africa
 if you submit more than one valid proxy appointment the appointment received last before the latest time for the receipt of proxies 
will take precedence
termination of proxy appointments
9 in order to revoke a proxy instruction you will need to inform the registrar by sending a signed hard copy notice clearly stating your 
intention to revoke your proxy appointment as above in the case of a member which is a company the revocation notice must be 
executed under its common seal or signed on its behalf by an officer of the company or an attorney for the company
 any power of attorney or any other authority under which the revocation notice is signed or a duly certified copy of such power or 
authority must be included with the revocation notice
 the revocation notice must be received by capita asset services or computershare investor services pty limited no later than 
1000 on 19 november 2014 if you attempt to revoke your proxy appointment but the revocation is received after the time specified 
then subject to the paragraph directly below your proxy appointment will remain valid
 appointment of a proxy does not preclude you from attending the agm and voting in person if you have appointed a proxy and 
attend the agm in person your proxy appointment will automatically be terminated 165
shareholder 
information
pan african resources plc integrated annual report 2014
issued shares and total voting rights
10 as at 1800 on 15 september 2014 the company’s issued share capital comprised 1829994763 ordinary shares of 1p each each 
ordinary share carries the right to one vote at a general meeting of the company and therefore the total number of voting rights in 
the company as at 1800 on 15 september 2014 was 1829994763 
directors’ interests and documents on display
11 a statement or summary of transactions of directors and their family interests in the share capital of the company and copies of 
their service contracts will be available for inspection at the company’s registered office during normal business hours saturdays and 
public holidays excepted from the date of this notice until the conclusion of the agm and will also be available for inspection at the 
place of the agm for at least 15 minutes prior to and during the meeting
crest
12 crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may do so for 
the meeting and any adjournments thereof by using the procedures described in the crest manual crest personal members or 
other crest sponsored members and those crest members who have appointed a voting service providers should refer to their 
crest sponsor or voting service providers who will be able to take the appropriate action on their behalf
13 in order for a proxy appointment or instruction made using the crest service to be valid the appropriate crest message 
a “crest proxy instruction” must be properly authenticated in accordance with euroclear’s specifications and must contain the 
information required for such instructions as described in the crest manual the message regardless of whether it constitutes 
the appointment of a proxy or to an amendment to the instruction given to a previously appointed proxy must in order to be valid 
be transmitted so as to be received by the issuer’s agent id ra10 by 1000 on 19 november 2014 or 48 hours preceding the date 
and time for any adjourned meeting for this purpose the time of receipt will be taken to be the time as determined by the 
timestamp applied to the message by the crest applications host from which the issuer’s agent is able to retrieve the message 
enquiry to crest in the manner prescribed by crest after this time any change of instructions to proxies appointed through 
crest should be communicated to the appointee through other means
14 crest members and where applicable their crest sponsors or voting service providers should note that euroclear does not make 
available special procedures in crest for any particular messages normal system timings and limitations will therefore apply in 
relation to the input of crest proxy instructions it is the responsibility of the crest member concerned to take or if the crest 
member is a crest personal member or sponsored member or has appointed a voting service providers to procure that his crest 
sponsor or voting service providers takes such action as shall be necessary to ensure that a message is transmitted by means of 
the crest system by any particular time in this connection crest members and where applicable their crest sponsors or 
voting service providers are referred in particular to those sections of the crest manual concerning practical limitations of the 
crest system and timings 166 pan african resources plc integrated annual report 2014
terms and abbreviations definitions
agm annual general meeting
aids acquired immune deficiency syndrome
aim alternative investment market the london stock exchange’s international market for smaller 
growing companies
amcu association of mineworkers and construction union
auroch pan african resources has an investment in australianlisted auroch minerals nl 
bbbee broadbased black economic empowerment
barberton mines barberton mines pty limited 
biox® the biological oxidation biox® gold extraction process was developed at barberton mines 
it is an environmentally friendly process of releasing gold from the sulphide that surrounds it by 
using bacteria 
the board the board of directors of pan african resources plc limited as set out on pages 34 to 35
btrp barberton tailings retreatment plant a gold recovery tailing plant owned by barberton mines 
which commenced production in fy2014
ceo chief executive officer pan african resources’ ceo is ron holding appointed 9 september 
2013
cil carboninleach
cip carboninpulp
the companies act south african companies act no 71 of 2008 as amended
coo chief operating officer pan african resources’ coo is anaki karigeni appointed 1 april 2014
ctrp chrome tailings retreatment plant 
csi corporate social investment
the current year the year ending 30 june 2015
dm” department of mineral resources
etrp evander tailings treatment project approved during the year for commissioning in october 2014
evander mines evander gold mines limited and evander gold mining proprietary limited
eu european union 
eskom electricity supply commission south african electricity supplier
exco executive committee of pan african resources plc
fd financial director pan african resources’ fd is cobus loots appointed 1 october 2013
fog fall of ground
gt gramstonne 
gri global reporting initiatives
harmony harmony gold mining company limited
hiv human immunodeficiency virus
hr human resources
ias international accounting standards
ifm international ferro metals sa pty limited phoenix platinum concluded a formal ctrp 
agreement with ifm and operates from its lesedi mine 
glossary 167
shareholder 
information
pan african resources plc integrated annual report 2014
terms and abbreviations definitions
ifrs international financial reporting standards
iodsa institute of directors south africa
iso international standards organisation
jse jse limited incorporating the johannesburg securities exchange the main bourse in south africa
king iii report or king iii king report on corporate governance for south africa 2009
km kilometres 
koz kilo ounces
kpis key performance indicators – a set of quantifiable measures that a company or industry uses to 
gauge or compare performance in terms of meeting their strategic and operational goals 
lom life of mine
ltifr lost time injury frequency rate
lse london stock exchange
metanza bee company metanza mineral processors operates the ctrp at phoenix platinum plant under 
contract to pan african resources
mcf mine call factor
mhsa mine health and safety act
mrm mineral resource management
mrmr mineral resources and mineral reserves report
mt million tonnes
moi memorandum of incorporation
moz million ounces
nihl noiseinduced hearing loss
num national union of mineworkers
nomad uk nominated advisor 
opsco operations committee
the group or the company or pan african resources plc listed on the lse’s aim
pan african resources and on the jse in the “gold mining” sector 
pge platinum group elements namely platinum palladium rhodium and gold 
phoenix platinum phoenix platinum mining pty limited subsidiary of pan african resources 
the previous year the year ended 30 june 2013 
saica south african institute of chartered accountants 
sa south africa
shanduka  or shanduka group shanduka group pty ltd pan african resources’ black empowerment partner which has a 
26 stake in the group
sheqc safety health environment quality and community
slp social and labour plan
sporotrichosis a disease caused by the infection of the fungus  168 pan african resources plc integrated annual report 2014
terms and abbreviations definitions
ttonnes
tb tuberculosis
tmm trackless mobile machinery
the uk code uk corporate governance code 
uasa united association of south africa
uk united kingdom
the year or the year ended 30 june 2014
the year under review 
financial terms definitions
cpi the consumer price index of south africa a primary indicator of south africa’s inflation
eps earnings per share 
gbp pounds sterling
heps headline earnings per share
ppi producer price inflation
roi return on investment
usd us dollars
zar south african rand
glossary continued form of proxy
united kingdom
incorporated and registered in england and wales under companies act 1985 with registration number 3937466 on 25 february 2000
share code on aim paf     isin gb0004300496     share code jse pan
this form of proxy is for use by all nonsouth african shareholders and for south african certificated shareholders and south african own 
name dematerialised shareholders only
iwe the undersigned being a member of the abovenamed company hereby appoint the chairman of the meeting or see notes 1 and 3
name of proxy number of shares proxies appointed over
as myour proxy to attend speak and vote on myour behalf at the annual general meeting of pan african resources plc to be held at the office 
of canaccord genuity limited eighth floor 88 wood street london ec2v 7qr at 1000 on 21 november 2014 and at any adjournment thereof 
if you wish to appoint multiple proxies please see note 1 below  please also tick here if you are appointing more than one proxy
the proxy will vote on the undermentioned resolutions as indicated
ordinary business for against
voting 
withheld discretionary
1 to receive the accounts and the reports of the directors and auditors thereon
2 to approve the payment of a final dividend for the year ended 30 june 2014  
3 to reelect mrs h h hickey as a member of the audit committee
4 to reelect mr k c spencer as a member of the audit committee
5 to reelect mr t mosololi as a member of the audit committee
6 to endorse the company’s remuneration policy
7 to reelect mr j a j loots as a director of the company
8 to reelect mrs h h hickey as a director of the company
9 to reelect mr t mosololi as a director of the company
10 to reelect mr r m smith as a director of the company
11 to reappoint deloitte llp as auditors of the company and to authorise the 
directors to determine their remuneration
special business
12 to authorise the directors to allot equity securities
13 to approve market purchases of ordinary shares
if this form is signed and returned without any indication as to how the 
proxy shall vote he or she will exercise his or her discretion both as 
to how he or she votes and whether or not he or she abstains 
from voting 
 the “vote withheld” option is to enable you to abstain on the specified 
resolution please note a “vote withheld” has no legal effect and will 
not be counted in the votes “for” and “against”
 if you select “discretionary” or fail to select any of the given options 
the proxy is authorised to vote or abstain from voting at his or her 
discretion on the specified resolution the proxy is also authorised to 
vote or abstain from voting on any other business which may properly 
come before the meeting
print name 
block capitals
signature 
address
dated this day of 2014
notes
1 to appoint as a proxy a person other than the chairman of the meeting insert the full 
name in the space provided  to appoint more than one proxy you may photocopy this 
form  please indicate the proxy holder’s name and the number of shares in relation to 
which they are authorised to act as your proxy which in aggregate should not exceed 
the number of shares held by you  please also indicate if the proxy instruction is one of 
multiple instructions being given  all forms must be signed and should be returned 
together in the same envelope  a proxy need not be a member of the company
2 this form is for use of shareholders only and will be used only in the event of a poll being 
directed or demanded
3 you may if you wish delete the words “the chairman of the meeting” and substitute 
the namess of your choice please initial such alteration
4 to be effective this form of proxy must be lodged at the company’s registrars capita 
asset services pxs 34 beckenham road beckenham br3 4tu or computershare 
investor services pty ltd ground floor 70 marshall street johannesburg 2001 
south africa not later than 48 hours before the start of the meeting
5 in the case of a corporation the form must be executed under its common seal or under 
the hand of an officer or attorney duly authorised in writing
6 in the case of joint holders the signature of any of them will suffice but the names of all 
joint holders should be shown the vote of the senior joint holder who tenders a vote 
whether in person or by proxy shall be accepted to the exclusion of the votes of 
the other joint holders and for this purpose seniority shall be determined by the order 
in which the names stand in the register of members in respect of the joint holding
7 dematerialised shareholders in south africa who are not own name dematerialised 
shareholders and who wish to attend the agm should instruct their csdp or broker to 
issue them with the necessary authority to attend the meeting in person in the manner 
stipulated in the custody agreement governing the relationship between such 
shareholders and their csdp or broker these instructions must be provided to the 
csdp or broker by the cutoff time and date advised by the csdp or broker for 
instructions of this nature dematerialised shareholders in south africa who are not own 
name dematerialised shareholders and who cannot attend but who wish to vote at 
the agm should provide their csdp or broker with their voting instructions in 
the manner stipulated in the custody agreement governing the relationship between 
such shareholders and their csdp or broker these instructions must be provided to 
the csdp or broker by the cutoff time and date advised by the csdp or broker for 
instructions of this nature
8 shares held in uncertificated form ie in crest may be voted through the crest 
proxy voting service in accordance with the procedures set out in the crest manual first fold
third fold
third fold and tuck in
business reply
licence number
rsbhuxkslrbc
pxs
34 beckenham road
beckenham
br3 4tu
1 form of proxy
south africa
incorporated and registered in england and wales under companies act 1985 with registration number 3937466 on 25 february 2000
share code on aim paf     isin gb0004300496     share code jse pan
this form of proxy is for use by all nonsouth african shareholders and for south african certificated shareholders and south african own 
name dematerialised shareholders only
iwe the undersigned being a member of the abovenamed company hereby appoint the chairman of the meeting or see notes 1 and 3
name of proxy number of shares proxies appointed over
as myour proxy to attend speak and vote on myour behalf at the annual general meeting of pan african resources plc to be held at the office 
of canaccord genuity limited eighth floor 88 wood street london ec2v 7qr at 1000 on 21 november 2014 and at any adjournment thereof 
if you wish to appoint multiple proxies please see note 1 below  please also tick here if you are appointing more than one proxy
the proxy will vote on the undermentioned resolutions as indicated
ordinary business for against
voting 
withheld discretionary
1 to receive the accounts and the reports of the directors and auditors thereon
2 to approve the payment of a final dividend for the year ended 30 june 2014  
3 to reelect mrs h h hickey as a member of the audit committee
4 to reelect mr k c spencer as a member of the audit committee
5 to reelect mr t mosololi as a member of the audit committee
6 to endorse the company’s remuneration policy
7 to reelect mr j a j loots as a director of the company
8 to reelect mrs h h hickey as a director of the company
9 to reelect mr t mosololi as a director of the company
10 to reelect mr r m smith as a director of the company
11 to reappoint deloitte llp as auditors of the company and to authorise the 
directors to determine their remuneration
special business
12 to authorise the directors to allot equity securities
13 to approve market purchases of ordinary shares
if this form is signed and returned without any indication as to how the 
proxy shall vote he or she will exercise his or her discretion both as 
to how he or she votes and whether or not he or she abstains 
from voting 
 the “vote withheld” option is to enable you to abstain on the specified 
resolution please note a “vote withheld” has no legal effect and will 
not be counted in the votes “for” and “against”
 if you select “discretionary” or fail to select any of the given options 
the proxy is authorised to vote or abstain from voting at his or her 
discretion on the specified resolution the proxy is also authorised to 
vote or abstain from voting on any other business which may properly 
come before the meeting
print name 
block capitals
signature 
address
dated this day of 2014
notes
1 to appoint as a proxy a person other than the chairman of the meeting insert the full 
name in the space provided  to appoint more than one proxy you may photocopy this 
form  please indicate the proxy holder’s name and the number of shares in relation to 
which they are authorised to act as your proxy which in aggregate should not exceed 
the number of shares held by you  please also indicate if the proxy instruction is one of 
multiple instructions being given  all forms must be signed and should be returned 
together in the same envelope  a proxy need not be a member of the company
2 this form is for use of shareholders only and will be used only in the event of a poll being 
directed or demanded
3 you may if you wish delete the words “the chairman of the meeting” and substitute 
the namess of your choice please initial such alteration
4 to be effective this form of proxy must be lodged at the company’s registrars capita 
asset services pxs 34 beckenham road beckenham br3 4tu or computershare 
investor services pty ltd ground floor 70 marshall street johannesburg 2001 
south africa not later than 48 hours before the start of the meeting
5 in the case of a corporation the form must be executed under its common seal or under 
the hand of an officer or attorney duly authorised in writing
6 in the case of joint holders the signature of any of them will suffice but the names of all 
joint holders should be shown the vote of the senior joint holder who tenders a vote 
whether in person or by proxy shall be accepted to the exclusion of the votes of 
the other joint holders and for this purpose seniority shall be determined by the order 
in which the names stand in the register of members in respect of the joint holding
7 dematerialised shareholders in south africa who are not own name dematerialised 
shareholders and who wish to attend the agm should instruct their csdp or broker to 
issue them with the necessary authority to attend the meeting in person in the manner 
stipulated in the custody agreement governing the relationship between such 
shareholders and their csdp or broker these instructions must be provided to the 
csdp or broker by the cutoff time and date advised by the csdp or broker for 
instructions of this nature dematerialised shareholders in south africa who are not own 
name dematerialised shareholders and who cannot attend but who wish to vote at 
the agm should provide their csdp or broker with their voting instructions in 
the manner stipulated in the custody agreement governing the relationship between 
such shareholders and their csdp or broker these instructions must be provided to 
the csdp or broker by the cutoff time and date advised by the csdp or broker for 
instructions of this nature
8 shares held in uncertificated form ie in crest may be voted through the crest 
proxy voting service in accordance with the procedures set out in the crest manual 172 pan african resources plc integrated annual report 2014
first fold
third fold
and tuck in flap opposite
second fold
postage will 
be paid by the 
addressee
no postage 
necessary 
if posted in 
south africa
business reply service
licence no j 5563
2107 marshalltown 173 pan african resources plc integrated annual report 2014
notes 174 pan african resources plc integrated annual report 2014
notes 175 pan african resources plc integrated annual report 2014
notes 176 pan african resources plc integrated annual report 2014
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
facsimile  27 0 11 880 1240
registered office
suite 31
second floor
107 cheapside
london
ec2v 6dn
united kingdom
office    44 0 207 796 8644
facsimile  44 0 207 796 8645
ron holding
pan african resources plc
ceo
office  27 011 243 2900
phil dexter 
st james’s corporate services limited
company secretary 
office  44 0207 4796 8644
nigel gordon
fasken martineau llp
solicitors in the uk
office 44 0207 917 8500
julian gwillim
aprio strategic communications
public  investor relations sa
office 27 011 880 0037
cobus loots
pan african resources plc
fd
office  27 0 11 243 2900
neil elliotpeter stewart
canaccord genuity limited
nominated adviser
office 44 0207 523 8350
sholto simpson
one capital
jse sponsor
office  27 011 550 5009
daniel thole
bell pottinger pr
public and investor relations uk
office  44 0203 772 2500
matthew armitt
peel hunt llp
joint broker
office 44 0022 0741 8900
wwwpanafricanresourcescom
contact
information editorial wwwpanafricanresourcescom


Summary:
 26 pan african resources plc integrated annual report 2014
chief executive officer’s
report
year in review
i am pleased to report that we have delivered on our strategic 
priorities for the year under review despite challenges 
on which i will elaborate further in this report pan african 
resources’ quality assets and dedicated experienced staff and 
management have again delivered returns for shareholders 
these returns can be measured in profits but also importantly 
in another attractive dividend to shareholders this dividend 
and also our new policy to pay a progressive annual dividend 
refer to page 125 demonstrates the board’s confidence in  
pan african resources’ operations our people and our ability 
to continue to deliver and improve results
we have made good progress towards solidifying our position 
as an africanfocussed midtier precious metals miner 
our annual revenue was up by 412 and gold production up 
by 442 evander mines is now fully integrated and part of the 
group at barberton mines the btrp became fully operational 
and has been delivering ounces at above the originally 
planned margin
nonetheless we continued to see a challenging macro
environment during the year and our results and margins were 
impacted by the continued weakness in precious metals prices 
as well as inflationary and other cost pressures in south africa 
in addition and as anticipated at evander mines mining in lower 
grade areas also had a significant adverse impact on our financial 
results we are actively implementing a number of measures to 
mitigate the impact of this lower grade mining cycle measures 
implemented or in progress to mitigate the impact of the 
current low grade cycle at evander mines include the following
 the construction of the etrp to yield an estimated 10000oz 
of gold per annum with a lom of 17 years the etrp project 
is progressing well and expected to be in production by 
january 2015
 surface sources throughput in the evander mines’ plant has 
been increased from 18000t per month to approximately 
30000t per month to maintain these tonnages for the full 
2015 financial year additional sources are being investigated
 vamping the mining of historical “leftovers” remaining after 
previous mining operations at evander mines no 7 shaft 
has been expanded to include the 15 level return airway mud 
accumulation project this has been contributing additional 
ounces from july 2014
 management is concentrating efforts to increase availability 
of conveyor belts in the evander mines no 8 shaft declines 
a refurbishment programme has been implemented to effect 
the necessary mechanical improvements and upgrades
pan african resources’ quality 
assets and dedicated experienced 
staff and management have again 
delivered returns for shareholders 27
strategic 
report
pan african resources plc integrated annual report 2014
 management has rescheduled the mine planning and 
improved mining flexibility by increasing development rates 
on 25 and 25a levels at evander mines no 8 shaft to access 
more stoping areas
through focussed initiatives exploration and planning at our 
operations we have positively enhanced these valuable assets’ 
respective loms
 barberton mines’ lom increased to 19 years 2013 17 years 
due to exploration ounces added at fairview mine and 
sheba mine
 btrp’s lom has been increased to 15 years 2013 12 years 
by remodelling the tonnages at the harper south dam 
and converting the consort and sheba tailings dams into 
a probable mineral reserve
 evander mines’ lom was increased to 17 years 2013 
14 years as a result of including the mining area between 
25 and 26 levels at evander mines no 8 shaft not previously 
in the lom plan – now termed the decline extension project 
a robust mine design was considered in order to convert the 
mineral resource into a mineral reserve
 etrp has established a lom of 17 years aligning with the life 
of no 8 shaft and will exploit the slimes on kinross tailings 
dams and
 phoenix platinum’s lom has increased to 28 years 2013 
20 years
strategy
in the year under review we made good progress in targeting 
high margins at a low cost this is borne out by the highly 
costeffective btrp operation the construction of the etrp 
at evander mines and a potentially larger successor plant – the 
elikhulu project see ’looking ahead’ below
the lom at evander mines no 8 shaft has been increased 
by extending the decline system down to 26 level the decline 
extension project to access the resources between 25 and 
26 level which will also alleviate mining flexibility constraints by 
creating additional stoping areas
our strong balance sheet and wellestablished cashgenerative 
operations are key differentiators from our peers these 
provide pan african resources with a competitive advantage 
to further growth through our operations and organic project 
pipeline and also position the group to capitalise on potential 
acquisition opportunities in the year ahead we will focus on 
maintaining our statement of financial position while also 
seeking new opportunities to create value for shareholders 
we plan to continue rewarding shareholders through dividends
health and safety
our commitment to safety remains at the heart of our culture 
and is evident in the way we operate and manage the group 
it was with great sadness that we experienced four fatalities in the 
group during the year  we extend our deepest condolences to 
the families friends and colleagues of the deceased in an effort to 
prevent a recurrence the group continues to focus on safety we 
have implemented corrective actions to as far as possible prevent 
any further recurrences further detail in this regard can be found in 
our sustainability report on our website wwwpanafricanresourcescom
performance
our flagship asset barberton mines continues to underpin 
the group’s performance with highmargin underground 
production it remains one of the lowest cost mines in south 
africa the btrp was completed in 2013 on schedule and on 
budget it supports barberton mines as a long life low cost gold 
producer the btrp has increased efficiencies and further dilutes 
the costs at the mine as a whole the plant became operational 
at the beginning of the year in review and has already achieved 
its targets at yearend it was producing gold at an allin cost of 

at barberton mines the successful commissioning of the btrp 
assisted in offsetting a reduction in underground production 
which occurred when the sheba mine lost a month’s production 
due to flooding caused by excessively high rainfall just on 
200mm in 10 hours during march 2014 as well as a temporary 
technical setback at the central biox
®
 plant
during the year barberton mines’ wage costs increased in 
excess of inflation in line with our twoyear wage agreement 
with num labour and staff costs were further impacted by 
the introduction of a medical aid scheme for barberton mines’ 
employees salaries and wages represent the greatest single cost 
at barberton mines at 447 2013 485 of total production 
costs these necessary increases and initiatives reflect our 
commitment to our people and our social obligations
evander mines is performing as anticipated and contributed 
to the group for the full year as opposed to four months’ 
contribution in the prior year as planned the mine is 
currently operating in a low grade mining cycle that is 
impacting underground gold production and cash unit costs 
we expect this cycle to continue until february 2015 where 
after mining will gradually move into the high grade cycle 
by august 2015 to compensate for the lower grade cycle 
we have increased tonnages from surface sources targeted 
additional vamping areas at no 7 shaft and are recovering gold 
from the kinross plant mill floor during the year the board 
approved the necessary capital expenditure for construction 
of the etrp through the refurbishment of dormant sections 
of the existing kinross metallurgical plant to recover gold from 
the retreatment of gold tailings this is envisaged to increase 
evander mines’ gold production by up to 10000oz per annum 

at our ctrp phoenix platinum’s performance improved during 
the year and the operation saw its first year of profitability plant 
recovery rates increased to 29 during the year 2013 21 
this was achieved through adjusting the reagent suite in the 
extraction process to deal with variable feed sources 28 pan african resources plc integrated annual report 2014
finally the depreciation of the zar against the usd and 
good control of aggregate and unit costs in zar terms 


in capital expenditure spent on the btrp even though evander 
mines’ gold production declined as result of the low grade 
mining cycle
financial performance
group revenue yearonyear increased by 412 to 
zar26088 million 2013 zar18481 million in terms of costs 
the total cost of production was up 823 to zar17959 million 
2013 zar9851 million
during the year zar390 million was added to the bottom line 
upon realising profits from zero cost collars
we have proposed a dividend of zar2580 million a 74 
increase from zar2403 million declared in the 2013 
financial year
please refer to the fd’s report on page 42 and the financial 
statements for further detail
commodity prices
during the year under review gold prices retreated considerably 
 
a decrease of 161 yearonyear please refer to the fd’s 
report on page 42 for further detail
looking ahead
the construction and commissioning of the etrp is significant 
as it has an estimated resource of 04 million ounces and 
adds immediate production ounces to evander mines should 
the etrp project meet targets we will evaluate a project to 
commission a further much larger plant – the elikhulu project – 
situated at evander mines to treat tailings from the winkelhaak 
leslie bracken and kinross dam storage facilities with an 
estimated resource of 15 million ounces
the refurbishment of fairview no 2 and 3 decline shafts at 
barberton mines will continue for another 18 months after 
which operations will revert to six shifts per week
once the above plans are actioned we will be on track to 
achieve our targeted 250000oz of annual production from our 
current portfolio of assets and infrastructure 
our commitment to safety remains at the heart of our culture 
and is evident in the way we operate and manage the group  
chief executive officer’s
report continued 29
strategic 
report
pan african resources plc integrated annual report 2014
our brownfields project pipeline at evander mines also includes 
the evander south poplar and rolspruit projects evander 
south has estimated resources of 52 million ounces poplar 
54 million ounces and rolspruit 89 million ounces 
pan african resources is also well positioned to take advantage 
of further growth opportunities
thank you
we extend our thanks to our management team our mine 
managers and all their staff for their hard work and persistence 
that have allowed pan african resources to continue growing 
from strength to strength we also thank our fellow directors 
for their support and guidance
ron holding
ceo
16 september 2014
strategic 
report