the african focused precious metals producer
pan african resources plc 
integrated annual report
201 3 company overview
our integrated
annual report 
in this the first integrated annual report iar of pan african resources 
the group or company as the context determines the board and 
management have sought to provide a concise view of the group’s 
strategy its financial and nonfinancial performance for the year its 
governance principles and its future prospects 
this 2013 integrated annual report has been prepared in line with the 
recommendations of the king report on governance for south africa 
2009 king iii and complies with the johannesburg stock exchange 
jse listings requirements as well as the aim rules of the london 
stock exchange lse the report draws on the concepts and principles 
included in the consultation draft of the international integrated 
reporting framework released in april 2013 by the international 
integrated reporting council iirc in addition the global reporting 
initiative’s gri sustainability reporting guidelines and its gri 31 
content index of standard disclosures and metals and mining sector 
supplement have been considered in preparing this report and 
identifying sustainability disclosures relevant to pan african resources 
the financial information provided in the consolidated and company 
annual financial statements have been prepared in accordance with 
international financial reporting standards ifrs and were externally 
audited by deloitte and t ouche 
this report represents one of three elements of pan african resources’ 
2013 annual communication strategy with stakeholders the other 
two being 
 containing additional nonfinancial disclosures
 provides detailed technical and operational information
the above documents together with this 2013 integrated annual 
report are available at wwwpanafricanresourcescom printed copies 
can be requested from the company secretary whose details appear 
on the inside back cover of this report
this report covers the year 1 july 2012 to 30 june 2013 and follows on 
from the 2012 annual report it includes the activities of the holding 
company pan african resources plc which is incorporated in england 
and wales all of its south african operations and subsidiaries and its 
investment in auroch minerals nl auroch during the year the group 
divested of its 100 shareholding in manica its gold exploration project 
in mozambique in exchange for a 42 equity share in australianlisted 
auroch no nonfinancial performance indicators are included in this 
report for either manica or auroch more information concerning 
auroch is available at wwwaurochmineralscom the acquisition of 
evander gold mines limited evander mines was finalised during 
the year and its financial results consolidated into the pan african 
resources group results with effect from 1 march 2013 similarly 
unless otherwise stated evander mines’ nonfinancial information is 
for the four months ended 30 june 2013 company overview
 our vision front cover
 highlights 1
 about this report 2
 directors’ responsibility statement 4
 salient features 5
 financial summary 7
leadership statements
 chairman’s report 10
 board of directors 14
 chief executive officer’s report 16
 financial director’s report 24
 executive management – exco 32
 executive management – opsco 33
our business philosophy
 geographical location of mining operations and projects 36
 background – the pan african resources group 37
 company structure 38
 history of pan african resources 39
 the global and south african mining environment 40
 performing against our business model 43
 delivering on our strategy 46
operations
 operational performance 50
 barberton mines 52
 barberton tailings retreatment plant btrp 56
 evander mines 60
 phoenix platinum 64
 abridged mineral resource and mineral reserve report 67
 sustainability review – safety 86
corporate governance
 the governance of our business 92
 stakeholder engagement and our response 96
 the management of risk 99
 remuneration – rewarding effort 104
annual financial statements
 audit committee report 108
 directors’ report 109
 independent auditor’s report – united kingdom 111
  independent auditor’s report – south africa 112
 certificate of the company secretary 113
  consolidated and separate annual financial statements 114
 notice of annual general meeting 163
 acronyms and abbreviations 168
 glossary 170
 form of proxy – uk 173
 form of proxy – sa 175
 contact details back cover
contents
navigation
further reading  
within this iar
further reading online  
wwwpanafricanresourcescom
annual financial 
statements 
reference pan african resources plc integrated annual report 2013 f
our 
vision
achieving this through
t o continue to build a precious metals  
mining business in africa by remaining focused  
on our four business pillars
profitable
sustainable
stakeholder
growth
people
the bedrock of our company 
remains our people – those 
men and women who come to 
work daily and competently go 
about their duties often under 
challenging conditions
we believe in forstering 
relationships through integrity 
and honesty
action
action required proper 
planning leading organising and 
controlling these are the basic 
principles of any business
we believe in getting things 
done the right way
results
we strive to deliver on all our 
targets without compromising 
the safety and health of 
our employees community 
environment and our future   pan african resources plc integrated annual report 2013 1
company overview leadership statements our business philosophy operational overview corporate governance financial statements
highlights
in context of the four business pillars
profitable
gross revenue  
ebitda 
headline  
earnings
earnings  
per share
headline earnings 
per share
320 180 201 302 69
£1335 million 
zar18481 million
£531 million 
zar7352 million
£352 million 
zar4870 million
263p 
3451 cents
217p 
3007 cents
sustainable
group cash 
balance
allin sustaining 
cash cost
initiated 
bursary 
fund around 
barberton
group capital  
expenditure incurred
758 141
£276 million 
zar3816 million
£48 million 
zar716 million
zar281551kg
ltifr
 
257
rifr
 
151
salaries wages 
bonuses and 
retirement
barberton safety record completed and 
opened sinqobile 
primary school
continued support 
for umjindi  
jewellery projects 
sinqobile v egetable 
project and  
sinqobile skills 
development 
project
274
1 1 00
2012 326 2012 074
learners
of group total 
revenue
stakeholder
gold resources gold sold gold reserves
496 3820 693
3513moz 130493 oz 920moz
100
construction 
of barberton 
t ailings 
retreatment 
plant completed
evander mines 
acquisition of
growth pan african resources plc integrated annual report 2013 2
about
this report
the above documents together with this 2013 integrated 
annual report are available at wwwpanafricanresources
com printed copies can be requested from the company 
secretary whose details appear on the inside back cover of 
this report
this report covers the year 1 july 2012 to 30 june 2013 
and follows on from the 2012 annual report it includes 
the activities of the holding company pan african resources 
plc which is incorporated in england and wales all of its 
south african operations and subsidiaries and its investment 
in auroch minerals nl auroch during the year the 
group divested of its 100 shareholding in manica its gold 
exploration project in mozambique in exchange for a 42 
equity share in australianlisted auroch no nonfinancial 
performance indicators are included in this report for either 
manica or auroch more information concerning auroch 
is available at wwwaurochmineralscom the acquisition of 
evander gold mines limited evander mines was finalised 
during the year and its financial results consolidated into the 
pan african resources group results with effect from 1 march 
2013 similarly unless otherwise stated evander mines’ non
financial information is for the four months ended 30 june 
2013
no limitations were placed on the group in preparing this 
report 
details of pan african resources’ engagement with its 
stakeholders appear on page 96 this engagement together 
with a review of internal information – including risk 
analysis strategic objectives the operating environment 
performance indicators both financial and nonfinancial used 
by management and the board and the availability of other 
nonfinancial performance indicators – instructed the content 
of this report while every effort was made to produce a 
balanced report materiality has been applied subjectively in 
this first integrated report
in this the first integrated annual report iar of pan 
african resources the group or company as the context 
determines the board and management have sought to 
provide a concise view of the group’s strategy its financial 
and nonfinancial performance for the year its governance 
principles and its future prospects 
this 2013 integrated annual report has been prepared 
in line with the recommendations of the king report on 
governance for south africa 2009 king iii and complies with 
the johannesburg stock exchange jse listings requirements 
as well as the aim rules of the london stock exchange lse 
the report draws on the concepts and principles included 
in the consultation draft of the international integrated 
reporting framework released in april 2013 by the 
international integrated reporting council iirc in addition 
the global reporting initiative’s gri sustainability reporting 
guidelines and its gri 31 content index of standard 
disclosures and metals and mining sector supplement have 
been considered in preparing this report and identifying 
sustainability disclosures relevant to pan african resources 
the financial information provided in the consolidated and 
company annual financial statements have been prepared in 
accordance with international financial reporting standards 
ifrs and were externally audited by deloitte and t ouche 
this report represents one of three elements of pan african 
resources’ 2013 annual communication strategy with 
stakeholders the other two being 
  the group’s completed and referenced gri content 
index containing additional nonfinancial disclosures
  the group’s mineral resource and mineral reserve 
report which provides detailed technical and 
operational information pan african resources plc integrated annual report 2013 3
company overview leadership statements our business philosophy operational overview corporate governance financial statements
management acknowledges that notwithstanding progress 
made in many areas relating to the application of integrated 
and sustainability reporting practices this report and 
the activities that support the collection of nonfinancial 
performance information have to be developed further in 
the continuous journey to ensure the sustainability of pan 
african resources this will be done through balancing long
term social environmental and economic interests with the 
principle of needing to maximise profits of the group while 
acting in a responsible manner in particular comparative 
information is often unavailable for certain environmental 
and social performance indicators and relatively few 
performance targets have been set for these indicators 
during the coming year the group will where feasible set 
performance benchmarks
data measurement techniques and assumptions relating to 
nonfinancial performance indicators are provided either 
where the data is disclosed or in the glossary appearing 
on pages 48 to 89 to promote relevance consistency and 
comparability nonfinancial performance indicators are 
generally disclosed by significant operation and are not 
aggregated in a group view
as this is the group’s first integrated report and in some 
cases systems and processes for the recording collection and 
collation of selected nonfinancial performance indicators 
have yet to be introduced or tested further for veracity the 
board has decided against obtaining independent assurance of 
the nonfinancial performance indicators
this integrated report together with the gri 31 content 
index meets application level b of the gri reporting 
guidelines
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 forward
looking statements or forwardlooking information is 
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 presentation 
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
directors’ responsibilities
the directors are responsible for preparing the 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 under that law the directors 
are required to prepare the group financial statements in 
accordance with ifrs as adopted by the european union 
eu and article 4 of the international accounting standards 
ias regulation and 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 of the group and of the 
profit or loss of the group for that period in preparing these 
financial statements the ias requires that directors 
 properly select and apply accounting policies 
  present information including accounting policies in a 
manner that provides relevant reliable comparable and 
understandable information
  provide additional disclosures when compliance with the 
specific requirements in ifrs are insufficient to enable 
users to understand the impact of particular transactions 
other events and conditions on the entity’s financial 
position and financial performance
  make an assessment of the company’s ability to continue 
as a going concern
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the company and enable them to 
ensure that the financial statements comply with the united 
kingdom uk companies act 2006 they are also responsible 
for safeguarding the assets of the company and hence 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 legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions pan african resources plc integrated annual report 2013 4
directors’
responsibility statement
we confirm that to the best of our knowledge 
1  the financial statements prepared in accordance with ifrs as adopted by the eu give a true and fair view of the assets 
liabilities financial position and profit or loss of the company and the undertakings included in the consolidation taken as 
a whole 
2  the management report which is incorporated into the directors’ report includes a fair review of the development and 
performance of the business and the position of the company and the undertakings included in the consolidation taken as 
a whole together with a description of the principal risks and uncertainties that they face
3  that the directors are not aware of any legal proceedings or other material conditions that may impact the mining or 
exploration activities of the group
4 the directors confirm that the group holds title to the mining rights as set out in this report 
by order of the board
ron holding  cobus loots
chief executive officer  director 
16 september 2013  16 september 2013 pan african resources plc integrated annual report 2013 5
company overview leadership statements our business philosophy operational overview corporate governance financial statements
salient
features
2013 2012 2011 2010 2009
operating performance
gold mining tonnes milled t 512869 308095 296200 313167 313952
gold head grade gt 86 106 106 106 103
gold sold oz 130493 94449 92197 98091 97353
gold spot price received usdoz 1553 1694 1366 1098 867
t otal gold mining cash costs usdoz 815 776 781 650 469
pgm 6e sold oz 6480 ––––
2013 2012 2011 2010 2009
zar gbp zar gbp zar gbp zar gbp zar gbp
  millionsmillions millions millions millions millions millions millions millions millions
statement of comprehensive income
revenue 18481 133512403 1011 8797 792 8173 685 7627 530 
cost of production 9851 712 5660 461 5036 453 4838 406 4102 285
mining profit 7768 561 6323 515 3423 308 2942 247 3165 220 
ebitda 7352 531 5525 450 3170 285 2945 250 3294 229 
impairment costs 2423 161 06 005 –  – 40 03 617 50
profit after taxation 5589 426 3589 292 1907 172 1730 145 1164 81 
headline earnings 4870 352 3597 293 1907 172 1743 146 1357 94 
dividends paid –– 956 74603 54 – – 410 28
2013 2012 2011 2010 2009
zar gbp zar gbp zar gbp zar gbp zar gbp
  millions millions millions millions millions millions millions millions millions millions
statement of financial position
noncurrent assets 37262 2493  11438 861  10641 972 8572 743 8507 671 
current assets 4015 267 3678 285 1732 158 2039 177 627 49 
t otal equity 25688 1722 13575 1026 9927 907 8476 735 7135 564 
noncurrent liabilities 12009 800 1808 140 1467 134 1318 114 1226 97 
current liabilities 3612 241 1429 111 980 90 817 71 772 61 
note 1  at 30 june 2012 phoenix platinum had not reached steady state production therefore all income and expenditure was capitalised
note 2  current assets at 30 june 2013 excluded noncurrent assets held for sale of zar32 million gbp02 million and at 30 june 2012 zar1696 million gbp131 million pan african resources plc integrated annual report 2013 6
salient
features continued
2013 2012 2011 2010 2009
zar gbp zar gbp zar gbp zar gbp zar gbp
  millions millions millions millions millions millions millions millions millions millions
cash flows
cash generated fromused in 
operating activities 6680 483 3752 306  1817 166  2114 183 1085 86 
capital expenditure 3816 276 2139 174 2336 210 708  59 621 43 
net decreaseincrease in cash 
and cash equivalents 2160 156 1408  115 395 36 1270 106 56 04
key ratios
return on shareholders’ funds  218 247 264 285 192 190 204 197 163 144
net debtequity ratio ratio 004  004  019 019 007 011 019 017 004 004
current ratio ratio 11 11 26 26 18 18 25 25  08  08 
statistics
shares in issue millions 18228 18228 14483 14483 14440 14440 14095 14095 11126 11126
weighted average number of 
shares in issue millions 16198 16198 14452 14452 14327 14327 13663 13663 11044 11044
earnings per share eps
cents
pence 3451 263 2483 202 1331 120 1155 104 576 040
headline earnings per share 
heps
cents
pence 3007 217 2489 203 1331 120 1188 107 1223 085
net asset value nav
cents
pence 14093 945 9374 709 6874 628 6013 521 6413 507
dividends per share dps
cents
pence –– 660 051 418 037 – – 369 025
y earend dividend yield  –– 27 35 23 37 – – 40 48
y earend price earnings ratio 554 485 975 730 1390 854 987 598 1616 1310
volume of shares traded millions 7603 4592 6069 4242 4109 4654 2514 4308 10080 1999
volume traded as percentage 
of number  
in issue  417 252 419 293 285 322 178 306 906 180
number of transactions number 30814 16121 21827 13593 18343 10533 11542 5322 7233 2042
value of shares traded millions 17624 744 13426 602 5800 437 2252 263 7205 77
traded prices
– last sale in year
cents
pence 191 128 242 148 185 102 114 62 93 52
– high
cents
pence 299 210 299 174 204 119 126 82 101 54
– low
cents
pence 185 118 180 95 109 55 65 44 45 18
–  average price per share 
traded centspence 233 162 218 142 139 94 86 61 75 38 pan african resources plc integrated annual report 2013 7
company overview leadership statements our business philosophy operational overview corporate governance financial statements
financial
summary
zar millions
2009 2010 2011 2012 2013
group operational capital
–
50
100
150
200
250
300
350
400
barberton mines 
development capital
barberton mines 
maintenance capital
phoenix platinum 
constructionmaintenance
phoenix platinum 
mineral rights
btrp
evander mines 
development capital
evander mines 
maintenance capital
zar value
£ value
309
274
–
–
–
–
–
583
40
356
350
–
–
–
–
–
706
59
353
400
704
1076
–
–
–
2532
228
376
388
819
–
554
–
–
2137
174
421
451
22
–
2296
425
199
3814
276
zarkg
2009 2010 2011 2012 2013
zar cash costs vs average zar gold spot price received
–
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
average spot price 
received zarkg
 251740 
155910
 267876
189308
306757
217524
422215
265713
440824
343949
allin sustaining 
cash costs zarkg
allin costs 
zarkg
 155910 
136178
 189308
158711
217524
175520
246801
193360
281551
231439
cash cost 
zarkg
zar millions
2009 2010 2011 2012 2013
headline earnings
zar value
£ value
1357
94
1743
146
1907
172
3597
293
4870
352
zar value
£ value
–
100
200
300
400
500
cents
2009 2010 2011 2012 2013
heps
–
50
100
150
200
250
300
350
zar value 1223
085
1188
107
1331
120
2489
203
3007
217 £ value
zar millions
2009 2010 2011 2012 2013
group revenue
–
500
1000
1500
2000
zar value 7627
530
8173
685
8797
792
12403
1011
18481
1335 £ value
oz
2009 2010 2011 2012 2013
gold sold
–
20000
40000
60000
80000
100000
120000
140000
surface
underground
3955
93398
–
98091
–
92197
1068
93381
3836
126657 pan african resources plc integrated annual report 2013 8
leadership 
statements
chairman’s report
board of directors
chief executive 

financial director’s 
report
executive management pan african resources plc integrated annual report 2013 9
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 10
pan african resources is steadily fulfilling our vision of 
becoming a midtier precious metals mining company we 
understand that successful and sustainable businesses are not 
built overnight but rather shaped moulded and grown over 
time we also recognise that for a mining business to succeed 
and to continue to be successful one requires a number of 
elements these include quality assets the right people and 
the ability to mine safely and operate sustainably in our local 
environment 
there is no denying that the global mining industry is currently 
experiencing difficult times and south africa is no exception 
in addition to lower gold prices of late south africa has to deal 
with labour unrest and cost inflation amongst other challenges 
amidst all of this pan african resources has however been 
able to distinguish itself it has been growing prudently to mid
tier status through both optimisation of existing assets and 
via new acquisitions successful growth from a pan african 
resources perspective is not measured by more attributable 
production ounces but rather by sustainable increases in 
profitability and earnings 
we finalised the acquisition of evander mines from harmony 
gold mining company limited in february this year through 
the acquisition of evander mines our group has entered a new 
and exciting chapter in our history by adding another flagship 
operation evander mines contributes profitable production 
ounces and also has very attractive growth projects 
pan african resources is absolutely committed to delivering 
results with zero harm to our people communities and 
environment it is therefore with deep regret that we have 
to report on the following two fatal accidents suffered during 
the year
 on 17 november 2012 gert fourie a fitter employed at 
sheba mine was fatally injured on surface when he lost 
control of a truck he was driving when it slid off the road 
and rolled down the embankment 
 on 7 march 2013 velly therry malumane a welder 
employed underground at sheba mine was fatally injured 
when he was electrocuted whilst carrying out welding 
operations on a load haul dumper 
in this report we elaborate on how pan african resources 
will continue on a sustainable track of profitable growth 
by focusing on key performance areas such as completing 
the successful integration of our recent evander mines 
acquisition and bedding down the new barberton tailings 
retreatment plant btrp for optimal production in addition 
management spends significant effort in identifying analysing 
and mitigating critical business risks pan african resources 
has operated according to a “four pillars” business model that 
integrates the key financial social and environmental aspects 
of our operations even before integrated reporting became 
imperative in stakeholder relations
our successful bid for 
evander mines is a game 
changer and propels the 
group into midtier status 
chairman’s
report
keith spencer chairman pan african resources plc integrated annual report 2013 11
company overview leadership statements our business philosophy operational overview corporate governance financial statements
as the chairman of a focused and motivated board executive 
team and workforce it is a privilege to introduce an excellent 
set of results for this financial year and to contribute to a 
report that succinctly and clearly reveals the material features 
of this financial year and the strategies analyses and forward 
planning important to shareholders investors and other 
stakeholders 
between our key business drivers which include usd gold 
prices south african inflation wage and productivity increases 
and the usdzar and gbpzar exchange rates although 
movements in these factors cannot be accurately predicted 
pan african resources models and plans using conservative 
assumptions to ensure measured and consistent growth
it is evident that some miners strive for higher gold ounce 
production targets while not paying due attention to the costs 
incurred in reaching these targets increased gold production 
may excite shareholders and appear good in annual reports 
but the real costs of producing these ounces weighed against 
economic drivers must be thoroughly understood i am 
confident that the board executive and mine management 
of pan african resources are well schooled in these realities
the board took the decision that our active participation 
in the manica gold exploration project in mozambique was 
no longer aligned with the group’s strategy of investing and 
operating producing assets we therefore disposed of our 
interest with effect from january 2013 to australianowned 
auroch and we remain a significant shareholder in auroch
south african gold mining in context
it is no secret that the south african mining industry is 
presently under duress for a number of reasons the most 
widely publicised is the labour discord following on the 
marikana tragedy all parties should share responsibility for 
this situation and we should never allow a similar incident 
to reoccur 
societal inequality is a pressing reality in south africa it is 
however beyond the ability of midtier mining groups such 
as ours to resolve in isolation however we have to strive 
to be part of the solution in a proactive manner in our area 
of influence we offer our miners fair reward for their work 
recognition of their value and inputs and a safe working 
environment in addition to supporting workers’ health 
and our communities we trust that the sound working 
relationships we have developed with our employees and 
their representatives will continue we view all our employees 
as valued team members who contribute their productivity 
in support of pan african resources’ sustainable business 
model over the past year we created 302 employment 
opportunities during the construction of the btrp 
a further current matter is that of south african mining 
legislation and conditions laid out in the mining charter 
and proposed amendments to the bbbee act pan african 
resources wholeheartedly supports the intent of these 
regulations and legislation as these are areas where we can 
proactively help address inequality and historic disadvantages 
we are well positioned to continue to comply with both 
regulations and also best practice
global economic shifts often have a direct effect on gold 
prices and in recent months these haven’t been favourable 
world demand for commodities has been erratic and 
gold prices in particular have been weak of late a key impact 
the real costs of producing these 
ounces weighed against economic 
drivers must be thoroughly understood 
i am confident that the board 
executive and mine management 
of pan african resources are well 
schooled in these realities
2013  
highlights
what drives our results
as a gold mining business the ongoing viability of pan african 
resources depends on maintaining the optimum balance 
gross revenue in gbp increased by  
320 to £1335 million 
2012 £1011 million 
gross revenue in zar increased by 
490 to zar18481 million 
2012 zar12403 million
group capital expenditure in gbp incurred  
£276 million 2012 £174 million
group capital expenditure in zar incurred  
zar3816 million 
2012 zar2139 million
gold sold increased by 382 to 
130493oz 2012 94449oz
proposed dividend of zar01314 per 
share or zar240 million to shareholders pan african resources plc integrated annual report 2013 12
was the usa’s announcement that it will begin “tapering” its 
quantitative easing programme which has strengthened the 
us dollar and weakened gold prices although asian demand 
for physical gold remains high how this will affect gold mining 
over the next year is impossible to predict at this time but pan 
african resources is positioned to adapt as necessary within 
our low cost and high grade model 
future planning and outlook
the group’s strategic thrust in the short term is to 
consolidate our assets contain or lower costs and increase 
productivity working through all the requirements of 
managing evander mines and effectively doubling the group 
in size required immense effort and i thank harmony’s 
board and management for the proactive role they played in 
this process bedding down the acquisition is continuing this 
year and we are integrating the procurement and financial 
departments to realise efficiencies an enterprise resource 
planning erp system rolled out at barberton mines in 2012 
is being extended throughout the group to enhance financial 
controls and reporting 
a key focus of financial and operational management in 2014 
will be to contain costs so that margins and cash generation 
are maximised the finance department in particular is 
exploring synergies to optimise systems
we are happy to reward our shareholders by proposing that 
we recommence our dividend payment this year
with a solid platform for growth having been established in 
the longer term pan african resources may prudently seek 
out further acquisitions that can be profitably operated within 
our business model
appreciation and the road ahead
the board wishes to extend our sincere appreciation to our 
former ceo jan nelson who resigned during the current 
year jan’s contribution to our business was significant and his 
legacy remains
the bedrock of pan african resources remains our workforce 
– the men and women who daily competently go about their 
duties often under physically challenging circumstances – 
to ensure that our gold arrives safely at its end destination 
that we are able to announce such excellent results is their 
success as much as it is the executive and your board i would 
also like to extend my appreciation to the board for their 
support during the year
for the immediate future the board and management remain 
realistically confident experienced in mining and business we 
have lived through boom and gloom economic cycles and 
manage the group accordingly we believe that pan african 
resources has the business model and controls to continue 
viable operations through all foreseeable economic cycles
keith spencer
chairman 
16 september 2013
chairman’s report
continued pan african resources plc integrated annual report 2013 13
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 14
 due to share options outstanding under a previous share incentive scheme keith spencer is not considered independent under uk regulations keith spencer is 
however considered independent according to king iii and the jse regulations the board has considered his independence and believes he is independent 
nonexecutive  
directors
keith spencer 63
lead independent nonexecutive 
chairman
appointment date 8 oct 2007
qualifications bsc eng mining
committees sheqc chairman 
nominations audit committee
keith is a qualified mining engineer with 
35 years of practical mining experience 
and 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 of 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 of south africa 
in 1999 keith joined metorex limited first 
as a private consultant and after two years 
as a permanent member of the executive 
managing the wakefield coal operations 
o’okiep copper company barberton 
mines and metmin manganese mine 
in 2001 keith became the operations 
director for metorex limited he was 
appointed as chairman of the board on  
14 december 2011 
rob still 58
nonexecutive director 
appointment date 9 sept 2004
qualifications bcom hons cta
committees audit remuneration 
rob has vast experience in mining 
specialising in mining finance he started 
his career as a chartered accountant 
becoming a partner of ernst  whinney 
before leaving in 1986 to cofound 
rhombus exploration limited since 
then he has been involved in the 
mining industry worldwide and has 
held executive and nonexecutive 
directorships in companies listed in south 
africa australia canada and the united 
kingdom he has participated in the 
evaluation and development of several 
new mining projects and companies 
including rhovan ticor titanium pangea 
goldfields limited southern mining 
corporation limited corridor sands 
metorex limited and zimbabwe platinum 
mines limited rob is currently chairman 
of pangea exploration pty ltd which 
provides information and analysis to 
private equity finance within africa 
phuthi mahanyele 42
nonexecutive director – deputy 
chairperson
appointment date 20 july 2011
qualifications ba economics mba
committees remuneration 
chairperson
phuthi is the ceo of shanduka group 
pty ltd she joined shanduka in 2004 
as the managing director of shanduka 
energy pty ltd a subsidiary company 
of the shanduka group led by cyril 
ramaphosa she was previously the 
head of the project finance south 
africa unit at the development bank of 
southern africa prior to that phuti was 
vice president at fieldstone where she 
joined the firm in new y ork in 1997 and 
later transferred to the south african 
office phuti holds a ba economics from 
rutgers university state university of 
new jersey usa and an mba from 
de montfort university in leicester uk 
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 she is a board 
member of a number of shanduka 
group investee companies phuti was 
appointed as the deputy chairperson on 
14 december 2011
board
of directors pan african resources plc integrated annual report 2013 15
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 during the financial year financial director busi sitole was on maternity leave for a four month period neal reynolds group financial manager acted in busi sitole
stead during this period busi sitole resigned as financial director effective 30 september 2013 and is replaced by cobus loots effective 1 october 2013
cobus loots 35
director
appointment date 26 aug 2009
qualifications casa cfa
®
 
charterholder
cobus is the managing director of 
shanduka resources pty ltd he 
is a qualified chartered accountant 
sa and a cfa® charterholder 
he served articles with deloitte  
t ouche and was an audit manager 
with the firm before leaving to 
pursue a career in mining finance 
cobus’s experience includes mining
specific acquisitions and finance as 
well as the management of both 
exploration and producing mineral 
assets he was also formerly the 
financial director of pan african 
resources and nonexecutive 
director cobus was recently re
appointed as the financial director 
with effect from 1 october 2013
busi sitole 37
financial director
appointment date 14 dec 2011
resignation 30 september 2013
qualifications casa 
busi joined pan african resources in 
april 2011 as a finance executive and 
was subsequently appointed as the 
financial director in december 2011 
she is a chartered accountant with 
a bcom degree from the university 
of cape t own and bcom honours 
from the university of natal prior 
to joining pan african resources 
she had joined the shanduka group 
in december 2007 as a principal 
transactor responsible for sourcing 
executing new transactions as well 
as raising capital thereof her other 
responsibilities included monitoring 
the company’s investments post
acquisition busi also sat on several 
boards of the company’s investee 
companies she also worked as a new 
treasury products marketer at absa 
capital and was a finance manager 
at standard bank structured finance 
where she completed her three 
years of topp articles as a trainee 
accountant
hester hickey 59
nonexecutive director
appointment date 12 april 2012
qualifications casa
committees audit chairperson
hester completed her articles at 
fisher hoffman stride and after 
a period as partner of ironside 
greenwood joined bdo spencer 
stewart in 1990 as national technical 
and training manager she joined 
transnet in 1994 as acting head of 
internal audit to implement and 
execute a transformation process 
and particularly to transform the 
internal audit department of transnet 
from a traditionally focused unit to 
a more modern riskbased function 
in 1998 after a period with ernst  
y oung and liberty life hester joined 
anglogold ashanti initially as group 
internal audit manager and thereafter 
as executive officer head of risk – a 
position held until recently hester is 
a registered accountant previously 
served as chairperson of the south 
african institute of chartered 
accountants saica and currently 
performs board evaluations for the 
institute of directors
executive  
directors
ronald holding 61
chief executive officer
appointment date 9 sept 2013
qualifications national diploma 
for t echnicians mining metalliferous 
south african mine managers 
certificate of competency 
metalliferous mining programme for 
management development university 
of cape t own
ron has been intricately involved 
with all pan african resources 
operations since 2009 as chief 
operating officer until his 
appointment as joint interim ceo in 
march this year he commenced 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
the board ensures that the business  
of the enterprise is conducted with integrity  
and in accordance with the highest standards of 
corporate governance practice pan african resources plc integrated annual report 2013 16
chief executive 
officer’s report
ronald holding chief executive officer
“pan african resources exceeded most of its targets for 
the financial year ended 30 june 2013 delivering growth 
with pleasing operational and financial performances  
evander mine’s acquisition and the commissioning of 
the new btrp have positioned pan african resources to 
produce approximately 200000 profitable ounces of gold 
a year there is also further growth potential through 
the exploitation of other near term organic projects  
the board of pan african resources has decided to 
recommend a dividend approximating zar01314 per share 
or zar240 million to shareholders for approval at the 
annual general meeting”
2013 highlights
pan african has significantly increased headline earnings per 
share by 208 in zar terms to 3007 cents  
2012 2489 cents and in gbp terms by 69 to 217 pence 
2012 203 pence 
 we completed the acquisition of evander mines
 we successfully poured our first gold bar at the 
barberton mines’ btrp 
  our strong statement of financial position allows for 
sustained results and profitable growth
  our board has recommended a dividend in zar terms 
of approximately zar01314 per share to shareholders
evander now a part of the group
the group was transformed into a midtier gold producer 
when we acquired evander mines from harmony gold mining 
company limited harmony on 28 february 2013 evander 
mines will double our annual gold production profile to 
200000 oz of gold the mine is performing as anticipated and 
is currently meeting production targets evander contributed 
34197 oz of gold for the last four months of our financial year 
since the signing of the sale and purchase agreement with 
harmony evander’s incumbent management team together 
with our corporate office worked proactively and tirelessly 
to ensure a seamless and efficient handover of systems 
and processes evander’s integration into the group will be 
finalised in 2014
evander mines’ management is committed to our organic 
growth plans to exploit its mineral resources more efficiently 
during the next year we will focus on managing infrastructure 
to minimise the risk of mining interruptions contain costs and 
increase gold production through targeting low capital cost 
projects which have quick and sustainable returns
the addition of evander mines contributed in the 
achievement of the following group production statistics for 
the financial year
pan african resources 
exceeded most of its 
targets for the financial 
year ended 30 june 2013 
delivering growth with 
pleasing operational and 
financial performances pan african resources plc integrated annual report 2013 17
company overview leadership statements our business philosophy operational overview corporate governance financial statements
2013 2012 movement
gold mining tonnes milled 512869 308095 665
gold head grade gt 86 106 189
gold sold oz 130493 94449 382
sustained performance and growth 
at barberton
barberton mines contributed substantially to the group’s 
success in 2013 it remains one of the lowest costof
production and highest grade mines in south africa 
the mine exceeded its production targets producing 
96296 oz of gold during the financial year 2012 94449 oz  
the team commissioned the onsite btrp on schedule and 
within budget conducting the inaugural gold pour on 28 june 
2013  the btrp not only adds approximately 20000 oz of 
gold to our annual production it will also steadily eliminate 
many of the historic and environmentdegrading tailings 
dumps scattered around the barberton mines mining area
phoenix platinum –  
not quite risen from the ashes
in brief phoenix platinum had a mediocre performance and 
we did not achieve our target ounces this was primarily due 
to international ferro metals plc halting its underground 
chrome mining operation when it became uneconomical 
moving their run of mine chrome source to a highly oxidised 
opencast section phoenix which is designed to treat sulphide 
tailings now has to cope with the resultant serious metallurgical 
challenges we have instituted equipment and operational 
changes to process the deleterious feedstock with some 
success resulting in improved production in recent months
phoenix platinum processed more than 274000 tons of 
chrome tailings and produced 6480 oz of pgm 6es
this operation’s supply chain was analysed and additional 
training given to improve efficiencies and reduce costs  building 
a dedicated tailings storage facility in the future will enable 
oxidised material to be entirely bypassed and ameliorate the 
feedstock issue 
2013 2012
production and sales 
of pgm 6e oz 6480 3474
basket price received zaroz 9093 7499
t otal cash costs zaroz 7550 7847
t otal cash costs zart 178 170
ebitda zar millions 22 819
the table below reflects key statement of comprehensive  
income figures for the group
2013 2012 movement
zar millions gbp millions zar millions gbp millions zar  gbp 
revenue 18481 1335 12403 1011 490 320
ebitda 7352 531 5525 450 331 180
attributable group profit 5589 426 3589 292 557 459
solid group financial performance
the continued contribution from barberton mines with the 
acquisition of evander mines has propelled the group to new 
heights in terms of both its gold production and profitability 
the earnings per share figures discussed in this report are 
the result of a variety of production cost and revenue factors 
that underpin the financial year’s strong performance
gold revenue increased by 490 in zar terms but only 
320 in gbp terms due to the weakening of the south african 
currency against all other major currencies including the gbp 
and usd during the financial year the group realised an 
average gold price of zar440424kg 2012 zar422215kg  
and an average price for pgm 6e of zar292354kg
evander mines contributed 722 of the increase in revenue
the group’s ebitda for the financial year increased by 331 
in zar terms mainly as a result of the inclusion of evander 
mines’ mining profit of zar1343 million 
pan african increased earnings per share eps in both cents 
and pence by more than 30 as this included a net beneficial 
impact of a bargain purchase gain on the evander acquisition 
and impairments on the group’s investments in phoenix 
platinum and auroch minerals nl auroch the improvment 
in its headline earnings per share eps was somewhat less  pan african resources plc integrated annual report 2013 18
the table below demonstrates the group’s earnings per share figures and year on year improvement
2013 2012 movement
zar millions gbp millions zar millions gbp millions zar  gbp 
eps 3451 263 2483 202 390 302
heps 3007 217 2489 203 208 69
  on 17 november 2012 gert fourie passed away when 
the truck he was driving left the road overturned and 
rolled down a hill at barberton’s sheba mine 
  on 7 march 2013 velly malumane was fatally 
electrocuted while welding underground 
these tragedies were an anomaly as barberton mines is 
known for its good safety record these accidents have been 
thoroughly investigated to prevent any reoccurrences 
the two fatalities leads us to reflect on the overall safety of 
our own operations and south african mining in general pan 
african resources prides itself on a superior safety record 
within an industry that has remarkably enhanced its safety 
levels over the past decade 
chief executive officer’s report
continued
current year earnings were reduced by onceoff costs 
associated with two impairments – amounting to  
r2423 million – and the evander mines acquisition costs of 
r183 million these impairments arose from the writedown 
of phoenix platinum and auroch investments due to the 
challenges experienced at phoenix platinum and the impact of 
lower gold prices and exploration challenges in mozambique
safety –  
our primary concern is for our people
this past financial year was not without severe disappointments 
and challenges from a safety perspective although safety is 
the top priority at pan african resources we are saddened to 
report the tragic loss of two employees at barberton mines 
2008 2009 2010 2011 2012 2013
evander mines  ltifr and rifr
rates per million man hours
2
–
4
6
8
10
12
14
16
18
ltifr
rifr
1664
433    
1039
280
741
254
372
264
400
307
290
174 pan african resources plc integrated annual report 2013 19
company overview leadership statements our business philosophy operational overview corporate governance financial statements
current year safety performances at evander mines have 
resulted in the best ever recorded reportable injury and lost 
time injury frequency rates for this operation 
phoenix maintained its excellent safety record with no injuries 
recorded since turning the first sod in april 2010
in south africa most of the shallow and easily accessible 
mineral deposits are depleted with mining now taking place 
at exceptional depths despite these difficult conditions the 
mining industry has improved safety over the past 10 years 
by 66 to levels comparable with the united states fatalities 
from “fall of ground”accidents have reduced by 81 from  
134 in 2003 to 26 in 2012 the industry reduced the  
172 fatalities reported in 2002 to 54 in 2011
the fact that the south african mining industry was able to 
outperform every other mining country in improving safety 
levels is an object lesson as to what can be done when 
labour management and government proactively collaborate 
in resolving a pressing issue this proves that with a focused 
effort all stakeholders can work together for the common 
good of the industry 
south african mining in context
despite all the social and economic difficulties in the mining 
sector currently highlighted by the anniversary of the marikana 
tragedy and demanding labour negotiations our industry 
remains a primary south african economic driver the south 
african chamber of mines estimates that mining is directly 
responsible for 19 of all south african economic activity 
and that its products support a further 25 of industrial and 
other economic activity the materials produced by south 
africa’s mines are beneficiated or processed by downstream 
industries to produce many of our countries most essential 
goods and services  mining also generates a very significant 
percentage of south africa’s foreign currency reserves and 
supports our own rand
according to the chamber of mines the south african mining 
industry directly employed an estimated 513000 employees 
with an average annual remuneration per mining employee 
of zar169679 in 2011 this represents approximately 63 
of the country’s formal nonagricultural employment and an 
increase of 169 in annual wages from 2001 to 2011
although a mature industry in south africa and possibly 
incorrectly perceived to be declining in importance south 
africa as a country still has the world’s biggest stockpile of 
proven mineral reserves this is in a world where global mining 
provides the raw materials for 45 of the world’s economic 
activity although south africa has slipped down the table of 
gold producers from its previously held top spot our country 
holds approximately 127 of the world’s gold reserves and 
produces approximately 78 of its annual production 2011 
chamber of mines figures
our government attracts a good deal of negative media 
attention at times south african leaders have however 
recognised that urgent societal and economic transformation 
is required to uplift our poor and mend our society and 
their programmes over the last 20 years have done a great 
deal  since 2009 south africa has spent zar860 billion rand 
on infrastructure projects with a further zar430 billion 
allocated for additional development this funding goes 
into schools public health water and sanitation as well as 
expanding transport and logistics links south africa’s national 
development plan will provide the “blueprint” for our future 
development and growth
south african mining has a key role to play in financing gdp 
growth and helping reduce unemployment to be able to 
perform this role we must be allowed the security of tenure 
and scope to attract capital investment into maintaining and 
developing mines
our mining industry has entered into a critical phase for 
some years now it has been the battleground of choice for 
opposing political ideologies populist leaders – and more 
recently competing trade unions 
government has been working hard to stabilise the situation 
and we are fully behind deputy president motlanthe’s 
consensusseeking efforts to draw all stakeholders into 
working together for a sustainable future for mining
south african mining is at this juncture right now and we call 
on the leaders of all stakeholders – employees government 
mining houses communities and political parties – to come 
to the table with the levelheaded vision that south africa 
showed the world when negotiating our relatively peaceful 
transition to democracy at stake is the bedrock upon which 
the south african economy was built 
pan african has a diverse multinational shareholder base but 
our operations and management is proudly south african   
we are positive about the future of south africa as a mining 
investment and operating destination nowhere else in africa 
has the established infrastructure technical knowledge and 
support and mining history and legacy of our country we ask 
that shareholders continue to trust us to generate growth and 
returns in an environment we know well
pan african – 
a highyielding dividend stock
we recognise that equity investors require a tangible return 
on their investment   
the board has recommended a dividend approximating 
zar240 million for the financial year 2013 equating to 
zar01314 per share resulting in a dividend cover of 
23 times this dividend is to be approved at the agm on 
22 november 2013 
we believe the fact that we are able to pay a dividend so soon 
after the acquisition of evander mines in a difficult economic 
and operating environment demonstrates the quality of the  pan african resources plc integrated annual report 2013 20
group’s people assets and management’s ability to continue 
to deliver results 
subject to shareholder approval 
at the agm we will resume 
dividend payments at a proposed 
dividend of zar01314 per share  
mining reserves and resources
the group’s approach to maximising the value of mineral 
resources and reserves is based on a welldefined exploration 
programme innovation in both geologicalresource modeling 
optimal mine planning and continual optimisation of the asset 
portfolio and brownfield projects
the group’s gold resources increased more than fivefold due 
to the successful conclusion of the evander mines acquisition  
mineral resources now total 3513 moz of gold and 068 moz 
of pgm 4e 2012 598 moz of gold and 049 moz of pgm 4e 
an aggressive exploration strategy at barberton mines 
identified new resources including the segalla and camelot 
slimes dams yearonyear barberton mines raised its mineral 
resources by 574164 oz of contained gold
the evander mines acquisition contributed to a 693 increase 
in the group’s mineral reserves to 920 moz of gold
our successful commissioning of the btrp at barberton has 
encouraged us to develop the evander tailings retreatment 
plant etrp its tailings dumps contain a mineral reserve of 
409000 oz of gold this additional throughput will optimise 
the existing processing plant and has a time frame of between 
12 and 18 months
other potential organic projects at evander include the  
no 3 decline which has a mineral resource of 230 moz and 
a time frame of between 18 and 24 months to convert to a 
reasonable reserve
brownfield projects at evander include poplar and evander 
south both at a prefeasibility stage recommendations have 
been submitted regarding the scope of work for a bankable 
feasibility study for these two projects
future outlook and growth
onmine projects
pan african resources successfully operates according to our 
low cost and high margin business model with the addition 
of a flat empowered management team and low overhead 
structure the group believes that it has positioned itself as a 
longterm sustainable business 
barberton mines as is evident from the success of the btrp  
has demonstrated a proven ability to source additional 
ounces at low input costs the social impact of the btrp in 
the barberton area which has high unemployment has been 
very positive with the creation of an additional 83 permanent 
employment opportunities the group will continue to ensure 
historic productions levels are maintained at barberton mines 
from the underground operations the management team will 
further ensure the btrp is brought into full production taking 
barberton mines to 115000oz of gold production
over the past year the mining industry has placed greater 
emphasis on cost delivery free cash flows and enhanced 
chief executive officer’s report
continued
 evander mines projects category
t onnes 
million
grade 
gt
gold 
moz
depth below 
surface m
poplar resource 285 684 627 500 – 1200
evander south resource 283 660 601 300 – 1200
rolspruit resource 255 1083 887 1400 – 3300
evander mines project t otal 823 678 2115 300 – 3300
btrp – inaugural gold pour 
took place on 28 june 2013 pan african resources plc integrated annual report 2013 21
company overview leadership statements our business philosophy operational overview corporate governance financial statements
shareholders returns without diverting from this demand we 
will continue to concentrate on the efficient use of capital 
evander mines has commenced a lowergrade mining cycle 
until the 2015 financial year when we will revert to the high
grade mining cycle in an effort to ameliorate this reduction in 
revenue from the mine we have identified and are evaluating 
numerous potential organic projects at evander mines 
through the process of targeting incremental ounces cost 
of production at evander mines will be reduced with greater 
economies of scale and infrastructure synergies 
already underway is a sweeping and vamping project at 
evander no 7 shaft producing gold from previously mined out 
areas a second project to process additional surface sources 
requires the conversion of one of the current autogenous 
mills to a ball mill to process fines at a rate of 20000 tonnes 
per month over 21 months thereby extending the current 
lom of surfaces sources 
a further initiative being considered is the reopening of the 
no 3 decline mining section at evander mines no 7 shaft 
this could enable the quick recovery of additional gold an 
additional benefit of this project is that it allows access to the 
2010 payshoot exploration project which has the potential of 
a significant new mining area 
surface tailings within the evander mines complex have a total 
resource of 203 million tonnes at an average grade of 029 
gt a total reserve of 39 million tons of tailings at 032 gt 
is available at kinross the kinross metallurgical plant with a 
nameplate capacity of 260000 tonnes per month has some 
180000 tonnes per month of excess capacity having identified 
this as a “quick value” project we initiated the necessary 
project work to bring the proposed etrp into production 
this project entails the upgrading of the existing evander 
mines plant with capital spend estimated to be significantly 
less costly than that of the btrp and with expected delivery 
to be within 18 months
phoenix platinum will remain a focus area over next year in 
order to identify alternative feedstock for the plant to process 
improve recoveries reduce cost efficiencies and improve 
production levels
other major projects at evander mines
additional major opportunities are poplar evander south 
and rolspruit projects we have tasked srk to perform a 
bankable feasibility gap analysis on previous prefeasibility 
studies on the poplar and evander south projects and will 
during the 2014 financial year consider options of progressing 
these projects in a manner that will benefit the group and 
its shareholders
the group’s operations have sufficient reserves and resources 
for longterm mining while the gold price fluctuates through 
a zone of uncertainty and mining in general is challenged by 
labour regulatory and cost pressures pan african will adopt 
a “steady as it goes” lowexpenditure approach until the 
market indicates that we should develop more aggressively 
for faster growth
partnering with our stakeholders
local communities at barberton mines and evander mines 
are home to the majority of our operations employees the 
betterment of these communities is in the interest not just of 
the group and its employees but also the employees’ families 
their children and parents and extended families better living 
conditions for employees and their loved ones and increasing 
economic development in the local communities contributes 
to south africa’s journey and progress only through the 
consideration and collaboration of all stakeholders will 
the business succeed in aligning the needs and requirements 
of all and operate in balance and harmony
during the year the group’s various operations expended 
some zar202 million 2012 zar144 million on community 
and local economic development projects in terms of the 
approved social and labour plans slps this represents 42 
2012 40 of the group’s headline earnings 
barberton mines
government has set targets for the mining industry in 
terms of social development and community upliftment at 
barberton mines we strive not only to meet the criteria but 
to exceed them we believe in creating a community where 
opportunity and development is available to all and to do so 
in a sustainable manner this means that we provide funding 
and support through our community projects with the goal 
that they will become fully sustainable organisations in their 
own right
as a result we have established a transformation trust with the 
explicit aim of ensuring critical mass by having our suppliers 
to invest alongside us in order to provide further financing 
for investing in the community deloitte consulting has been 
appointed to administer the trust in this manner the trust 
aims to raise a further two to three million rand per annum 
over and above contributions from barberton mines the 
project portfolio for the trust is aligned with the integrated 
development plan of the umjindini local municipality
through our social and labour plans as well as our 
corporate and social investment initiatives which form part 
of our approved mining licence we operate several local 
economic development led projects in the community of 
which we are extremely proud 
at barberton mines a partnership with adoptaschool 
has resulted in the opening of the sinqobile primary school 
which provides education to 1100 pupils drawn from the 
local sinqobile community the project took three years 
from the planning and consultative stage to completion and 
created 39 temporary jobs during the construction period 
the majority of the construction and establishment costs 
were expended with local suppliers pan african resources plc integrated annual report 2013 22
the sinqobile vegetable garden project has created nine 
permanent jobs and is operated as a fully functioning small 
business providing fresh produce to the local community and 
retailers
the community skills development centre in sinqobile 
represents a significant investment in infrastructure in the 
community and is designed to promote job creation and small 
business development through the provision of technical 
training to date three cooperatives have been established by 
alumni of the centre barberton mines assisted the sewing 
cooperative in obtaining sabs standards approval which 
affords them the opportunity to supply the mine and other 
local businesses with safety clothing the welding cooperative 
has secured a contract with a local hardware store to supply 
steel window frames and security gates
the umjindi jewellery project provides metal arts and 
jewellery manufacturing skills to disadvantaged youths from 
the local community through a formal training and mentorship 
programme the training is accredited by the mqa and has 
resulted in the creation of 8 full time jobs to date
bursaries – following on our theme of learning and the 
development of our employees and the community 
barberton mines implemented a fulltime bursary scheme 
during the 2011 financial year candidates are sourced from 
our local community with the intention of offering them job 
opportunities on the completion of their studies the bursary 
covers full tuition fees accommodation textbooks and a 
monthly allowance currently we have 10 fulltime students 
enrolled
the mine also supports improved community health through 
participating and financially supporting the local municipality 
in its annual hivaids awareness campaign a follow up 
campaign at local schools was also sponsored during the year 
this campaign focused on educating teachers and learners on 
dealing with pupils who are affected by hivaids five local 
schools benefitted from the program the department 
of education expressed its appreciation to the mine for 
supporting this initiative
over and above the current projects that are in place 
barberton mine has also committed itself to the following 
new projects for the 20132014 financial year
  the expansion of the makhanya road in the emjindini 
t ownship at a total project cost of zar25 million
  renovation of the de kaap vallei primary school at sheba 
at a total project cost of zar800000
  the construction of a library and science block 
at emjindini high school at a total project cost of 
zar12 million
barberton mines also support and contribute financially on a 
monthly basis to the following local organisations
  verulam soup kitchen in sinqobile – monthly contribution 
of zar12000
  thandanani soup kitchen in emjindini – monthly 
contribution of zar5000
 mlambongwane home based care centre – monthly 
contribution of zar5000
 st john’s hiv orphanage – monthly contribution of 
zar10000
 de kaap vallei school soup kitchen – monthly 
contribution of zar5000
evander mines
evander mines undertook several local economic 
development projects which have had a direct impact 
on the mining community surrounding the mine and its 
labour sending area in the eastern cape these projects are 
conducted in partnership with the local municipalities and 
are designed to support implementation of evander mine’s 
integrated development plans
specific projects include
  an internship programme which employs four interns 
from the local community
  the development of an smme business through the 
construction of a bakery in embalenhle t ownship this 
project is expected to take three years to complete at 
an estimated cost of zar6 million
chief executive officer’s report
continued
 sinqobile primary school provides 
education to 1100 pupils 
 10 fulltime bursary students 
from the community  pan african resources plc integrated annual report 2013 23
company overview leadership statements our business philosophy operational overview corporate governance financial statements
  a sustainable human settlement development which 
entailed the construction of 16 family units using local 
businesses a further 26 family units will be renovated 
during 2014 financial year
phoenix platinum
the phoenix platinum operation installed a solar powered 
borehole for the modderspruit community which provides 40 
households with clean water a second system is to be installed 
at the local community hall during the 2013 financial year
welcome and thanks
a warm welcome to all new employees and stakeholders to 
the pan african resources stable and in particular to all of 
the new employees at evander mines our thanks go out to 
graham briggs and his harmony team for the professional 
and friendly manner in which the evander mines deal was 
undertaken and the continued support provided to evander 
mines through the current shared services arrangement
pan african resources is privileged to have the right people 
at all levels in our organisation but none are more important 
than those men and women who go underground daily and 
competently perform their duties often under physically 
challenging circumstances i would like to thank the general 
managers namely casper strydom at barberton mines 
manny da silva at evander mines and bertin mcleod at 
phoenix platinum for their tireless effort and achievements 
during the financial year 
underpinning our success and assisting in ensuring a bright 
future for pan african resources are the onmine support 
crews management and the behind the scenes corporate 
employees who deliver their best for the group our lean and 
flat structure makes the business model possible and ensures 
we continue to deliver on our set goals
at the end of february 2013 our previous ceo jan nelson 
left pan african resources and we thank him for his years of 
service and wish him well in his future ventures
during the current year our shareholders entrusted us with 
more than zar7073 million in an oversubscribed rights issue  
we wish to thank this very distinguished shareholder base for 
their continued faith and loyal support 
we have also been strongly supported by a well established 
board that offers a broad range of experience in mining and 
commerce their ongoing advice and guidance is invaluable in 
ensuring we remain on course during the year shanduka our 
bee shareholder rendered exceptional business expertise and 
contributed to our success 
we look forward to continuing our onward journey together
ron holding
chief executive officer
16 september 2013 pan african resources plc integrated annual report 2013 24
commentary on financial results
pan african resources is committed to creating value for all 
its stakeholders for shareholders value is determined by 
the share price performance sustainable earnings cashflow 
growth and by dividends paid by the company
all of the group’s subsidiaries are incorporated in south 
africa and their functional currency is zar the group’s 
books of prime entry are maintained in zar and with 
the exception of product sales which are conducted in 
us dollars usd prior to conversion into zar business 
is conducted in zar the ongoing review of the results of 
operations conducted by executive management and by the 
board is also performed in zar
the group’s presentation currency is the pound sterling 
gbp due to its ultimate holding company pan african 
resources plc being incorporated in england and wales 
and duallisted in the united kingdom and south africa
in the current financial year the average zargbp exchange 
rate was zar13841 2012 zar12271 and the 
closing zargbp exchange rate was zar15011 2012 
zar12911 the yearonyear change in the average and 
closing exchange rates of 128 and 163 respectively must 
be taken into account for the purposes of translating and 
comparing yearonyear results
the commentary below analyses the current year’s results 
and provides insight into the group’s expectations for the 
2014 financial year key aspects of the group’s zar results 
appear in the body of this commentary and have been 
used as the basis against which its financial performance 
is measured the gross gbp equivalent figures can be 
found in the salient features of this report appearing on 
page 5 similarly zar is the currency used in discussing 
the operations’ performance included in the operational 
performance section on page 52 to 89
external drivers of financial results
the profitability of the group is dictated by various economic 
drivers the most significant of which are
  the usd spot gold price – determines the price received 
for gold and pgm 6e produced
  the usdzar exchange rate – determines the value 
received in south africa 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 – which determine the rate of increase in the 
major elements of the group’s costs
  the gbpzar exchange rate – influences the group’s 
reporting performance in gbp 
financial
director’s report
cobus loots director
all the financial objectives 
set in 2012 were 
successfully met in 2013 
thereby ensuring pan 
african resources finished 
the year in a stronger 
financial position pan african resources plc integrated annual report 2013 25
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the platinum price during the 2013 financial year decreased 
by 34 to usd1552oz 2012 usd1606oz phoenix 
platinum achieved an average market basket price of  
usd1030oz 2012 usd968oz after taking into account the 
terms of the offtake agreement with western platinum limited
the usdzar exchange rate
the group converts and records its revenue from precious 
metal sales in zar and the deterioration in the value of 
the zarusd exchange rate during the financial year had a 
compensating effect on the weaker usd metals price revenue
the average zarusd exchange rate was 139 weaker at 
zar8831 2012 zar7751
the average zar gold price received by the group increased 
by 44 to zar440824kg 2012 zar422215kg shielded 
by the weakening in the zar against the usd
the average zar pgm 6e basket price received by the group 
increased by 213 to zar9093oz 2012 zar7499oz
usd and zar gold prices for the previous two years are 
represented graphically in the chart below
south african inflation wage rate 
and other cost increases
during the financial year the consumer price index cpi a 
primary indicator of south africa’s inflation was reported 
at 55 2012 55 the main indicator of producer price 
inflation ppi was measured at 59 2012 66
the gbpzar exchange rate
the zar’s performance against the gbp is a key determinant 
of the gbp results and as such it is important for shareholders 
both in south africa and the uk to be aware of the effect 
exchange has on reported results the value of the zar 
against the gbp deteriorated for the major part of the 
financial year with a significant weakening in the zar seen 
from october 2012 the average gbpzar exchange rate 
was 128 weaker at zar13841 when compared to the 
previous year 2012 zar12271
the gbpzar exchange rate for the previous year is 
represented graphically in the chart on the next page 
2013  
highlights
monthly gold prices in usdoz and zar per kg
zarkg
usdoz
jul 2012 aug 2012 sep 2012 oct 2012 nov 2012 dec 2012 feb 2013 apr 2013 jan 2013 mar 2013 may 2013 jun 2013
zarkg usdoz
390000
400000
410000
420000
430000
440000
450000
460000
470000
480000
–
200
400
600
800
1000
1200
1400
1600
1800
2000
 gross revenue in gbp increased by 320 to 
£1335 million 2012 £1011 million gross revenue 
in zar increased by 490 to zar18481 million 
2012 zar12403 million
  interest rates – determines interest payable and received 
for borrowings and cash on hand
the usd precious metals spot prices
during the course of the 2013 financial year higher gold prices 
were achieved for gold sales over the first three quarters 
when compared to the prior year prices gold prices retreated 
considerably during the last quarter of the financial year 
impacting the average usd gold price received for the year 
the group realised an average gold price of usd1553oz for 
the year a decrease of 83 from the usd1694oz achieved 
in the prior year
gross revenue in gbp increased by  
320 to £1335 million 
2012 £1011 million 
gross revenue in zar increased by 
490 to zar18481 million 
2012 zar12403 million
group capital expenditure in gbp incurred  
£276 million 2012 £174 million
group capital expenditure in zar incurred  
zar3816 million 
2012 zar2139 million
gold sold increased by 382 to 
130493oz 2012 94449oz
proposed dividend of zar01314 per 
share or zar240 million to shareholders pan african resources plc integrated annual report 2013 26
financial director’s report
continued
2  maximising cash generation and increasing the revolving 
credit facility rcf to ensure sufficient funding for the 
btrp and onmine capital expenditure
  although the group increased its available rcf from 
zar150 million to zar600 million it generated sufficient 
internal cashflows to fund all the btrp and onmine capital 
expenditure amounting to zar3816 million without 
drawing on this facility
3  securing funding for the evander mines transaction by 
concluding a rights issue with shareholders and finalising 
debt finance with third parties
  the group successfully completed its acquisition of 
evander mines from harmony on 28 february 2013 
4  integrating evander mines’ financial systems with those 
of pan african resources which also included migrating 
harmony’s shared services currently provided to evander 
mines to pan african resources
the group is engaged in the integration process and is aiming 
to implement a new financial system at evander mines we will 
further ensure that all shared services processes are migrated 
by the end of the 2014 financial year
analysing the successful  
acquisition of evander mines 
on 30 may 2012 pan african resources advised shareholders 
that it had entered into an agreement with harmony to acquire 
the entire issued share capital and claims against evander 
interest rates
the group pays a margin of 280 bps above the johannesburg 
interbank agreed rate jibar on our rcf balance outstanding 
and received interest on cash on hand at quoted call account 
rates movements in interest rates affects the interest expense 
and income currently jibar at 30 june 2013 was quoted at 
the following rates
1 month  50
3 month  51
6 month  55
9 month  56
12 month  59
reportback on the financial 
objectives as outlined in the  
2012 report
all the financial objectives set in 2012 were successfully met 
in 2013 thereby ensuring pan african resources finished the 
year in a stronger financial position
1  maximising margins by containing costs based on a 
forecasted average gold price of zar400000kg pgm 6e 
basket price of usd1030oz and exchange rates of zar
usd 8341 and zargbp 13261
  the stronger gold price that prevailed over the first three 
quarters of the financial year weaker zar against the usd 
and overall cost containment helped the group achieve 
this objective
gbpzar monthly exchange rates
jul aug sep oct nov dec feb apr jan mar may jun
exchange rate 2013
exchange rate 2012

2
4
6
8
10
12
14
16
18
1284 1295 1331 139 1403 1393 1399 1378 1383 1394 142 1548
1092 1155 1183 125 1284 1274 124 1208 1198 1249 1293 1303  pan african resources plc integrated annual report 2013 27
company overview leadership statements our business philosophy operational overview corporate governance financial statements
mines for a purchase consideration of zar1500 million 
the acquisition was concluded by a whollyowned subsidiary 
of the company emerald panther investments 91 pty ltd 
emerald panther in terms of the sale and purchase 
agreement the purchase price increased effectively from 
1 october 2012 until the date that all conditions precedent 
had been met resulting in the purchase price increasing by 
zar231 million to zar15231 million 
the group assumed effective control over evander mines on 
28 february 2013 and settled the final purchase consideration 
of zar15231 million in the following manner
 funds raised from the shareholder rights issue of 
zar7073 million
  debt funded from a drawdown on the group’s rcf 
of zar350 million total rcf facility available of 
zar600 million
  cash funded from operational cash flows of 
zar2558 million
  cash generated by evander mines prior to emerald 
panther taking control of zar2100 million 
the zar2100 million above represents cash generated 
by evander mines between 1 april 2012 and 28 february 
2013 and was paid as a dividend to harmony prior to pan 
african resources assuming effective control of evander 
mines for accounting purposes this amount was deducted 
in determining the final purchase price consideration and 
investment held by emerald panther in evander mines with 
the final investment amount calculated as zar13131 million
a preliminary analysis of the fair value assets and liabilities 
of evander mines at acquisition appears in the following 
purchase price allocation ppa table prepared in accordance 
with ifrs3 this analysis resulted in a bargain purchase 
consideration of zar3224 million included in earnings for 
the year
fair value at acquisition
zar
millions
gbp
millions
property plant and equipment 21570 1613
other noncurrent assets
other investments 03 –
environmental trust fund 2177 163
other noncurrent assets 31 02
current assets
inventory 515 39
trade and other receivables 322 24
cash 294 22
noncurrent liabilities
deferred tax 6035 451
provision for environmental 
rehabilitation
1782 133
provision for postretirement benefit 09 01
current liabilities
trade and other payables 729 54
tax liability 02 –
net asset acquired at fair value 16355 1223
bargain purchase gain 3224 241
effective purchase price 13131 982
evander mines dividend to harmony 2100 157
original purchase consideration 15231 1139
unpacking 2013 financial performance
revenue and profitability
2013 2012 movement
zar 
millions
gbp 
millions
zar 
millions
gbp
millions
zar 

gbp 

revenue 18481 1335 12403 1011 490 320
cost of production 9851 712 5660 461 740 544
mining profit 7768 561 6323 515 229 89
ebitda 7352 531 5525 450 331 180
profit after taxation 5589 426 3589 292 557 459
headline earnings 4870 352 3597 293 354 201
eps centspence 3451 263 2483 202 390 302
heps centspence 3007 217 2489 203 208 69 pan african resources plc integrated annual report 2013 28
financial director’s report
continued
pan african resources consolidated 
results
group revenue yearonyear increased by 490 to 
zar18481 million 2012 zar12403 million evander 
mines contributed zar4389 million phoenix platinum 
contributed zar589 million and barberton mines contributed 
zar110 million resulting in a zar6078 million increase in 
revenue barberton mines recorded an increase in revenue 
due to an increase in gold ounces sold and higher zar gold 
prices achieved the group realised an average gold price of 
zar440824kg 2012 zar422215kg and an average price 
for pgm 6e of zar292355kg
the group’s yearonyear total cost of production reflects 
an increase by zar4191 million to zar9851 million 2012 
zar5660 million of which evander mines contributed 
zar2755 million and phoenix platinum zar489 million 
of the increase barberton mines’ costs increased by 167 
which contributed zar947 million to the group’s cost of 
production increase
the group has adopted reporting cash costs in line with 
the recommendation of the world gold council and the 
table below reflects the consolidated group’s overall gold 
operations costs per kilogram
the group’s cost of production per kilogram increased by 
197 to zar231439kg 2012 zar193360kg evander 
mines’ cost of production averaged zar259640kg 
compared to barberton mines’ average cost of production of 
zar221424kg factors contributing to the average increase 
yearonyear were salary and wages costs increases at 
barberton mines of 161 an increase in the cost of electricity 
of 150 mining costs increasing by 323 primarily due to 
higher vamping contractor costs as a result of additional 
kilograms produced by this contractor the mining costs also 
included additional secondary support costs incurred at 
fairview to establish additional mineable panels
the group’s allin sustaining cash cost of production per 
kilogram including direct cost of production royalties 
associated corporate costs and overheads and sustainable 
capital expenditure increased by 141 to zar281551kg 
2012 zar 246801kg largely impacted by higher onmine 
maintenance and development capital expenditure
the group’s allin cost per kilogram sustaining cost of 
production plus onceoff expansion capital increased by 
294 to zar343949kg 2012 zar 265713kg due to 
high capital expenditure incurred on the construction of 
the btrp and evander shaft deepening project the group 
incurred overall lower royalty costs as a result of the higher 
capital expenditure on the btrp which is factored into the 
allin cash costs for the royalty calculation when costs are 
compared to the average gold price received of zar440824
kg during the year it demonstrates the group’s current overall 
available gold mining margins the group’s ebitda increased 
by 331 to zar7352 million 2012 zar5525 million 
mainly as a result of the inclusion of evander mines’ ebitda 
of zar1523 million
pan african resources achieved an increase of 557 in profit 
after tax to zar5589 million 2012 zar3589 million due 
to inter alia the following reasons
 an improved performance at barberton mines
 four months profit contribution from evander mines 
 bargain purchase gain of zar3224 million arising on the 
evander mines acquisition 
the bargain purchase gain was largely offset by onceoff 
costs comprising of phoenix platinum’s impairment of 
zar100 million an auroch impairment of zar1423 million a 
manica loss on disposal of asset held for sale of zar82 million 
and onceoff acquisition costs relating to evander mines of 
zar187 million
world gold council cost analysis
units 2013 2012 movement 
cash cost costs zarkg 231439 193360 197
allin sustaining cash costs zarkg 281551 246801 141
allin costs zarkg 343949 265713 294 pan african resources plc integrated annual report 2013 29
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the impairments arose as a result of inter alia lower precious 
metal price forecasts and exploration and mining challenges in 
the current depressed mining environment
the group’s current tax charge increased marginally by 54 
to zar1679 million 2012 zar1593 million the significant 
btrp capital expenditure of zar2296 million incurred in the 
year was fully tax deductible resulting in the effective current 
tax rate decreasing to 222 2012 307 phoenix platinum 
has unredeemed capital expenditure of zar1332 million at 
year end which will be utilised in the future
the group’s eps in zar amounted to 3451 cents 
2012 2483 cents resulting in an increase of 390 the 
rights issue during january 2013 resulted in the weighted 
average number of shares in issue increasing by 121 during 
the year to 16198 million 2012 14452 million
the group’s heps in zar terms amounted to 3007 cents 
2012 2489 cents an increase of 208 the current year’s 
heps differ from eps due to the bargain purchase gain 
impairment charges and loss on disposal of asset held for sale 
which are adjusted for when calculating the heps this net 
adjustment amounted to zar719 million 
readers are directed to the segmental information included 
on page 129 of the annual financial statements and the 
operational performance reviews for further analysis
because of the funds required for the acquisition of evander 
mines the board of directors did not propose a dividend 
for the year ended 30 june 2012 now with the continued 
satisfactory results from barberton mines and the successful 
funding of the evander mines transaction the board of 
directors has proposed a dividend of zar240 million or 
zar01314 cents resulting in a dividend cover of 23 times 
noncurrent assets increased by 2258 to 
zar37262 million the majority of this significant increase 
is attributable to the evander mines acquisition and related 
fair value adjustment to the property plant and equipment 
acquired zar21570 million as well as capital expenditure 
at barberton mines of which zar3168 million of which 
zar2296 million related to the btrp and is classified as a 
major project and therefore nonsustainable capital included 
in noncurrent assets at 30 june 2013 is evander mines’ 
rehabilitation trust fund balance of zar2187 million the 
rehabilitation trust funds are invested in interestbearing 
shortterm investments or mediumterm equity linked notes 
issued by commercial banks
current assets increased by 92 to zar4015 million as 
a result of increases in inventory and accounts receivable 
inventory increased due to the inclusion of evander mines’ 
inventory balances which included evander mines’ gold stock 
not yet sold in addition btrp’s reagent consumables were 
held for the first time in the current year the group’s debtor 
days increased to 30 days 2012 15 days due to larger 
debtor balances at yearend
contributing to the increase in the group’s equity are the 
proceeds of zar7073 million rights issue undertaken to fund 
the evander mines acquisition and the increase in the current 
year’s retained income as a result of profit of after tax of 
zar5589 million
noncurrent liabilities increased by 5642 to 
zar12009 million due to the inclusion of evander mines’ 
rehabilitation provision of zar1823 million and evander 
mines’ deferred tax liability of zar6079 million in addition 
pan african resources raised zar350 million in rcf debt to 
fund evander mines’ transaction at 30 june 2013 an amount 
of zar1652 million of this rcf debt remains outstanding and 
is included in noncurrent and current liabilities it is pleasing to 
note that zar1848 million was repaid within four months of 
the initial zar350 million drawdown
current liabilities increased by 1528 to zar3612 million 
the majority of the increase relates to the inclusion of 
evander mines’ trade and other payables amounting to 
zar1921 million the balance of the increase mainly relates 
to barberton mines’ increase in trade and other payables of 
zar583 million as result of the btrp construction contracts 
financial position and resource allocation
2013 2012 movement
zar 
millions
gbp 
millions
zar 
millions
gbp 
millions
zar

gbp

noncurrent assets 37262 2493 11438 861 2258 1895
current assets 4015 267 3678 285 92 63
t otal equity 25688 1722 13575 1026 892 678
noncurrent liabilities 12009 800 1808 140 5642 4714
current liabilities 3612 241 1429 111 1528 1171
note 1  at 30 june 2012 phoenix platinum had not reached steady state production therefore all income and expenditure was capitalised as per ias16 property 
plant and equipment
note 2  current assets at 30 june 2013 exclude noncurrent assets held for sale of zar32 million gbp02 million and at 30 june 2012 zar1696 million 
gbp131 million pan african resources plc integrated annual report 2013 30
the increase in the accounts payable resulted in the creditor 
days increasing to 60 days 2012 30 days
capital expenditure during the year amounted to 
zar3816 million as detailed per operation below
for the year ended
30 june 2013
for the year ended
30 june 2012
group capital  
expenditure
 zar
millions
gbp
millions
zar
millions
gbp
millions
barberton mines 872 63 764 62
btrp 2296 166 554 45
evander mines 624 45 ––
phoenix platinum 22 02 819 67
corporate 02 – 02 –
t otal capital expenditure 3816 276 2139 174
cash performance
the group’s cash and cash equivalents decreased to  
zar716 million 2012 zar2555 million due to funding 
of both the evander mines acquisition and construction of 
the btrp despite these outflows the group was still able 
to generate sufficient cashflows from its operations to fund 
onmine capital expenditure and zar1848 million in rcf 
repayments during the year 
the group remains cash generative with a net debt position 
of only zar936 million at yearend the cash generated by 
the operations is a reflection of the quality gold assets and 
the available profit margins as a result of cost control and 
improved production results
share price performance
pan african resources’ share price has over the past year 
performed well relative to the ftsejse gold mining index sa 
gold mining index the group experienced an increase in the 
share price after announcing the evander mines transaction 
however the share price declined along with other gold 
counters as perceptions about the outlook for the global 
economy changed pan african resources has performed 
better than its peers within the sa gold mining index
the aim share price performance highlights that during the 
year pan african resources remained competitive and in line 
with its peers outperforming on occasion
shareholder analysis at 30 june 2013
beneficial shareholders  
holding of 3 or more
number 
of shares 
shanduka gold pty ltd 436358058 239
allan gray 176733778 97
coronation holdings 170747784 94
afena capital 132827637 73
investec group 96790574 53
prudential group 95564329 52
public investment corporation pic 55255381 30
shanduka gold pty ltd remains our largest shareholder and 
strategic partner
financial director’s report
continued pan african resources plc integrated annual report 2013 31
company overview leadership statements our business philosophy operational overview corporate governance financial statements
financial objectives for 2014
fully integrate evander mines into 
the pan african resources group
the successful conclusion of the evander mines acquisition 
during the year required immense work and effort from 
many employees within the group and at harmony these 
efforts have continued subsequent to the acquisition and are 
now focused on integrating the procurement and financial 
departments and to realise efficiencies and cost savings 
following the successful implementation of an enterprise 
resource planning system at barberton mines in 2012 the 
same system is to be introduced at evander mines phoenix 
platinum and pan african resources corporate office in order 
to improve financial control and alignment of reporting 
cost containment
the finance department will together with operational 
management focus on cost containment in 2014 in order to 
maximise margins and cash generation in particular we will 
look at exploring synergies to optimise systems and processes 
further and to ensure effective financial management and 
control at a reasonable cost
maintain dividend payments
it is the group’s objective to maintain dividend payments 
to shareholders subject to financial performance and future 
forecasts
cobus loots
director 
16 september 2013
pan african resources vs ftsejse gold mining index
cents
pan african resources ftsejse gold mining rebased
0
50
100
150
200
250
300
350
jun 2012 jul 2012 aug 2012 sep 2012 oct 2012 nov 2012 dec 2012 feb 2013 apr 2013 jan 2013 mar 2013 may 2013 jun 2013
pan african resources vs ftse allshare mining index
pence
pan african resources ftse allshare mining rebased
10
12
14
16
18
20
22
jun 2012 jul 2012 aug 2012 sep 2012 oct 2012 nov 2012 dec 2012 feb 2013 apr 2013 jan 2013 mar 2013 may 2013 jun 2013 pan african resources plc integrated annual report 2013 32
executive management 
exco
ron holding 61
chief executive officer

ndt mining metalliferos  
witstech
managers certificate of 
competency metalliferous mining
mdp uct
43 years of mining
related experience

  appointment date 9 september 2013
cobus loots 35
director

casa
cfa
®
 charterholder

  busi sitole resigned as financial director 
effective 30 september 2013 and is 
replaced by cobus loots effective 
1 october 2013
busi sitole 37
financial director
casa
andre van 
den bergh 57
executive hr
diploma in hr management
diploma lr management
39 years of miningrelated 
experience pan african resources plc integrated annual report 2013 33
company overview leadership statements our business philosophy operational overview corporate governance financial statements
executive management 
opsco
neal reynolds 30
group 
financial manager
casa
8 years of financialrelated 
experience
barry naicker 40
mineral resource and 
reserves manager
meng mineral resource 
management wits
grad dip engineering mrm
bsc hons geology and 
economic geology
10 years of miningrelated 
experience
casper strydom 55
general manager 
barberton mines 
mines national higher diploma 
metalliferous mining
mine managers certificate
37 years of miningrelated 
experience
wayne allen 44
group 
consulting engineer
national diploma engineering
mechanical engineer’s 
certificate of competency
map wits
amre sa
23 years of miningrelated 
experience
bertin mcleod 36
plant manager 
metallurgy 
phoenix platinum
btech chemical engineering
management 
development certificate
senior management 
development certificate 
11 years of platinum industry 
experience
manny da silva 43
general manager 
evander mines
bsc mining engineering wits
mine managers certificate 
of competency
mine overseers certificate 
of competency
25 years of miningrelated 
experience
mandla ndlozi 42
group sheqc  
manager
nadsm unisa
eia potch university
mdp gibs
samtrac nosa
integrated sheq management 
potch university
14 years of miningrelated 
experience pan african resources plc integrated annual report 2013 34
our 
business philosophy 
geographic location
background
company structure
history of pan 
african resources
the global and 
south african mining 
environment
performing against 
our business model
delivering on 
our strategy pan african resources plc integrated annual report 2013 35
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 36
geographic location
of mining operations and projects
0 40 80
kilometres
south africa
0 40 80 040 80
kilometres lometres
towns close to project locations
towns and cities on main roads
neighbouring countries
provinces
n
s
e w
evander mines
barberton minesbtrp
gauteng
mpumalanga
phoenix platinum
rustenburg
ermelo
north west province
limpopo
northern cape
kwazulunatal
free state
mozambique
botswana
swaziland
nelspruit
barberton
secunda
middleburg
witbank
zeerust
pilansberg game reserve
mafikeng
kuruman
klerksdorp
taung
vryburg
potchefstroom
johannesburg
pretoria
loskop dam
kruger national park
kalahari
desert
barberton mines 
capacity 115 koz gold  
per annum
evander mines  
capacity 100 koz gold 
per annum
phoenix platinum  
capacity 12 koz  
pgm 6e per annum
building a sustainable and profitable south africanfocused precious metals and mining
company with a low cost high margin pan african resources plc integrated annual report 2013 37
company overview leadership statements our business philosophy operational overview corporate governance financial statements
background
the pan african resources group
pan african resources is an africanfocused precious metals 
mining company comprising the following operations
  the barberton mines gold mining operations including the 
btrp  with a total annual production capacity of 115 koz 
of gold
  the evander mines gold mining operations having an annual 
production capacity of 100 koz of gold
 phoenix platinum a chrome tailings retreatment plant 
ctrp having an annual production capacity of 12 koz 
pgm 6e
the company also has a 42 investment in auroch an 
australianlisted gold exploration company operating 
in mozambique
the group’s total mineral reserves amount to 920 million 
ounces moz of gold and 025 moz of pgm 4e
the group’s total mineral resources amount to 3513 moz of 
gold and 068 moz of pgm 4e
pan african resources is committed to value creation for all 
its stakeholders through a strategy that places safe mining 
at its core followed by the optimal mining of quality grade 
orebodies at low cash costs in a manner that is sustainable 
and with minimum impact on the environment and a beneficial 
impact on the community
profitable growth is primarily achieved through prioritising 
organic projects available within the group’s current asset 
portfolio where appropriate targeted acquisitions fitting into 
the group’s business philosophy are mining of quality high 
grade low cost orebodies are considered
supporting this strategy are a variety of governance structures 
and prioritised initiatives including skills development education 
and training the continued good health of the workforce 
transformation in the workplace and at an ownership level 
and environmental management rehabilitation and closure 
plans the group partners with neighbouring communities 
through its local economic development led and 
community investment activities
the group’s shares are listed on both aim under the share 
code paf and on the main board of the jse under the share 
code pan it trades under the gold mining subsector of both 
exchanges pan african resources plc integrated annual report 2013 38
company
structure
pan african resources
group facilities  
and finance
phoenix platinum chrome 
tailings retreatment 
project
old
evander mining operations
pan african resources plc
incorporated and registered in england and wales under the companies act 1985
with registration number 3937466 on 25 february 2000
pan african 
resources 
funding 
company 
pty limited
incorporated  
in south africa
emerald 
panther 
investments 91 
pty limited
incorporated  
in south africa  
100 100
100
100 100
100
42
barberton mines 
operations
and btrp
investment holding  
manica gold project in 
mozambique
auroch 
minerals nl
incorporated in 
australia
phoenix 
platinum mining
pty limited
incorporated in 
south africa
evander gold 
mines
limited
incorporated  
in south africa
barberton 
mines 
pty limited
incorporated  
in south africa
evander gold 
mining
pty limited
incorporated in 
south africa
new 
evander mining operations
note only the material subsidiaries are being disclosed in the group structure pan african resources plc integrated annual report 2013 39
company overview leadership statements our business philosophy operational overview corporate governance financial statements
  incorporated as viking internet plc on february 2000 
and admitted to aim in may 2000
  name changed to white knight investments plc in 
september 2001
  in december 2003 the company completed the acquisition 
of mistral a company holding rights in relation to gold 
exploration properties in ghana and mozambique
  a reverse takeover of brampton capital in september 2005 
resulted in the company being readmitted to aim as pan 
african resources
  an interest in two exploration projects in the central african 
republic was acquired in 2006
  a 74 interest in barberton mines was acquired from 
metorex limited metorex in 2007 resulting in a reverse 
takeover of pan african resources by metorex
  pan african resources exercised its option to acquire 100 
of phoenix platinum from metorex for cash in may 2009
  the group acquired the remaining 26 of barberton mines 
from shanduka in exchange for 295751549 shares in the 
company in in the same transaction
  metorex disposed of its holdings in pan african resources 
to institutional investors and shanduka in june 2009
  during the financial year ended 30 june 2009 the feasibility 
of the exploration projects in ghana and the central african 
republic were assessed and it was concluded that these 
projects did not meet the group’s criteria to continue with 
further exploration activity exploration activities on these 
projects were then discontinued
  on 30 may 2012 pan african resources announced that it 
had entered into a conditional agreement pursuant to which 
emerald panther a wholly owned subsidiary of pan african 
resources would acquire the entire issued share capital of 
evander mines and all the shareholder loan claims against 
evander mines from harmony
history 
of pan african resources
  on 28 august 2012 the group entered into an agreement 
to dispose of 100 of its interest in manica to auroch
  on 28 february 2013 pan african resources through 
emerald panther finalised the acquisition of 100 of the issue 
share capital of evander mines
  on 1 march 2013 firefly investments 251 pty ltd 
renamed to evander gold mining pty ltd a wholly owned 
subsidiary of emerald panther purchased the assets and 
liabilities of evander gold mines limited pan african resources plc integrated annual report 2013 40
the global and south african
mining environment
global economic conditions
 the gold industry is effectively a “price take” and gold prices 
denominated in usd are impacted by worldwide economic 
conditions 
the global recession has negatively impacted investment in 
mining activities particularly as far as exploration and capital 
projects are concerned this lack of investment should impact 
the supply of commodities in years to come
 over the past year the global economic outlook has improved 
somewhat the world’s economy has moved beyond the threat 
of a euroled credit freeze and the usa is reporting generally – 
if somewhat erratic – improving production statistics although 
the eurozone is expected to remain in recession for some 
time to come however uncertainty remains in global financial 
markets which remain volatile this continuing volatility may 
result in cost pressures and commodity price fluctuations
 recently we have seen a flight of capital from emerging market 
economies which has negatively impacted the currencies and 
economies in these countries 
the south african economy 
the south african reserve bank sarb has held its key 
repo rate at record lows in response to disappointing local 
economic growth and high unemployment south african 
interest rates however remain relatively high compared to 
the world’s developed economies which support the south 
african rand and mitigate to some extent imported and local 
inflation risks towards the end of 2012 and the first half of 
2013 continued weakness in the south african economy the 
threat of mass strike action and a lack of investor confidence 
together with signs of recovery elsewhere saw the south 
african rand weaken to its lowest levels in more than four 
years it is now considered to be severely undervalued 
not only does the recent rand weakness impact directly on 
current revenues and costs but its inherent volatility as an 
emerging market currency increases uncertainty regarding future 
revenues and costs it may be expected that a weaker south 
african rand would result in a higher rand gold price however  the 
usd price of gold has also declined on signs of a global economic 
recovery as such the rand value of gold is rangebound by the 
combination of the gold price and the exchange rate
the majority of the south african mining industry’s costs 
mainly wages and energy are randbased social pressures 
have seen wages increase at rates significantly above inflation 
in recent years and the need to recapitalise and develop the 
country’s energy industry has resulted in the cost of electricity 
increasing by more than 25 per annum between 2008 and 
2011 and 16 in 2012 electricity tariff increases have been 
limited to a much lower 8 for 201314 but these increases 
remain above inflation the fiveyear multiyear electricity price 
increase determination has been set at 8 introducing a level 
of certainty to this key input cost going forward
changes in the market price for gold
 the market price of gold is very volatile fluctuations in gold 
prices are caused by numerous factors including speculative 
positions taken by investors or traders changes in either the 
supply or demand for gold financial market expectations 
regarding the rate of inflation the strength of the us dollar 
relative to other currencies changes in interest rates actual 
or expected gold sales and purchases by central banks the 
emergence of goldbased exchange traded funds gold sales 
by gold producers in forward transactions global or regional 
political or economic events and costs of gold production in 
major goldproducing nations
gold prices have recently been under pressure inter alia as a 
result of a general view that the world economy is recovering 
and new regulations to curb gold imports in india
the gold price ranged from usd1192 to usd1792 per 
ounce in the 2013 financial year and the price of gold as at 
financial yearend was usd1192 per ounce the average 
price realised by the group during the year was usd1553 
per ounce 
labour disruption and trade union 
activities
 employees in the south african mining industry are highly 
unionised and mining companies in south africa face labour 
disruption resulting from labour disputes recently trade union 
strike action at underground mines has had a major effect on 
the mining industry in south africa interunion rivalry wildcat 
unprotected strikes and politicking by various political factions 
further complicate the industrial relations landscape 
a high incidence of violence and intimidation is often 
associated with strikes especially illegal strikes resulting in 
loss of life and serious injury and property damage showing 
government’s commitment to the sector south africa’s 
deputy president the honourable kgalema motlanthe was 
given the mandate to stabilise relationships between owners 
managers and labour in a manner that will promote further 
investment in the sector pan african resources plc integrated annual report 2013 41
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the governance of mining rights  
and mining activities
 in south africa the award and maintenance of prospecting 
and mining rights are linked to meeting various obligations 
including compliance with the mining charter the mineral and 
petroleum resources development act mprda and other 
legislation compliance with the mining charter measured 
using a designated scorecard mining charter scorecard 
requires the achievement of equity participation in all 
prospecting or mining ventures by historically disadvantaged 
south africans hdsas of 26 by april 2014 and targeted 
levels of participation by hdsas in management 
 the industry is also prescribed to by the code of good 
practice for the minerals industry the code and the 
housing and living conditions standard the standard the 
code was developed to create principles to facilitate effective 
implementation of minerals and mining legislation and enhance 
implementation of the mining charter applicable to the mining 
industry the standard aims to include the provision of housing 
as an integral part of infrastructure during the development 
of a mine 
 the south african department of trade and industry has 
proposed changes to the broadbased black economic 
empowerment act no 53 of 2003 bee act which if 
implemented would provide a standard framework for the 
measurement of black economic empowerment compliance 
across all sectors of the economy the implementation of 
an allencompassing standard framework may result in 
targets previously agreed with the department of mineral 
resources dmr becoming redundant requiring the industry 
and individual mining houses to modify their approach to 
transforming the industry
competition 
 the mining industry is competitive in all of its stages mining 
companies compete for specialised equipment components 
and supplies necessary for exploration and development 
for mining claims and leases on exploration properties and 
for the acquisition of mining assets 
 the south african industry also competes on a global basis to 
attract and retain key human resources with the appropriate 
technical skills and operating and managerial experience 
this is further exacerbated in the current environment of 
increased mining activity across the globe 
 the retention of staff is particularly challenging in south 
africa where in addition to the impacts of global industry 
shortages of skilled labour the industry is required to achieve 
employment equity targets of participation by hdsas in 
management the current shortage of critical skills and 
experience in south africa makes the development and 
retention of people essential to a successful mining business 
health and safety laws and regulations
 over the past 20 years the south african gold mining industry 
has responded to increasing demands to improve safety on 
its mines and is subject to a variety of industryspecific health 
and safety laws and regulations to protect employees the 
government enforces compulsory shutdowns of operations 
to enable investigations into the cause of accidents at those 
operations in particular the socalled “section 54” safety 
stoppages have become a significant issue stoppages can be 
enforced by the inspector of mines for a variety of reasons 
and can impact specific shafts or levels or the entire mine 
a demonstrable commitment to safe production and good 
relationships with the dmr and its representatives are key 
elements to minimising the impacts of these stoppages
 safety in south african mines has improved drastically over 
recent years with a significant decrease in fatalities and injuries 
across all sectors of the industry
illegal mining 
 south africa’s poor economic growth and high unemployment 
rates incite illegal mining activities the presence of illegal 
miners on mine land and within the working area of a mine 
pose serious safety risks – not just to the illegal miners but 
also to the mine’s employees this phenomenon increases the 
security costs associated with mining pan african resources 
is engaged in a continuous and focused effort to reduce the 
impact of illegal mining on our operations
environmental laws and regulations
environmental laws and regulations in south africa are world 
class and establish limits and conditions on the industry’s 
extraction use and conservation of water resources air 
emissions including dust control water treatment and 
discharge regulatory and community reporting cleanup of 
contamination worker safety and community health and 
the generation transportation storage and disposal of solid 
and hazardous wastes such as acids radioactive materials 
and mine tailings the requirement for compliance with 
environmental laws and regulations has increased in line with 
international trends
environmental laws and regulations are continually changing 
and are generally becoming more prescriptive failure to 
comply with applicable environmental laws and regulations 
may result in the suspension or revocation of permits 
and rights 
water quality and usage are areas of concern globally but are 
particularly significant for waterstressed south africa where 
there is significant potential for environmental and social 
impacts any failure to secure access to suitable water supplies 
or achieve and maintain compliance with the requirements of 
the permits or licences could result in curtailment or halting 
of production at the affected operation the south african  pan african resources plc integrated annual report 2013 42
the global and south african
mining environment continued
department of water affairs monitors compliance with 
regard to water matters
 south african mining companies are required by law to close 
their operations at the end of a mine’s life rehabilitate the 
lands mined and manage the potential for acid mine drainage 
estimates of total ultimate closure and rehabilitation costs for 
gold mining operations are significant and based principally 
on lifeofmine lom profiles changing inflation and discount 
rate assumptions changing designs of tailings storage facilities 
and current legal and regulatory requirements accounting 
standards require that environmental liabilities are accrued 
when they become known probable and can be reasonably 
estimated increasingly regulators are seeking security in the 
form of cash collateral or bank guarantees in respect of 
environmental obligations pan african resources assesses its 
liabilities in this regard on an annual basis and creates financial 
provisions accordingly
 both direct and indirect emissions of greenhouse gases 
ghgs are receiving everincreasing attention and increased 
disclosure expectations the south african mining industry 
through its use of fossil fuels and electricity generated by 
eskom the local energy utility is responsible for the emission 
of substantial quantities of ghgs in response to international 
initiatives including the kyoto protocol and the durban 
platform commitments by the south african government 
to reduce the country’s emissions have led to a proposed 
carbon tax expected to be introduced in 2015 the costs of 
monitoring measuring and managing energy consumption 
may well be offset by energy efficiencies achieved however 
carbon taxes – especially those imposed on local electricity 
utility eskom – will in all likelihood see further increases in the 
cost of electricity
climate change
 the mining industry could be exposed to a number of 
physical risks from climate change such as changes in 
rainfall rates reduced water availability higher temperatures 
and extreme weather events events or conditions such as 
flooding or inadequate water supplies could disrupt mining 
and transport operations mineral processing power supplies 
and rehabilitation furthermore these could cause resource 
shortages damage property or equipment and increase 
health and safety risks
investor perceptions
the gold mining sector as a whole has failed to deliver 
adequate equity returns to investors over the last years 
currently investors are demanding renewed focus by the 
management of gold mining companies on issues such as 
capital rationalisation reduction of expenses and profitability
resource nationalism
 the bull market commodities have resulted in a global increase 
in resource nationalism stakeholders in the countries and 
areas in which mining companies operate are all demanding 
increased participation in mining ventures this participation 
takes many forms with increased taxation and shareholdings 
by communities being two examples mining companies can no 
longer view stakeholder engagement as ancillary to their core 
business – maintaining and improving working relationships 
with all stakeholders is critical to sustainability pan african resources plc integrated annual report 2013 43
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the four pillars – an integrated 
business and reporting model
pan african resources aims to create value for all our 
stakeholders by operating our business at a point or 
intersection where all our shareholders our employees 
partners and the local communities in which we operate 
benefit to ensure we operate within these bounds we use 
the concept of four business pillars to drive and monitor our 
performance
  profitable
  sustainable
  stakeholders
 growth
profitable
ongoing profitability would be expected to be the most 
logical purpose for a business but some mining companies 
appear to have overlooked this core principle in their pursuit 
of more mine developments and resource ounces they have 
consequently suffered losses as a result of factors such as 
over expenditure reduced commodity prices and growing 
stakeholder discord
we are always aware that gold prices rise and fall and 
therefore strive to keep costs down in anticipation of the 
lean years when cash must still be generated for ongoing 
operations and shareholders we are mindful that investors 
rightly expect due returns so will only expand operations or 
make acquisitions when the fundamentals are in place 
profitability business pillar results in 
numbers
  average zar gold price realised zar440824kg  
2012 zar422215kg
 t otal gold cash cost zar231439kg  
2012 zar193360kg
  gross profit margin achieved from gold operations 
of 475 2012 542 or zar8498 million  
2012 zar6723 million
 revenue from pgm 6e sales of zar589 million 
2012 nil
  ebitda of zar7352 million 2012 zar5525 million 
an increase of 331
  attributable profit of zar5589 million  
2012 zar3589 million an increase of 558
 eps up 390 to 3451 cents 2012 2483 cents
 heps up 208 to 3007 cents 2012 2489 cents
performing against
our business model
profitable
sustainable
stakeholder
growth pan african resources plc integrated annual report 2013 44
performing against
our business model continued
sustainable
we view sustainability broadly in two ways the wider definition 
of sustainability is that pan african resources’ operations and 
the pursuit of financial returns should not be conducted 
without heeding our broader responsibilities towards the 
environment and society for pan african resources itself 
sustainability means operating within parameters determined 
by government laws the market context current and long
term risks and opportunities corporate governance and 
financial prudence so that the longterm viability of the 
company is not at any time threatened
prudent capital structuring 
and investment
pan african resources is committed to maintaining the profit 
margins at our operations as the basis for our success and 
we strive to do this safely should the gold price fall to a 
level approaching our allin sustainable cost of production 
for any continued period we will review all projects capital 
expenditure and costs to preserve cash we believe that a 
true measurement of our success must be based on an allin 
cash cost of production in zarkg
an enabling culture
pan african resources remains competitive and sustainable 
by enabling a company culture that embraces our people 
as our primary asset rather than an expensive liability we 
value expertise and nurture talent while encouraging the 
free flow of ideas trends and information between all levels 
we keep this culture of success vibrant by attracting the 
best people retaining those we have and providing training 
and skills development we also work diligently to maintain 
safe underground and working conditions supported by 
continuous improvement of safety and productivity standards
a key factor is that we encourage each individual to be an 
integral part of the business practically this means engendering 
trust and honesty continual listening and addressing issues 
rather than people 
pan african resources is structured to support this flat and 
mutually supportive culture by having a small corporate 
office and devolving most management functions to the mine 
managers and their onsite teams
evander mines has brought with it management systems 
inherited from harmony as long as these are appropriate 
to that particular mining operation pan african resources 
will not change systems simply to match those at barberton 
mines we are evaluating the two operations and where 
appropriate will crosspollinate with those systems we regard 
as best practice following the successful implementation of an 
erp system at barberton mines in 2012 the same system is to 
be introduced at evander mines to improve financial control 
and reporting
environmental impacts 
and good corporate citizenship
pan african resources has long accepted that human 
activities are a direct cause of negative climate change and 
that our operations cannot be conducted in isolation from 
environmental and social interests our engagement goes 
beyond mere compliance with legislated environmental social 
and labour requirements we are proud of the 1100learner 
school we built near barberton mines and the food and job 
opportunity projects in which pan african resources is involved
having recently acquired evander mines we have evaluated 
its social and environmental programmes certain aspects are 
impressive – in particular its internal employee development 
programme and the building of a bakery and kiosks totalling 
an investment of zar6 million over the last three years
to keep this report concise in accordance with current 
integrated reporting best practice we refer you to a full 
disclosure of our environmental and social impacts and 
programmes on the pan african resources website found at 
wwwpanafricanresourcescom
sustainability business pillar salient 
features
  capital expenditure to maintain and optimise existing 
assets of zar762 million 2012 zar381 million
  capital expenditure to develop and extend existing 
assets of zar757 million 2012 zar376 million
  the evander mines acquisition has necessitated an 
increase in the group’s capital structuring but it remains 
conservative with a net debtequity ratio of 004 
2012 019
  the group persists with its successful decentralised 
management approach and structure
  there is continued successful participation and 
interaction with our local communities
  zar29 million 2012 zar10 million invested in 
employee training and development
  no industrial action or material production interruptions 
related to safety occurred during the year demonstrating 
our commitment to safe and sustainable operations and 
strong workforce relationships pan african resources plc integrated annual report 2013 45
company overview leadership statements our business philosophy operational overview corporate governance financial statements
stakeholders
the group’s shareholders and stakeholders are key participants 
in developing the strategic objectives that inform our planning 
and actions by being involved they understand the realities of 
pan african resources’ operations and will easier accept that 
there will be difficult years as well as good years 
during this reporting period we actively engaged key 
stakeholder groups such as our employees communities 
investors and shareholders regulators analysts and the media 
we worked to ensure that these engagements were thorough 
and meaningful stakeholder inputs were fed back into strategy 
risks opportunities future planning environmental planning 
social and labour plans slps and the relevant committees 
and operations a further disclosure of pan african resources’ 
stakeholder engagement activities is included in the corporate 
governance section of this report on pages 96 to 98
stakeholders business pillar salient
features
 there was a 218 return on shareholder funds in rand 
terms 2012 264
 proposed dividend of zar01314
  the group’s overall safety record continues to improve 
although two employees were unfortunately killed at 
the barberton mines’ site in industrial as opposed to 
mining accidents
 negotiated wage increases averaged 14 during the 
2013 financial year
  t otal salaries wages and company contributions 
amounted to zar5070 million 2012 zar2932 million
  t otal taxes collected and paid on behalf of the fiscus of 
zar1490 million 2012 zar1026 million
  the btrp construction created 302 jobs in the 
barberton area and 83 permanent jobs upon completion
  community social investment amounted to 
zar202 million 2012 zar144 million 42 of 
headline earnings 2012 40
growth
a key aspect of pan african resources’ business model is the 
healthy margin between our cost of production and the market 
price of the metals we produce ensuring a significant margin 
safeguards our sustainability and funds shareholder satisfaction
pan african resources has no influence over metal prices but 
we can control production costs and ensure that the group 
only acquires high grade orebodies the board has stipulated 
explicit criteria for orebodies already in our reserves and 
additional projects we may consider acquiring 
should gold prices decline as they have recently the group 
can continue generating profit due to the quality and cost 
profile of our operations and orebodies we have invested 
considerable funds into our mineral resource management 
mrm programme to ensure that our resources and 
reserves are accurately mapped out for viable mining in the 
medium to long term
as stated earlier pan african resources has no immediate plans 
to make further acquisitions unless exceptional opportunities 
become available that fit into our high gradelow cost parameters 
on the cost of production side we will factor in rising input 
costs – electricity in particular – and the potential for wage 
increases in excess of inflation due to the current mismatch 
between economic reality and worker expectations
growth business pillar salient features
  finalisation of the evander mines transaction and the 
operations consolidation from 1 march 2013 this 
acquisition will contribute an additional 100000 oz per 
annum to the group
 commissioning of the btrp on time and within budget
 phoenix platinum operated for its first full year
 gold sold totalled 130493 oz 2012 94449 oz
  revenue from pgm 6e sales of zar589 million 2012 nil
  gold reserve inventory increased by 693 to 920 moz 
2012 116 moz
  gold resource inventory increased by 496 
to 3513 moz 2012598 moz
  pgm 4e reserve inventory increased by 389 
to 025 moz 2012 018 moz
company wellbeing is 
only sustainable if all 
stakeholders share and 
buy into the company 
vision and strategy
profitability and 
sustainability  
of business
arrows represent a common 
understanding respect and attitude 
towards safe performance behaviour 
delivering on company strategy that 
rewards all stakeholders
communities 
around our mining 
operations
employees and 
business partners
shareholders pan african resources plc integrated annual report 2013 46
delivering on
our strategy
in the year under review the group has achieved in all areas of our strategy through inter alia optimising existing operations at 
barberton mines – an asset with a significant production life that offers high grade gold mining at a relatively low cash cost
growth is being realised through the successful acquisition of evander mines which promises expanded future production 
through an array of organic project opportunities following this successful transaction further acquisitive growth opportunities 
will be thoroughly investigated as and when they arise although this isn’t a priority at present
in addition the group continues to address its environmental footprint and exposure through the retreatment of various tailings 
dams both at its own gold mining operations and those arising as a result of chrome and platinum mining in south africa’s north 
west province 
indicators and comments on our performance against key drivers appear throughout this report below we reflect on our 
performance against the four key strategic initiatives identified in our 2012 annual report 
 strategic initiative 2012 performance in 2013
finalise the acquisition of evander gold 
mines and integrate it into the group
  cash of zar210 million generated prior to transaction closing was offset 
against evander mines purchase price
 final cash settlement price zar1313 billion
  zar7073 million of total purchase price secured through an oversubscribed 
rights issue
  balance funded from internal cash resources and nedbankabsa rcf of 
zar3500  million
 results were consolidated from 1 march 2013 and integration into the group 
progressing well
 management services agreement in place with harmony until 28 february 
2014 extendable by another six months
 evander mines’ production totalled 34197 oz for the four months ended 
june 2013
 investigation of project opportunities at no 7 shaft progressing well and 
additional mineral resources quantified
 the potential to treat surface material at evander tailings retreatment plant 
etrp will contribute further to profitability
 other organic projects being investigated further
finalise the disposal of the group’s  
manica operation 
  100 of manica sold to a wholly owned subsidiary of australian stock 
exchangequoted auroch on 31 december 2012
  t otal potential purchase consideration of aud6 million payable in cash and 
shares in auroch
  underlying purpose of the transaction was to fund exploration activities 
in mozambique
 at yearend the group’s equity interest in auroch amounted to 42
  the balance of the purchase price is deferred until the achievement of 
certain milestones
  the decline in both the gold price and market conditions has necessitated a 
zar1423 million impairment of the group’s investment in auroch minerals nl 
at yearend pan african resources plc integrated annual report 2013 47
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 strategic initiative 2012 performance in 2013
commission the btrp  the plant was commissioned on schedule and within budget zar305 million 
with the inaugural gold pour taking place on 28 june 2013
 the project was funded entirely from internal cash resources
  the plant is designed to retreat 100000 tonnes of gold tailings per month at an 
estimated average cash cost of usd725oz
 the plant will ramp up to full production during the second quarter of the 
financial year 2013
 the plant is expected to contribute an additional 20000 oz of gold per annum
optimise the ctrp and produce  
pgm 6e
  project plan was based on the retreatment of sulphide material from 
international ferrous metals’ ifm lesedi mine
  pgm and chrome prices fell significantly below those forecasts at the time of 
the feasibility study
 as a result of the poor chrome market conditions ifm cut back operations 
at its lesedi mine in january 2012 and eventually stopped the underground 
sulphide production
 ifm redirected its efforts towards its opencast section
 highly oxidised tailings from opencast chrome mining negatively impacts 
on the phoenix platinum plant’s recovery and concentrate grade and hence 
pgm production
 the group is considering expediting an additional tailings storage facility to 
allow for the bypassing of the oxidised tailings and allow the plant to treat 
sulphide material from the existing tailings storage facility
 once the additional tailings storage facility is completed recoveries and revenue 
are expected to increase significantly
 the bypassing of oxide feedstock directly to the ifm tailings storage facility 
has had a positive effect the continued success of this is dependent on the 
continued safe operation of the ifm tailings storage facility
 an impairment of zar100 million was raised against phoenix platinum at year
end as a result of a decline in commodity prices and operating conditions pan african resources plc integrated annual report 2013 48
operations
statements
operational 
performance
barberton mines
btrp
evander mines
phoenix platinum
abridged mineral 
resources and mineral 
reserves report
sustainability review pan african resources plc integrated annual report 2013 49
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 50
operational
performance
 95koz of au production capacity 
per annum
 head grade 100gt
 lom 17 years
 reserve 1182mt  310gt 118moz
†
 resource 2795mt  392gt 352moz
†
†
 including btrp 
barberton mines
in production
 20koz of au production capacity  
per annum
 head grade 134gt
 lom 12 years
 reserve 728mt  056gt 013moz
 resource 1700mt  134gt 072moz
btrp
completed construction  
 in production in the  

tion in the
 d construction n ti td t
oz mo 72 0 t 4g 13 esource 17 00mt  r
 mo 13 0 g  mo oz 13 0 t  6g 05 mt e 8m 72 er es r ar ye 12 m o l m 2
head grade 134gt h m nu er an p
y capacity 0koz of au production 2 rp tr b btrp p tr
100
ownership
100
ownership pan african resources plc integrated annual report 2013 51
company overview leadership statements our business philosophy operational overview corporate governance financial statements
evander mines 
 100koz of au production capacity  
per annum
 head grade 535gt
 lom 14 years
 reserve 6799mt  367gt 802moz
 resource 30915mt  318gt 3161moz
 12koz pgm 6e production capacity  
per annum
 plant feed grade 327t
 lom 20 years
 reserve 538mt  146gt 025moz
 resource 653mt  327gt 069moz
phoenix platinum 
acquisition completed  
in production
in production
acquis
 resource 309 15mt  3 18gt 31
  es r er 79 ve 6 t 9m  3 7 t 8 0 m
 l m o 14 s yea lo 14 m
 head grade 535g t
per annum
 00 100koz of au production capacity
evander m mines eva an er d m min nes
100
ownership
100
ownership pan african resources plc integrated annual report 2013 52
barberton mines
operation at a glance
 operation name barberton mines gold mining operations
parent and ownership percentage pan african resources resources plc 100 attributable
company name barberton mines pty limited south african incorporated
country of operation south africa
provincial jurisdiction mpumalanga
number of employees 1837
number of contractors 754
commodity being mined gold
geological setting sediments and metavolcanics within the barberton greenstone belt
mining method underground semimechanised updip cut and fill and updip room and stick
extraction method concentrator and biox
®
name plate annual production capacity
t onnage t 310000
head grade gt 100
gold produced oz 95000
cash cost usd780oz
sustainable capital per annum zar100 million
lom 17 years
setting the scene
barberton first produced gold in 1886 after the discovery of 
the first gold nugget by edwin bray
during the 1970s and 1980s anglovaal consolidated various 
operations in the area including sheba new consort and 
agnes mines in 1998 the company acquired fairview mine 
from the then owners goldfields previously gencor in 2003 
anglovaal sold the operations excluding agnes to metorex 
and in 2006 metorex reversed barberton mines into pan 
african resources
the barberton mines mining complex consists of three 
mines fairview new consort and sheba and now the 
btrp the three mines currently produce approximately  
95000 oz of gold per annum with the btrp  commissioned 
in june 2013 expected to produce 20000 oz per annum the 
combined operations are expected to produce approximately  
115000 oz of gold in the 2014 financial year
the biological oxidation biox
®
 gold extraction process 
was developed at barberton mines and is used as a training 
facility for other biox
®
 plants in the industry biox
®
 is an 
environmentally friendly process of releasing gold from the 
sulphide that surrounds it using bacteria that perform this 
process naturally
barberton mines is known for its high average head grade 
and remains one of the lowest cash cost producers of gold in 
the country during 2013 the barberton mines team excelled 
surpassing production targets and limiting average production 
cash costs to zar221424kg as such this relatively small 
mine in the mpumulanga contributed considerably to the 
group’s success in 2013 pan african resources plc integrated annual report 2013 53
company overview leadership statements our business philosophy operational overview corporate governance financial statements
management team
 name age designation qualification experience
casper strydom 55 general manager national higher diploma metalliferous mining 
mine managers certificate
36 years of mining
related experience
pierre human 52 manager mining mine overseers certificate of competency
mine managers certificate of competency
mdp stellenbosch
30 years of mining
related experience
jonathan irons 47 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
25 years of metallurgy
related experience
hans grobler 49 manager engineering mechanical engineers certificate of 
competency
professional certificated engineer
31 years of 
engineeringrelated 
experience
tp maepa 28 manager finance and 
administration
bcom hons accounting 9 years of financial
related experience
essie esterhuizen 53 manager human 
resources
completed the gencor learner officials 
programme
certificate in personnel management
various other mining industryrelated 
certificates
skills development facilitator – nqf level 5
31 years of human 
resourcesrelated 
experience
operational performance
2013 2012 2011 2010 2009
t onnes milled underground t 274398 282041 296200 313167 313952
t onnes milled surface t 35086 26054 – – –
t onnes milled total t 310484 308095 296200 313167 313952
head grade underground gt 118 112 – – –
head grade surface gt 15 19 – – –
head grade total gt 106 105 106 106 103
recovered grade gt 96 95 97 97 94
overall recovery  91 91 91 91 91
production underground oz 95135 93381 92043 97483 94909
production surfacecalcine dumps oz 1161 1068 – – 3955
gold sold oz 96296 94449 92197 98091 97353
average price spot zarkg 450829 422215 306757 267876 251740
cash cost zarkg 221424 193360 175520 158711 136178
allin sustaining cash costs zarkg 273653 246801 217524 189308 155910
allin cash cost zarkg 350282 265713 217524 189308 155910
t otal cash cost zart 2153 1844 1707 1537 1313
capital expenditure zar millions 3168 1318 752 702 587 pan african resources plc integrated annual report 2013 54
exploiting the orebody
underground semimechanised cut and fill mining continued 
at all three of barberton mines mines and small quantities 
of low grade surface material were also processed whilst 
underground tonnages declined slightly from 2012 the 
additional low grade surface volumes resulted in the operation 
increasing its total tonnage milled and optimising plant 
throughput from july 2013 the traditional underground 
mining operations will be supplemented by the btrp 
consistent recoveries and improved head grade allowed 
barberton mines to increase its overall recovered grade to 
964 gt surpassing 2012’s gold production and sales
between 16 and 18 of gold is recovered by sweeping and 
vamping contractors focusing on workedout areas and high 
grade pillars the proportion of gold production between 
the three mines of fairview sheba and new consort is 
approximately 503020 the three mines introduce a level of 
flexibility and versatility with regard to potential interruptions 
and resource allocation
the mix of ore from the mines is planned every month 
to maintain the targeted grade and gold production thus 
managing the mines cash flow at an early stage in the mining 
process 
between 600 metres and 700 metres of development 
are drilled every month a total of zar409 million 
2012 zar377 million of development capital was invested 
at barberton mines during the year
mining and processing –  
challenges and achievements
the mines at barberton have been mined for more than 
100 years and current production practices have been in place 
for many decades and are now embedded the bulk of mining 
takes place during the morning shift with the evening shift 
being dedicated to cleaning dragging and hoisting planned 
plant maintenance takes place over weekends
however mining of the fairview mine faces increasing 
challenges as it becomes deeper these challenges include 
managing the orebody increasing ventilation and development 
in the bottom of the mine to ensure orebody availability 
barberton mines
continued
during the first six months of the financial year operating 
performance was below budget mainly attributed to a 
mechanical failure of the sheba zk winder bull gear as well 
as shaft refurbishment at the no 2 and no 3 declines at 
fairview mine during the second half of the financial year 
the barberton mines team delivered a solid performance and 
exceeded expectations their production targets resulted in 
overall gold sold of 96296 oz 2012 94449 oz 
the ontime and withinbudget construction and 
commissioning of the btrp was a considerable achievement 
during the year this is dealt in detail on page 57 
the overall 145 increase in total cash costs per kilogram 
of gold was driven by increased vamping contractor fees 
mainly due to greater production higher payroll costs and 
electricity tariffs 
the zar2153t 2012zar1844t total cash costs per 
tonne milled of zar2153t increased by 167 as a result 
of increased volumes mainly due to the additional supply of 
low grade surface tonnes the average price received for the 
year was zar450829kg resulting in barberton mines margin 
of zar229405kg or 509 keeping costs under control 
is a continuous exercise of monitoring expenditure and 
identifying costcutting opportunities that do not compromise 
safe operations 
barberton mines is not a member of the chamber of mines 
allowing it to negotiate wage rates independently successful 
wage negotiations albeit higher than the budget target were 
conducted with the onmine union representatives and no 
industrial action occurred at the mine during the year as a 
result of these negotiated wages the mine’s overall payroll 
costs increased by 161 during the year 
the employee incentive scheme was revised during the year 
increasing the emphasis on safety targets achieving production 
targets and increasing penalties for absenteeism during the 
year an absenteeism monitoring system was implemented 
where all employees returning from sick leave are counselled 
by human resources to establish the reasons and validity of 
sick leave 
total electricity costs increased by 15 to zar721 million 
2012 zar628 million 
barberton mines invested more than zar27 million in 
training of its workforce during 2013 an increase of 173 on 
the corresponding 2012 figure pan african resources plc integrated annual report 2013 55
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the intelligencedriven approach to security in respect 
to illegal miners continues to pay dividends the cost of 
security decreased by 129 to zar256 million 2012 
zar294 million
efforts continued during the year to improve the living 
conditions of the workforce approximately 86 of the 
workforce reside with their families in the local community 
and surrounds and are paid a livingout allowance the balance 
of employees live in mineprovided accommodation – 6 in 
single sex hostels and 82 in married accommodation
the production goals for the barberton mines team in 2014 
are clear
 repeat 2013’s gold production at a reasonable cash cost
  bringing the btrp up to steadystate production 
achieving its planned 20000 oz per annum capacity
risks
sa labour environment
barberton mines is not excluded from the current labour 
turmoil experienced by the south african mining industry 
the rivalry for union dominance between the association 
of mineworkers and construction union amcu and the 
national union of mineworkers num that is occurring 
in the industry also affects barberton mines this is one of 
the biggest threats to the ongoing success of the mine the 
relationship between labour and management is regulated 
by the labour relations act which requires management to 
enter into a recognition agreement with the majority union 
barberton mines has recognition agreements with the num 
for category 48 employees and the united association 
of south africa uasa representing the officials artisans 
and miners
aged mining infrastructure
fairview mine accountable for the majority of the gold 
production at barberton mines has aged infrastructure that 
continually needs maintenance or replacement in order to 
operate successfully the conditions of the shaft infrastructure 
at no 2 and no 3 declines were identified as a highrisk area 
more than a year ago and a programme of refurbishment 
was implemented to ameliorate the risks this programme is 
ongoing and capital to the amount of zar38 million 2012 
zar26 million has been spent for the financial year as 
these declines are operating shafts the refurbishments are 
conducted over weekends during off periods
cost of production – current year
a graphic representation of the mines’ cost of production 
appears below
cost of production current year 
y ear ended 30 june 2013 
salaries and wages
mining
processing
engineering  technical services
electricity
security
other
48
14
9
9
11
4
5
t otals
zar6607 million
r221424kg
cost of production prior year 
y ear ended 30 june 2012 
49
13
9
9
11
5
4
t otals
zar5660 million
r193360kg
salaries and wages
mining
processing
engineering  technical services
electricity
security
other pan african resources plc integrated annual report 2013 56
btrp
operation at a glance
 operation name barberton tailings retreatment plant project
parent and ownership percentage pan african resources resources plc 100 attributable
holding company barberton mines pty ltd south african incorporated
country of operation south africa
provincial jurisdiction mpumalanga
number of employees 83
number of contractors 264
commodity being mined gold
geological setting tailing dams situated at fairview new consort and sheba mines
mining method hydromining of tailings dams
extraction method cil
name plate annual production capacity
t onnage t 1200000
plant feed grade gt 134
forecast gold produced oz 20000 – 25000
cash cost usd725oz
capital expenditure forecast zar305 million
lom 12 years
setting the scene
as a consequence of successful metallurgical test work 
carried out on composite drill hole samples drilled during the 
previous financial year the potential of retreating the bramber 
tailings dam was assessed in a feasibility study on the proposed 
construction of a tailings retreatment plant at fairview mine 
the viability of a retreatment plant was confirmed in an 
independent review by venmyn rand pty ltd 
detailed engineering process and flow design to treat 
approximately 12 mt per annum was carried out by basil 
read matomo 
when in full production the btrp will increase the annual 
production profile at barberton mines by 20000 oz to 
approximately 115000 oz a year 
with a forecast cost structure of usd725oz this project falls 
well in line with the company’s strategy of developing low 
cost high margin projects 
the lom of the btrp has been augmented by auger drilling 
on an additional 6 mt of tailings at the consort tailings dam 
extending the life of the project from 6 to 12 years
final commissioning was completed in june 2013 and 
production buildup commenced the commissioning of the 
btrp project created 83 new jobs in the barberton area pan african resources plc integrated annual report 2013 57
company overview leadership statements our business philosophy operational overview corporate governance financial statements
management team
 name age designation qualification experience
casper strydom 55 general manager national higher diploma metalliferous mining
mine managers certificate
36 years of mining
related experience
jonathan irons 47 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
25 years of metallurgy
related experience
ruben mathada 33 plant manager btech metallurgy 11 years of metallurgy
related experience
richard kunneman 52 engineering manager government certificate of competency 24 years of 
engineeringrelated 
experience
btrp project timeline
2012 2013
plant construction progress july
august
september
october
november
december
january
february
march
april
may
june
july
august
september
october
contract approval complete            
process design complete            
drawings and design complete            
ground breaking ceremony complete            
bulk earthworks complete            
civil construction complete            
mechanicalstructuralelectrical  
and instrumentation construction complete
            
commissioningtesting in progress            
major infrastructure
water reticulation complete            
electrical reticulation eskom complete            
environmental impact assessment
eia complete            
water use licence amendment complete            
tailings storage facility
design complete            
construction complete             pan african resources plc integrated annual report 2013 58
btrp continued
btrp capital expenditure
barberton mines spent zar2296 million in the current financial year 2012 zar433 million the capital expenditure is 
related directly to the plant and tailings storage facility construction and excludes the purchase of harper tailings and the 
associated land purchased in the prior year for zar121 million
btrp construction
historical capital forecasted capital
prior year
30 june 2012
12 months
ended
30 june 2013
amount spent
project to date
forecasted
to completion
costs
t otal project
forecast costs
zar millions zar millions zar millions zar millions zar millions
construction 
and infrastructure 428 1854 2282 108 2390
quantity surveying – 19 19 07 26
environmental 05 05 10 –10
tailings storage facility – 418 418 206 624
t otal 433 2296 2729 321 3050
btrp life of mine
the final stage of the btrp was completed during june 2013 the first gold pour on 28 june 2013 was a success for the 
management team of barberton mines who was responsible for bringing this valueadding mineral asset to fruition the project 
was in time and within budget testifying to excellent leadership in the project execution the btrp is expected to contribute an 
additional 20000 oz of gold sold to the bottom line of barberton mines 
an additional inferred mineral resource has been identified which will possibly extend the life of mine to 12 years 
mineral resource
 as at 30 june 2013 btrp category
t onnes 
million
grade 
gt
contained gold
t onnes moz
btrp
measured ––––
indicated 728 150 1123 036
inferred 972 120 1158 036
t otal 1700 130 2281 072
additional inferred resources include camelot dump – 304 million tonnes and the segalla dump – 667 million tonnes pan african resources plc integrated annual report 2013 59
company overview leadership statements our business philosophy operational overview corporate governance financial statements
mineral reserve modifying factors
 as at 30 june 2013 btrp
gold price 
zarkg
cutoff 
value 
gt au
cutoff 
value 
cmgt
stoping 
width 
cm
dilution 

mcf 

prf 

btrp 490000––––– 36
mineral reserve
contained gold
 as at 30 june 2013 btrp category t onnes million grade gt t onnes moz
 btrp
proved ––––
probable 728 056 407 013
t otal 728 056 407 013
the table below forms the keynotes to the sources of material that constitute the above mineral reserve
 slimes dump t onnes
grade 
gt
au content 
kg
ounces 
oz
fairview bramber low grade  2369655  050  1180  37934 
fairview bramber high grade  758496  159  1206  38770 
fairview harper south  1082970  066  709  22808 
fairview harper north  2693250  024  656  21093 
calcine northern segalla  378861  083  314  10109 
t otal  7283232  056  4065  130714
nb grade gt in the above table indicates recovered grade
advanced infill drilling and metallurgical testwork was concluded during the year on the calcine northern segalla slimes 
the calcine northern segalla tonnage increased by 30 from 290000 tonnes 2012 to 378861 tonnes with an attributable 
10109 oz at a recoverable grade of 083 gt as shown in the table above pan african resources plc integrated annual report 2013 60
evander mines
operation at a glance
 operation name evander mines
parent and ownership percentage pan african resources resources plc 100 attributable
company name evander gold mines
country of operation south africa
provincial jurisdiction mpumalanga
number of employees 2530
number of contractors 608
commodity being mined gold
geological setting evander mines exploits the kimberley reef in the evander basin of the 
witwatersrand basin
mining method underground conventional scraper mining rail bound equipment with some 
trackless mechanised development
extraction method cilcip hybrid plant
name plate annual production capacity
t onnage t 400000
head grade gt 535
gold produced oz 100000 
cash cost usd900oz
sustainable capital per annum zar100 million
lom 14 years
setting the scene
evander mines was acquired from harmony for a total net 
purchase consideration of zar1313 billion the transaction 
was effective from 1 march 2013 the date from which its 
results of operations have been consolidated by the group 
in terms of the sale agreement cash generated by the mine 
between the date of signature and the effective date was 
applied to reduce the purchase consideration a management 
agreement between the group and harmony is in place to 
ensure the efficient and effective transfer of the assets
the evander mines operations comprise the operating 
evander mines no 8 shaft and several potential development 
projects – namely rolspruit poplar evander south and libra 
a surface tailings storage facility as well as the kinross 
metallurgical processing plant and tailings storage facility at 
the time of the acquisition the total underground resource 
was 2874 moz 10955 mt at 816 gt and reserve 766 moz 
2821 mt at 845 gt refer to the abridged mineral resource 
and mineral reserve report on page 67 for more details 
of evander mines’ mineral resources and mineral reserves 
the evander mines no 8 shaft currently has an expected 
lom of approximately 14 years and is expected to produce 
approximately 95 koz of gold per annum
the original harmonyappointed management remained 
intact at evander mines and is led by general manager manny 
da silva 
the management and directors are extremely pleased with 
this acquisition and its performance to date the opportunities 
it presents for organic growth and the current year’s progress 
made by both the evander mines and head office teams in 
successfully incorporating it into the group are most satisfying  pan african resources plc integrated annual report 2013 61
company overview leadership statements our business philosophy operational overview corporate governance financial statements
management team
 name age designation qualification experience
manuel da silva 43 general manager bsc mining engineering
mine overseers certificate of competency
mine managers certificate of competency
21 years miningrelated 
experience
marius pelser 55 mine manager mine overseers certificate of competency
mine managers certificate of competency
37 years miningrelated 
experience
bernhard georg 
lindner
51 manager engineering national higher diploma mechanical 
engineering  
engineering certificate of competency
34 years miningrelated 
experience
walter seymore 36 manager mineral 
resource
national diploma in geotechnology 14 years miningrelated 
experience
thabang hlalele 36 manager metallurgy national diploma in chemical engineering
btech metallurgy
6 years miningrelated 
experience
nomathema mabikwa 40 manager finance and 
administration
bcompt accounting science
imdp – uct
6 years miningrelated 
experience
craig richard le court 
de billot
44 manager finance and 
administration
bcompt hons 19 years miningrelated 
experience
louis gouws van wyk 49 manager human 
resources
ba hons industrial psychology 27 years miningrelated 
experience
operational performance
 2013
1
t onnes milled underground t 127957
t onnes milled surface t 74428
t onnes milled total t 202385
head grade underground gt 78
head grade surface gt 12
head grade total gt 54
recovered grade gt 51
overall recovery  96
production underground oz 31522
production surface oz 2675
gold sold oz 34197
average price spot rkg 412641
cash cost rkg 259640
allin sustaining cash cost rkg 303790
allin cash cost rkg 326061
t otal cash costs rt 13656
capital expenditure r millions 624
note 1 production and financial information relates to the four month period 1 march 2013 to 30 june 2013 pan african resources plc integrated annual report 2013 62
evander mines
continued
exploiting the orebody
during the fourmonth period under review underground 
production was conducted through no 8 shaft in the no 2 
decline area on 24 level all stoping was concentrated in the 
western side of the larger kinross payshoot in the old mine 
only one stope was mined on 18 level 
the mining plan for the development was to continue 
opening reserves on 24 level at north 1c and 1d as well as 
developing the winzes down from 24 level up to the fault to 
25 level capital was allocated to extending the new decline 
down to 25 level starting with infrastructure development 
which is now underway it is anticipated that the first raise will 
hole in august 2014
stoping was to follow the upsidedown christmas tree 
configuration in north 1a 1b and 1c raise lines on 24 level 
some stoping was also done at north 1d on 23 level in the 
last quarter compressed air pressure levels were raised on 
24 level
mining and processing –  
challenges and achievements
the most significant challenge faced at evander mines is the 
need to haul rock along 11 conveyors from the rockface to 
the bottom of no 7 shaft where it is hoisted to surface 
this requires extensive supervision and means mining relies 
on a single chain of infrastructural assets with no mining 
flexibility should a failure in any component occur however 
the underground rock handling and ventilation infrastructure 
was upgraded by harmony between 2011 and 2013 and the 
majority of this infrastructure is in good working condition 
there were no significant interruptions to mining operations 
during the year although the no 1 cooling plant performed 
below standard and several stoppages were necessitated by 
failure in major pieces of equipment despite these challenges 
the operation achieved 93 of its targeted underground 
production tonnes there were no incidents of industrial 
action or section 54 safety stoppages at evander mines
cost of production – current year
despite projects to reduce energy consumption evander 
mines’ electricity bill increased by 17 during the year due 
to tariff rate hikes the cost of food provided to the hostels 
increased by 15 well above the official inflation rate 
management has introduced various initiatives to manage 
costs
in total zar016 million was invested in training the evander 
mines workforce during the four months ended 30 june 2013
as at barberton mines the management of absenteeism and 
sick leave remains a timeconsuming function necessary to 
ensure continuous safe mining approximately 91 employees 
36 of the workforce were either sick or absent each 
working day evander mines has introduced a wellness 
programme employees who abuse their sick leave are 
counselled by a social worker if employees continue with this 
practice disciplinary steps are taken 
as a former subsidiary of harmony a member of the 
chamber of mines evander mines concluded a twoyear 
wage agreement that expired in 2013 under the terms of 
this agreement employees received the following increases
categories 3 and 4   100
categories 5 to 8   85
minersartisans and officials  75
industrial action throughout the mining industry during 
october 2012 resulted in additional wage adjustments being 
made
cash cost breakdown excluding capex 
for 4 months ended 30 june 2013 
salaries
mining
processing
engineering
electricity
security
other
51
15
1
5
19
2
7
t otals
£199 million
zar2755 million
usd915oz pan african resources plc integrated annual report 2013 63
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 rollup of category 3 underground and surface 
employees to category 4
 creation of new operator categories
 increase in rock drill operator allowances 
 15 upward adjustment for categories 5 to 8
evander mines has two hostels with a total of 1208 rooms 
accommodating 1435 employees in the category 4 to 8 
bargaining unit a detailed action plan has been developed 
to meet the mining charter’s requirement of one person per 
room by 2014 block a b and c family units at musimuhle 
village are being renovated to accommodate an additional 
26 families
risk
mining activities moved into an area of lower gold grades 
during the year the mining of this lower grade will continue 
until the first quarter of 2015 this lower grade cycle together 
with the current lack of flexibility in mining operations makes 
evander mines vulnerable to a falling gold price 
to mitigate this risk management has identified the following 
initiatives for 2014
 etrp is at a prefeasibility stage and indications are 
positive to move this project to a bankable stage in the 
following 3 to 6 months should the project be approved 
the etrp will generate between 8000 oz to 10000 oz 
annually over the lom
  increase sweeping and vamping operations throughout 
the current assets
 upgrade an autogenous mill to a ball mill in the second 
quarter of 2014 allowing for the processing of fine 
surface material it is estimated that this mill will process 
the available material at a rate of 20000 tonnes per 
month for 21 months
 reopen the no 3 decline at no 7 shaft this decline 
was closed by harmony in 2009 as part of the mine’s 
rationalisation however this decline has approximately  
12 months of reserves at grades similar to those in 
no 8 shaft in addition working this decline will provide 
access to the 2010 payshoot an area of interest for 
further exploration
the latter two initiatives together with other potential 
valueadding projects will require capital expenditure given 
the challenging times the industry finds itself in at present 
management is conscious of the need to commit only to 
capital expenditure that provides quick returns following a 
rigorous project evaluation 
besides optimising evander mines current operations through 
the above shortterm initiatives 2014 will focus on evaluating 
and prioritising the larger mediumterm organic projects 
as described in the abridged mineral resource and mineral 
reserve report on page 67 pan african resources plc integrated annual report 2013 64
phoenix platinum
operation at a glance
 operation name phoenix platinum ctrp
parent and ownership percentage pan african resources resources plc 100 attributable
company name phoenix platinum pty ltd south african incorporated
country of operation south africa
provincial jurisdiction north west
number of employees 4
number of contractors 58
commodity being mined platinum 612 palladium 187 rhodium 73 gold 03 
ruthenium 86 and iridium 39 pgm 6es
geological setting chrome tailings from ore mined from the mg1 and mg2 seams of the 
bushveld igneous complex
mining method current arisings tailings produced by ifm during its mining operation are 
delivered directly to the ctrp  in addition to material from old tailings dams 
extraction method smd bead milling and floatation concentrate is delivered to lonmin’s 
mooinooi smelter for toll extraction
name plate annual production capacity
float feed tonnage t 240000
plant feed grade gt 327
pgm 6e produced oz 12000 sulphide feedstock 7200 oxide feedstock
cash cost usd855oz
sustainable capital per annum zar2 million
lom 20 years
setting the scene
the chrome tailings retreatment plant ctrp or phoenix 
platinum was designed to treat sulphide material from 
international ferrous metals limited’s ‘ifm’ lesedi mine 
ifm initially supplied phoenix with sulphiderich material 
from its lesedi underground operations however ifm cut 
back drastically on operations at lesedi in january 2012 and 
started mining oxidised material from an open cast section 
this resulted in oxidised tailings being blended into the 
phoenix feedstock
the metallurgy of oxidised tailings negatively affects recovery 
and concentrate grade in the ctrp this in turn results in 
poor pgm concentrate production the oxide versus sulphide 
ratio has increased since beginning november 2012 and 
100 oxide material is now being mined by ifm the group 
is currently exploring the expediting of an additional tailings 
storage facility ‘tsf’ that will allow management at phoenix 
to bypass oxidised tailings once the tsf is completed the 
group will expect recoveries and revenue to increase 
significantly at this time pan african resources plc integrated annual report 2013 65
company overview leadership statements our business philosophy operational overview corporate governance financial statements
management team
 name age designation qualification experience
bertin mcleod 36 plant manager 
metallurgy
btech chemical engineering
management development certificate
senior management development certificate
10 of platinum industry 
experience
avinash kandhai 31 cost accountant btech accounting 7 years of mining 
experience and eight 
years of financial 
experience
phumzile mokoena 25 metallurgist btech chemical engineering 1 year of metallurgy
related experience
john martin 57 plant engineer diploma t4 electrical engineering 25 years of 
engineeringrelated 
experience
hendrik snyman 39 manager metanza beng metallurgical extractive
certificate in business management
certificate in leadership programme
professional engineer
16 years of metallurgy
related experience
hector mapheto 32 operations manager  
metanza
bsc eng chemical
professional engineer
7 years of metallurgy
related experience
daniel maponya 32 site manager  
fraser
national diploma civil engineering
mine residue deposits certificate
btech engineering water
4 years of tailings dams 
experience
operational performance
2013 2012
1
plant feed – lesedi t 16216 58185
plant feed – ifm opencast t 76258 33627
plant feed – ifm toll t 7607 –
plant feed – buffelsfontein dumps t 174109 32652
head grade gt 368 416
plant recovery  21 21
chrome content in concentrate  220 249
production and sales of pgm 4e oz 6480 3474
basket price received zaroz 9093 7499
t otal cash costs zaroz 7551 7847
t otal cash costs zart 178 170
capital expenditure zar millions 22 819
note 1  phoenix platinum was fully commissioned for accounting purposes on 1 july 2012 therefore all associated revenues and costs were capitalised  
in the prior year pan african resources plc integrated annual report 2013 66
mining and processing – 
challenges and achievements
to mitigate the effect of the highly oxidised feed source 
the following actions have been implemented
 the remining from surface tailings the remining of 
sulphiderich tailings discards that have been stored on 
the ifm tailings storage facility was increased by 38 to 
compensate for the loss in recoverable ounces
 t o reduce the chrome content in the concentrate being 
supplied to lonmin a reagent an oxide collector was 
introduced into the ctrp floatation section excessive 
chrome content in the concentrate leads to chrome 
penalties from lonmin
the current ctrp tailings storage facility has limited capacity 
a new longterm tailings storage facility has been designed 
and the necessary eia and water usage licence applications 
have been submitted this longterm facility will allow phoenix 
platinum to bypass any oxidised chrome tailings from ifm 
directly to the new site thereby enabling more remining 
tonnages to be treated in the ctrp  
the effect of the increased remining tonnages and the oxide 
collector has led to improved recoveries at the ctrp from 
21 in 2012 to 26 in may 2013 and 29 in june 2013 
respectively
cost of production – current year
in this year the electricity price increased by 8 and wage 
increases impacted on the cost per ounce and the cost per 
tonne processed to manage these unit costs management 
targeted additional material for processing through the plant 
and further ramping up of volumes will continue in 2014 
various laboratory tests were conducted to reduce chrome 
fees charged by lonmin and a new reagent was introduced 
to the process reducing the chrome fees by nearly 50 in 
addition local suppliers were sourced to supply consumables 
previously obtained from overseas suppliers with prices linked 
to south africa’s cpi 
costs were well contained remining costs were reduced by  
59 to zar32 million 2012 zar34 million 
to improve efficiencies a training shift was introduced 
dedicated to improving employees’ knowhow and safety 
awareness in addition saturday work hours were introduced 
for the engineering team to reduce plant downtime
only six shifts were lost in the past year due to absenteeism 
and sick leave
salary scales in the rustenburgbrits mining region were 
benchmarked and employee salaries adjusted accordingly the 
current workforce is not unionised
phoenix platinum
continued
cash cost breakdown excluding capex 
y ear ended 30 june 2013 
labour cost
site production cost
tailings cost
transport and lab cost
consumables
indirect site cost
admin cost
electricity and utilities
refinery fees
27
17
11
1
13
3
5
7
16
t otals
£35 million
zar489 million 
zar7550oz
cash cost breakdown excluding capex 
y ear ended 30 june 2012 
labour cost
site production cost
tailings cost
transport and lab cost
consumables
indirect site cost
admin cost
electricity and utilities
refinery fees
27
17
11
1
13
3
5
7
16
t otals
£22 million
zar273 million 
zar7847oz
note phoenix platinum was fully commissioned for accounting purposes on 1 july 
2012  therefore all associated revenues and costs were capitalised in the prior year pan african resources plc integrated annual report 2013 67
company overview leadership statements our business philosophy operational overview corporate governance financial statements
scope of report
the following abridged information has been extracted from 
the mineral resource and mineral reserve report 2013 
which is available at httpwwwpanafricanresourcescom 
the mineral resource and mineral reserve report 2013 is 
a key component of the pan african resources suite of 2013 
annual reports produced to record the group’s performance 
regarding its finances operations and sustainability activities for 
the year ended 30 june 2013 
this report conforms to the standards described by the south 
african code for the reporting of exploration results mineral 
resources and mineral reserves the samrec code 2007 
edition pan african resources asserts its legal entitlement to 
the mineral resources and reserves reported on here 
the mineral resource is inclusive of the mineral reserve 
component information is presented either by operation 
mine or project the following tables and graphs are used 
to illustrate developments across operations of pan african 
resources during the 2013 financial year
 resource and reserve tables by group mine and project
 development sampling results
  y earonyear reconciliation of the group mineral 
resource and mineral reserve 
note the rounding of numbers in the abridged mineral 
resources and mineral reserves report may result in minor 
computational discrepancies
group mineral resource  
and reserve strategy
pan african resources intends to realise its vision through 
the strategic acquisition and development of precious metal 
assets close to or in production that
 are profitable – significant grade margin and a low cash 
cost profile
 are sustainable – a long production life
 show growth – potential to grow organically
 benefit stakeholders – a significant socioeconomic win
pan african resources’ mineral resource management mrm 
philosophy is that a detailed understanding of the mineral 
asset undoubtedly contributes to its optimal extraction from 
this standpoint it is clear that the ‘orebody dictates’ through 
its various characteristics and when aligned effectively to the 
business model can yield significant returns
profitable – pan african resources’ mineral assets are located 
in geological terrains that are described as worldclass quality 
mineral assets with high grade and significant tonnage profiles 
barberton mines is located in the barberton greenstone 
belt a unique ancient geological setting that hosts economic 
shear gold that is among the most consistent high grade gold 
deposits globally 2013 964 gt recovered grade evander 
mines is located in the witwatersrand basin the world’s most 
renowned goldproducing region evander mines is one of the 
substantial remaining mineral resources that is untapped in 
the basin 2013 3161 moz mineral resource and 801 moz 
mineral reserve the phoenix platinum operation retreats 
tailings from ore derived from the famous bushveld igneous 
complex the largest mineral resource of pgms in the world 
within the accepted mrm framework of survey geology 
resource estimation and mine planning functions on the 
operations are focused towards maximising and optimising 
the value of the residing mineral assets the key operational 
focus is to integrate all intellectual capital and technical data 
to enhance the mineral resource confidence in relation to 
volume and grade efficient and effective lom plans are 
designed to execute mining methods that are safe and low 
cost the low cost base allows the orebody to be extracted 
at optimal cutoff grades to yield the desired financial margins
abridged mineral resources 
and mineral reserves report
 
group mineral resource – 
gold ↑ 496
group mineral reserve –  
gold ↑ 693 pan african resources plc integrated annual report 2013 68
abridged mineral resources 
and mineral reserves report
continued
sustainable – mrm at barberton mines evander mines and 
phoenix platinum has the strategic role of applying best 
practices in identifying optimising and realising the value of 
the mineral asset through converting it from an initial inferred 
resource at the exploration phase through to a proved 
reserve at the production stage and ultimately to a saleable 
product the diligent application of this methodology allows 
for greenfield brownfield near mine and organic growth 
projects to be realised and economic value added to deliver a 
sustainable business model see figure below
growth – pan african resources strives to create value by 
growing its major asset – the mineral resource and mineral 
reserve of the company this drive is based on an active 
acquisition strategy a welldefined exploration programme 
innovation in both geologicalresource modelling optimal 
mine planning and continual optimisation of the asset portfolio
the acquisition of evander mines has propelled pan african 
resources into a midtier status the group has increased its 
mineral asset significantly as outlined in this report the mineral 
assets of evander mines comprise an operating mine and a 
set of organic and brownfield projects – etrp  evander mines  
no 7 shaft no 3 decline rolspruit evander south poplar 
and libra – that are at an advanced confidence and economic 
value see figure on page 69 this enables pan african resources 
to grow organically and sustainably benefiting all stakeholders
the successful commissioning of the btrp in june 2013 is 
a testament to the leadership at pan african resources in 
creating value from its mineral assets this organic growth 
project will add 20000 ozannum of production ounces
stakeholder – pan african resources is pleased to note that 
there were no production stoppages due to labour issues 
during the year under review this had a positive impact on 
realising the targeted grade tonnage profiles for each of the 
operations resulting in excellent quantities of ounces being 
produced
the group is committed to complying with the mprda and 
achieving the objectives of the mining charter in this regard 
it continues to engage with stakeholders both within and 
outside the group
t arget
 filter 1 typesizegrade of onebody economicpolitical risk infrastructureservices
‡ filter 2 npv irr other financial parameters
desktop study
filter 1  filter 2 ‡
detailed review
projectcompany 
mine
initial financial 
model
t echnical and 
financial
recommendation pan african resources plc integrated annual report 2013 69
company overview leadership statements our business philosophy operational overview corporate governance financial statements
discovery
prefeasibility
study
feasibility
study
project
commissioning
development
project
mine construction




 project value
confidence




exploration project
desktop
study
evander 8 shaft
resources and reserves










inferred
indicated
measured
probable


proved


resources reserves
mine
production


etrp
poplar
rolspruit
evander south
libra
btrp
phoenix platinum
ev ander 7 shaft no 3 decline
barberton mines pan african resources plc integrated annual report 2013 70
abridged mineral resources and mineral 
reserves report
continued
group mineral resource – gold
the total mineral resource for the group increased from 589 moz in june 2012 to 3513 moz in june 2013 – a gross annual 
increase of 2924 moz or 496 of this 352 moz can be attributed to barberton mines and a significant 3161 moz can be 
attributed to the acquisition of evander mines
 as at 30 june 2013 t onnes grade contained gold
 pan african resources category million gt tonnes moz
mineral resource
measured 678 1058 6827 219
indicated 27339 238 65510 2106
inferred 5694 604 36936 1188
pan african resources t otal 33711 310 109273 3513
barberton mines’ mineral resources had a positive variance of 574164 oz contained gold this was a result of the addition of 
new resources from an aggressive exploration strategy at each of the operating mines and the inclusion of segalla and camelot 
slimes dams into the mineral resource
group mineral reserve – gold
pan african resources’ mineral reserve increased from 116 moz in june 2012 to 920 moz in june 2013 – a gross annual increase 
of 804 moz and a 693 increase of this 118 moz can be attributed to barberton mines while the acquisition of evander mines 
contributed 802 moz
 as at 30 june 2013 t onnes grade contained gold
 pan african resources category million gt tonnes moz
mineral reserve
proved 442 698 2903 093
probable 7539 323 25695 827
pan african resources t otal 7981 343 28598 920
barberton mines had a positive variance of 18547 oz mining depletion accounted for 87128 oz pan african resources plc integrated annual report 2013 71
company overview leadership statements our business philosophy operational overview corporate governance financial statements
group mineral resource table pgm 4e
the group’s total mineral resource pgm 4e increased from 049 moz in june 2012 to 068 moz in june 2013  a gross annual 
increase of 019 moz and a 39 increase of this 016 moz can be attributed to ifm reserves 2012 
 as at 30 june 2013 t onnes grade pgm 4e
 pan african resources category million gt tonnes moz
mineral resource
measured 200 268 523 017
indicated 340 357 1222 039
inferred 110 337 385 012
pan african resources t otal 650 327 2130 068
group mineral reserve table pgm 4e
pan african resources resources’ mineral reserve pgm 4e increased from 018 moz in june 2012 to 025 moz in june 2013 – 
a gross annual increase of 007 moz and a 39 increase this significant increase can be attributed to the ifm proven and probable 
reserves 2012 for lesedi mine
 as at 30 june 2013 t onnes grade pgm 4e
 pan african resources category million gt tonnes moz
mineral reserve
proved 196 121 236 007
probable 342 161 550 018
pan african resources t otal 538 146 786 025
group organic growth
extensive exploration drilling was conducted during the year focusing on defining the geometries of the various orebodies on 
each mine this geoscientific knowledge assisted in increasing the confidence of the mineral resource and thus supported the 
lom plans and the company’s business plan a welldesigned mine plan for accessing and developing the orebody – outlined in 
the tables below resulted in significant gold attributed ounces to the mineral resource for the year
exploring the orebody – exploration drilling
 operation
total 
metres
number of 
boreholes 
average 
channel width
cm
no of 
intersections 
above cut off
average 
grade 
gt
total 
expenditure 
zarm
barberton mines 16937 191 110 95 1958 5 87
evander mines 1803 22 63 4 3262 165
phoenix platinum ––––––
accessing the orebody – onreef development
 operation
t otal onreef 
development 
m
average grade 
gt
barberton mines 2 1285 692
evander mines 1 3330 5644
phoenix platinum – – pan african resources plc integrated annual report 2013 72
abridged mineral resources and mineral 
reserves report
continued
developing the orebody – capital ore reserve projects barberton mines
 project
ye 30 june 
2013 
m
ye 30 june 
2012
 m
ye 30 june 
2011 
m
potential 
resource target
 oz
sheba – pillar development 317  2006
sheba – edwin bray to thomas and joe’s luck area 102 303 491 17000
fairview –11 level royal reef 01  14821
fairview – 1 ore reserve opening 179  1600
fairview – no 3 shaft deepening 228 109 149
278000
fairview – 62 level 601  
consort – 40 level 2522 267 34 10000
consort – 50 level decline west 150 197 123 26000
consort – mmr pillar development 1294  new target area
capital ore reserve projects evander mines
 project
ye 30 june 
2013 
m
ye 30 june 
2012 
m
ye 30 june 
2011 
m
potential 
resource target 
oz
2 decline 2425 level 554 778 201
1200000
25 a block ventilation 124 00
barberton mines
barberton mines is situated in the magisterial district of 
barberton mpumalanga republic of south africa some 
370 km east of johannesburg and 47 km southeast of 
nelspruit the mineralisation at barberton mines is classified 
as achaean epigenetic hydrothermal lode gold deposits 
within a granite greenstone terrain the grade and the 
structure in the ore shoots are highly erratic in nature and 
most of the data for evaluating resource blocks are derived 
from development adjacent to the mining blocks and from 
the position of the present mining areas the tectonic 
structure and orebody geometry are modelled using the  
lynx orebody modelling system
barberton mines has continued with the application of semi
mechanised cut and fill mining method the mineral rights 
pertaining to barberton mines were issued by the dmr in 
terms of item 7 of schedule ii of the minerals and petroleum 
resources development act 2002 no 28 of 2002 mprda 
mineral rights to barberton mines comprise of three separate 
mining rights for the three different mining operations all 
three operations’ old order rights were converted to the sole 
and exclusive “new order” right to mine on 28 april 2011 pan african resources plc integrated annual report 2013 73
company overview leadership statements our business philosophy operational overview corporate governance financial statements
barbrook fault
florence and devonian
to kaapmuiden
thomas and joe’ s luck
margaret mamba and eureka
victory hill






to kaapmuiden
to nelspruit
bullion
x40000 x45000 x50000 x55000
y15 000 y10 000 y500 0



fairview mine
sheba mine
new consort mine
royal sheba mine
clutha mine
eagles nes t mine
 legend
infrastructure










geology

scale

geology of barberton pan african resources plc integrated annual report 2013 74
abridged mineral resources and mineral 
reserves report
continued
mineral resource table – barberton mines
mineral resource at 30 june 2013
 operations classification tonnes gt kg oz
sheba measured 1001200 752 7530 242083
indicated 1575200 531 8360 268791
inferred 1850000 470 8703 279796
t otal 4426300 556 24593 790671
consort measured 385900 867 3347 107593
indicated 184800 1158 2139 68766
inferred 279100 899 2508 80629
t otal 849800 941 7993 256988
fairview measured 1813000 776 14076 452559
indicated 896100 1870 16755 538693
inferred 956400 1965 18798 604353
t otal 3665600 1354 49629 1595605
t otal mines measured 3200200 780 24952 802235
indicated 2656100 1026 27254 876251
inferred 3085500 973 30008 964779
t otal 8941700 919 82215 2643264
slimes dumps
measured ––––
indicated 7283200 154 11227 360946
inferred 11138600 120 13392 430548
t otal 18421800 127 24619 791548
surface ore t otal 192300 179 344 11057
outside sections measured ––––
indicated 214300 619 1327 42664
inferred 183100 569 1042 33511
t otal 397400 596 2369 76176
t otal barberton mines measured 3200200 780 24952 802235
indicated 10345900 388 40152 1290917
inferred 14407200 308 44442 1428838
t otal 27953300 392 109546 3521990 pan african resources plc integrated annual report 2013 75
company overview leadership statements our business philosophy operational overview corporate governance financial statements
mineral reserve table – barberton mines
mineral reserve at 30 june 2013
 operations classification tonnes gt kg oz
sheba proved 529500 652 3450 110934
probable 1562700 427 6676 214626
t otal 2092200 484 10126 325560
consort proved 89700 783 702 22562
probable 149000 771 1149 36943
t otal 238600 776 1851 59505
fairview proved 1132900 629 7126 229115
probable 917400 1450 13302 427664
t otal 2050200 996 20428 656779
t otal mines proved 1752100 644 11278 362612
probable 2629100 804 21127 679233
t otal 4381000 740 32405 1041845
slimes dumps probable 7283000 056 4066 130714
surface ore probable 153800 116 179 5752
t otal barberton mines proved 1752000 644 11278 362612
probable 10066100 252 25371 815699
t otal 11818200 310 36650 1178311
as at 30 june 2013 barberton mines reported a mineral reserve of 1178311 oz and mineral resource of 3521990 oz 
contained gold the measured and indicated mineral resources are inclusive of those resources modified to produce the mineral 
reserves reserves are reported as milldelivered tonnes at the grade recovered having duly considered all modifying factors
the report date for resources and reserves was moved from end march to end june to bring it in line with evander mines’ 
reporting cycle and the group’s year end
the graph below illustrates mineral reserve sensitivities to a changing gold price 
200000 250000
mineral reserve sensitivities barberton
oz 000
300000 350000 400000 450000 500000 550000 600000
–
200
400
600
800
1000
1200
oz 000
gt reserve grade
661
1377
754
1175
876
914
1001
825
1009
769
1030
749
1064
715
1070
710
1075
703
zarkg gold price
–
2
4
6
8
10
12
14
16
gt pan african resources plc integrated annual report 2013 76
abridged mineral resources and mineral 
reserves report
continued
competent person
frans chadwick the chief surveyor at barberton mines signs 
off the mineral resources for barberton mines he is a 
member of the south african council for professional and 
technical surveyors plato pms0033 he is based at 
fairview mine gmo building barberton 1300
evander mines
evander mines is located approximately 120 km southeast 
from johannesburg in mpumalanga province evander mines’ 
mineral asset comprises a set of mineral resources ranging 
from early prefeasibility studies to a production mine 
the current revenue streams for evander mines are 
generated from the evander mines no 8 shaft and surface 
sources the principal economical horizon mined at evander 
mines is the kimberley reef which was deposited in the 
witwatersrand sedimentary basin ca 2300 million years ago 
evander mines no 8 shaft is situated in the distal part of the 
evander basin the kimberley reef is the only economical 
horizon that is mined and is developed as the kinross 
payshoot illustrated in figure 4 below
evander mines no 8 shaft mining method is footwall 
development to reef horizon and then developing on reef 
horizon raise the mining follows an upsidedown christmas 
tree sequence to extract the reef horizon old areas of the 
mine are also cleaned up by means of vamping activities
the mineral rights pertaining to evander mines were issued 
by the dmr in terms of item 7 of schedule ii of the mprda 
and were registered on 15 october 2010
geology at evander mines depicting the kinross payshoot 
 pan african resources plc integrated annual report 2013 77
company overview leadership statements our business philosophy operational overview corporate governance financial statements
mineral resource table – evander mines
mineral resource 30 june 2013
 operations classification tonnes gt kg oz
evander mines no 8 shaft measured 2565437 1406 36083 1160000
indicated 2687695 1556 41808 1344000
inferred 11386966 1023 116489 3745000
t otal 16640099 1168 194380 6249000
evander mines surface sources measured 290160 094 274 9000
indicated 46186 076 35 1000
inferred 161880 093 150 5000
t otal 498226 092 459 15000
evander mines no 7 shaft vamping measured 67550 329 222 7000
indicated ––––
inferred ––––
t otal 67550 329 222 7000
evander mines no 7 shaft no 3 
decline measured 653447 1030 6733 216000
indicated 567640 915 5195 167000
inferred 5540222 1078 59736 1921000
t otal 6761309 1060 71664 2304000
libra etrp incl measured ––––
indicated 202909694 029 59004 1897000
inferred ––––
t otal 202909694 029 59004 1897000
rolspruit measured ––––
indicated 24533910 1089 267227 8592000
inferred 937985 917 8599 276000
t otal 25471895 1083 275826 8868000
poplar measured ––––
indicated 18739880 716 134214 4315000
inferred 9776663 622 60773 1954000
t otal 28516543 684 194987 6269000
evander south measured ––––
indicated 13557535 793 107466 3455000
inferred 14728265 537 79157 2545000
t otal 28285799 660 186623 6000000
t otal evander mines measured 3576294 1211 43312 1392000
indicated 263042540 234 614949 19771000
inferred 42531982 764 324905 10446000
t otal 309151115 318 983167 31609000 pan african resources plc integrated annual report 2013 78
abridged mineral resources and mineral 
reserves report
continued
mineral reserve table – evander mines
mineral reserve at 30 june 2013
 operations classification tonnes gt kg oz
evander mines no 8 shaft proved 2347199 737 17300 556000
probable 2345485 761 17860 574000
t otal 4692685 749 35161 1130000
evander mines surface sources proved 256000 102 261 8000
probable ––––
t otal 256000 102 261 8000
evander mines no 7 shaft vamping proved 67550 280 189 6000
probable ––––
t otal 67550 280 189 6000
libra etrp incl proved ––––
probable 39615959 032 12713 409000
t otal 39615959 032 12713 409000
rolspruit proved ––––
probable 23362565 860 201006 6462000
t otal 23362595 860 201006 6462000
t otal evander mines proved 2670749 665 17750 570000
probable 65324009 355 231580 7445000
t otal 67994759 367 249330 8015000
as at 30 june 2013 evander mines reported a mineral reserve of 8015000 oz and mineral resource of 31609000 oz contained 
gold the measured and indicated mineral resources are inclusive of those resources modified to produce the mineral reserves 
reserves are reported as milldelivered tonnes at the head grade having duly considered all modifying factors
the graph below illustrates mineral reserve sensitivities to a changing gold price 
200000 250000
mineral reserve sensitivities evander no 8 shaft
oz 000
300000 350000 400000 450000 500000 550000 600000
–
500
1000
1500
2000
2500
oz 000
gt reserve grade            
13183
1372
63196
943
112624
842
135896
797
141970
778
144340
770
146463
761
188081
690
192226
676
zarkg gold price
–
2
4
6
8
10
12
14
16
gt pan african resources plc integrated annual report 2013 79
company overview leadership statements our business philosophy operational overview corporate governance financial statements
map illustrating evander projects
competent person
the competent person for evander mines barry naicker the group mineral resource manager signs off the mineral 
resources for evander mines he is a member of the south african council for scientific professions 40023410 he has 
a master’s degree in mineral resource management from witwatersrand university and a bachelor of science honours 
in economic geology he has 12 years of experience in economic geology and mineral resource management
he is based at first floor the firs cnr cradock avenue and biermann avenue rosebank 2196 gauteng





 e8 
e7 
e10 
e1 
e5 
e3 
e9 
e2 
e6 
ev ander south project
rolspruit project
ev ander 8 shaft
poplar project
poplar project extension
ev ander south project extension
mineral resources


 mineral reserves

legend
 pan african resources plc integrated annual report 2013 80
abridged mineral resources and mineral 
reserves report
continued
group mineral inventory reconciliation gold yearonyear
 resource 
resource at june 2012 resource at june 2013 – variance  variance yearonyear
 table au mt gt t au moz mt gt t au moz mt gt t au moz mt gt t au moz
measured 1476 313 4617 148 678 1058 6827 219 798 277 221 071 541 885 479 480
indicated 2302 268 6172 198 27339 238 65510 2106 25037 237 59338 1908 10876 884 9614 9636
inferred 2991 251 7501 242 5694 604 36936 1188 2703 1089 29435 946 904 4339 3924 3909
t otal 677 27 1829 589 33711 310 109273 3513 26941 338 90983 2924 3979 1251 4974 4964
 reserve 
reserve at june 2012 reserve at june 2013 – variance  variance yearonyear
 table au mt gt t au moz mt gt t au moz mt gt t au moz mt gt t au moz
proved 157 749 1173 038 442 698 2903 093 285 607 1730 055 18150 8100 14750 14470
probable 977 249 2434 078 7539 323 25695 827 6562 354 23261 749 67160 14240 95570 96030
t otal 1134 318 3607 116 7981 343 28598 920 6847 365 24991 804 60380 11480 69280 69310
   manica mineral resource  mineral reserve was not included in the mineral resource and mineral reserve 2013 report pan african resources plc integrated annual report 2013 81
company overview leadership statements our business philosophy operational overview corporate governance financial statements
phoenix platinum
the concept of recovering the pgm 6es from tailings was pioneered by phoenix platinum through an antecedent company  
gb mining pty ltd which together with aquarius platinum limited built the rk1 floatation plant in the kroondal area
pan african resources acquired 100 of phoenix platinum from metorex on 21 may 2009 phoenix platinum recovers  
pgm 6es from old tailings and current arisings through mineral rights agreements from the ifm lesedi mine dams and current 
arisings the elandskraal dumps and pits and the kroondal dump these tailings are covered through various agreements with 
phoenix platinum to be the feed source for a 240 ktpa ctrp 
geology of the western limb of the bushveld complex
 pilanesberg alk aline
complex
 kroondal dump
elandskraal dumps and pits
buffelsfontein dams 
and current arisings
mooinooi
rustenburg
bapong

saulspoort
ledig
sun 
city
northam
heystekrand
mogwase
beestekraal
atlanta
angloplat
union
an g lo plat
am and elbult
impala
lease
barplats
lonmin
marikana
aquarius
angloplat
marikana
angloplat
rustenburg
aquarius
angloplat
kroondal
angloplat
bafokeng
rasimone
northam
platinum
angloplat
pandora
barplats
crocodile river
rustenburg
pretoria
western 
limb
northern 
limb
middelburg
nylstroom
groblersdal
dullstroom
polokwane 
pietersburg
eastern
limb
mokopane
potgietersrus
c roc o dile river
bierspruit river
vaalkop
dam
r510
r556
r565
r511
r511
n4


r514


















bushveld com plex
rustenburg layered
suite
legend
rustenburg layered suite
merensky reef
ug2
ug1
upper 
group
mg4
mg3
mg2
mg1
middle
group
lg7
lg6  lg6a
lg5
lower 
group
main zone
upper critical zone
lower critical zone
lower zone 
pyrox enite marker
marginal zone
upper zone 
legend
chrom itite
anorthosite
norite
pyroxenite pan african resources plc integrated annual report 2013 82
abridged mineral resources and mineral 
reserves report
continued
the buffelsfontein elandskraal and kroondal mineral resource originates from the mining of the chromitite layers of the bushveld 
igneous complex the chromitite layers in the western limb of the bushveld igneous complex are confined to the critical zone 
of the layered complex and are grouped from the bottom upwards into lower middle and upper groups
the middle group consists of four chromitite seams of which the sixth seam numbered from bottom mg1 to top mg4 is 
being mined the mining that took place at elandskraal and at buffelsfontein ifm lesedi mine are from the mg1 and mg2 seams 
the mg1 seams sits in the lower critical zone of the bushveld complex whereas mg2 is in the upper critical zone of the 
bushveld complex
mineral resource table – phoenix platinum
mineral resource at 30 june 2013
 operations classification tonnes gt kg oz
buffelsfontein tailings dams measured 494000 366 1808 58130
indicated ––––
inferred 274000 272 745 23961
t otal 768000 338 2553 82091
buffelsfontein current arisings measured ––––
indicated 3230000 366 11822 380079
inferred 826000 366 3023 97197
t otal 4056000 366 14845 477276
t otal buffelsfontein measured 494000 366 1808 58130
indicated 3230000 366 11822 380079
inferred 1100000 343 3768 121158
t otal 4824000 361 17398 559367
elandskraal measured 1149000 245 2815 90506
indicated 145000 204 295 9510
inferred 42000 200 84 2701
t otal 1336000 239 3194 102717
kroondal measured 316000 200 632 20319
indicated 50000 200 100 3215
inferred ––––
t otal 366000 200 732 23534
t otal phoenix platinum measured 1959000 268 5255 168952
indicated 3425000 357 12218 392817
inferred 1142000 337 3852 123844
t otal 6526000 327 21325 685614 pan african resources plc integrated annual report 2013 83
company overview leadership statements our business philosophy operational overview corporate governance financial statements
mineral reserve table – phoenix platinum
mineral reserve at 30 june 2013
 operations classification tonnes gt kg oz
buffelsfontein tailings dams proved 494000 165 814 26158
probable ––––
t otal 494000 165 814 26158
buffelsfontein current arisings proved ––––
probable 3230000 165 5320 171036
t otal 3230000 165 5320 171036
t otal buffelsfontein proved 494000 165 814 26158
probable 3230000 165 5320 171036
t otal 3724000 165 6133 197194
elandskraal proved 1149000 110 1267 40728
probable 145000 092 133 4280
t otal 1294000 108 1400 45007
kroondal proved 316000 090 284 9144
probable 50000 090 45 1447
t otal 366000 090 329 10590
t otal phoenix platinum proved 1959000 121 2365 76030
probable 3425000 161 5498 176762
t otal 5384000 146 7863 252792
group mineral inventory reconciliation pgm 4e – yearonyear
 resource  
 table resource at june 2012 resource at june 2013 – variance  variance yearonyear
 pgm 4e mt gt t pgm moz mt gt t pgm moz mt gt t pgm moz mt gt t pgm moz
measured 322 309 998 032 200 268 523 017 122 389 475 015 3790 12600 4760 4690
indicated 083 325 268 009 340 357 1222 039 257 371 954 030 30960 11420 35600 33330
inferred 080 333 267 009 110 337 385 012 030 393 118 003 3750 11810 4420 3330
t otal 485 316 1533 049 650 327 2130 068 165 362 597 019 3400 11450 3890 3880
 reserve  
 table resource at june 2012 reserve at june 2013 – variance  variance yearonyear
 pgm 4e mt gt t pgm moz mt gt t pgm moz mt gt t pgm moz mt gt t pgm moz
proved 322 139 449 014 196 121 236 007 126 169 213 007 3910 12160 4740 5000
probable 083 146 121 004 342 161 550 018 259 166 429 014 31200 11350 35450 35000
t otal 405 141 570 018 538 146 786 025 133 162 216 007 3280 11520 3790 3890
competent person
the competent person for phoenix platinum barry naicker the group mineral resource manager signs off the mineral resources 
for phoenix platinum he is a member of the south african council for scientific professions 40023410 he has a master’s 
degree in mineral resource management from witwatersrand university and a bachelor of science honours in economic 
geology he has 12 years of experience in economic geology and mineral resource management
he is based at first floor the firs cnr cradock avenue and biermann avenue rosebank 2196 gauteng pan african resources plc integrated annual report 2013 84
abridged mineral resources and mineral 
reserves report
continued
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 this code was developed by the south african 
institute of mining and metallurgy and is the recommended 
guideline for reserve and resource reporting for companies 
listed on the jse limited in reporting resources and reserves 
distinct cognisance has also been taken to comply with aim 
rules for mining and oil and gas companies of the london 
stock exchange
definitions as per  
the samrec code
the definitions of mineral resource and mineral reserve as 
contained in the 2007 edition of the samrec code are as 
follows
a ‘mineral resource’ is a concentration or occurrence of 
material of economic interest in or on the earth’s crust in 
such form quality and quantity that there are reasonable 
and realistic prospects for eventual economic extraction 
the location quantity grade continuity and other geological 
characteristics of a mineral resource are known or estimated 
from specific geological evidence sampling and knowledge 
interpreted from an appropriately constrained and portrayed 
geological model mineral resources are subdivided and must 
so be reported in order of increasing confidence in respect 
of geoscientific evidence into inferred indicated or measured 
categories
an ‘inferred mineral resource’ is that part of a mineral 
resource for which volume or tonnage grade and mineral 
content can be estimated with only a low level of confidence 
it is inferred from geological evidence and sampling and 
assumed but not verified geologically or through analysis of 
grade continuity it is based on information gathered through 
appropriate techniques from locations such as outcrops 
trenches pits workings and drill holes that may be limited in 
scope or of uncertain quality and reliability
an ‘indicated mineral resource’ is that part of a mineral 
resource for which tonnage densities shape physical 
characteristics grade and mineral content can be estimated 
with a reasonable level of confidence it is based on information 
from exploration sampling and testing of material gathered 
from locations such as outcrops trenches pits workings and 
drill holes the locations are too widely or inappropriately 
spaced to confirm geological or grade continuity but are 
spaced closely enough for continuity to be assumed
a ‘measured mineral resource’ is that part of a mineral 
resource for which tonnage densities shape physical 
characteristics grade and mineral content can be estimated 
with a high level of confidence it is based on detailed and 
reliable information from exploration sampling and testing 
of material from locations such as outcrops trenches pits 
workings and drill holes the locations are spaced closely 
enough to confirm geological and grade continuity
a ‘mineral reserve’ is the economically mineable material 
derived from a measured or indicated mineral resource 
or both it includes diluting and contaminating materials 
and allows for losses that are expected to occur when the 
material is mined appropriate assessments to a minimum 
of a prefeasibility study for a project and a life of mine 
plan for an operation must have been completed including 
consideration of and modification by realistically assumed 
mining metallurgical economic marketing legal environmental 
social and governmental factors the modifying factors such 
modifying factors must be disclosed
a ‘probable mineral reserve’ is the economically mineable 
material derived from a measured or indicated mineral 
resource or both it is estimated with a lower level of 
confidence than a proved mineral reserve it includes diluting 
and contaminating materials and allows for losses that are 
expected to occur when the material is mined appropriate 
assessments to a minimum of a prefeasibility study for a 
project or a life of mine plan for an operation must have 
been carried out including consideration of and modification 
by realistically assumed mining metallurgical economic 
marketing legal environmental social and governmental 
factors such modifying factors must be disclosed
a ‘proved mineral reserve’ is the economically mineable 
material derived from a measured mineral resource it is 
estimated with a high level of confidence it includes diluting 
and contaminating materials and allows for losses that are 
expected to occur when the material is mined appropriate 
assessments to a minimum of a prefeasibility study for a 
project or a life of mine plan for an operation must have 
been carried out including consideration of and modification 
by realistically assumed mining metallurgical economic 
marketing legal environmental social and governmental 
factors such modifying factors must be disclosed pan african resources plc integrated annual report 2013 85
company overview leadership statements our business philosophy operational overview corporate governance financial statements
pan african resources’ reporting in 
compliance with samrec
to meet the requirements 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 according to a process 
incorporating a longterm view on future economic modifying 
factors in applying this process pan african resources uses 
a gold price of zar550000kg to derive a cutoff grade to 
determine the mineral resources at each of its underground 
operations
barberton mines employs a weighted arithmetic mean and an 
inverse distance estimation technique while evander mines 
uses a kriging estimation method to create an estimated grade 
model the inhouse developed mineral resource optimiser 
tool was applied to the mineral resource inventory at the 
underground mines this is done by defining the optimal cut
off 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 is converted to mineral reserve 
using the modifying factors listed below cutoff grades are 
determined using the optimiser programme
 the database inventory of all mineral resource blocks 
 an assumed gold price – zar490000kg 
 planned production rates for each mine 
 mine call factor mcf
 plant recovery
  planned cash operating costs and other efficiency factors 
are calculated using historical achievements as a baseline 
the mineral reserves represent that portion of the measured 
and indicated resources above cutoff in the lom plan 
and have been estimated after consideration of the factors 
affecting extraction including mining metallurgical economic 
marketing legal environmental social and governmental 
factors a range of disciplines including geology survey 
planning mining engineering rock engineering metallurgy 
financial management human resources management and 
environmental management has been involved at each mine 
in the lom planning process and the conversion of resources 
into reserves
the modifying factors related to the ore flow that are used 
to convert the mineral resources to mineral reserves 
through the lom planning process are stated for each shaft 
in the mineral resource and mineral reserve report 2013 
for these factors historical information was used
phoenix platinum and btrp are optimised on a 100 
extraction plan on their mineral reserves no selectivity 
is applied on tonnages and thus no cutoff grades are 
determined modifying factors for these projects are detailed 
in the mineral resource and mineral reserve report 2013 pan african resources plc integrated annual report 2013 86
sustainability review 
ensuring a healthy and safe workplace
the full sustainability report can be found on the company 
website wwwpanafricanresourcescom
approach
we consider safe and healthy working conditions to be vital 
to the sustainability of our operations and we are committed 
to fostering an environment where employees at all levels are 
empowered and engage freely around safety  health environment 
quality and community sheqc matters during the past year 
we have updated the group’s sheqc charter and policy to 
reflect our ongoing objectives of zero injuries and continually 
improving the culture of health and safety at our operations
in terms of this charter we strive for worldclass health 
and safety performance and aim to prevent all incidents 
and accidents at our operations in a reasonably practicable 
manner we also strive to minimise hazards inherent in the 
working environment 
specifically the occupational health and safety policy 
embedded in the charter commits pan african resources to
 continually improving occupational health and safety 
performance through the setting and achievement of goals
 providing a working environment that is conducive to 
good health and safety
 managing risks in the workplace and ensuring that there is 
adequate surveillance of workplaces and employees
 complying with applicable legal requirements and with 
other requirements to which the organisation subscribes 
in the absence of relevant occupational health and safety 
laws the company will apply best practice standards 
and procedures
 ensuring that appropriate resources training and 
personal protective equipment are provided to improve 
occupational health and safety
 ensuring that employees and contractors have the 
relevant skills to perform workrelated tasks in a safe 
manner and that they are aware of their individual health 
and safety obligations and rights
employees and contractors working at our operations play 
an essential role in achieving occupational health and safety 
objectives through
 taking ownership of and participating in occupational 
health and safety management programmes and initiatives 
and complying with standards and procedures
 exercising their right to work in a healthy and safe 
environment and their responsibility to withdraw from an 
unhealthy or dangerous situation
all pan african resources operations comply with the mine 
health and safety act act 29 of 1996
the year in numbers
consolidated performance figures are not presented due to 
the acquisition of evander mines which has only four months 
effective reporting within the group please refer to the gri 
content index on our website wwwpanafricanresourcescom 
for relevant figures 
safety
a constant awareness of and commitment to safety underpins 
all our operations we are committed to implementing and 
complying with legal and other safety requirements and 
continually work towards worldclass health and safety 
standards for all our employees
it is with regret that we have to report two fatalities which 
occurred at barberton mines  on 17 november 2012 a 
truck left the road overturned and rolled down a hill at sheba 
mine fatally injuring the driver on 7 march 2013 a welder 
was fatally electrocuted whilst working underground the  
board and management of pan african resources extend 
their deepest condolences to the family friends and colleagues 
of gert fourie and  velly malumane
subsequent to these accidents employees were counselled 
and engaged as to possible causes and remedial actions to 
prevent similar accidents happening in the future t o encourage 
them to work safe each employee supervisor and manager 
also signed a commitment pledge
barberton mines regrets to report two fatalities at its barberton 
mines operation during july 2013
barberton mines 
in the 2013 financial year barberton mines’ total recordable 
injury frequency rate trifr improved from 2510 to 1922 
per million man hours worked and the lost time injury 
frequency rate ltifr improved from 326 to 257 per million 
man hours worked due to two fatalities at the operation 
the reportable injury frequency rate rifr has shown a 
regression from 074 to 151 per million man hours worked pan african resources plc integrated annual report 2013 87
company overview leadership statements our business philosophy operational overview corporate governance financial statements
2009 2010 2011 2012 2013
barberton mines t otalrecordable 
injury frequency rate
rates per million man hours
t otal recordable 
injury frequency rate 3780 3330 2260 2510 1922
5
–
10
15
20
25
30
35
40
2008 2009 2010 2011 2012 2013
barberton mines  ltifr and rifr
rates per million man hours
1
–
2
3
4
5
6
7
8
ltifr
rifr
480
308
630
168
420
091
203
051
326
074
257
151 pan african resources plc integrated annual report 2013 88
2009 2010 2011 2012 2013
evander mines t otal recordable 
injury frequency rate
rates per million man hours
t otal recordable 
injury frequency rate 1460 1391 1086 799 770
3
–
6
9
12
15
evander mines
with pan african resources only managing evander mines 
for the last four months of the period under review it is 
not possible to consolidate annual safety statistics however 
evander mines’ fiveyear safety record is presented 
evander mines’ trifr improved from 799 to 770 per million 
man hours worked the ltifr has shown a vast improvement 
from 400 to 290 per million man hours worked and its 
rifr has improved from 307 to 170 per million man hours 
worked 
barberton mines – fatality injury frequency rate
12 months 
ended 
2009
12 months 
ended 
2010
12 months 
ended 
2011
12 months 
ended 
2012
12 months 
ended 
2013
fatal injury frequency rate rate per 
million man hours worked – 018 – 018 030
sustainability
review continued pan african resources plc integrated annual report 2013 89
company overview leadership statements our business philosophy operational overview corporate governance financial statements
2008 2009 2010 2011 2012 2013
evander mines  ltifr and rifr
rates per million man hours
2
–
4
6
8
10
12
14
16
18
ltifr
rifr
1664
433    
1039
280
741
254
372
264
400
307
290
174
phoenix platinum
phoenix platinum recorded a zero ltifr and rifr for the 
reporting year – a sound demonstration of our zero tolerance 
safety record
the phoenix platinum team strives to eliminate potential 
hazards thus ensuring a safe workplace for its employees 
by constantly mitigating daytoday operational risks 
communicating identified challenges and training accordingly 
and through visible leadership
general
apart from the challenges of improving and maintaining safety 
at our operations following the evander mines’ acquisition the 
board restructured the corporate office among other things by 
appointing mandla ndlozi as group sheqc manager to drive 
and standardise safety programmes across the group operations
we continue to pursue improvements in the health and safety 
of our workforce and review our procedures regularly as 
part of our focus on a behaviouralbased safety approach an 
example of this is evander mines’ vuka sizwe safety programme 
which is now entering its third phase of implementation
a major initiative at our operations is a fallofground 
identification system that concentrates on early morning 
examinations by the teams and if necessary triggers an action 
response programme
key safety efforts and achievements
evander mines
the metallurgical plant achieved 365 white flag injuryfree 
days on 13 june 2013
phoenix platinum
the operation recorded no lost time or recordable injuries in the 
2013 financial year a significant milestone of two years without 
any lost time or reportable injuries was realised pan african resources plc integrated annual report 2013 90
corporate 
governance
the governance of 
our business
stakeholder 
engagement and our 
response
the management 
of risk
remuneration – 
rewarding effort pan african resources plc integrated annual report 2013 91
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 92
the governance
of our business
approach
the board of directors recognises that corporate 
governance is essential to protect the interests of all 
stakeholders it remains committed to compliance with all 
legal requirements and the application of sound corporate 
governance principles 
the board of directors ensures that the business of the group 
is conducted with openness integrity and accountability 
statement of compliance
pan african resources complies with the uk companies act 
aim rules and the jse listings requirements 
the board of directors acknowledges the valuable 
contribution that the application of the king code of 
governance for south africa 2009 king iii has with 
regard to good corporate governance wherever practical 
the board of directors applies the recommendations 
contained within king iii in the company’s 2012 annual 
report the board of directors identified five areas where 
it believed it was deficient with regard to the application 
of the king iii principles and has worked hard to rectify 
these shortcomings to formalise the management of 
its application of king iii the company has adopted the 
institute of directors of south africa iodsa governance 
assessment instrument gai allowing for the maintenance 
of a register of its progress in applying the principles of  
king iii and the listings requirements of the jse limited
the iodsa gai register can be found on the company’s 
website wwwpanafricanresourcescom
the overall score rating as per the gai was aaa highligting 
the highest application of king iii
the group complies with the mandatory principles of king iii 
in terms of paragraph 384 of the jse listings requirements
structures
the pan african resources board has a unitary structure 
comprising three independent nonexecutive directors two non
executive directors and two executive directors the chairman 
of the board is an independent nonexecutive director 
according to the company’s articles of association the 
board may consist of not less than four and not more than 
eight members at the end of the financial year under review 
the board consisted of six members details of whom appear 
on page 14 the board is required to meet at least once every 
quarter in terms of the company’s articles of association
on 28 february 2013 jan nelson resigned from the board 
and as chief executive officer ceo to pursue other 
opportunities cobus loots and ron holding were appointed 
as joint interim ceos with effect from 1 march 2013  
ron holding was appointed to the board on 9 september 
2013 as the ceo and cobus loots as the financial director 
with effect from 1 october 2013 busi sitole resigned as the 
financial director with effect from 30 september 2013
the board charter details the manner in which business is to 
be conducted by the board in accordance with the principles 
of sound corporate governance and is reviewed by the board 
on an annual basis a copy of the board charter is available 
from the group company secretary on request
in accordance with the company’s articles of association a 
director appointed since the last annual general meeting agm 
is required to be reelected at the next agm of the company 
the appointment of directors is a formal and transparent 
process and is a matter for the entire board assisted by the 
nominations committee which is tasked with identifying and 
recommending directors who will add the appropriate balance 
of skills and experience to the board in addition the articles of 
association require that at least one third of the directors are 
subject to retirement by rotation every year 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 in this regard 
the nominations committee having concluded its assessment 
recommends the reelection of the retiring directors as detailed 
in the notice of the agm on page 163
on appointment all directors are provided with information 
aimed at broadening their understanding of their fiduciary 
duties and responsibilities the regulatory statutory and 
governance framework the group and the business 
environment and markets in which it operates all directors 
are expected to keep abreast of changes and trends in the 
group’s business and markets 
the role of nonexecutive directors who are independent of 
management are to protect shareholders’ interests including 
those of minority shareholders nonexecutive directors 
are also responsible for ensuring that individual directors or 
groups of directors are subject to appropriate scrutiny in their 
decisionmaking pan african resources plc integrated annual report 2013 93
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the roles of the chairman of the board and the ceo are 
kept separate
through the board chairman and the group company 
secretary the directors have access at all reasonable 
times to all relevant company information and to senior 
management to assist them in the discharge of their duties 
and responsibilities and to enable them to take informed 
decisions directors are also allowed to obtain independent 
professional advice for the furtherance of their duties 
if necessary at the company’s expense subject to prior 
notification to the board chairman or company secretary 
and in line with the group’s procurement policies 
st james’ corporate services limited has been the group’s 
company secretary since 8 july 2008 the group company 
secretary provides a central source of advice to the board 
on ensuring compliance procedures and regulations of 
a statutory nature in addition to the group company 
secretary’s statutory and other duties it provides the board 
as a whole directors individually and the committees with 
guidance as to the manner in which their responsibilities 
should be discharged in the best interests of the company 
the appointment and removal of the group company 
secretary is a matter for the board as a whole 
one capital is in accordance with the listings requirements 
of the jse limited the company’s appointed sponsor one 
capital is responsible for ensuring that the company is at all 
times guided and advised as to the application of the listings 
requirements of the jse limited
cannacord genuity is the company’s nominated adviser 
nomad and joint broker together with finncap limited 
in the uk the duty of the nomad and joint broker is to 
advise the group on compliance concerning the aim rules 
and continuing obligations as an aim quoted company 
the board has established various committees on which 
nonexecutive directors play important roles terms of 
reference are in place for all these committees and these 
were reviewed during the year the terms of reference of the 
committees are available from the group company secretary 
on request all committees are chaired by independent 
nonexecutive directors except for the remuneration 
committee the formation of these committees does not in 
any way absolve the board of its overall responsibility to the 
shareholders and the company as such each committee is 
required to report back to the board at each board meeting
in addition to regularly attending board and board committee 
meetings the executive directors and senior management 
review both the mining operations and the exploration 
projects on a formal basis each month this includes a detailed 
review of technical and financial parameters as well as capital 
requirements and expenditure 
all parameters are measured against the strategic plans and 
any variations are discussed and action plans put in place to 
rectify such deviations investment and technical decisions 
form part of the board’s responsibilities
details of the membership of the board and committees 
attendance at meetings and a summary of responsibilities are 
set out in the table below 
  element of 
governance 
structure roles and responsibilities members
attendance 
at meetings
pan african 
resources 
board 
the board remains the focal point of the company’s corporate 
governance system and is ultimately accountable and responsible for 
the key governance process and the sustainable growth performance 
and affairs of the company 
the board’s purpose is to ensure that it retains full and effective 
control over the company that it directs and controls by ensuring that 
management is guided by established goals and strategies
busi sitole the financial director was on maternity leave from 
1 february 2013 until 1 june 2013 neal reynolds was the acting 
financial director during busi sitole’s maternity leave of four months 
busi sitole resigned with effect from 30 september 2013 to focus on 
personal commitments
keith spencer 
chairman
rob still
phuti mahanyele
hester hickey
cobus loots
busi sitole resigned 
with effect from 
30 september 
2013
jan nelson 
resigned  
28 february 2013
55
55
45
45
55
35
34 pan african resources plc integrated annual report 2013 94
the governance
of our business continued
  element of 
governance 
structure roles and responsibilities members
attendance 
at meetings
audit 
committee 
the audit committee reviews the effectiveness of the risk management 
process and internal control in the group in particular the committee 
is responsible for
 overseeing integrated reporting process
 ensuring that a combined assurance model is applied
 overseeing the internal audit function
 reviewing the expertise resources and experience of the company’s 
finance function
 forming an integral component of the risk management process
 recommending the appointment of the external auditor
three of the committee members are independent nonexecutive directors 
the fourth committee member cobus loots is considered a nonexecutive 
committee member whilst not independent due to being a representative 
of a significant shareholder keith spencer is considered an independent 
director in terms of king iii as a result of having historical share options 
issued during 2007 the uk companies act does not consider keith spencer 
independent  the committee’s report appears on page 108
external auditors internal auditors ceo financial director and financial 
executives are always invited to attend the audit committee meetings
hester hickey 
chairperson
rob still
cobus loots
keith spencer 
appointed on 
22 june 2013
22
22
22
22
remuneration 
committee
this committee’s function is to approve a broad remuneration strategy 
for the group and to ensure that directors and senior executives are 
adequately remunerated for their contribution to pan african resources’ 
operating and financial performance details of the remuneration of the 
company’s executive and nonexecutive directors and senior executives 
appear in note 32 to the annual financial statements 
information regarding the company’s remuneration philosophy and 
policies appear in the remuneration section of this report on page 104 
phuti mahanyele 
chairperson
rob still
jan nelson 
resigned 
28 february 2013
22
22
12
nominations 
committee
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 procedure governed by the nominations 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 makes the board effective and that it is structured to 
ensure a wide range of skills views knowledge and experience to meet 
the company’s strategic objectives the committee also ensures that a 
formal succession plan for the board is in place and that induction and 
ongoing training and development of directors continues
keith spencer 
chairman
rob still
phuti mahanyele
44
44
44  pan african resources plc integrated annual report 2013 95
company overview leadership statements our business philosophy operational overview corporate governance financial statements
  element of 
governance 
structure roles and responsibilities members
attendance 
at meetings
safety health 
environment 
and community 
sheqc 
committee
the sheqc committee is the cornerstone of ensuring the company 
maintains its social licence to operate through the following activities
  establishing a safety health environment and community policy 
framework for the company
 strategically reviewing the safety performance of all operations 
compared to the policy framework
  implementing corrective measures when necessary to achieve the 
objectives of the policy framework
  establishing a social and ethics committee as a subcommittee of the 
sheqc committee which will perform the functions required on 
behalf of subsidiary companies
keith spencer 
chairman
ron holding
hester hickey
thandeka ncube 
jan nelson 
resigned 
28 february 2013
44
44
44
14
22
monitoring of performance
in accordance with the board charter an evaluation of the 
board its committees and individual directors including 
the chairman is in the process of being implemented the 
nominations committee assesses the independence of non
executive directors annually 
in 2013 an assessment of the performance of the board and 
its committees was conducted by the board in line with the 
latest recommendations of king iii released in the form of 
practice notes the assessments found the structures and 
processes governing the board and its committees were well 
established and functioning satisfactorily it also found that 
the board had fulfilled its role and responsibilities and had 
discharged its responsibility to the company shareholders 
and other stakeholders
codes of conduct
the directors management and staff of pan african resources 
are committed to the following code of ethics
“as leaders and employees of pan african resources we 
hereby commit ourselves to the highest ethical conduct and 
agree to
 respect the laws of the republic of south africa and of 
any other country in which we may operate or visit
 live the principle of integrity in all our activities and 
refrain from any behaviour overt and otherwise that may 
damage the organisation’s image and or performance of 
whatever nature
 treat our employees and any other person with 
dignity respect and in a just manner irrespective of 
race religion gender disability age or nationality or any 
other characteristic
 be honest in all our dealings and undertake to distance 
ourselves from any activity that has the potential of being 
regarded as inconsistent with what is expected of a 
responsible company and individual
 avoid any potential conflict of interest and when it may 
exist disclose it to affected parties without any delay
 reject any form of bribery and act upon any non
compliance as strongly as possible
 accept the full responsibility and ultimate accountability 
when we make decisions that may impact on the health 
and safety of our employees and the communities in 
which we operate and take full responsibility for the 
environment and the wellbeing of the communities
 assist in developing our colleagues and teams to 
become worthy team players and responsible south 
african citizens 
the board has introduced a bribery and corruption policy 
and has adopted a zerotolerance approach to bribery and 
corruption and will uphold all laws relevant to countering 
bribery and corruption in all jurisdictions in which the group 
operates this policy has been communicated to all employees 
and contractors
all directors and employees are prohibited from dealing in 
shares during any period in which pricesensitive information 
is available the ceo distributes memoranda informing the 
affected parties of these periods should a senior employee 
or director wish to trade pan african resources shares 
written permission must be obtained from either the ceo 
or financial director
a register of directors’ interests is maintained and updated at 
board meetings
board statement
the board considers that this integrated annual report 
complies in all material respects with the relevant statutory 
requirements of the various regulations governing disclosure 
and reporting by pan african resources and that the annual 
financial statements comply in all material respects with the 
uk’s companies acts as well as with ifrs as such the board 
approves the content of the integrated annual report 2013 
including the annual financial statements pan african resources plc integrated annual report 2013 96
stakeholder engagement
and our response
approach and principles
the group defines stakeholders as people groups or 
organisations that have a direct interest in pan african 
resources in that they can affect – or be affected by – its 
operations policies and procedures stakeholders are 
identified at both an operations level and by the various 
governance structures of the group identified stakeholders 
include shareholders prospective shareholders investment 
analysts and lenders investors employees unions and 
contractors employees communities suppliers government 
regulatory authorities and civil society society 
proactive and sincere stakeholder engagement is fundamental 
to the group preserving and building on its social and 
relationship capital and moving it further along the road to 
achieving its goal of a profitable and sustainable business 
stakeholder engagement is undertaken at all levels of the 
enterprise following the principles of inclusiveness materiality 
and responsiveness as such stakeholders participate in 
outlining key elements of the group’s response to material 
economic social and environmental issues and the group’s 
business is conducted at the intersection of the interests 
of its dominant definitive and dependent stakeholders 
this approach ensures that there exists a common 
understanding and frequent communication at the core of 
the collective interest
stakeholder engagement can be conducted in one of two 
ways direct engagement involving verbal direct written or 
visual communication with targeted stakeholder groupings 
or indirect engagement represented by compliance with 
regulations and standards expected to deliver on stakeholder 
issues and concerns 
direct engagement is the approach used for investors 
through regular presentations and roadshows including 
operational visits communication through the london 
stock exchange and jse news services oneonone 
communication with executive management and members 
of the board the publication of interim and fullyear financial 
results and an annual integrated report and the provision of 
financial information demonstrating conformance with debt 
covenants 
direct engagement with the employee stakeholder grouping 
is conducted through various structures including bargaining 
council forums shaft committees health and safety 
structures and supervisory and disciplinary structures the 
methods of communication involved scheduled meetings 
briefings emails and posters standard policy and procedures 
documents oneonone supervision and instruction contract 
negotiations and performance discussions 
direct community engagement frequently takes place at 
operational level where operational management community 
liaison officers and the community social investment 
department engage with ward councillors the idp and 
led offices and the communities themselves at scheduled 
community meetings various media communication 
channels are used to inform the communities and their 
representatives
indirect engagement with a variety of stakeholders – in 
particular those in the society and community groupings – 
is achieved through compliance with a range of regulations 
and guidelines including the mining charter the mine health 
and safety act environmental and water management acts 
the uk and south african companies’ acts and the listing 
requirements of aim and the jse achieving compliance 
and informing regulators requires regular and frequent 
communication with the departments of mineral resources 
labour water affairs education and public works and local 
municipalities and idp and led offices
company wellbeing is 
only sustainable if all 
stakeholders share and 
buy into the company 
vision and strategy
profitability and 
sustainability  
of business
arrows represent a common 
understanding respect and attitude 
towards safe performance behaviour 
delivering on company strategy that 
rewards all stakeholders
communities 
around our mining 
operations
employees and 
business partners
shareholders pan african resources plc integrated annual report 2013 97
company overview leadership statements our business philosophy operational overview corporate governance financial statements
status of material issues identified
 issue stakeholders statusresponse
safe mining employees society 
investors
safety statistics for the individual operations which have shown an overall 
improvement are provided on pages 86 to 89 regrettably two employees lost 
their lives while on duty at barberton mines during the year gert fourie and 
velly malumane were both fatally injured 
transformation employees society 
investors
the group enjoys a constructive and valuable relationship with a bee partner 
shanduka resources via its wholly owned subsidiary shanduka gold which owns 
253 of pan african resources 
the group complies with both the employment equity and skills development 
acts the group’s progress in achieving its employment equity targets is 
summarised below
2013 
target 

2013 
actual 

2012 
actual 

t op management 45 36 20
senior management 46 46 27
middle management 40 38 32
junior management 57 55 45
other officials 95 95 57
pan african resources supports the development of small and medium black
owned enterprises procurement spend from bee entities during the year was as 
follows
 barberton mines
2013 
target 

2013 
actual 

2012 
actual 

capital goods 30 90 26
services 40 78 42
consumable goods 60 40 34
 evander mines
2013 
target 

2013 
actual 

capital goods 30 37
services 60 23
consumable goods 40 42
during the 2013 financial year the group invested a total of zar202 million 
2012 zar144 million in projects designed to improve the quality of life of 
members of neighbouring communities 
barberton mines continues with its barberton mines transformation trust 
established in 2011 and funded through contributions from the operation and its 
suppliers contributions to the trust can be applied in the determination of the 
suppliers’ bbbee contributor status 
evander mines now forms part of the group and as such enjoys support from the 
shanduka group in terms of transformation initiatives pan african resources plc integrated annual report 2013 98
stakeholder engagement
and our response continued
 issue stakeholders statusresponse
environmental 
management
society  
communities
the group’s operations are directed by an integrated sheqc charter
in particular the environmental policy commits pan african resources to 
continual improvement in the assessment of its environmental performance 
and the prevention of pollution the integration of environmental management 
practices throughout the group minimising the use of consumptive resources 
and promoting the reduction and recycling of waste rehabilitating disturbed 
land and protecting biodiversity exercising prudence with critical ecological 
resources managing environmental risk in the workplace complying with applicable 
legal requirements and training and educating its employees in environmental 
responsibilities 
all operations have emps approved by the dmr barberton mines submitted an 
amended emp in 2010 and is still awaiting approval
statistics relating to the group’s impact on the environmental are provided in the 
gri report wwwpanafricanresourcescom
job security and 
creation
employees 
communities 
society
the group’s total payroll cost amounted to zar5070 million
no redundancies occurred during the year employee turnover is monitored 
and reported on in the gri content index on the group’s website at 
wwwpanafricanresourcescom 
zar29 million was invested in the training and development of employees across 
the group
statistics relating to training and learnerships appears in the table below
profitable mining investors society 
communities
the group returned to paying dividends during the 2013 financial year following 
its decision to forgo a dividend in 2012 due to the cash demands of the evander 
mines acquisition
t otal taxes collected on behalf of the south african government amounted to 
zar1490 million during 2013 other direct taxes paid by the group to the 
south african fiscus amounted to zar1177 million
direct investment in the group’s surrounding communities amounted to  
zar202 million pan african resources plc integrated annual report 2013 99
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the management
of risk
the management of risk 
the board of directors supported by the work of the audit 
committee is ultimately responsible for the management and 
mitigation of risks that impact upon the group’s operations 
its employees and the environment and communities in which 
it operates the group follows a formal risk management 
programme engaging with employees assurance service 
providers insurers regulatory bodies local communities 
and specialist risk advisors the culture of the group is 
that everyone associated with it assumes responsibility for 
conducting themselves in conformance with established 
policies and procedures to minimise the potential occurrence 
of any risk event and constantly to seek opportunities to 
improve performance and efficiencies
the identification of risks is informed by the external 
environment described on pages 40 to 42 and the nature of 
the individual operations’ activities at first glance risks could 
be described as either strategic or operational however 
so many of the strategic risks require mitigating strategies 
to be implemented at the operations the group does not 
distinguish between the types of risk risks can be identified at 
an operational level during risk workshops and through the 
strategysetting process 
initiatives to mitigate risks at the operational level are designed 
to ensure continuous safe and responsible production of gold 
and pgms each of the group’s operations maintains a risk 
register which includes risk identification risk mitigating factors 
and responsibilities 
the board regularly reviews the risk reports from the 
operations thus ensuring that the appropriate risk 
management programmes are implemented and monitoring 
progress against key risk indicators such as safety statistics 
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 individual operations across a group discipline human 
resources for example or at executive management level
risks and our achievements
the board and executive management believe that within 
every risk lies an opportunity for pan african resources 
to improve its financial operational or social performance 
enhance its reputation strengthen its team and create value 
for all its stakeholders in the short medium and long term as 
such the risks described below are also seen as key areas of 
opportunity for the group specific identified opportunities 
relating to the exploitation of mineral resources and mineral 
reserves are discussed in more detail on pages 67 to 85 pan african resources plc integrated annual report 2013 100
the management
of risk continued
 risk mitigation strategies outcomes
safety – including fall of 
ground transport blasting 
equipment handling and 
underground fires
 sheqc charter
 safety management systems including standard 
operating procedures and regular risk assessments
 legal appointments of responsible persons
 workplace safe declarations
 seismic monitoring
 rock mechanic engineers are involved with mine 
planning design and operation
 dmr mandatory code of practice to combat rockfall 
events implemented
 support standards for stoping and 
development applied
 mqa accredited employee training – both general 
and jobspecific
 communication through managers safety 
representatives safety meetings and 
safety committees
 record keeping and reporting of statistics
 blasting schedules
 adequate signage of dangers and risks
 legal workplace inspections
 disaster action plans
  fire prevention measures
safety statistics for the individual 
operations are provided on 
pages 86 to 89 pan african resources plc integrated annual report 2013 101
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 risk mitigation strategies outcomes
the profitability of the 
group’s operations and 
the cash flows generated 
are significantly affected by 
changes in precious metal 
prices and the group’s cost 
of production
 historically the group has sold its gold at prevailing 
market prices and has not entered into any price 
hedging arrangements to establish a price in advance 
for the sale of future gold production such hedging 
opportunities together with economic indicators 
and an informed outlook for the price of gold are 
considered on a regular basis by both the executive 
management and the board
 the group is committed to being a highgrade low 
cash cost gold producer appropriate mineral resource 
management ensures optimum grade tonnage profiles 
are achieved on a sustainable basis
 all costs are monitored and addressed in detail to 
ensure sufficient cash flows are available to meet all 
stakeholder requirements
 capital and management resources are applied to 
improve underground working conditions enhancing 
productivity and controlling costs
 should the gold price fall to a level approaching the 
group’s allin cost of production for any sustained 
period a review of all projects capital expenditure 
and costs would be performed to focus on 
cash preservation
 the group is managed by experienced teams at the 
operations and supported by a lean and experienced 
executive team
the average price of gold 
realised during the period 
resulted in positive margins 
achieved
management of costs remained 
in line with expectations and 
increases operational allin cost 
of production was a result of
– wage rate increases
– electricity increases
– btrp capital expenditure
–  evander mines shaft deeping 
project
the group’s results of 
operations and financial 
condition may be materially 
adversely affected by 
appreciation in the value of 
the zar against the usd 
and gbp 
 the group’s policy is not to hedge its exposure to 
foreign exchange rate fluctuations
 exchange rates are monitored daily
 the group focuses on cost control to maximise 
profitability per production unit
the average usdzar 
exchange rate was 139 
weaker at zar8831 compared 
to the previous year 2012 
zar7751
the average zargbp exchange 
rate was 128 weaker at 
zar13841 compared to 
the previous year 2012 
zar12271 therefore group 
results in gbp would be 
materially affected by a 128 
movement yearonyear
industrial action work 
stoppages and higher 
operating costs as the 
result of wage settlements 
or changes in employment 
legislation
 the group complies with all of the relevant south 
african labour legislation
 unions are recognised in line with labour legislation 
and engaged with on a frequent and regular basis
 the group engages with collective bargaining units 
either directly or through the chamber of mines
  the group has adopted appropriate remuneration 
practices to reward all levels of employees based on 
the group’s production and financial performance
 in terms of the mining charter the group prepares 
and implements social and labour plans which include 
employee training and development goals
no industrial action took place 
at any of the group’s operations 
during the year pan african resources plc integrated annual report 2013 102
the management
of risk continued
 risk mitigation strategies outcomes
the group’s ability to 
recruit and retain skilled and 
experienced employees is 
critical to the success of its 
operations
 slps
 recruitment and training strategy
 appropriate remuneration
 employee health initiatives
 inhouse training and development
 talent pool and mentorship
employee turnover is 
monitored and reported on 
in the gri content index on 
the group’s website at www
panafricanresourcescom
the group’s performance 
in appointing hdsas to 
management positions is 
reflected in the table under 
the heading transformation in 
the stakeholder engagement 
and our response section on 
page 97
integrating new acquisitions 
and construction of new 
plants
 btrp construction was monitored on a daily basis
 a management and service agreement was signed 
with harmony when acquiring the evander mines 
operation to ensure a smooth and managed 
handover of responsibilities
 an integration programme for all aspects of the 
evander mines operation was prepared and has been 
strictly managed during the year
btrp commissioned on time 
and on budget
successful integration of the 
evander mines acquisition
t otal group gold production 
increased by 382 and gold 
reserves by 694
health – liabilities related to 
occupational diseases and 
the management of the high 
incidence of hivaids in the 
workforce
 annual medical examinations for all employees
 daily monitoring of workplace environment for heat 
noise and airborne pollutants
 targets and limits set for noise heat and dust
 standard operating procedures for working with 
cement and asbestos products
 ventilation control
 personal protective equipment
 health clinic
 first aid training
 awareness campaigns
 voluntary hiv counselling and testing
 free condoms and antiretroviral drugs
 entrance and exit medical screenings
recording and reporting 
incidences of occupational 
diseases these statistics are 
provided in the gri content 
index on the group’s website 
at wwwpanafricanresourcescom pan african resources plc integrated annual report 2013 103
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 risk mitigation strategies outcomes
environmental degradation – 
water pollution
 zerodischarge mines
 environmental management programmes
 pollution control and water catchment dams
 sealing of underground water sources
 compliance with water use licence guidelines
 recyclingreuse targets
 containment of arseniccontaminated storage areas
 engagement with the department of water affairs 
regarding the outstanding water licence of sheba 
mine
number and value of fines or 
sanctions for noncompliance 
these statistics are provided 
in in the gri content index on 
the group’s website at www
panafricanresourcescom
illegal mining and theft access controls
 attendance registers
 security patrols
 camera surveillance
 mine clearance procedures
 disciplinary procedures
 communication and awareness campaigns
 engagement with authorities and community
 remedial action of historic pollution
significant progress has been 
made in securing the mines’ 
properties and limiting access 
to the workings this is reflected 
in the reduced security costs at 
barberton mines
poor governance resulting 
in noncompliance with 
legislation andor regulations
 the group has appointed a jse sponsor and a uk 
nomad to ensure compliance with regard to 
corporate governance and public disclosure
 safety and environmental management systems
 operational management engage the services of 
environmental specialists to ensure compliance with 
regulations and compliance thereof
 private contractors required to comply with 
company systems
 regular audits
the group has remained 
compliant throughout the year
unavailability of 
infrastructure including 
power interruptions
 statutory site inspections
 engineering risks registers for all operations
 appointment of a group consulting engineer
 planned routine maintenance and 
maintenance contracts
 equipment registers
 critical spares maintained
 refurbishment major overhaul and capital 
expenditure programmes
 engagement with eskom on planned 
power interruptions
 backup generators provide limited power to 
processing plants
  power management and load monitoring
 energyefficiency programmes
production and financial 
indicators
readers are referred to the 
operational performance 
section of this report on pages 
52 to 89 pan african resources plc integrated annual report 2013 104
remuneration
remuneration – rewarding effort
all the executive directors have employment contracts with 
the company and are remunerated by the company for 
services performed 
in accordance with the company’s articles of association 
nonexecutive directors are entitled to directors’ fees refer 
to annual financial statements note 32 these fees are paid 
quarterly in arrears
the remuneration committee comprises one independent 
nonexecutive director and one nonexecutive director 
the invitees of the remuneration committee are the group 
ceo the financial director and the executive human 
resources all of whom are are excluded from the meeting 
in the event that their remuneration andor benefits are 
discussed the remuneration committee meets at least twice 
a year 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 
with due regard to the interest of all stakeholders and the 
performance of the company
basic salary and benefits are reviewed annually against 
competitive market data and analysis pwc remchannel 
survey 
shortterm incentives paid annually are based on the 
company’s performance the collective key performance 
areas kpas account for 80 and are based on gold sold 
ounces costs of production and safety targets whereas the 
individual kpas account for 20 and are specific to the person 
concerned these are objective measurements based on the 
company’s actual achievements versus the set business plan 
for the financial year
share options
the equity share option plan was discontinued 2008 and 
has been replaced with the pan african resources group 
share appreciation bonus plan the main objective of the 
group share appreciation bonus plan is to give appropriate 
incentives to selected employees who are employed at a 
managerial level within the group to ensure retention of key 
skills required for the ongoing profitable performance and 
growth of pan african resources its subsidiary companies 
and any other entities that group controls and to align 
management interests with those of shareholders of pan 
african resources
further details in terms of the equity share option plan and 
the group share appreciation bonus plan are disclosed in 
the annual financial statements notes 33 and 27 additional 
information in relation to the equity share option plan and 
the group share appreciation bonus plan can be obtained 
from the group company secretary pan african resources plc integrated annual report 2013 105
company overview leadership statements our business philosophy operational overview corporate governance financial statements pan african resources plc integrated annual report 2013 106
audit committee 
report
directors’ report
independent auditor’s 
report
 company secretary
consolidated and 
company statement 
of comprehensive 
income
consolidated and 
company statement 

consolidated and 
company statement 

consolidated and 
company statement 
of changes in equity

statements
annual
financial statements pan african resources plc integrated annual report 2013 107 pan african resources plc integrated annual report 2013 108
audit
committee report
financial statements
the committee has evaluated the group financial statements 
for the year ended 30 june 2013 and based on the information 
provided to the committee considers that the group complies in 
all material respects with the requirements of the companies act 
and international financial reporting standards ifrs
the requirements from king iii are continuously being assessed and 
improved on with significant issues resolved
external auditor
the committee nominated the south african and uk firm of 
deloitte  touche for reappointment as external auditors of the 
pan african group
the committee satisfied itself through enquiry that the external 
auditors are independent as defined by the companies act and as 
per 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 2013 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
financial director
during the financial year financial director busi sitole was on 
maternity leave for a fourmonth period neal reynolds group 
financial manager acted in busi sitole’s stead during this period
busi sitole resigned as financial director effective 30 september 
2013 and is replaced by cobus loots effective 1 october 2013
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 new financial 
director 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 
audit 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 2013 pan african resources plc integrated annual report 2013 109
company overview leadership statements our business philosophy operational overview corporate governance financial statements
the directors present their annual report and the audited financial 
statements for the year ended 30 june 2013
principal activities
the group’s principal activity during the year was gold and platinum 
mining a full review of the activities of the business and of future 
prospects is contained in the chief executive officer’s report that 
accompanies these financial statements with financial and non
financial key performance indicators shown on page 16
results and dividends
the results for the year are disclosed in the consolidated statement 
of comprehensive income on page 114 the salient features of 
these results can be found on page 5
the pan african resources board of directors previously stated the 
company’s policy is to pay an annual dividend subject to the capital 
requirements of the company following the successful acquisition 
of evander mines the board of directors has therefore proposed 
to declare a dividend in respect of the 2013 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 of directors remains committed to continue with the 
company’s dividend policy and has resumed the dividend payment 
in the 2013 financial year
the board of directors proposes a final dividend for the year ended 
30 june 2013 of zar240 million gbp152
1
 million the proposed 
final dividend is calculated on 1825834263 issued shares currently 
outstanding equating to zar01314 per share or approximately 
083
1
 pence per share 2012 nil and is to be approved by 
shareholders at the forthcoming agm of the company
note 1  the dividend in gbp is based on an exchange rate on 13 september 2013 of 
zar15761 and approximates gbp152 million the final exchange rate will 
be communicated upon final approval at the agm
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 52 for gold operations and 
page 64 for platinum 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
 review of monthly financial reports and 
monitoring performance
 review of internal audit reports and followup action of 
weaknesses identified by these reports
 review of competency and experience of senior 
management staff
 prior approval of all significant expenditure including all major 
investment decisions
 review and debate of treasury and other policies
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
going concern
the board confirms that the business is a going concern and that 
it has reviewed the business’s 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 
secured a zar600 million rcf with nedbank limited and absa 
limited the group utilised zar350 million gbp233 million of 
the rcf to fund the evander mines acquisition and has since been 
able to further settle zar185 million gbp123 million resulting in 
a closing balance of zar165 million gbp110 million at yearend
management is not aware of any material uncertainties that 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
directors’
report pan african resources plc integrated annual report 2013 110
directors’
report continued
 
events after the reporting period
refer to note 36 to the annual financial statements
directors
the following were directors during the year under review and 
subsequently
kc spencer chairman
p mahanyele
jp nelson resigned on 28 february 2013
yb sitole resigned effective 30 september 2013
jaj loots
rg still
h hickey
r holding appointed on 9 september 2013
 independent nonexecutive director
auditor
deloitte llp has been appointed as auditor 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
 so far as the director is aware there is no relevant information 
of which the group’s auditor is unaware
 the director has taken all the steps that heshe ought to have 
taken as a director in order to make himherself aware of any 
relevant audit information and to establish that the group’s 
auditor is aware of that information
this confirmation is given and should be interpreted in accordance 
with s418 of the uk companies act 2006
deloitte llp has expressed its willingness to continue in office as 
auditor and a resolution to reappoint it will be proposed at the 
forthcoming agm
by order of the board
ron holding
chief executive officer
16 september 2013 pan african resources plc integrated annual report 2013 111
company overview leadership statements our business philosophy operational overview corporate governance financial statements
independent auditor’s report
united kingdom
 
t o the members of pan african resources plc
we have audited the financial statements of pan african resources plc for the year ended 30 june 2013 which comprise the group and 
parent company statements of comprehensive income the group and parent company statements of financial position the group and 
parent company cash flow statements the group and parent 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 t o 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 been consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates made by the directors and the overall presentation of the financial statements in addition we 
read all the financial and nonfinancial information in the annual report to identify material inconsistencies with the audited financial statements 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 give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 june 2013 and 
of the group’s profit and the parent company’s loss for the year then ended
 the financial statements have been properly prepared in accordance with ifrs as adopted by the european union and
 the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in 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
  adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from 
branches not visited by us or
 the parent company financial statements are not in agreement with the accounting records and returns or
 certain disclosures of directors’ remuneration specified by law are not made or
 we have not received all the information and explanations we require for our audit
david paterson  
senior statutory auditor
for and on behalf of deloitte llp
chartered accountants and statutory auditor
london united kingdom
16 september 2013 pan african resources plc integrated annual report 2013 112
independent auditor’s report
south africa
 
t o 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 114 to 162 which comprise 
the statements of financial position as at 30 june 2013 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 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 financial statements the 
procedures selected depend on the auditor’s judgement including the assessment of the risks of material misstatement of the 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 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 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 2013 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  t ouche
registered auditor
per mle tshabalala
partner
16 september 2013 pan african resources plc integrated annual report 2013 113
company overview leadership statements our business philosophy operational overview corporate governance financial statements
certificate of the 
company secretary
i hereby certify that pan african resources plc has lodged with the registrar of companies all such returns as are required of a public 
company in terms of the companies act 2006 all such returns are true correct and up to date
st james’s corporate services limited
17 september 2013 pan african resources plc integrated annual report 2013 114
consolidated and company statement of
comprehensive income
for the year ended 30 june 2013
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
audited audited audited audited
notes £ £ £ £
revenue
gold sales 4 129277438  101068596 – –
platinum sales 4 4257512  –  –  – 
realisation costs 226738 163217 –  – 
onmine revenue 133308212  100905379  –  – 
gold cost of production 5 67646119 46122811 –  – 
platinum cost of production 5 3535046 – –  – 
mining depreciation 16 17 5998267 3259010 –  – 
mining profit 56128780  51523558  – –
other expensesincome 8 5652226 5916227 3229348 21644712 
bargain purchase gain 38 24114255  –  –  – 
loss in associate 19 152312 –  152312 – 
loss on disposal of asset held for sale 19 586138 –  586138 – 
impairments 10 16143604 48238 18058860 – 
royalty costs 3198622 3848450 –  – 
net income before finance income and finance costs 54510133  41710643  22026658 21644712 
finance income 4 9 1454659  652267  1079235  551154 
finance costs 9 1257696 136765 –  – 
profit before taxation 10 54707096  42226145  20947423 22195866 
taxation 13 12133063 12984511 289876  –
profit after taxation 42574033  29241634  20657547 22195866 
other comprehensive income
items that may be reclassified subsequently  
to profit and loss
foreign currency translation differences  20228836 10248051 1596822 7013252
t otal comprehensive income for the year 22345197  18993583  22254369 15182614 
profit attributable to
owners of the parent 42574033  29241634  20657547 22195866 
 42574033  29241634  20657547 22195866 
t otal comprehensive income attributable to
owners of the parent 22345197  18993583  22254369 15182614 
 22345197  18993583  22254369 15182614 
earnings per share pence 14 263  202 – –
diluted earnings per share pence 14 262  201 – –
    pan african resources plc pan african resources acquired evander gold mines limited evander mines on 28 february 2013 therefore the audited financial statements at  
30 june 2013 consolidate four months of evander mines financial results pan african resources plc integrated annual report 2013 115
company overview leadership statements our business philosophy operational overview corporate governance financial statements
consolidated and company statement of
financial position
as at 30 june 2013
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
audited audited audited audited
notes £ £ £ £
assets
noncurrent assets
property plant and equipment and mineral rights 16 209489677  62411655  85141  126209 
other intangible assets 17 340484  –  –  – 
deferred taxation 28 312798  –  267281  – 
goodwill 18 21000714  21000714  –  – 
investments 19 –  –  122007254  50101244 
investments in associate 19 1199071  – 1182606  – 
rehabilitation trust fund 20 16973713  2662934  –  – 
 249316457  86075303  123542282  50227453 
current assets
inventories 21 6595740  1868735  –  – 
receivables from other group companies 34 –  –  12524940  19505668 
current tax asset 1479339  –  –  – 
trade and other receivables 22 13904416  6828047  1221443  1621219 
cash and cash equivalents 23 4768916  19782179  3304949  17812893 
 26748411  28478961  17051332  38939780 
noncurrent assets held for sale 35 213191  13135215  –  13155070 
t otal assets 276278059  127689479  140593614  102322303 
equity and liabilities
capital and reserves
share capital 24 18228342  14482623  18228342  14482623 
share premium 94515562  51149299  94515562  51149299 
translation reserve 22166345 1937509 6754874 5158052
share option reserve 1031955  904902  897658  792143 
retained income 102005124  59432741  16224374  36881921 
realisation of equity reserve 10701093 10701093 –  – 
merger reserve 10705308 10705308 1560000  1560000 
equity attributable to owners of the parent 172208237  102625655  124671062  99707934 
t otal equity 172208237  102625655  124671062  99707934 
noncurrent liabilities
longterm provisions 26 14821152  3043954  –  – 
longterm liabilities 27 11132960  868881  390681  429565 
deferred taxation 28 54049440  10088530  –  – 
 80003552  14001365  390681  429565 
current liabilities
trade and other payables 25 23202052  7709729  1758875  886569 
current portion of longterm liabilities 27 864218  –  –  – 
payable to other group companies 34 –  –  13772996  1298235 
current tax liability – 3352730  – –
 24066270  11062459  15531871  2184804 
t otal equity and liabilities 276278059  127689479  140593614  102322303
ron holding  cobus loots
chief executive officer director pan african resources plc integrated annual report 2013 116
consolidated and company statement
of cash flows
for the year ended 30 june 2013
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
notes £ £ £ £
net cash generated fromused in  
operating activities 37 48265537  30575270  757723 8392150
investing activities
dividends received –    –    –    24500396 
deposit –    1548779 –    1548779
additions to property plant and equipment  
and mineral rights 16 27566533 17424906 12542 13202
net cash outflows from the acquisition of evander 38 96006400 –    –    –   
additions to intangibles –    505273 –    –   
investments acquired –    –    72026895 –   
loans fromto subsidiaries –    –    9415791  6836569
proceeds on disposals of assets 10555  –    –    –   
funding of the rehabilitation trust fund 359172  115970  –    –   
net cash used ingenerated from investing activities 123203206 19362988 62623646 16101846 
financing activities
proceeds from borrowings 34763874  –    –    –   
borrowings repaid 22545100 –    –    –   
loans from subsidiaries –    –    –    1298235 
shares issued 24 50614255  258686  50614255  258686 
share issue costs 3502273 –    3502273 –   
net cash from financing activities 59330756  258686  47111982  1556921 
net decreaseincrease in cash and  
cash equivalents 15606913 11470968  16269387 9266617 
cash and cash equivalents at the beginning of the year 19782179  10123822  17812893  11546466
effect of foreign exchange rate changes 593650  1812611 1761443  3000190
cash and cash equivalents at the end of the year 23 4768916  19782179  3304949  17812893 
during the year the group completed a major noncash transaction with regards to its disposal of manica projects refer to note 35 pan african resources plc integrated annual report 2013 117
company overview leadership statements our business philosophy operational overview corporate governance financial statements
consolidated and company statement
of changes in equity
for the year ended 30 june 2013
group
share 
capital
£
share 
premium 
account
£
translation
 reserve
£
share 
option
 reserve
£
retained
 earnings
£
realisation 
of equity 
reserve
£
merger
 reserve
£
t otal
£
balance at 30 june 2011 14440406  50932830  8310542  861450  37607283  10701093 10705308 90746110 
issue of shares 42217  216469  –     –    –    –    –   258686 
t otal comprehensive 
income  –    –   10248051 – 29241634   –     –   18993583 
dividends paid –  –  –  –    7416176 –  –  7416176
sharebased payment
– charge for the year –  –  –  43452  –  –  –  43452 
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
t otal comprehensive 
income –    –    20228836 –    42574033  –    –    22345197 
sharebased payment 
– charge for the year –    –    –    127053  –    –    –    127053 
balance at 30 june 2013 18228342  94515562  22166345 1031955  102005124  10701093 10705308 172208237 
company
share 
capital
£
share 
premium
 account
£
translation
 reserve
£
share 
option 
reserve
£
retained
 earnings
£
realisation
of equity 
reserve
£
merger
 reserve
£
t otal
£
balance at 30 june 2011 14440406  50932830  1855200  777585  22102231  –  1560000  91668252 
issue of shares 42217  216469   –    –    –    –    –   258686 
t otal comprehensive 
income  –    –   7013252  –   22195866   –    –   15182614 
dividends paid  –    –    –    –   7416176  –    –   7416176
sharebased payment 
– charge for the year  –    –    –   14558  –   –    –   14558 
balance at 30 june 2012 14482623  51149299  5158052 792143  36881921  –  1560000  99707934 
issue of shares 3745719  46868536 – –  –  –  –  50614255 
share issue costs –  3502273 –  –  –  –  –  3502273
t otal comprehensive loss –  –  1596822 –  20657547 –  –  22254369
sharebased payment 
– charge for the year –  –  –  105515  –  –  –  105515 
balance at 30 june 2013 18228342  94515562  6754874 897658  16224374  –  1560000  124671062 pan african resources plc integrated annual report 2013 118
notes to financial statements accounting
policies and financial reporting 
terms
for the year ended 30 june 2013
1 general information 
  pan african is a company incorporated in england and wales under the companies act 2006 the company has a dual primary listing 
on the aim market ‘aim’ of the london stock exchange and jse limited 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 international financial reporting standards ifrs adopted by 
the european union 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 pty ltd barberton in a shareforshare transaction ifrs 3 ‘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 29 
to the financial statements includes the group’s objectives policies and processes for managing its capital its financial risk management 
objectives details of its financial instruments and its 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 international financial reporting standards not yet adopted
  the group applies all applicable ifrs in preparation of the financial statements consequently all ifrs statements adopted by the 
european union that were effective at 30 june 2013 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 2013
 new and revised international financial reporting standards effective date
ias 12 deferred tax recovery of underlying assets amendment annual periods beginning on or after  
1 january 2012
ias 1 presentation of items of other comprehensive income amendment annual periods beginning on or after  
1 july 2012
  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 but not yet effective pan african resources plc integrated annual report 2013 119
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 
 new and revised international financial reporting standards effective date
ifrs 1 firsttime adoption of international financial reporting standards annual periods beginning on or after 
1 january 2013
–  amendments for government loan with a belowmarket rate of 
interest when transitioning to ifrss
ifrs 1 firsttime adoption of international financial reporting standards annual periods beginning on or after 
1 january 2013
–  amendments resulting from annual improvements 20092011 cycle 
repeat application borrowing costs
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
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
ifric 20 stripping costs in the production phase of a surface mine annual periods beginning on or after  
1 january 2013 pan african resources plc integrated annual report 2013 120
  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 but not yet effective
 new and revised international financial reporting standards effective date
ifrs 10 consolidated financial statements
– amendments for investments entities
annual periods beginning on or after 
1 january 2014
ifrs 12 disclosure of interests in other entities
– amendments for investment entities
annual periods beginning on or after 
1 january 2014
ias 27 separate financial statements
– amendments for investment entities
annual periods beginning on or after 
1 january 2014
ias 32 financial instruments presentation annual periods beginning on or after 
1 january 2014
ias 36 impairment of assets annual periods beginning on or after 
1 january 2014
ias 39 financial instruments recognition and measurement annual periods beginning on or after 
1 january 2014
ifric 21 levies annual periods beginning on or after  
1 january 2014
ifrs 7 financial instruments disclosures 
– amendments requiring disclosures about the initial application of ifrs 9
annual periods beginning on or after 
1 january 2015
ifrs 9 financial instruments annual periods beginning on or after 
1 january 2015
  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 intercompany 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 non
current 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 as a bargain purchase consideration 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 
notes to financial statements accounting
policies and financial reporting 
terms continued
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 121
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 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 
  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 linked to the reserves 
and resources on a straight line basis 
 other mining plant and equipment is depreciated on the straightline 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
  evaluate as being technically or commercially feasible
  has sufficient resources to complete development
  can demonstrate will generate future economic benefits pan african resources plc integrated annual report 2013 122
  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 jointlycontrolled 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 cashgenerating units 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 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 
 
for the year ended 30 june 2013
notes to financial statements accounting
policies and financial reporting 
terms continued pan african resources plc integrated annual report 2013 123
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 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 6pge concentrate gold or 6pge in process and consumable stores
  bullion on hand and 6pge 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 6pge in process inventories represent materials that are currently in the process of being converted to a saleable gold or 6pge 
product the gold or 6pge 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 statemanaged 
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 medicalaid scheme contributions for certain 
employees the practice has been discontinued for some years the net present value of estimated future costs of company contributions  pan african resources plc integrated annual report 2013 124
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 sharebased 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 sharebased 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 balance sheet 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 
 it is probable that delivery will be made 
 the item is on hand identified and ready for delivery to the buyer at the time the sale is recognised
 the buyer specifically acknowledges the deferred delivery instructions 
 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 
for the year ended 30 june 2013
notes to financial statements accounting
policies and financial reporting 
terms continued pan african resources plc integrated annual report 2013 125
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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 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 held for trading or it is designated as at fvtpl 
  a financial liability is classified as held for trading if
  it has been incurred principally for the purpose of repurchasing in the near future
   it is part of an identified portfolio of financial instruments that the group manages together and has a recent actual pattern of 
shortterm profittaking
  it is a derivative that is not designated and effective as a hedging instrument 
 a financial liability other than a financial liability held for trading may be designated as at fvtpl upon initial recognition if
 such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise
 the financial liability forms part of a group of financial assets or 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 basis
  it forms part of a contract containing one or more embedded 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  pan african resources plc integrated annual report 2013 126
  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 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 
for the year ended 30 june 2013
notes to financial statements accounting
policies and financial reporting 
terms continued pan african resources plc integrated annual report 2013 127
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 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 held for sale 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 estima tes 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
  estimates made in determining the present obligation of environmental provisions including decommissioning and rehabilitation this 
includes the scope and timing of work required the related costs and the discount rate used 
  estimates made in determining the recoverable amount of assets this includes the estimation of cash flows and the discount rates 
used including future production levels commodity price and costs 
 estimates made in determining the life of the mines
  –  the life of mine is determined from development plans based on 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
  –  estimates made of legal or constructive obligations resulting in the raising of provisions and the expected date of probable outflow 
of economic benefits to assess whether the provision should be discounted
  –  estimates of mineral resources and ore reserves in accordance 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
 estimates of the recoverability of goodwill and intangible assets 
 estimates involved in feasibility studies related to exploration and growth projects and hence the recoverability of any related capital 
expenditure 
 estimates made in determining the fair values of assets and liabilities at acquisition in terms of ifrs 3 ‘business combinations’ 
together with any resulting goodwill or gains on bargain purchase considerations pan african resources plc integrated annual report 2013 128
notes
to the financial statements
for the year ended 30 june 2013
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
4 revenue
gold sales 129277438  101068596  –  –
platinum sales 4257512  –  –  –
finance income 1454659  652267  1079235  551154
 134989609  101720863  1079235  551154
5 cost of production
gold cost of production
salaries and wages 33352148 22477760 –  –
mining 10020621 6026400 –  –
processing 4460161 4081816 –  –
engineering and technical services 5165876 4070486 –  –
electricity 8993056 5114015 –  –
security 3476653 2393207 –  –
administration and other 2177604 1959127 –  –
 67646119 46122811 –  –
platinum cost of production
salaries and wages 973776 –  –  –
mining 655780 –  –  –
other plant operation costs 1544243 –  –  –
electricity 219661 –  –  –
additional refining costs 141586 –  –  –
 3535046 –  –  –
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 risk and rewards that are different to those of other segments the group’s business activities were 
conducted through five business segments
  barberton mines pty limited barberton mines located in barberton south africa
  evander gold mining pty limited and evander gold mines limited collectively known as evander mines located in evander 
south africa
  phoenix platinum mining pty limited phoenix platinum
  corporate and growth projects which includes auroch investments
  pan african resources funding company pty limited funding company
 the chief executive officer reviews the operations in accordance with the disclosures presented on the next page pan african resources plc integrated annual report 2013 129
company overview leadership statements our business philosophy operational overview corporate governance financial statements
30 june 2013 30 june 2012
 barberton
mines 
 evander
mines 
 phoenix
platinum 
 corporate
and 
growth
projects 
 funding
com
pany
  group 
 barberton
mines 
 phoenix
platinum 
 corporate
and 
growth
projects  group
 £  £  £  £  £  £  £  £  £  £
6 segmental 
analysis 
continued
revenue
gold sales 97564881  31712557  –  –  –  129277438  101068596  –  –  101068596
platinum sales –  –  4257512  –  –  4257512  –  –  –  –
realisation costs 179270 47468 –  –  –  226738 163217 –  –  163217
onmine revenue 97385611  31665089  4257512  –  –  133308212  100905379  –  –  100905379
cost of production 47739505 19906614 3535046 –  –  71181165 46122811 –  –  46122811
depreciation 3000640 2056566 941061 –  –  5998267 3259010 –  –  3259010
mining profit 46645466  9701909  218595 –  –  56128780  51523558  –  –  51523558
other expenses  2188879 8783 221604 3231154 1806 5652226 1484792 59957 4371478 5916227
bargain purchase –  24114255  –  –  –  24114255  –  –  –  –
loss from associate –  –  –  152312 –  152312 –  –  –  –
loss on disposal of asset 
held for sale –  –  –  586138 –  586138 –  –  –  –
impairment costs –  –  2495480 13648124 –  16143604 48238 –  –  48238
royalty costs 2450476 748146 –  –  –  3198622 3848450 –  –  3848450
net incomeloss before 
finance income and finance 
costs 42006111  33059235  2935679 17617728 1806 54510133  46142078  59957 4371478 41710643
finance income 77463  283229  –  1093967  –  1454659  96202  4911  551154  652267
finance costs 107810 296888 –  –  852998 1257696 136765 –  –  136765
profitloss before  
taxation 41975764  33045576  2935679 16523761 854804 54707096  46101515  55046 3820324 42226145
taxation 11408506 962917 24863 286257  23034 12133063 13058128 73617  –  12984511
profitloss after taxation 30567258  32082659  2960542 16237504 877838 42574033  33043387  18571  3820324 29241634
segmental assets total 
assets excluding goodwill 63530231  172971365  13897511  4867060  11178  255277345  48864455  19617673  38206637  106688765
segmental liabilities 25018515  65569101  320175  2151222  11010809  104069822  23552791  275378  1235655  25063824
goodwill 21000714  –  –  –  –  21000714  21000714  –  –  21000714
net assets excluding 
goodwill 38511716  107402264  13577336  2715838 10999631 151207523  25311664  19342295  36970982  81624941
capital expenditure 22886611  4506501  160879  12542  –  27566533  10739237  6672468 13 201 17424906
all assets are held within south africa the segmental assets and liabilities above exclude intercompany balances
   costs directly attributable to phoenix platinum along with attributable overheads were capitalised to capital under construction in the prior years on 1 july 2012 
phoenix platinum was fully commissioned for accounting purposes therefore all costs and revenue incurred and received respectively were allocated to statement of 
comprehensive income in the current year
  other expenses exclude intercompany management fees and dividends
  all gold sales were made in the republic of south africa and the majority of revenue more than 90 was generated from a single customer rand refinery
  the funding company was established during the 2013 financial year with effect from 1 march 2013 pan african resources plc integrated annual report 2013 130
7 operating leases
  at the financial year end 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 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
not later than one year 109462  125066  92191  99221
later than one year and no later than five years  96609  211447  73210  192256
 206071  336513  165401  291477
minimum lease payments under operating leases 
recognised as an expense in the year 124554  135073  83222  87684
leases are negotiated for an average term of three to 
five years
8 other expensesincome
dividends received – subsidiaries –  –  –  24500396
management fees –  –  1378483  1486277
foreign exchange gainloss 79861  850775  44061 850775
operating leases 124554 135073 83222 87684
nonmining depreciation 41197 57617 40154 46985
nonexecutive directors’ fees 223376 205120 223376 205120
executive directors’ fees 1068060 363638 1068060 363638
equitysettled share option expense refer to note 33 127053 43452 105515 14558
cashsettled share option expense refer to note 27 209465 775049 22903 425430
auditors fees 198979 135515 112073 79397
salaries head office  2310305 1301623 2310305 1301623
investor and public relations 249245 229683 249245 229683
new business 230304 1629808 230304 1629808
evander mines deal costs 1348819 –  1348819 –
legal fees 59025 116943 58370 76313
community projects 1462907 1183416 310 9378
profits arising from realised financial instruments  
refer to note 29 1589595  –  1589595  –
profit on disposal of assets 11768  –  –  –
other net incomeexpense 319839  590065 300709 723119
 5652226 5916227 3229348 21644712
9 finance incomecosts
interest received – bank 1454659  652267  1079235  551154
interest paid – bank 1257696 136765 –  –
net finance income 196963  515502  1079235  551154
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 131
company overview leadership statements our business philosophy operational overview corporate governance financial statements
notes
to the financial statements
for the year ended 30 june 2013
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
10 profit before taxation
profit before taxation has been arrived at after charging
management fee expenseincome
– shanduka gold pty ltd shanduka 76203  77887  –  –
– barberton mines –  –  1161720 1241823
– phoenix platinum –  –  216763 244453
equitysettled share option expense refer to note 33 127053  43452  105515  14558
cashsettled share options expense refer to note 27 209465  775049  22903  425430
mining depreciation 5998267  3316627  40154  46985
impairment costs 16143604  48238  18058860  –
staff costs 36636229  23779383  2310305  1301623
royalty costs 3198622  3848450  –  –
new business 230304  –  230304  –
evander mines deal costs 1348819  –  1348819  –
operating leases 124554  135073  83222  87684
impairment costs
property plant and equipment and mineral rights 
refer to note 16 6662225  48238  –  –
phoenix platinum intercompany investments  
refer to note 34 –  –  8327781  –
investment in auroch refer to note 19 9481379  –  9731079  –
 16143604  48238  18058860  –
11 auditors’ remuneration
fees payable to the company’s auditors for the audit 
of  he company’s annual financial statements 9000  12077  9000  12077
audit of the consolidated financial statements 68973  58824  68973  58824
audit of the company’s subsidiaries pursuant to 
legislation 83611  56118  –  –
under provision of audit fee in the prior year 37395  8496  34100  8496
t otal audit fees 198979  135515  112073  79397
other services rendered by the auditors
tax advisory services 14000 – 14000 –
corporate finance services 271491  –  271491  –
other  –  6177  –  6177
t otal nonaudit fees 285491  6177  285491  6177
all audit fees were paid within south africa with the exception of £38000 2012 £32000 which was paid in the united kingdom 
the majority of the £285491 nonaudit fee was paid to deloitte in the united kingdom and relates to corporate finance reviews 
performed during the acquisition of evander mines of which £266764 has been deducted from share premium as part of share 
issue costs
  services performed were in respect of uk regulatory requirements in relation to the fund raising for the evander acquisition and do not affect the external auditor’s 
independence pan african resources plc integrated annual report 2013 132
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
12 staff costs
the average number of employees were
corporate  14  12  14 12
evander mines 2328  –  –  –
phoenix platinum 3  3  –  –
barberton mines 1815  1820  –  –
 4160  1835  14  12
their aggregate remuneration comprised
salary and wages 34179081  22302552  2225242  1253599
other retirement costs refer to note 30 2457148  1476831  85063  48024
 36636229  23779383  2310305  1301623
13 taxation
income t ax expense
south african normal taxation
– current year 6605516  11134846  –  –
– prior year 48535  –  –  –
deferred taxation
– current year 5479012  1849665  289876 –
t otal taxation charge 12133063  12984511  289876 –
profit before taxation 54707096  42226145  20947423 22195866
taxation at the domestic taxation rate of 28  15317987  11823321  5865278 6214842
exempt incomenondeductible expenses 2211489 12167  5056481  6169150
taxation rate differential 973435 1149023  –  –
tax effect of utilisation of tax losses –  –  518921  45692
taxation expense for the year 12133063  12984511  289876 –
effective taxation rates       
statutory rate 2800  2800  2800  2800
taxation rate differential 178 272  –  –
nondeductible expensesexempt income 404 003  2414 2779
tax effect of utilisation of tax losses –  –  248 021
effective taxation rate 2218  3075  138 –
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 £8875902 2012 £11999313 of unredeemed 
capital expenditure carried forward and deductible against future profits held within phoenix platinum no deferred tax asset has been 
recognised in relation to this as there is insufficient evidence of future taxable profits

notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 133
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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 2013 30 june 2012
net profit 
£
weighted
average
number of
shares
earnings 
per share
pence
net profit 
£
weighted
average
number
of shares
earnings 
per share
pence
from continuing operations
basic eps 42574033  1619756902  263  29241634  1445202485  202
share options –  6176989  001 –  8085456  001
diluted eps 42574033  1625933891  262  29241634  1453287941  201
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
30 june 2013 30 june 2012
net profit
£
weighted
average
number
of shares
earnings
per share
pence
net profit
£
weighted
average
number
of shares
earnings 
per share
pence
earnings as reported 42574033  1619756902  263  29241634  1445202485 202
adjustments
impairment costs 16143604  –  099  48238  – 001
bargain purchase gain 24114255 –  149 –  – 000
loss on disposal of asset held 
for sale 586138  –  004  17922  – 000
headline earnings per share 35189520  1619756902  217  29307794  1445202485  203
share options –  6176989  001 –  8085456  001
diluted headline earnings per 
share 35189520  1625933891  216  29307794  1453287941  202
 headline earnings per share is required to be disclosed in terms of the listings requirements of the jse limited
group group
30 june 2013 30 june 2012
pence pence
net asset value per share  945  709
tangible net asset value per share  377  456
 total assets less goodwill noncurrent assets held for sale noncurrent liabilities current liabilities and mineral rights and mining property pan african resources plc integrated annual report 2013 134
15 dividends
  the board of directors has proposed a dividend of approximately zar240000000 million £15228426
1
 for the 2013 year equating 
to zar01314 per share 083p per share
1
 resulting in a dividend cover of 23 times because of the anticipated cash flow associated 
with the acquisition of evander mines the board did not propose a dividend for the year ended 30 june 2012 
 note 1   the gbp proposed dividend was calculated based on 13 september 2013 closing exchange rate of zar15761 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 083p 
16 property plant and equipment and mineral rights
land
mineral 
rights and
mining
property
building 
and infra
structure
plant and
machinery
capital 
under
construction 
shafts and
exploration other t otal
££££££££
group
cost
balance at 30 june 2011 31990  21827105  1993070  17601217  6148219  32227319  241977  80070897
transfer from other intangible 
assets –  120885  –  –  –  –  –  120885
additions 170041  814845  263455  2544706  9938461  3603515  89883  17424906
disposal –  –  –  18876 –  –  –  18876
impairment –  –  –  48238 –  –  –  48238
foreign currency translation reserve 13332 4208205 317765 2813744 1433315 5105568 41454 13933383
reclassified as noncurrent assets 
held for sale –  –  –  742089 –  –  –  742089
balance at 30 june 2012 188699  18554630  1938760  16522976  14653365  30725266  290406  82874102
arising from the acquisition of 
evander mines refer to note 38 2472770  83465070  16223711  41574902  17577384  –  –  161313837
reclassification of software costs to 
other intangible assets –  –  –  715792 –  –  –  715792
transfer from other intangible 
assets –  –  –  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
accumulated depreciation
land
mineral 
rights and
mining
property
building 
and infra
structure
plant and
machinery
capital 
under
construction 
shafts and
exploration other t otal
££££££££
balance at 30 june 2011 –  3221174 926393 6615060 –  10209706 46549 21018882
charge for the year –  264219 57985 1674409 –  1262397 57617 3316627
disposal –  –  –  954  –  –  –  954
reclassified as noncurrent assets 
held for sale –  –  –  446047  –  –  –  446047
foreign currency translation reserve –  505546  144498  1142580  –  1623460  9977  3426061
balance at 30 june 2012 –  2979847 839880 6699888 –  9848643 94189 20462447
reclassification of software costs to 
other intangible assets –  –  –  174105  –  –  –  174105
charge for the year –  1004630 441816 3147399 18761 1249508 41197 5903311
impairment –  4166745 –  2495480 –  –  –  6662225
foreign currency translation reserve –  494536  151754  1148749  1462  1473432  24097  3294030
balance at 30 june 2013 –  7656686 1129942 11019913 17299 9624719 111289 29559848
carr ying amount
at 30 june 2012 188699  15574783  1098880  9823088  14653365  20876623  196217  62411655
at 30 june 2013 2365181 81910481 15696575 53521699 35906588 19991114 98039 209489677
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 135
company overview leadership statements our business philosophy operational overview corporate governance financial statements
16 property plant and equipment and mineral rights continued
land
mineral 
rights and
mining
property
building 
and infra
structure
plant and
machinery
capital 
under
construction 
shafts and
exploration other t otal
££££££££
company
cost
balance at 30 june 2011 –  –  –  – – –  236206  236206
additions –  –  –  – – –  13202  13202
foreign currency translation reserve –  –  –  –  –  –  39114 39114
balance at 30 june 2012 –  –  –  – – –  210294  210294
additions –  –  –  – – –  12542  12542
foreign currency translation reserve –  –  –  –  –  –  28331 28331
balance at 30 june 2013 –  –  –  – – –  194505  194505
accumulated depreciation
land
mineral 
rights and
mining
property
building 
and infra
structure
plant and
machinery
capital 
under
construction 
shafts and
exploration other t otal
££££££££
balance at 30 june 2011 –  –  –  – – –  46549 46549
charge for the year –  –  –  – – –  46985 46985
foreign currency translation reserve –  –  –  –  –  –  9449  9449
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
carr ying amount
at 30 june 2012 –  –  –  –  –  –  126209  126209
at 30 june 2013 –  –  –  –  –  –  85141  85141
   details of land is maintained in a register held at the offices of barberton mines and evander mines which may be inspected by a member or their duly 
authorised agents the group reviews the residual values used for purposes of depreciation calculations annually
   the final impairment of the segalla plant held at barberton mines refer to note 35
    reclassification of phoenix platinum exploration expenditures from exploration and evaluation assets to property plant and equipment as per ifrs 6 “exploration for 
and evaluation of mineral resources” due to technical feasibility and commercial viability of the project being demonstrated refer to note 17
   the direct mining depreciation excluding other nonmining depreciation totals £5998267 this includes a depreciation charge of £136153 in note 17 2012 
£3259010 as disclosed in the statement of comprehensive income other nonmining depreciation of £41197 2011 £57617 is disclosed in other expenses
income in note 8
   capitalisation of phoenix platinum on 1 july 2012 due to reaching steady state production
   during the year as a result of falling commodity prices and operational problems arising since first production the group recorded an impairment charge of 
£6662225 in respect of phoenix platinum the impairment was based on its estimated fair value less cost to sell using a posttax real discount rate of 1625 
applied to estimated posttax cash flows the assumed longterm pgm 6e basket price was usd1040oz it has been allocated between phoenix platinum 
£2495480 and corporate and growth projects £4166745 segments
  mineral rights and mining property are depreciated over the life of mine barberton mines 17 years 2012 17 years evander mines 
14 years 2012 nil and phoenix platinum 20 years 2012 17 years pan african resources plc integrated annual report 2013 136
group group
30 june 2013 30 june 2012
notes £ £
17 other intangible assets
software costs
balance at 30 june 201211 –  –
reclassification of software costs from property plant and 
equipment and mineral rights 16 541687  –
current year depreciation 136153 –
foreign currency translation reserve 65050 –
balance at 30 june 201312 340484  –
explora tion and evalua tion assets
balance at 30 june 201211 –  14214426
exploration expenditure –  505273
transfer to property plant and equipment and mineral rights 16 –  120885
foreign currency translation reserve –  1711403
transfer to assets held for sale 35 –  12887411
balance at 30 june 201312 –  –
  the exploration and evaluation assets transferred to noncurrent assets held for sale relate to the manica project in 
mozambique
18 goodwill
goodwill acquired in a business combination is allocated at 
acquisition to the cashgenerating units “cgu’s” that are 
expected to benefit from that business combination all the 
group’s goodwill has been allocated to barberton mines cgu
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
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 cgu’s 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 1100 20121188 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 zar400000kg 1261oz over the life of projects the life of project was estimated at 
17 years for barberton mines changes in selling prices and direct costs are based on past practices and expectations of future changes in 
the market
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 137
company overview leadership statements our business philosophy operational overview corporate governance financial statements
19 investments and investments in associate
 at 30 june 2013 the company and group held the following shares in subsidiary and associate undertakings
group company
name of undertaking
country of 
incorporation
principal 
activity
proportion 
of capital
 effectively
 held by
 company
carrying
amount 
30 june 2013
carrying
amount
30 june 2012
carrying
amount 
30 june 2013
carrying
amount
30 june 2012
barberton mines south africa mining 100 –  –  45770663  45770663
phoenix platinum south africa mining 100 –  –  4209696  4330581
auroch australia exploration 42 1182606  –  1182606  –
pan african resources 
funding company 
proprietary limited south africa finance 100 –  –  263  –
emerald panther  south africa
holding 
company 100 –  –  72026632  –
other investments 16465  –  –  –
 1199071  123189860  50101244
group company
30 june 
2013
30 june 
2012
30 june 
2013
30 june 
2012
£ £ £ £
opening balance –  –  50101244  50101244
issue of share in auroch minerals nl auroch 4501947  –  4501947  –
loss in associate 152312 –  152312 –
impairment of investment in auroch 3167029 –  3167029 –
impairment in phoenix platinum –  –  120885 –
issue of shares in emerald panther investments 91 pty ltd 
emerald pantherevander mines  –  –  72026632  –
issue of shares in funding company –  –  263  –
other investments 16465  –  –  –
closing balance 1199071  –  123189860  50101244
  funding company was established for the purpose of providing funding for the group’s activities
   emerald panther is a company acquired to facilitate the acquisition of evander mines from harmony and therefore holds the investment in evander mines refer to 
note 38 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
   during the year the group disposed of its investment in the manica exploration project to auroch the consideration refer to note 35 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 of £586138 which took into consideration the group’s best estimate of the fair value of the related deferred consideration of £7024203 refer to note 35 
recorded as a noncurrent financial asset at yearend the group remeasured the recoverability of both its 42 shareholding and the deferred consideration and due to 
a significant fall in the gold price and related challenges in the mining environment recorded a £3167209 impairment against the carrying value of its direct shareholding 
based on auroch’s yearend share price being the best estimate of its fair value and also fully impaired the £7024203 financial asset the resulting total impairment 
charge after exchange rate movements was £9481379 further details of the financial asset are included in note 29 pan african resources plc integrated annual report 2013 138
barberton mines evander mines t otal
£££
20 rehabilit a tion trust fund
funds held in trust fund refer to note 26
opening balance as at 30 june 2012 3013385  –  3013385
interest earned on the rehabilitation fund 115970  –  115970
foreign currency translation reserve 466421 –  466421
closing balance as at 30 june 2012 2662934  –  2662934
arising from the acquisition of evander mines refer to note 38 –  16282652  16282652
interest 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
the cash arising from the fund contributions is held at pan african resources group rehabilitation trust
the amounts are invested in interestbearing shortterm investments or mediumterm equitylinked notes issued by commercial banks
group group company company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
21 inventories
consumable stores 4564282  1964622  –  –
mineral stocks 2276532  9116  –  –
provision for obsolete stock 245074 105003 –  –
 6595740  1868735  –  –
22 trade and other receivables
trade receivables 10812937  4176485  1194826  17977
other receivables and prepayments 1082911  249253  26617  54463
vat receivable 2008568  853530  –  –
deposit paid –  1548779  –  1548779
 13904416  6828047  1221443  1621219
   the deposit relates to a nonrefundable amount paid to harmony as a break fee with regards to the evander mines acquisition this payment was deducted off the final 
purchase price as per the acquisition agreement on 28 february 2013
  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 £36051 2012 £16763 relating to other receivables estimated by the group’s management 
based on the current economic environment and individual debtor circumstance 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 companies 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
group
30 june 2013 30 june 2012
the average credit period is
number of days 30 15
the ageing of trade receivables increased due to the acquisition of evander mines and phoenix platinum reaching steady state production
 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 no receivables have been pledged as 
security
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 139
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
cash and cash equivalents 4768916  19782179  3304949  17812893
credit facilities
the group has the following credit facilities
nedbank limited revolving credit facility 19986676 11615841  –  –
absa bank limited revolving credit facility 19986676 –  –  –
absa bank limited overdraft facility  
held at barberton mines 1199201  1587498  – 77439
absa bank limited credit card facilities  99933  38719 66622 –
guarantee 2570414  1143979  –  –
usd trading facility 6329114  7356700  –  –
 50172014  21742737  66622  77439
  the group has secured a fiveyear revolving credit facility with 
nedbank limited and absa bank limited the facility carries an 
interest rate of the monthly jibar rate plus 28 margin and is 
secured against a portion of barberton mines evander mines and 
phoenix platinum property plant and equipment the unutilised 
portion of the revolving credit facilities held by nedbank limited 
and absa limited at 30 june 2013 was £28980680 refer to 
note 27 the absa limited overdraft facility at barberton mines 
remains unsecured and unitilised at yearend the barberton mines 
overdraft facility attracts interest at prime in south africa
  the guarantees relate to £1638448 for eskom electricity utility 
and £931966 for the department of minerals and resources 
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
authorised
2000000000 2012 2000000000 ordinary
shares of £001 each 20000000  20000000  20000000  20000000
issued and fully paidup 1822834263 2012 
1448262361 ordinary shares of £001 each 18228342  14482623  18228342  14482623
the following cash issue of shares were made during the year
during the year under review the company announced the issue and allotment of 374571902 new ordinary shares in respect of share 
options exercised and rights offer issue 
– on 25 october 2012 3000000 shares issued to mr a esterhuizen at 7 pence per share in relation to share options exercised
–  on 17 january 2013 370071902 shares issued as part of the rights offer issue at 14 pence per share in relation to the acquisition of 
evander mines from harmony
–  on 31 may 2013 150000 shares issued to mr kc spencer at 6 pence per share in relation to share options exercised
current number of equitysettled share options outstanding at 30 june 2013 is 9782100 2012 14282100 pan african resources plc integrated annual report 2013 140
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
25 trade and other payables
trade and other payables 11514399  3140458  –  166869
accruals and other payables 10671829  4532185  743051  681689
vat payable 189708  37086  189708  38011
other 826116  –  826116  –
t otal trade and other payables 23202052  7709729  1758875  886569
group
the average credit period is 30 june 2013 30 june 2012
number of days 59 25
the ageing of trade payables increased due to the acquisition of evander mines
the fair value of trade payables is not materially different from the carrying value presented
26 longterm provisions
group company
decommissioning
and rehabilitation t otal
decommissioning
and rehabilitation t otal
£ £ £ £
balance at 30 june 2011 3386591  3386591  –  –
provided during the year 115970  115970  –  –
foreign currency translation reserve 458607 458607 –  –
balance at 30 june 2012 3043954  3043954  –  –
provision arising from acquisition of evander 
mines refer to note 38 13325862  13325862  –  –
provided during the year 359172  359172  –  –
foreign currency translation reserve 1907836 1907836 –  –
balance at 30 june 2013 14821152  14821152  –  –
balance at 30 june 2012
longterm provisions 3043954  3043954  –  –
current provisions –  –  –  –
 3043954  3043954  –  –
balance at 30 june 2013
longterm provisions 14821152  14821152  –  –
current provisions –  –  –  –
 14821152  14821152  –  –
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 life of mine which 
is estimated at 17 years for barberton mines and 14 years for evander mines
the following rates were used in the calculation of the rehabilitation provision for the group includes barberton mines evander mines 
and phoenix platinum
30 june 2013 30 june 2012
growth rate 6 65
risk free rate 789  796
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 141
company overview leadership statements our business philosophy operational overview corporate governance financial statements
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
27 longterm liabilities
cashsettled share options
opening balance 797513  69456  429565  27329
expense for the year 209465  775049  22903  425430
foreign currency translation reserve 127724 46992 61787 23194
closing balance 879254  797513  390681  429565
postretirement benefits
opening balance 71368  111829  –  –
arising from the acquisition of evander mines refer to note 38 65434  –  –  –
utilised for the year 11832 24586 –  –
foreign currency translation reserve 16189 15875 –  –
closing balance 108781  71368  –  –
revolving credit facilities
opening balance –  –  –  –
drawdowns 34763874  –  –  –
finance costs incurred 852998  –  –  –
repayments of capital 22545100 –  –  –
repayments of finance costs 834241 –  –  –
transfer to current portion 864218 –  –  –
foreign currency translation reserve 1228388 –  –  –
closing balance 10144925  –  –  –
t otal 11132960  868881  390681  429565
group group
30 june 2013 30 june 2012
£ £
current and noncurrent portions of revolving credit facilities
current portion – interest to be paid in the next 12 months 864218  –
noncurrent portion – interest to be paid after 12 months until full repayment  3830564  –
noncurrent portion – capital to be paid on maturity 11009143  –
 15703925  –
t erms of the revolving credit facilities
interest rate jibar quoted at 505 at yearend
interest rate margin 28
term of loan 5 years
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 halfyearly basis
the interest cover ratio refer to note 29 must be greater than four 
times measured on a halfyearly basis
the ratio of net debt to ebitda refer to note 29 as defined in the 
agreement must be less than 251 measured on a half yearly basis pan african resources plc integrated annual report 2013 142
27 longterm liabilities continued
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
   on 9 may 2011 the company established a cashsettled share appreciation right programme entitling selected executives and employees of the group as approved by 
the board of directors of the company to be allocated notional shares in the group these notional shares confer 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 programme is subject to the agreement of a selected participant and acceptance by said participant of the rules and regulations governing the 
share appreciation programme
 group cashsettled share options
  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 remco 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 paye and 
all other taxes and contributions via the payroll of the relevant subsidiary these taxes are for the account of the participant
  no share appreciation rights settlements can be made until after the period calculated from the date the notional shares were allocated 
until
 two years has elapsed in which event not more than 25 of the total number of notional shares allocated
 three years has elapsed in which event not more than 50 of the total number of notional shares allocated
 four years has elapsed in which event all of the notional shares allocated
 or any lesser amount of notional shares may be surrendered notional shares which a participant is entitled to surrender are 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 participant’s 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
30 june 2013 30 june 2012
weighted
average 
exercise price
rand
number
of options
weighted
average 
exercise price
rand
number 
of options
outstanding at 1 july 115  31863103  115  33669103
granted during the year 218  29869622  –  –
exercised during the year 115  967500 –  –
forfeited in the year 115  8410148 115  1806000
outstanding and exercisable at 30 june  174  52355077  115  31863103
cashsettled 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 2013 30 june 2012
weighted average share price zar 210 196
weighted average exercisestrike price zar 213  115
expected volatility 4500 5000
expected life 3 – 4 years 3 – 4 years
risk free rate 700 – 754 583 – 614
expected dividend yield 350 400
the group recognised total expenses of £209465 2012 £775049 relating to cashsettled sharebased payments transactions during 
the reporting period
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 143
company overview leadership statements our business philosophy operational overview corporate governance financial statements
27 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  1 096 11 may 2014 077  5863239  5863239
tranche 3 11 may 2011 4  1 461 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  1 096 6 march 2016 079  1762450  1762450
tranche 3 6 march 2013 4  1 461 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  1 096 1 april 2016 084  3450157  3450157
tranche 3 1 april 2013 4  1 461 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  1 096 1 may 2016 090  1276730  1276730
tranche 3 1 may 2013 4  1 461 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  1 096 1 june 2016 084  978068  978068
tranche 3 1 june 2013 4  1 461 1 june 2017 084  1956136  1956136
 52355077  52355077
vesting schedule 2012
description grant date
 v esting 
period years 
 v esting 
period days vesting date
 valuation 
zar 
 options
granted 
 options
expected 
to vest
tranche 1 9 may 2011 2  731 9 may 2013 097  7965776  7189113
tranche 2 9 may 2011 3  1 096 9 may 2014 099  7965776  6829657
tranche 3 9 may 2011 4  1 461 9 may 2015 101  15931551  12976348
 31863103  26995118
participation in sharebased and other longterm incentive schemes is restricted to employees and directors as described above pan african resources plc integrated annual report 2013 144
group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
note £ £ £ £
28 deferred t axa tion
deferred tax liabilities
property plant and equipment 55332754  10841728  –  –
provisions 4667052 673643 –  –
investment in rehabilitation trust 3400586  –  –  –
other 16848 79555 –  –
net deferred tax liabilities 54049440  10088530  –  –
reconciliation of deferred tax liabilities
net deferred liabilities  
at the beginning of the year 10088530  9841695  –  –
transfer to deferred tax asset 79555  –  –  –
 arising from the acquisition of evander mines 38 45132359  –  –  –
deferred tax charge for the year 13 5744025  1849665  –  –
deferred tax asset raised  
during the current year 200340 –  –  –
foreign currency translation reserve 6794689 1602830 –  –
net deferred liabilities at the end of the year 54049440  10088530  –  –
deferred tax assets
property plant and equipment 57139  –  –  –
provisions 289940  –  267281  –
other 34281 –  –  –
 312798  –  267281  –
reconciliation of deferred tax assets note
net deferred assets  
at the beginning of the year –  –  –  –
transfer from deferred tax liabilities 79555  –  –  –
deferred tax credit for the year 13 265013  –  289876  –
foreign currency translation reserve 31770 –  22595 –
net deferred assets at the end of the year 312798  –  267281  –
deferred tax assets not recognised for the company amounted to £9536 2012 £169980 these relate to assessed losses carried 
forward as a result of temporary differences
  assessed loss carried forward for the company amounted to £34056 2012 £607071 unredeemed capital expenditure in relation to 
phoenix platinum carried forward was £8875902 2012 £11999313
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 145
company overview leadership statements our business philosophy operational overview corporate governance financial statements
29 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 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
components of capital and financial covenants
cash and cash equivalents 4768916 19782179 3304949 17812893
interestbearing debt 11009143  –  –  –
net interestbearing liabilitiesassets 6240227  19782179 3304949 17812893
equity 172208237  102625655  124671062  99707934
net debt to equity ratio  004  019 003 018
finance costs of the revolving credit facilities 852998 –  –  –
earnings before interest and taxation 54510133  41710643  22026658 21644712
interest cover ratio 64 –  –  –
earnings before interest taxation depreciation and 
amortisation impairment bargain purchase gain  
loss on associate and loss on disposal of asset  
held for sale “ebitda” 53123887  45017891  3381660 21644712
net debt to ebitda 012  044 098  082
financial covenant limits
the ratio of the net debt to equity must be less than 11 
measured halfyearly
the interest cover ratio must be greater than four times 
measured halfyearly
the ratio of net debt to ebitda must be less 
than 251 measured halfyearly
categories of financial instruments
financial assets
cash and cash equivalents 4768916  19782179  3304949  17812893
investment in associate 1199071  –  1182606  –
receivables 10812937  4176485  1194826  17977
financial liabilities
trade and other payables 22186228  7672643  743051  849483
longterm liabilities 10253706 –  –  –
current portion of longterm liabilities 864218 –  –  –
 net debt is calculated on cash and cash equivalents less interestbearing debt
 all of the financial instruments above are carried at amortised cost pan african resources plc integrated annual report 2013 146
29 financial instruments continued
 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 financial derivatives is governed by the group’s policies approved by the board of directors which provide written 
principles on foreign exchange risk interest rate risk credit risk the use of financial derivatives and nonderivative financial instruments 
and the investment of excess liquidity compliance with the policies and exposure limits is 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 £36051 2012 £16763 relating to other receivables estimated by the group’s management 
based on the current economic environment and individual debtor circumstance 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 companies 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 2013 30 june 2012
£ £
customers above 5
rand refinery pty ltd 8379514  2570181
western platinum limited subsidiary of lonmin plc 1387795 –
 9767309  2570181
 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
 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 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
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 147
company overview leadership statements our business philosophy operational overview corporate governance financial statements
29 financial instruments continued
 currency and commodity price risk
currency and gold spot price
closing rate at 
30 june 2013 
average rate 
for the year 
ended 30 june
 2013
pound sterlingzar exchange rate 1501 1384
usd gold spot price oz 1192  1587
impact of 
10 currency or
gold price
movement on
profit
foreign currencygold price sensitivity £
2013 9334799
2012 6411352
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
2013
assets 26748411  24316737
liabilities 24066270  21878427
2012
assets 28478961  25889965
liabilities 11062459  10056781
 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 a zero cost collar gold transaction during the year no similar transactions were undertaken in the prior year on 
30 june 2013 the group realised a profit of £1589595 upon agreeing to terminate the contract with absa bank limited
financial instruments derivatives group company
30 june 2013 30 june 2012 30 june 2013 30 june 2012
£ £ £ £
opening balance –  –  –  –
financial instruments during the year 1589595  1589595
fair valuing of financial instruments –  –  –  –
financial instruments realised during the year 1589595 –  1589595 –
closing balance –  –  –  – pan african resources plc integrated annual report 2013 148
29 financial instruments continued
t erms of the zero cost collar gold transaction
call option terms
trade date 26 june 2013
commodity gold
t otal notional quantity 78000 ounces 2426 kilograms
option style asian
option type call
commodity option buyer absa bank limited
option term from and including 31 may 2013 to and including 30 june 2015 2 years
strike price per unit zar518500 per kilogram
put option terms
trade date 26 june 2013
commodity gold
t otal notional quantity 78000 ounces 2426 kilograms
option style asian
option type put
commodity option buyer absa bank limited
option term from and including 31 may 2013 to and including 30 june 2015 2 years
strike price per unit zar425000 per kilogram
 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
  based on the low level of interestbearing balances on the statement of financial position an interest rate sensitivity is not performed as 
the interest rate exposure for the group is immaterial
 liquidity risk
  ultimate responsibility for liquidity risk management rests with the board of directors which has built an appropriate liquidity risk 
management framework for the management of the group’s shortterm funding and liquidity management requirements the group 
manages liquidity risk by maintaining adequate reserves banking facilities and reserve borrowings facilities by continually monitoring 
forecasts and actual cash flows and matching maturity profiles of financial assets and liabilities
  the group has access to financing facilities at barberton mines and its funding company of which the total unutilised portion as at 
30 june 2013 is £28980680 2012 £11615841 refer to note 23 the group expects to meet its other obligations from operating 
cash flows and proceeds of maturing financial assets
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 149
company overview leadership statements our business philosophy operational overview corporate governance financial statements
29 financial instruments continued
 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 to 5 years t otal
££££
group
2013
trade and other payables –  22186228  –  22186228
longterm liabilities noninterestbearing –  – 988035 988035
longterm liabilities interestbearing 785 864218 14839707 15703925
other shortterm liabilities –  –  –  –
group
2012
trade and other payables –  7709729  –  7709729
longterm liabilities –  – 868881 868881
other shortterm liabilities –  –  –  –
company
2013
trade and other payables –  743051  –  743051
longterm liabilities –  – 390681 390681
other shortterm liabilities –  –  –  –
2012
trade and other payables –  886569  –  886569
longterm liabilities –  –  429565  429565
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
financial asset right to future share group
£
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 –
   the financial asset relates to the right to future shares in auroch based on the future milestones being achieved the milestones as disclosed in note 35 are considered to 
have a low probability of being achieved due to the current challenging mining environment and commodity prices therefore the financial asset was fully impaired pan african resources plc integrated annual report 2013 150
30 post retirement benefit information
  all 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 pensions fund 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 £2457148 
2012 £1476831 represent employer contributions payable to the schemes by the group at rates specified in the rules of the scheme 
the calculation of the provision for postretirement 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 postretirement medical 
benefits were £108781 2012 £71368
31 commitments contingent liabilities and guarantees
 group
 commitments
 the group had outstanding open orders contracted for at yearend of £4840876 2012 £12305025
 authorised commitments for the new financial year not yet contracted for totalled £9626040 2012 £30197687
 contingent liabilities
 the group had no contingent liability in the current financial year or prior year
 guarantees
  the group had guarantees of £1638448 2012 £298345 in favour of eskom and £931966 2012 £226122 in favour of the 
department of mineral resources at yearend
 company
 there were no commitments contingent liabilities and guarantees for the company for the year ended 30 june 2013 2012 nil
32 directors’ emoluments
the key management personnel for which remuneration has been disclosed below are considered to be the 
executive directors nonexecutive directors and r holding group
30 june
2013
30 june
2012
£ £
executive
emoluments 1068059  363638
share options exercised  –  –
t otal 1068059  363638
nonexecutive
emoluments 223376  205120
t otal  223376  205120
t otal remuneration 1291435  568758
individual
share
options
exercised 
basic
 remune
ration
retire
ment
fund
life and
disability
plan allowances
other
remune
ration bonuses
t otal
2013
total
2012
£££££££ £ £
executive
mr j nelson 

 –  144990  –  –  11561 719653 49399  925603  262755
mr jaj loots  –  –  –  –  –  –  –  –  39091
miss yb sitole  –  83809  11224  1716  17627  –  28081  142457  61792
t otal –  228799  11224  1716  29188  719653  77480  1068060  363638
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 151
company overview leadership statements our business philosophy operational overview corporate governance financial statements
32 directors’ emoluments continued
individual
share
options
exercised 
basic
 remune
ration
retire
ment
fund
life and
disability
plan
directors’
fees
other
 remune
ration bonuses
t otal
30 june
2013
total
30 june
2012
£££££££ £ £
nonexecutive
mr rg still –  –  –  –  48497  –  –  48497  46102
mrs p mahanyele –  –  –  –  33348  –  –  33348  36545
mr kc spencer –  –  –  –  86196  –  –  86196  76041
mr cm 
ramaphosa –  –  –  –  –  –  –  –  21243
mr jaj loots  –  –  –  –  21787  –  –  21787  19448
mrs hh hickey –  –  –  –  33548  –  –  33548  5741
t otal –  –  –  –  223376  –  –  223376  205120
three highest paid 
nonexecutive 
directors 
share
options
exercised 
basic
 remune
ration
retire
ment
fund
life and
disability
plan allowances
other
 remune
ration bonuses
t otal
30 june
2013
total
30 june
2012
£££££££ £ £
p human 85285 114355 9354 –  6541  –  40665  256200  –
r holding – 158552 25991 3246 21909  –  43541  253239  235972
c strydom – 142489 14448 –  4928  –  50571  212436  219540
  directors’ fees accruing to these directors are paid by the company to shanduka group pty ltd
  director was appointed on 12 april 2012
 

 director resigned on 27 february 2013 upon resignation mr j nelson received an additional payment of £719 653
 executive directors
  upon resignation of mr j nelson as ceo on 27 february 2013 r holding and jaj loots were appointed as joint interim ceos during 
the year under review miss b sitole was cfo
 nonexecutive directors
  during the year under review the nonexecutive directors were mr rg still mr kc spencer mrs p mahanyele mr jaj loots and 
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
30 june 2013 30 june 2012 30 june 2013 30 june 2012
chairperson
deputy
chairperson
chairperson
deputy
chairperson member member
£ £ £ £
board of directors chairman 37795 39834 –  –
board of directors deputy chairman 22232 23432 –  –
board of directors –  –  17341 18277
remuneration committee 6670 7030 4446 4686
audit committee 6670 7030 4446 4686
shec committee 6670 7030 4446 4686
nominations committee 6670 7030 4446 4686 pan african resources plc integrated annual report 2013 152
32 directors’ emoluments continued
t otal 
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 24 may 2013 52 –  1500000
t otal 3000000  –  1500000 –  –  1500000
t otal options
outstanding 
1 july 2011
grant 
date
strike price
pence
options
granted
exercised
during 
the period
grant
exercise 
date
grant
exercise
price 
pence
transferred 
out
t otal options
outstanding 
30 june 2012
mr j nelson 6000000
21 july 
2005 20 6000000
6 october 
2010 20 –  –
mr r g still 4000000
9 august 
2004 25 4000000
4 november
2010 25 –  –
mr k c spencer 3000000
21 july
2008 52 –  –  – 3000000
t otal 13000000  –  10000000 –  –  3000000
 directors’ dealings in shares
  during the year under review mr r holding had participated in the following transactions in the company’s shares
 on 11 january 2013 subscribed for 127500 shares at zar190 per share in the group’s rights offer issue
 on 3 march 2013 purchased 125000 shares at a price of zar216 per share
 on 22 april 2013 purchased 100000 shares at a price between zar190 and zar195 per share
 at 30 june 2013 mr r holding held a total of 852500 2012 500000 shares representing 005 of the issued share capital
 during the year under review mr j nelson had participated in the following transactions in the company’s shares
 on 11 january 2013 purchased 13157 shares at zar190 per share in the group’s rights offer issue
 on 24 february 2013 sold 135600 shares at a price of zar265 per share
  mr j nelson had 1000000 shares remaining upon his resignation on 1 march 2013 2012 1122442 shares representing 005 of the 
issued share capital
 during the year under review mr jaj loots had participated in the following transactions in the company’s shares
  on 11 january 2013 purchased 16575 shares at zar190 per share in the group’s rights offer issue
 on 1 march 2013 purchased 100000 shares at gbp016 per share
 at 30 june 2013 mr jaj loots held a total of 181575 2012 65000 shares representing 001 of the issued share capital
 during the year under review mr kc spencer had participated in the following transaction in the company’s shares
 on 31 may 2013 1500000 shares were issued to mr kc spencer at zar083 per share in relation to share options exercised
 at 30 june 2013 mr kc spencer held a total of 1500000 shares 2012 nil representing 008 of the issued share capital
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 153
company overview leadership statements our business philosophy operational overview corporate governance financial statements
32 directors’ emoluments continued
  during the year under review mr rg still had participated in the following transactions in the company’s shares both in his personal 
capacity and related entities
 mr rg still in his personal capacity
 on 11 january 2013 purchased 510000 shares at zar190 per share in the group’s rights offer issue
  at 30 june 2013 mr rg still in his personal capacity held 2510000 2012 2000000 shares representing 014 of the issued share 
capital
 mr rg still related entities dealings
  mr rg still is a director of pangea exploration proprietary limited pangea and a trustee of a family trust the alexandra trust which 
owns 50 of pangea mr rg still is therefore deemed to have an indirect nonbeneficial interest in pangea’s holding in the company and 
pangea holds 012 of the current issued share capital of the company mr rg still is also a deemed to have an indirect nonbeneficial 
interest in the alexandra trust’s holding in the company
  during the year under review the alexandra trust and pangea had the following dealings in shares
 pangea
 on 11 january 2013 pangea purchased 457418 shares at zar190 per share in the group’s rights offer issue
  at 30 june 2012 pangea held a total of 2251214 2012 1793796 shares representing 012 of the issued share capital
 alexandra trust
 on 11 january 2013 purchased 3169880 shares at zar190 per share in the group’s rights offer issue
 on 11 january 2013 purchased additional 72836 shares at zar190 per share in the group’s right offer issue in an application for 
surplus rights offer shares
 on 30 april 2013 sold 1700000 shares at a price of zar222 per share
 on 8 may 2013 sold 1000000 shares at a price of zar224 per share
 on 9 may 2013 sold 1100000 shares at a price of zar234 per share
 on 10 may 2013 sold 200000 shares at a price of zar235 per share
  at 30 june 2013 the alexandra trust held a total of 11673616 2012 12430900 shares representing 064 of the issued share capital
 shanduka gold pty ltd – directors’ dealings
  mr jaj loots and mrs p mahanyele at 30 june 2013 were permanent employees of the shanduka group pty ltd shanduka group 
the ultimate holding company of shanduka mrs p mahanyele is a shareholder of the shanduka group and further holds options to 
acquire shares in the shanduka group mr jaj loots also holds options to acquire shares in the shanduka group neither mr jaj loots 
nor mrs p mahanyele owns or has options to acquire more than 2 of the shanduka group
 shanduka sold the following nil paid letters prior to the group’s rights issue
 between 13 december 2012 and 2 january 2013 sold 23183516 nil paid letters at a price range of between zar036 and 
zar050
 shanduka subscribed for 70189473 shares at r190 in the group’s rights offer issue
 at 30 june 2013 shanduka held 436358058 shares representing 2394 of the issued share capital
 shanduka at 30 june 2013 held 436358058 shares representing 2394 of the issued share capital
 cashsettled options
t otal options
outstanding
1 july 2012 grant date
strike 
price
pence
options
granted
exercised
during the
period
grant
exercise
date
grant
exercise
price
pence
options
forfeited
total 
options
30 june
2013
mr j nelson  5 805 000 monday 9 may 2011 011  –  –  –  5805000 –
mr r holding 5 127 134 monday 9 may 2011 011  –  –  –  –  5127134
mr c strydom 4 650 000 monday 9 may 2011 011  –  –  –  –  4650000
mr a van den bergh 3 625 177 monday 9 may 2011 011  –  –  –  –  3625177
miss b sitole 1 619 487 tuesday 1 may 2012 014  –  –  –  –  1619487
 20 826 798  011  –  –  –  5805000 15021798
  executive director – resigned on 27 february 2013
  highest paid nondirectors pan african resources plc integrated annual report 2013 154
33 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
 3333 of the total number of shares allocated after one year has elapsed from the grant date by the participant of the grant
 up to 6667 of the total number of shares allocated after two years have elapsed from the grant date by the participant of the grant
 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 as follows
 25 of the total number of shares allocated after one year has elapsed from the grant date by the participant of the grant
 up to 50 of the total number of shares allocated after two years have elapsed from the grant date by the participant of the grant
 up to 75 of the total number of shares allocated after three years have elapsed from the grant date by the participant of the grant
 the balance of the shares after four years have elapsed from the grant date by the participant of the grant provided that the 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 12 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 a period of six months due to resignation 
retirement redundancy or disability of the option holder
 the number and weighted average exercise price of share options is as follows
30 june 2013 30 june 2012
weighted average
exercise price
number 
of options
weighted average
exercise price
number 
of options
outstanding at 1 july 64p  14282100 52p  18503750
exercised during the year 65p 4500000 63p 4221650
outstanding 30 june  64p  9782100 64p 14282100
vested unvested vested unvested
t otal number share options at yearend 9782100  –  10112100  4170000
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 blackscholes 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 2010 30 june 2008
share price r068 r062
exercise price r068 r070
expected volatility 5861 7239
expected life 3 to 6 years 1 to 3 years
riskfree interest rate 815 531
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 155
company overview leadership statements our business philosophy operational overview corporate governance financial statements
33 equity settled share options continued
  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
  the group recognised total expenses of £127053 2012 £43452 related to equitysettled sharebased payment transactions during 
the reporting period
 participation in sharebased and other longterm incentive schemes is restricted to employees and directors
34 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
30 june 2013 30 june 2012 30 june 2013 30 june 2012
 £  £  £  £
company
– dividends received from barberton mines –  24500396 –  –
– fee received from barberton mines 1161720 1241823 –  –
– fee received from phoenix platinum 216763 244453 –  –
– directors’ fees paid to shanduka 55136  116328  –  –
receivable from other group companies
– barberton mines –  –  1194826  –
– evander mines –  –  4210542  –
– phoenix platinum –  –  8314398  19505668
payable to other group company
– evander mines –  –  –  –
– barberton mines loan payable –  –  13772763 1298235
– funding company –  –  233 –
payable to other related parties
– fee payable to shanduka  –  –  –  28058
barberton mines
– dividends paid to company –  24500396  –  –
– fees paid to company 1161720  1241823  – –
– fees paid to shanduka 76203  77887  –  –
receivable from other group companies
– receivable from company –  –  13772763  1298235
payable to other group companies
– accounts payable to company –  –  1194826 –
funding company
– finance income from evander gold mining pty ltd 865245 –  –  –
receivable from other group companies
– receivable from company –  –  233  –
– receivable from evander mines –  –  10988018  – pan african resources plc integrated annual report 2013 156
statement of comprehensive 
income transactions
statement of financial 
position transactions
company 30 june 2013 30 june 2012 30 june 2013 30 june 2012
 £  £  £  £
34 related party 
transactions  continued
phoenix platinum
– fees paid to company 216763  244453  –  –
payable to other group companies
– payable to company –  –  8314398 19505668
evander subsidiaries
receivable from other group company
– receivable from evander gold mining pty ltd –  –  8480858  –
payable to other group company
– payable to evander gold mining pty ltd –  –  198369 –
evander gold mines ltd
– gold sales invoiced to evander gold mining pty ltd 26363367 –  –  –
–  cost of gold production from evander gold mining 
pty ltd 26102343  –  –  –
receivable from other group company
– receivable from evander gold mining pty ltd –  –  27711569  –
– receivable from evander subsidiaries –  –  198369  –
payable to other group company
– payable to evander gold mining pty ltd –  –  27570010 –
– payable to evander subsiadiaries –  –  8480858 –
evander gold mining pty ltd
– gold purchases from evander gold mines ltd 26102343 –  –  –
–  cost of gold production income invoiced to evander 
gold mines ltd 26363367  –  –  –
– finance costs paid to funding company 865245  –  –  –
receivable from other group company
– receivable from evander gold mines ltd –  –  27570010  –
– payable to evander gold mines ltd –  –  27711569 –
payable to other group companies
– payable to funding company –  –  10988018 –
– payable to company –  –  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 2013
 £
carrying amount of loan before impairment 16642179
impairment of intercompany loan 8327781
net carrying amount intercompany loan 8314398
t otal investment by company held in phoenix platinum comprises the acquisition investment and a intercompany loan at yearend the 
intercompany loan was impaired due to external reduction in metal prices and internal reduction in production and lower plant mine 
recoveries indicators the impairment was calculated using a weighted average cost of capital wacc of 1625
  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
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 157
company overview leadership statements our business philosophy operational overview corporate governance financial statements
35 noncurrent asset held for sale
the carrying value of noncurrent assets held for sale on 30 june 2013 are as follows
group company
description 30 june 2013 30 june 2012 30 june 2013 30 june 2012
 £  £  £  £
opening balance 13135215  –  13155070  –
explorator limitada –  12887411  –  9996393
– transferred from intangibles –  12887411  –  –
– transferred from intercompany loan account –  –  –  9996393
explorator limitada – transferred from investments –  –  –  88972
mistral resource development corporation – 
transferred from investments –  –  –  584705
brampton capital overseas limited –  
transferred from investments –  –  –  2485000
barberton mines – segalla plant 247804  –  –
disposal of manica projects 12887411 –  12887411 –
foreign currency translation reserve 34613 –  267659 –
 213191  13135215  –  13155070
   the company had in the prior year agreed to sell free of encumbrances its whollyowned subsidiary mistral’s shareholdings’ to 
auroch for a au2000000 cash consideration and 25000000 consideration shares in t erranova with an option to receive additional 
deferred cash consideration if payable and deferred consideration shares if to be issued the details of which are set out below 
the disposal of our manica exploration project which is accounted for within the corporate and growth segment allows us to 
remain focused on our strategy of the development and growth of our south africanbased operating assets
  should at any time during the period of four years from the date of the completion of the transaction any of the deferred consideration 
milestones be achieved then auroch would pay the company the following deferred cash consideration payments upon achievement of 
each of the milestones as set out below
  au1000000 upon achievement of the 400koz milestone 1
  au1000000 upon achievement of the 1000koz milestone 2
  au1000000 upon achievement of a bankable feasibility study milestone
 au1000000 upon achievement of a capacity milestone
 collectively the deferred cash consideration
  in addition auroch would issue to the company the deferred consideration shares upon the achievement of certain milestones as set 
out below
  20066667 shares to be issued upon achievement of the 400koz milestone 1
  20066667 shares to be issued upon achievement of the 1000koz milestone 2
   24366667 shares to be issued upon achievement of the bankable feasibility study milestone or at auroch’s election payment of 
au7310000 in cash
   7166667 shares to be issued upon achievement of the capacity milestone or at auroch’s election payment of au2150000 in 
cash collectively the deferred consideration shares 
  milestone 1 – 400koz milestone means delineation of at least 400000 ounces of jorc inferred gold resource of oxide ore with a cut 
off grade of 125gt being defined on the northern andor southern shear zones of the mining concession including the existing 90000 
ounces of jorc inferred gold resource of oxide ore at a cut off grade of 125gt that has already been delineated on the mining 
concession milestone 2 – 1000koz milestone means delineation of at least 1000000 ounces of a joint ore reserves committee code 
jorc inferred gold resource of oxide ore with a cut off grade of 125gt being defined on the northern andor southern shear zones 
of the mining concession including the existing 90000 ounces of jorc inferred gold resource of oxide ore at a cut off grade of 125gt 
that has already been delineated on the mining concession and any ounces of jorc inferred gold resource of oxide ore that satisfied 
the 400koz milestone
   during the year the group completed this disposal as described further in note 19 a loss on disposal arose as follows pan african resources plc integrated annual report 2013 158
company
 £
35 noncurrent asset held for sale continued
issue of share in auroch refer to note 19 4 501 947
deferred consideration 7024203
 11526150
foreign currency translation reserve 775123
net book value 12887411
loss on disposal of asset held for sale 586138
  the decision was taken in the prior financial year to sell the segalla plant at barberton mines 
an offer of £213191 was received for the plant
group
30 june 2013 30 june 2012
£ £
opening balance 247804 –
cost –  742089
accumulated depreciation –  446047
impairment –  48238
foreign currency translation reserve 34613 –
net book value 213191 247804
36 events after the reporting period
  the company announced on 2 september 2013 that a new issue of ordinary shares of 1p each had been made following the exercise 
of share options granted in 2007 under the company’s share option plan the share issue was for 3000000 shares at a price of 
zar083 per share to an exemployee
 the company announced the following appointments and resignations on 4 september 2013
 mr r holding was appointed as the chief executive officer effectively immediately
 miss b sitole resigned as the financial director effective 30 september 2013 to focus on personal commitments
 mr jaj loots was appointed as the new financial director effective 1 october 2013 mr jaj loots has held positions both as the 
prior financial director and as a nonexecutive director within the group
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 159
company overview leadership statements our business philosophy operational overview corporate governance financial statements
group
30 june 2013 30 june 2012
£ £
37 reconciliation of profit before taxation to 
cash generated byused in operations
profit before taxation 54707096  42226145 
adjusted for 2092224  7516314 
dividends received –  – 
impairment 16143604  48238 
equitysettled and cashsettled share options costs 336518  818501 
net finance income 196963 515502
profit on disposal of assets 11768 – 
royalty costs 3198622  3848450 
bargain purchase gain 24114255 – 
loss on disposal of asset held for sale 586138  – 
loss on associate 152312  – 
nonmining depreciation  41197  57617 
mining depreciation 5998267  3259010 
other 41448 – 
operating cash flows before working capital changes 56799320  49742459 
working capital changes 4818817  650582
increase in inventories 871992 411533
increasedecrease in trade and other receivables 4666510 1024867
increasedecrease in trade and other payables 10043929  139062
noncash items 313390  924880 
cash generated byutilised in operations 61618137  49091877 
income taxes paid 10116451 8364216
royalties paid 3549657 3251717
net finance income 313508  515502 
dividends paid –  7416176
net cash fromused in operating activities 48265537  30575270 
taxation paid during the year £  £ 
taxation charge per the statement of comprehensive income  12133063  12984511 
less deferred taxation  5479012 1849665
 6654051  11134846 
taxation payable at beginning of the year  2870283  689543
taxation receivablepayable at end of the year  1322671  2878642
foreign currency translation reserve 730554 581531
taxation paid during the year  10116451  8364216 pan african resources plc integrated annual report 2013 160
group
30 june 2013 30 june 2012
£ £
37 reconciliation of profit before taxation to cash 
generated byused in operations continued
royalty paid during the year
royalty costs payable at beginning of the year  482447 76991
royalty costs receivable acquired 33436 –
royalty costs payable at end of the year  156668 474087
royalty costs charge for the year 3198622 3848450
foreign currency translation reserve 254 644 199637
royalty paid during the year 3549657  3251717
38 acquisition of evander mines
  on 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 zar1313104110 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 mine 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 zar1057772388 and deferred income taxes 
by zar464741606 with a corresponding bargain purchase gain of zar322443757 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
the purchase consideration was funded entirely by cash as follows
rights issue 707301534  50321260
proceeds from longterm debt 350000000  25729051
break fee paid from operational cash 50000000  3739296
operational cash  205802576  15391136
foreign currency translation reserve – 3020963
 1313104110  98201706
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 161
company overview leadership statements our business philosophy operational overview corporate governance financial statements
38 acquisition of evander mines continued
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 environmetal rehabilitation 178186760 13325862
provision for postretirement 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 preacquisition revenue profits after tax
££
postacquisition revenue profitloss from 1 march 2013 to 30 june 2013 31712557 7968404
preacquisition revenue profitloss from 1 july 2012 to 28 february 2013 64447224 9499890
evander results for the financial year under review 96159781 17468294 pan african resources plc integrated annual report 2013 162
39 shareholder analysis
register date 28 june 2013
issued share capital 1822834263 shares
shareholder spread
number of
shareholders 
number of
shares 
1 – 1 000 shares 549  882  262464  001 
1 001 – 10 000 shares 2349  3773  11431742  063 
10 001 – 100 000 shares 2490  3999  81519334  447 
100 001 – 1 000 000 shares 637  1023  190070823  1043 
1 000 001 shares and over 201  323  1539549900  8446 
t otal 6226  10000  1822834263  10000 
distribution of shareholders
banks 4 006 198127 001 
brokers 19 031 18193900 100 
close corporations 96 154 7306460 040 
endowment funds 21 034 5282665 029 
individuals 5014 8053 160003442 878 
insurance companies 28 045 35931883 197 
investment companies 7 011 27258780 150 
medical aid schemes 12 019 7221633 040 
mutual funds 111 178 400633796 2198 
nominees and trusts 633 1017 404667204 2220 
other corporations 61 098 1508056 008 
pension funds 129 207 290848924 1596 
private companies 73 117 457332365 2509 
public companies 18 030 6447028 035 
t otal 6226 10000 1822834263 10000 
publicnonpublic shareholders
nonpublic shareholders 6 010 453794963 2490 
director 5 008 17436905 096 
strategic holder more than 10 1 002  436358058  2394 
public shareholders 6220 9990 1369039300 7510 
t otal 6226 10000 1822834263 10000
beneficial shareholders holding of 3 or more
shanduka gold pty ltd 436358058  2394 
allan gray 176733778  970 
coronation holdings 170747784  937 
afena capital 132827637  729 
investec group 96790574  531 
prudential group 95564329  524 
public investment corporation 55255381  303 
notes
to the financial statements
for the year ended 30 june 2013 pan african resources plc integrated annual report 2013 163
company overview leadership statements our business philosophy operational overview corporate governance financial statements
notice is hereby given that the 2013 annual general meeting 
of pan african resources plc will be held at the offices of canaccord 
genuity limited eighth floor 88 wood street london ec2v 7qr 
on 22 november 2013 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 2013
2  to approve the payment of a final dividend for the year ended 
30 june 2013 of zar01314 per share
3  to reelect mrs hh hickey as a member of the audit 
committee
4 t o reelect mr rg still as a member of the audit committee
5  to reelect mr kc spencer as a member of the audit 
committee
6  to endorse the company’s remuneration policy for the year 
ended 30 june 2013
7  to reelect mr kc spencer as a director of the company who 
retires by rotation pursuant to the articles of association of the 
company
8  t o reelect ms p mahanyele as a director of the company who 
retires by rotation pursuant to the articles of association of the 
company
9  t o reelect mr ra holding as a director of the company who 
was appointed since the last annual general meeting
10  t o 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 11 will be proposed as an ordinary 
resolution and resolutions 12 and 13 will be proposed as special 
resolutions
11  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 £614018187 such authority 
shall unless previously revoked or varied by the company in 
general meeting expire on the conclusion of the next annual 
general meeting of the company or on 31 december 2014 
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
notice of annual general
meeting
12  that the directors be and they are hereby empowered 
pursuant to section 570 of the companies act 2006 “the 
act” in substitution for all previous powers granted thereunder 
to allot equity securities within the meaning of section 560 
of the act for cash pursuant to the authority granted by 
resolution 7 above as if section 561 1 of the act did not apply 
to any such allotment provided that this power shall expire 
at the conclusion of the next annual general meeting of the 
company or on 31 december 2014 whichever is the earlier 
and such power is limited to the allotment of equity securities
 a  in connection with rights issues to holders of ordinary 
shares where the equity securities respectively attributable 
to the interests of such holders are proportionate as 
nearly as may be practicable to the respective numbers 
of ordinary shares held by them but subject to such 
exclusions or other arrangements as the directors may 
deem necessary or expedient to deal with any fractional 
entitlements or any legal or practical problems under law 
of or the requirements of any regulatory body or any 
recognised stock exchange in any territory
 b  up to a maximum aggregate nominal value of 
£182789726 being 10 per cent of the issued share 
capital of the company as at the date of this notice in 
connection with the granting of options by the company 
granted in accordance with the pan african resources plc 
share option plan and
 c  up to a maximum aggregate value of £91394863 being 
approximately 5 per cent of the issued share capital of 
the company as at the date of this notice otherwise 
than pursuant to paragraphs a and b above save that 
the company may before such expiry make an offer or 
agreement which would or might require equity securities 
to be allotted after such expiry and the directors may 
allot equity securities in pursuance of any such offer or 
agreement as if the authority conferred hereby had not 
expired
   the allotment of shares for cash in accordance with this 
resolution shall comply to the extent required with english 
law the aim rules for companies and with the provisions 
of the jse limited “jse” listings requirements “listings 
requirements” pertaining to general issues of shares for 
cash which in summary provide as follows
 the equity securities which are the subject of the issue 
for cash must be of a class already in issue or where 
this is not the case must be limited to such securities or 
rights that are convertible into a class already in issue
 such shares may only be issued or sold as the case may 
be to public shareholders as defined in the listings 
requirements and not to related parties
 the maximum discount if any at which such shares 
may be issued or sold as the case may be is 10 of 
the weighted average traded price of such shares on 
the jse over the 30 business days preceding the date  pan african resources plc integrated annual report 2013 164
of determination or agreement of the issue or selling 
price as the case may be
 after the company has issued shares in terms of this 
general authority representing on a cumulative basis 
within a financial year 5 or more of the number 
of shares in issue prior to that issue the company 
will publish an announcement containing full details 
of the issue as set out in section 1122 of the 
listings requirements
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 £91394863 representing 
approximately 5 per cent of the issued share capital of the 
company at the date of this notice
 b  the minimum price excluding expenses which may be 
paid for each ordinary share is 1p
 c  the maximum price excluding expenses which may be 
paid for any ordinary share does not exceed 5 per cent 
above the average closing price of such shares for the five 
business days on the london stock exchange prior to the 
date of purchase and
 d  this authority shall expire at the conclusion of the 
next annual general meeting of the company or on 
31 december 2014 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 such 
expiry and
 e  any market purchases by the company of ordinary shares 
in the company as contemplated in this resolution shall 
comply to the extent required with the provisions of the 
listings requirements pertaining to the general authority 
to repurchase securities for cash which in summary 
provide as follows
 such repurchases are effected through the order book 
operated by the jse trading system and done without 
any prior understanding or arrangement between 
the company and a counterparty unless the jse 
otherwise permits
 the company and its subsidiaries are enabled by their 
articles of association to acquire such shares
 such repurchases are made at a price no greater than 
10 above the weighted average market price at 
which the company’s shares traded on the jse over 
the five business days immediately preceding the date 
on which the transaction is effected
notice of annual general
meeting
 at any point in time the company appoints only one 
agent to effect any repurchase on the company’s behalf
 the directors will ensure that a resolution by the board 
was taken authorising such repurchases confirming 
that the company and its subsidiaries engaged in such 
repurchases have passed 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
 such repurchases are not conducted during prohibited 
periods as defined by the listings requirements unless 
the company 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 annual 
general meeting as follows
 directors and management of the company and of its 
material subsidiary on pages 14 to 33
 major shareholders on page 30
 directors’ interests in the company’s shares on 
pages 152 to 153
 company’s share capital on page 139
material change
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 page 4 
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 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  pan african resources plc integrated annual report 2013 165
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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
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 annual general 
meeting referred to in this notice
 the company and the group would in the ordinary course of 
their business be able to pay their debts
 the consolidated assets of the company and the group would 
exceed the consolidated liabilities of the company and the 
group respectively such assets and liabilities being fairly valued 
and recognised and measured in accordance with the accounting 
policies used in the 2013 audited annual financial statements of 
the company and the group
 the issued capital and reserves of the company and the group 
would be adequate for the purposes of the company and the 
group’s ordinary business
 the company and the group’s working capital would be 
adequate for ordinary business purposes
notes
i  the company will publish an announcement complying with 
the listings requirements if and when an initial and successive 
3 tranches of its shares have been repurchased in terms of 
the aforementioned general authority
ii  the company’s sponsor will provide a letter to the jse 
regarding the directors’ statement as to the adequacy of the 
group’s working capital 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
23 october 2013
suite 31 second floor
107 cheapside
london
england
ec2v 6dn pan african resources plc integrated annual report 2013 166
notice of annual general meeting
explanatory notes
entitlement to attend and vote
the company specifies that only those members registered on the 
company’s register of members at
 1800 on 20 november 2013 or
 if the agm is adjourned 48 hours prior to the adjourned meeting 
shall be entitled to attend and vote at the agm
appointment of proxies
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
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
 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
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 y our 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
the notes to the proxy form explain how to direct your proxy how 
to vote on each resolution or withhold their vote
t o appoint a proxy using the proxy form the form must be
 completed and signed
 sent or delivered to 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 no later than 1000 on 20 november 2013
 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
 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
 to change your proxy instructions simply submit a new proxy 
appointment using the methods set out above note that the cutoff 
time for receipt of proxy appointments see above also applies in 
relation to amended instructions any amended proxy appointment 
received after the relevant cutoff time will be disregarded
 where you have appointed a proxy using the hardcopy proxy form 
and would like to change the instructions using another hardcopy 
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
t ermination of proxy appointments
 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 20 november 2013 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 pan african resources plc integrated annual report 2013 167
company overview leadership statements our business philosophy operational overview corporate governance financial statements
 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
issued shares and total voting rights
as at 1800 on 22 october 2013 the company’s issued share 
capital comprised 1827897263 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 22 october 2013 was 1827897263
directors’ interests and documents on 
display
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
 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
 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 20 november 2013 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
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 pan african resources plc integrated annual report 2013 168
acronyms
and abbreviations
abbreviation definition
agm annual general meeting
aim alternative investment market
amcu association  of mineworkers and 
construction union
amg average mining grade
arv antiretroviral
au gold
auroch auroch minerals nl
barberton mines barberton mines pty limited
beebbbee black economic empowermentbroadbased 
black economic empowerment
bee act broadbased black economic empowerment 
act no 53 of 2003
biox® biological oxidation
btrp barberton tailings retreatment plant
ceo chief executive officer
cgu cashgenerating unit 
cil carboninleach
cip carboninpulp
cmgt centimetre gram per ton
cpi consumer price index
cr2o3 chromium oxide
csi corporate social investment
ctrp chrome tailings retreatment plant
dmr department of mineral resources
dps dividends per share dps
dti south african department of trade and 
industry
ebitda earnings before interest taxation depreciation 
and amortisation
eia environmental impact assessment
emp environmental management plan
eps earnings per share
erp enterprise resource planning
etrp evander tailings retreatment plant
abbreviation definition
eu european union
fifr fatal injury frequency rate
ftse financial times and stock exchange
fvtpl fair value through profit and loss
gt gramstonne
gai governance assessment instrument
gbp £ pound sterling
gdp gross domestic product
ghgs greenhouse gases
gri global reporting initiative
hdsa historically disadvantaged south african
heps headline earnings per share
ias international accounting standards
idp integrated development plan
ifm international ferro metals limited
ifrs international financial reporting standards
iirc international integrated reporting council
iodsa institute of directors of south africa
jibar johannesburg interbank agreed rate
jorc joint ore reserves committee code
jse johannesburg stock exchange limited
kg kilogram
king iii king code of governance for south africa 
2009
koz kilo ounces
kpa key performance assessment
led local economic development
lom life of mine
lse london stock exchange
ltifr lost time injury frequency rate
m metres
mcf mine call factor
moz million ounces pan african resources plc integrated annual report 2013 169
company overview leadership statements our business philosophy operational overview corporate governance financial statements
abbreviation definition
mprda the south african mineral and petroleum 
resources development act 28 of 2002
mqa mining qualifications authority
mrm mineral resource management
mt million tonnes
mt metric tonnes
nav net asset value
nomad nominated adviser
num national union of mineworkers
opsco operations committee
oz ounce
pan african 
resources or 
the company
pan african resources plc
pgm platinum group metals
phoenix 
platinum
phoenix platinum mining pty limited
plato south african council for professional and 
technical surveyors
ppa purchase price allocation
ppe personal protective equipment
prf overall plant recovery factor
pwc pricewaterhousecoopers
rcf revolving credit facility
remco remuneration committee
rifr recordable injury frequency rate
sabs south african bureau of standards
saica south african institute of chartered 
accountants
samrec code south african code for reporting of 
exploration results mineral resources and 
mineral reserves
sarb south african reserve bank
sens stock exchange news service
sheqc safety health environment quality and 
community
abbreviation definition
sifr serious injury frequency rate
slp social and labour plan
smd stirred media detritor
smme small medium and micro enterprises
t t onnes
uasa united association of south africa
usa united states of america
usd united states dollar
trifr t otal recordable injury frequency rate
tsf tailings storage facility
uk united kingdom
vat valueadded tax
wacc weighted average cost of capital
zar south african rand pan african resources plc integrated annual report 2013 170
glossary 
of terms and abbreviations
t erm definition
adit a mining tunnel that is mined from the side 
of a mountain or mining pit
aim rules rules and responsibilities in relation to 
alternative investment market companies as 
set out by the london stock exchange
allin cash costs allin cash costs include direct operating 
costs for all mining and processing sites 
royalty costs rehabilitation costs corporate 
administration sustainable capital costs and 
major capital projects the allin cash costs 
would exclude income taxes
allin sustaining 
cash costs
allin sustainable costs include direct 
operating costs for all mining and processing 
sites royalty costs rehabilitation corporate 
administration sustainable capital costs the 
allin sustaining cash costs would exclude 
income taxes
autogenous 
mills
selfgrinding mills where a rotating drum 
throws larger rocks of ore in a cascading 
motion which causes impact breakage of 
these larger rocks and compressive grinding 
of finer particles
biological 
oxidation 
biox®
an environmentally friendly process of 
releasing gold from the sulphide that 
surrounds it using bacteria that perform this 
process naturally
black economic 
empowerment
a south african government programme 
to redress the inequalities of apartheid 
by giving previously disadvantaged groups 
who are south african citizens economic 
opportunities previously not available to 
them these opportunities may include 
skills development ownership employment 
equity socioeconomic development and 
preferential procurement
brownfield 
project
expansion upgrading of a greenfield project 
where limited information is available on the 
mineral deposit
cash cost cash costs include direct operating costs 
for all mining and processing sites but are 
exclusive of royalty costs income taxes 
depreciation and rehabilitation costs as well 
as corporate administration and capital costs
chrome tailings discards from a chrome washing plant either 
historical tailings dams or new current 
arisings
chrome tailings 
retreatment 
programme
a flotation plant constructed to recover 
pgms from chrome tailings
t erm definition
contained gold the total gold content tons multiplied by 
grade of the material being described
current arisings the live tailings discarded by the chrome 
operators’ washing plant and fed directly to 
a ctrp 
decline underground evacuation at an inclined angle 
– normally a shaft
earnings before 
interest taxation 
depreciation and 
amortisation 
ebitda
an approximate measure of a company’s 
operating cash flow based on data from 
the company’s statement of comprehensive 
income which is calculated by adding back 
interest expense taxes depreciation and 
amortisation to profit after taxation  non
recurring items such as bargain purchase gain 
loss on sale of asset held for sale and loss on 
associate are also added back
earnings per 
share
attributable profit to the parent company 
divided by the weighted average number of 
shares
effective tax rate current and deferred taxation as a 
percentage of net profit before taxation
fatal injury 
frequency rate 
number of fatalities per one million man 
hours worked
global 
reporting 
initiative’s 
sustainability 
reporting 
guidelines
an international standard that enables 
organisations to assess their sustainability 
performance and disclose the results in a 
similar way to financial reporting
grade the metal content of ore
greenfield 
project
projects started from scratch generally on 
unused land with no information on the 
mineral deposit
greenstone belt geological zone of variably metamorphosed 
matic to ultramatic volcanic sequences with 
associated sedimentary rocks that occur 
within archaen and proterozoic cratons 
between granite and gneiss
headline 
earnings per 
share
headline earnings attributable to the parent 
company divided by the weighted average 
number of shares
hydromining a form of mining that uses highpressure jets 
of water to wash down and dislodge rock or 
move sediment pan african resources plc integrated annual report 2013 171
company overview leadership statements our business philosophy operational overview corporate governance financial statements
t erm definition
indicated 
resource
part of a mineral resource for which tonnage 
densities shape physical characteristics grade 
and mineral content can be estimated with a 
reasonable level of confidence
inferred 
resource
part of a mineral resource for which volume 
or tonnage grade and mineral content can be 
estimated with only a low level of confidence
integrated 
annual report
a holistic and integrated representation of 
the company’s performance in terms of both 
its finance and its sustainability
king report on 
governance for 
south africa 
2009
south africa’s third groundbreaking report 
on corporate governance issued by the 
king committee on corporate governance 
in 2009 king report compliance is a 
requirement for companies listed on the jse
life of mine number of years that the operation is 
planning to mine and treat ore and is taken 
from the current mine plan
local economic 
development
a process where local government public 
business and nongovernmental partners 
work together with local communities to 
create better conditions for economic growth 
and employment generation
lost time injury 
frequency rate
the number of lost time injuries per one 
million man hours worked
metallurgical 
plant
a processing plant that treats ore and 
extracts gold
mineral reserve the economically mineable material derived 
from a measured or indicated mineral 
resource or both it includes diluting and 
contaminating materials and allows for losses 
that are expected to occur when the material 
is mined
mineral 
resource
a concentration or occurrence of material of 
economic interest in or on the earth’s crust 
in such form quality and quantity that there 
are reasonable and realistic prospects for 
eventual economic extraction
mining charter the broadbased socialeconomic 
empowerment charter for the south african 
mining industry
opencast 
mining
a surface mining technique of extracting rock 
or minerals from the earth by their removal 
from an open pit or borrow
payshoot a linear to sublinear zone within a reef 
for which gold grades or accumulations are 
predominantly above the cutoff grade
t erm definition
plant recovery 
factor
ratio expressed as a percentage of the 
mass of the specific mineral product actually 
recovered from ore treated at the plant 
to its total specific mineral content before 
treatment
proved reserve the economically mineable material derived 
from a measured mineral resource it is 
estimated with a high level of confidence
reportable 
injury frequency 
rate
the number of reportable injuries per one 
million man hours worked
reserve base a mineral reserve reported as a mineable 
production estimate – the probable and 
proved reserve
revolving credit 
facility
credit repeatedly available up to a specified 
amount as periodic repayments are made
samrec south african code for reporting of 
exploration results mineral resources and 
mineral reserves
social and 
labour plan
a complex strategic intervention planning 
and implementation document consisting of 
a variety of targets and strategies to promote 
socioeconomic growth and development 
promote employment and the advancement 
of the social and economic welfare and 
promote the use of skills and empower 
historically disadvantaged south africans in 
the community and area in which industrial 
activity mining and production takes place
stoping the process of excavating ore underground
tailings the materials left over after the process of 
separating the valuable fraction from the 
uneconomic fraction gangue of an ore
tailings slimes 
dam 
dam facilities designed to store discarded 
tailings
t otal recordable 
injury frequency 
rate
the number of total recordable injuries per 
one million man hours worked
underground 
mining
mining activities occurring below the earth’s 
surface pan african resources plc integrated annual report 2013 172 pan african resources plc integrated annual report 2013 173
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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 22 november 2013 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 t o receive the accounts and the reports of the directors and auditor thereon
2 t o approve the payment of a final dividend for the year ended 30 june 2013
3 t o reelect mrs hh hickey as a member of the audit committee
4 t o reelect mr rg still as a member of the audit comittee
5 t o reelect mr kc spencer as a member of the audit committee
6 t o endorse the company’s remuneration policy
7 t o reelect mr kc spencer as a director of the company
8 t o reelect ms p mahanyele as a director of the company
9 t o reelect mr ra holding as a director of the company
10 t o reappoint deloitte llp as auditor of the company and to authorise the 
directors to determine their remuneration
 special business for against
voting
withheld discretionary
11 t o authorise the directors to allot equity securities
12 t o disapply the statutory preemption rights
13 t o 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 2013
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 pan african resources plc integrated annual report 2013 174
first fold
third fold
third fold and tuck in
business reply
licence number
rsbhuxkslrbc
pxs
34 beckenham road
beckenham
br3 4tu
1 pan african resources plc integrated annual report 2013 175
company overview leadership statements our business philosophy operational overview corporate governance financial statements
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 22 november 2013 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 t o receive the accounts and the reports of the directors and auditor thereon
2 t o approve the payment of a final dividend for the year ended 30 june 2013
3 t o reelect mrs hh hickey as a member of the audit committee
4 t o reelect mr rg still as a member of the audit committee
5 t o reelect mr kc spencer as a member of the audit committee
6 t o endorse the company’s remuneration policy
7 t o reelect mr kc spencer as a director of the company
8 t o reelect ms p mahanyele as a director of the company
9 t o reelect mr ra holding as a director of the company
10 t o reappoint deloitte llp as auditor of the company and to authorise the 
directors to determine their remuneration
 special business for against
voting
withheld discretionary
11 t o authorise the directors to allot equity securities
12 t o disapply the statutory preemption rights
13 t o 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 2013
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 pan african resources plc integrated annual report 2013 176
 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
 company overview leadership statements our business philosophy operational overview corporate governance financial statements
contact
details 
corporate office
the firs office building
1st floor office 101
cnr cradock and biermann avenues
rosebank johannesburg
south africa
office  27 0 11 243 2900
facsmile  27 0 11 880 1240
registered office
suite 31
second floor
107 cheapside
london
ec2v 6dn
united kingdom
office  44 0 207 796 8644
facsmile  44 0 207 796 8645
ron holding
pan african resources plc
chief executive officer
office  27 0 11 243 2900
cobus loots
pan african resources plc
director
office  27 0 11 243 2900
justine james
gable communications
public relations – uk
office 44 0207 193 7463
andrew chubb
canaccord genuity limited
nominated adviser and joint broker
office 44 0207 523 8350
nigel gordon
fasken martineau llp
solicitors in the uk
office 44 0207 917 8500
louise brugman
vestor media  investor relations
public  investor relations
office 27 0 11 787 3015
phil dexter
st james’s corporate services limited
company secretary
office  44 0 207 499 3916
elizabeth johnson
finncap ltd
joint broker
office  44 0 207 220 0500
sholto simpson
one capital
jse sponsor
office  27 0 11 550 5009
wwwpanafricanresourcescom  wwwpanafricanresourcescom


Summary:
 pan african resources plc integrated annual report 2013 10
pan african resources is steadily fulfilling our vision of 
becoming a midtier precious metals mining company we 
understand that successful and sustainable businesses are not 
built overnight but rather shaped moulded and grown over 
time we also recognise that for a mining business to succeed 
and to continue to be successful one requires a number of 
elements these include quality assets the right people and 
the ability to mine safely and operate sustainably in our local 
environment 
there is no denying that the global mining industry is currently 
experiencing difficult times and south africa is no exception 
in addition to lower gold prices of late south africa has to deal 
with labour unrest and cost inflation amongst other challenges 
amidst all of this pan african resources has however been 
able to distinguish itself it has been growing prudently to mid
tier status through both optimisation of existing assets and 
via new acquisitions successful growth from a pan african 
resources perspective is not measured by more attributable 
production ounces but rather by sustainable increases in 
profitability and earnings 
we finalised the acquisition of evander mines from harmony 
gold mining company limited in february this year through 
the acquisition of evander mines our group has entered a new 
and exciting chapter in our history by adding another flagship 
operation evander mines contributes profitable production 
ounces and also has very attractive growth projects 
pan african resources is absolutely committed to delivering 
results with zero harm to our people communities and 
environment it is therefore with deep regret that we have 
to report on the following two fatal accidents suffered during 
the year
 on 17 november 2012 gert fourie a fitter employed at 
sheba mine was fatally injured on surface when he lost 
control of a truck he was driving when it slid off the road 
and rolled down the embankment 
 on 7 march 2013 velly therry malumane a welder 
employed underground at sheba mine was fatally injured 
when he was electrocuted whilst carrying out welding 
operations on a load haul dumper 
in this report we elaborate on how pan african resources 
will continue on a sustainable track of profitable growth 
by focusing on key performance areas such as completing 
the successful integration of our recent evander mines 
acquisition and bedding down the new barberton tailings 
retreatment plant btrp for optimal production in addition 
management spends significant effort in identifying analysing 
and mitigating critical business risks pan african resources 
has operated according to a “four pillars” business model that 
integrates the key financial social and environmental aspects 
of our operations even before integrated reporting became 
imperative in stakeholder relations
our successful bid for 
evander mines is a game 
changer and propels the 
group into midtier status 
chairman’s
report
keith spencer chairman pan african resources plc integrated annual report 2013 11
company overview leadership statements our business philosophy operational overview corporate governance financial statements
as the chairman of a focused and motivated board executive 
team and workforce it is a privilege to introduce an excellent 
set of results for this financial year and to contribute to a 
report that succinctly and clearly reveals the material features 
of this financial year and the strategies analyses and forward 
planning important to shareholders investors and other 
stakeholders 
between our key business drivers which include usd gold 
prices south african inflation wage and productivity increases 
and the usdzar and gbpzar exchange rates although 
movements in these factors cannot be accurately predicted 
pan african resources models and plans using conservative 
assumptions to ensure measured and consistent growth
it is evident that some miners strive for higher gold ounce 
production targets while not paying due attention to the costs 
incurred in reaching these targets increased gold production 
may excite shareholders and appear good in annual reports 
but the real costs of producing these ounces weighed against 
economic drivers must be thoroughly understood i am 
confident that the board executive and mine management 
of pan african resources are well schooled in these realities
the board took the decision that our active participation 
in the manica gold exploration project in mozambique was 
no longer aligned with the group’s strategy of investing and 
operating producing assets we therefore disposed of our 
interest with effect from january 2013 to australianowned 
auroch and we remain a significant shareholder in auroch
south african gold mining in context
it is no secret that the south african mining industry is 
presently under duress for a number of reasons the most 
widely publicised is the labour discord following on the 
marikana tragedy all parties should share responsibility for 
this situation and we should never allow a similar incident 
to reoccur 
societal inequality is a pressing reality in south africa it is 
however beyond the ability of midtier mining groups such 
as ours to resolve in isolation however we have to strive 
to be part of the solution in a proactive manner in our area 
of influence we offer our miners fair reward for their work 
recognition of their value and inputs and a safe working 
environment in addition to supporting workers’ health 
and our communities we trust that the sound working 
relationships we have developed with our employees and 
their representatives will continue we view all our employees 
as valued team members who contribute their productivity 
in support of pan african resources’ sustainable business 
model over the past year we created 302 employment 
opportunities during the construction of the btrp 
a further current matter is that of south african mining 
legislation and conditions laid out in the mining charter 
and proposed amendments to the bbbee act pan african 
resources wholeheartedly supports the intent of these 
regulations and legislation as these are areas where we can 
proactively help address inequality and historic disadvantages 
we are well positioned to continue to comply with both 
regulations and also best practice
global economic shifts often have a direct effect on gold 
prices and in recent months these haven’t been favourable 
world demand for commodities has been erratic and 
gold prices in particular have been weak of late a key impact 
the real costs of producing these 
ounces weighed against economic 
drivers must be thoroughly understood 
i am confident that the board 
executive and mine management 
of pan african resources are well 
schooled in these realities
2013  
highlights
what drives our results
as a gold mining business the ongoing viability of pan african 
resources depends on maintaining the optimum balance 
gross revenue in gbp increased by  
320 to £1335 million 
2012 £1011 million 
gross revenue in zar increased by 
490 to zar18481 million 
2012 zar12403 million
group capital expenditure in gbp incurred  
£276 million 2012 £174 million
group capital expenditure in zar incurred  
zar3816 million 
2012 zar2139 million
gold sold increased by 382 to 
130493oz 2012 94449oz
proposed dividend of zar01314 per 
share or zar240 million to shareholders pan african resources plc integrated annual report 2013 12
was the usa’s announcement that it will begin “tapering” its 
quantitative easing programme which has strengthened the 
us dollar and weakened gold prices although asian demand 
for physical gold remains high how this will affect gold mining 
over the next year is impossible to predict at this time but pan 
african resources is positioned to adapt as necessary within 
our low cost and high grade model 
future planning and outlook
the group’s strategic thrust in the short term is to 
consolidate our assets contain or lower costs and increase 
productivity working through all the requirements of 
managing evander mines and effectively doubling the group 
in size required immense effort and i thank harmony’s 
board and management for the proactive role they played in 
this process bedding down the acquisition is continuing this 
year and we are integrating the procurement and financial 
departments to realise efficiencies an enterprise resource 
planning erp system rolled out at barberton mines in 2012 
is being extended throughout the group to enhance financial 
controls and reporting 
a key focus of financial and operational management in 2014 
will be to contain costs so that margins and cash generation 
are maximised the finance department in particular is 
exploring synergies to optimise systems
we are happy to reward our shareholders by proposing that 
we recommence our dividend payment this year
with a solid platform for growth having been established in 
the longer term pan african resources may prudently seek 
out further acquisitions that can be profitably operated within 
our business model
appreciation and the road ahead
the board wishes to extend our sincere appreciation to our 
former ceo jan nelson who resigned during the current 
year jan’s contribution to our business was significant and his 
legacy remains
the bedrock of pan african resources remains our workforce 
– the men and women who daily competently go about their 
duties often under physically challenging circumstances – 
to ensure that our gold arrives safely at its end destination 
that we are able to announce such excellent results is their 
success as much as it is the executive and your board i would 
also like to extend my appreciation to the board for their 
support during the year
for the immediate future the board and management remain 
realistically confident experienced in mining and business we 
have lived through boom and gloom economic cycles and 
manage the group accordingly we believe that pan african 
resources has the business model and controls to continue 
viable operations through all foreseeable economic cycles
keith spencer
chairman 
16 september 2013
chairman’s report
continued pan african resources plc integrated annual report 2013 13
company overview leadership statements our business philosophy operational overview corporate governance financial statements